Mercom Capital plc (MMO)


Thursday's oil and gas news

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Mercom Oil Sands soared on Thursday, while Bridge Energy slumped. Read our round-up for more about the ups and downs in the sector.

Mercom climbs on sale promise

Canadian-focused Mercom Oil Sands (MMO) was one of Thursday's fastest climbers on AIM after it revealed that Mauricio Trevino Zambrano, a minority holder, had formed a company to make a bid for Nordic Petroleum and, if he was successful, intended to enter into negotiations with Mercom to sell it a 100% interest in the four Chard Oil Sands Leases, Canada.

There is no binding arrangement between Mercom and Zambrano, but the company welcomed the news, calling it "an encouraging sign of shareholder support".

Mercom recently failed to secures a farm-in agreement for the Chard Oil Sands leases.

Bridge Energy ups production

Bridge Energy's () interim update showed an increase in production, but also a jump in operating losses.

Production averaged 1,167 barrels of oil per day (bopd) for the third quarter, up from 1,096 bopd a year before.

Petroleum revenues totalled 50.6 million Norwegian krone (£5.6 million), up from 26.8 million krone.

The company had an operating loss of 58 million krone for the third quarter, compared with an operating loss of 6.1 million krone during the third quarter of 2011.

Shares in the firm fell 14% on Thursday.

Analysts at FoxDavies commented: "We believe that this is a good update, and one that points towards a positive outlook for the company.

"The only drag arising from today's statement is the fact that there is no progress on the development assets."

Antrim reveals North Sea drilling

Shares in Antrim Energy (AEY) jumped 7% after the company confirmed drilling was underway on the Cyclone Prospect in the North Sea.

Antrim said it had been informed by prospect operator LSE:PMO:Premier Oil that Well 21/07b-4 was being drilled, which will target the Tertiary Cromarty sandstones at a drilling depth of approximately 5,000 feet true vertical depth.

Antrim and Premier acquired the licence in the 26th seaward licensing round, announced in 2010.

Tangiers issues shares

Tangiers Petroleum () has announced that it has issued 10 million fully-paid ordinary shares at a price of 18p per share.

This made up the second tranche of a private placement announced on 24 September and was in accordance with resolution six, approved at Tangiers' general meeting held on 16 November.

Trading in the new shares is expected to commence on AIM on or around 23 November.