logo-loader

Proactive weekly oil and gas news summary including Genel Energy, Afren, Providence Resources and Madagascar Oil

Published: 18:02 09 Aug 2014 AEST

middle_east_map_350_53e4ee731c8dc

Kurdistan- based oil firms were certainly in focus at the week's close as US jets bombed Islamic State-controlled artillery positioned within half an hour of the region’s capital.

President Barrack Obama authorised airstrikes against the militant group to protect Erbil, and American personnel there. He also approved US air drops of supplies to the stranded communities.

The escalating conflict in northern Iraq saw oil shares such as Gulf Keystone (LON:GKP), Afren (LON:AFR) and Genel Energy (LON:GENL) decline rapidly last week. 

GKP and Afren, each with billion barrel oil projects in relative proximity to the fighting, to the north west of the region’s capital Erbil, were the hardest hit with the respective shares trading at their lowest for a number of years.

Genel Energy (LON:GENL) told investors that its producing oil fields in the Kurdistan region of northern Iraq are safe and secure.

Operations remain unaffected, the company said, and production from the Taq Taq and Tawke fields averaged a combined gross rate of 230,000 barrels per day this week.

“We remain confident in the Kurdistan Regional Government's ability to maintain the territorial integrity of both the Kurdistan Region of Iraq and oil infrastructure,” the company said in a stock market statement.

The company did reveal, however, that non-essential personnel are being withdrawn from the non-production operations.

Shares in Providence Resources (LON:PVR) advanced on Thursday due to a subtle yet positive step forward in the company’s planned farm-out of the Barryroe project.

The company revealed that it had secured a one year extension to the current exploration phase of the Barryroe licence as well as an option over adjacent acreage.

Curiously, Providence also announced it had been given permission to transfer its interest and operatorship of the project into Exola Limited, a wholly owned subsidiary of the company.

Chief executive Tony O’Reilly said the change had been made in order to facilitate ongoing commercial discussions.

Madagascar Oil (LON:MOIL) told investors it has agreed with government agencies amendments to the company’s production sharing contract for the Tsimiroro block.

The exploration period of the PSC has been extended while progress is made towards development and securing title for a 25-year exploitation period.

It has until early November to submit a development plan for Tsimiroro, which was declared commercially viable in May and was subsequently given clearance for six months of test sales.

As a result of last month’s acquisition, Trinity Exploration & Production (LON:TRIN) now has the necessary scale to establish its targeted “mid-tier dominance” in Trinidad, according to City broker Investec.

The £23mln deal with Centrica delivers four undeveloped gas discoveries which the company believes can be fast-tracked greenfield development project, with an anticipated production plateau of 80,000 cubic feet per day (10,700 barrels oil equivalent).

Repeating a ‘buy’ recommendation Brian Gallagher, Investec analyst, says whilst new funding and project execution is required the resulting cash flow for Trinity would be material.

Elsewhere, Petroceltic International (LON:PCI) told investors that a settlement has been agreed for legal action launched last year.

The company began legal proceedings last July in the High Court of Ireland against two parties the previous board signed service and consultancy deals with in 2004 and 2005 for its North African business activities.

The move followed threats of legal action against the oil explorer from one of the parties looking for a US$3.4mln payment.

Leni Gas & Oil (LON:LGO) announced the promotion of James Thadchanamoorthy to the board as the group’s new finance director.

Thadchanamoorthy, 41, has joined the company in 2012 following more than 10 tens at BP.

Chief executive Neil Ritson said: “We are delighted to welcome James to the board of LGO.

“As the company has grown and matured over the past few years James has supported that development from his position as director of finance and he will now take up the formal full-time role as finance director reporting to myself."

Tangiers Petroleum’s (LON:TPET, ASX:TPT) GALP operated well drew a blank.

Having revealed initial disappointment early last week, with no hydrocarbons in a secondary target, the company has now confirmed that Trident (the well’s primary target) wasn’t successful either.

The well was drilled to a total depth of 3,518m MD and did not encounter favourable reservoir quality in the Trident prospect, Tangiers said.

TAO-1 well will now be plugged and abandoned and the data used to assess the prospectivity of the Tarfaya Offshore Blocks I - VIII.

Poseidon Nickel signs binding agreement with Mineral Resources to divest...

Departing Poseidon Nickel Ltd (ASX:POS, OTC:PSDNF) CEO Craig Jones and incoming CEO Brendan Shalders join Proactive’s Jonathan Jackson to discuss the divestment of Lake Johnston to Mineral Resources Ltd (ASX:MIN). Jones, who has played a pivotal role in this strategic move, shared insights on...

4 hours, 44 minutes ago