Afren (AFR)

 

Oil, Gas Roundup

Afren's (LON:AFR) shares were suspended after the Nigeria-focused oil producer warned that near-term output was likely to be materially lower than the assumptions announced alongside the proposed restructuring on 13 March.

Afren says there is significant uncertainty at this stage regarding the outcome of the review.

Afren says that as the review reaches a conclusion, it will be further engaging with the ad hoc Committee of bondholders regarding its request for an additional US$30 million in net cash proceeds borrowed under the Bridge Securities, and with other stakeholders, as appropriate, to discuss the potential implications on the proposed Restructuring, including its timeline.

Given the material uncertainty of the results of the above-mentioned review, Afren is unable to assess accurately its financial position and inform the market accordingly at this stage, and therefore the company has requested the suspension of trading in its shares. A further update will be provided to the market as soon as practicable.

* * *

Roxi Petroleum (LON:RXP) said a pipe stuck at the bottom of Deep Well A5 has led it to decide to side-track the well from a depth of 4000 metres. This work was expected to take one month to complete.

Following the completion of the sidetrack casing will be set to the full depth of the well, which will allow a conventional a 90-day well test to commence at the end of Q3 2015.

As for Deep Well 801, Roxi said it has now been drilled to a total depth of 5050 meters, into Lower Carboniferous. The lower part of the well will now be cased, and the well logs for the final 260 meters drilled are being examined to detect any additional oil-bearing intervals.

"Further announcement of what we find in this interval will be made in due course."

* * *

Frontera Resources Corporation (LON:FRR) has signed a strategic memorandum of understanding with Ukraine's national energy company, National Joint Stock Company Naftogaz of Ukraine.

The MOU serves to establish a focused joint effort to work together in upstream exploration and production projects in Ukraine, as well as to study the possibility to bring liquefied natural gas (LNG) to Ukraine from Frontera's ongoing work in Georgia where it has identified combined prospective natural gas resources of as much as 12.9 trillion cubic feet (365 billion cubic metres) of gas-in-place, with as much as 9.4 trillion cubic feet (266 billion cubic metres) of recoverable prospective natural gas resources at the Mtsare Khevi Gas Complex and Taribani Field Complex. These natural gas resources were recently announced by Frontera earlier this year and confirmed in reports by the U.S.-based independent consulting firm of Netherland, Sewell & Associates.

* * *

Xtract Resources (LON:XTR) has intersected a new reef system which is open along strike and depth at the Colin Mining Area of the Chepica gold and copper mine in Chile.

Last month development at the Colin mining area got underway to access a reef system 45m below surface previously intersected by surface boreholes. The company has announced that it estimated this area could contain approximately 100,000oz of gold (estimated from surface to a depth of 150m below surface over a 1km strike-length) and could significantly increase the life of the mine.

Jan Nelson, CEO of Xtract, said: "Whilst we continue to drive development to the main reef system in the Colin mining area, we will now drive two additional prospect development ends on the newly discovered reef system.

This will impact positively on not only the grade but also the tonnage profile of the mine. We will also increase the amount of underground drilling planned to prospect for more reef systems in the area. These results once again demonstrate that the Chepica mine continues to show potential to develop into a significant gold project."

* * *

Tower Resources (LON:TRP) announces a placing and subscription to a raise about £5.2m, after expenses, through the issue of new shares at 0.19p each.

It also noted the completion of negotiations for a 100% interest in the Thali PSC located in a sub-basin of the prolific Niger Delta, offshore Cameroon.

Tower also announced the pursuit of a new strategic regional initiative in Namibia, an underexplored and highly prospective region.

At 4:14pm:

(LON:AUR) Aurum Mining PLC share price was 0p at 1.15p

(LON:BOR) Borders Southern Petroleum PLC share price was -0.03p at 4.25p

(LON:CHAR) Chariot Oil Gas Ltd share price was -0.17p at 8.41p

(LON:DGO) Dragon Oil PLC share price was -2.25p at 724.25p

(LON:ENQ) EnQuest Plc share price was -1.12p at 41.13p

(LON:FOGL) Falkland Oil Gas Ltd share price was -0.87p at 27.38p

(LON:FRR) Frontera Resources Corporation share price was -0.06p at 0.73p

(LON:GKP) Gulf Keystone Petroleum share price was -0.12p at 34.38p

(LON:GPX) Gulfsands Petroleum PLC share price was +0.01p at 9.88p

(LON:INDI) Indus Gas Ltd share price was +0.13p at 112.5p

(LON:PET) Petrel Resources PLC share price was 0p at 3p

(LON:RKH) Rockhopper Exploration PLC share price was +0.38p at 66.38p

(LON:RPT) Regal Petroleum PLC share price was +0.01p at 4.99p

(LON:RXP) Roxi Petroleum PLC share price was -2.38p at 11.5p

(LON:TRP) Tower Resources PLC share price was +0.01p at 0.2p

(LON:XEL) Xcite Energy Ltd share price was -0.25p at 33p

(LON:XTR) Xtract Energy PLC share price was +0.01p at 0.28p