Thursday's oil and gas news: Petro Matad hails Mongolian opportunity
20th December 2012 11:07
by Darshini Shah from interactive investor
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Seven oil and gas companies, including Petro Matad, Circle Oil and Sound Oil, updated investors on Thursday. Read our round-up...
Petro Matad issues Mongolia update
on Thursday stressed that the three production sharing contract licences it holds in Mongolia represent "a significant frontier exploration opportunity" as it provided investors with an operational update.
In blocks IV and V, the prolific Junggar, Turpan and Erlian basins have been identified as structural and depositional analogues. In-house basin modelling has been carried out to document source rock maturation and hydrocarbon generation. This work has resulted in an additional petroleum system being postulated for blocks IV and V to complement those already established.
The prospectivity of Block XX has been re-evaluated based on reinterpretation of existing seismic data and previous exploration results. Mapping of Petro Matad seismic data in Block XX and public domain data in Block XIX showed the structural trends that comprise the Tolson Uul oil fields in Block XIX extending into the north-western part of Block XX.
Petro Matad explained that the next steps were to conduct regional and detailed seismic in 2013 to confirm these leads as drillable prospects and to identify other independent leads that it said undoubtedly exist within these large basin areas. Short-term (two year) and long-term (five year) work programmes have been established for this purpose, with the hope of drilling four to six exploration wells in 2014, with a further two or three wells in each of the following three years.
Providence Resources hails "landmark" 2012
has called 2012 a "landmark year" as operations on the first well in its multi-well, multi-year drilling programme offshore Ireland were successfully completed.
The first of six wells in this programme was successfully drilled and subsequently tested in March 2012 at the Barryroe oilfield in the Celtic Sea Basin.
Plans are in place for three further wells to be drilled in 2013 at Spanish Point and Dunquin, with the potential to open up Ireland's Atlantic margin, and in the Kish Bank Basin. A further two wells are planned for 2014, in the Rathlin Basin and at Dragon in the St. George's Channel Basin.
Plexus Holdings signs Total as a consulting partner
French oil and gas operator has signed up as an additional consulting partner to joint industry project (JIP) to develop and commercialise a new and safer subsea wellhead, utilising Plexus's patented POS-GRIP technology.
The JIP is focused on developing a new subsea wellhead, HGSS, to address key technical issues and requirements highlighted by regulators following the Gulf of Mexico disaster in April 2010. All members of the JIP have been contributing to the design and engineering process and attending regular meetings, and it is Plexus's goal that they will become end users once the wellhead has been fully built, tested and commercialised. All intellectual property generated by the JIP will be owned by Plexus, and will be added to the company's extensive and unchallenged POS-GRIP patent suite.
Circle Oil agrees $12.5m working facility
has agreed a $12.5 million (£7.7 million) secured working capital facility with Ahli United Bank Egypt.
The funds secured will be used to finance ongoing expenditures in respect of Circle's 40% interest in the North West Gemsa (NWG) concession in Egypt, allowing Circle to use its available cash balances of around $20.5 million for alternative projects.
The facility has a term of two years and is secured primarily on some of Circle's receivables from the Egyptian General Petroleum Company (EGPC) to which it sells its production from NWG. The facility attracts interest at a rate of Libor plus 4.25%. Under the terms of the facility, Circle has the right to draw down up to the principal sum to fund ongoing expenditures in NWG; and the option to pre-pay any outstanding amount with accrued interest, subject to minimum repayment amounts of $1 million.
"[Thursday's] announcement is important strategically for Circle as it recognises the value of Circle's producing assets in Egypt, lifts some of the uncertainty surrounding the receipt of outstanding EGPC payments [and] strengthens Circle's liquidity position, freeing capital to accelerate other parts of the portfolio," commented Keith Morris, analyst at Investec.
He added: "The shares remain attractively priced, trading at a significant discount to our core net asset value of the existing producing assets in Egypt and Morocco of 27p [per] share, so we see the current exploration programme as effectively 'in for free'. Buy."
Sound Oil promises "exciting" first quarter
Italian-focused upstream oil and gas company has promised the first quarter of 2013 will be "an exciting period" as it provided an operational update.
The company confirmed its decision to maintain a 100% ownership position on the Nervesa Appraisal Well "despite recently having received various approaches and one firm (and attractive) offer". An environmental impact assessment (EIA) was approved by the Treviso Province authorities on 8 November. The approval process was continuing, with Sound estimating that final approval for the drilling operation would be received in January with well spud expected around the end of January.
The Laura permit in Calabria is expected to be awarded early in the new year, with Sound Oil confirming its intention to drill the offshore reservoir from the onshore. "This is significantly cheaper than traditional offshore drilling and also heavily reduces the associated environmental risks," the company explained. To facilitate this, Sound Oil has applied for a nearby onshore permit, which should be awarded in 2013.
The Marche Region has issued a confirmation that award of the Santa Maria Goretti Licence will be exempt from an EIA approval. As a result of this simplified process, the company expects to be awarded the permit during the first quarter of 2013.
Finally, operations at the Rapagnano site have commenced. Sound expected to complete the re-entry of the Rapagnano well and the test of well deliverability by 7 January, with the company targeting first gas in mid-January.
Gasol announces strategic alliance
West African energy development company has signed a strategic alliance agreement with Socar Trading (STSA) in relation to its proposed liquefied natural gas (LNG) import project in Benin.
Under the terms of the alliance, STSA will supply all LNG required for the project and assist Gasol with the provision of a floating gas storage and regasification vessel in the harbour at Cotonou, Benin. The project involves the regasification of LNG and the supply of that gas to power and industrial customers in Benin, Togo and Ghana.
"The strategic alliance is a key development for Gasol, as it ensures the supply of LNG and the storage and regasification vessel on competitive terms, important components in putting the project together," the company stated. "It also allows STSA to leverage its LNG capability to support Gasol's project and to build its presence in West Africa."
Chariot Oil and Gas announces board changes
Paul Welch has stepped down as chief executive of "to pursue other business interests". James Burgess, previously commercial director, has also left the company to develop new business opportunities.
Larry Bottomley, previously executive chairman, has replaced Welch as chief executive and Philip Loader, previously non-executive director, has been appointed non-executive chairman. Mark Reid has been appointed to the board as chief financial officer. Heindrich Ndume has moved from country director, Namibia, to non-executive director and George Canjar has become senior independent non-executive director.