Rabul-2 hit some 101.5 feet of net oil pay across the Yusr and Bakr formations, and the company expects the well will be completed as a new producer connected to processing facilities at the Meseda field.
It marks the final commitment well for West Gharib, following the Rabul-1 well which in the summer hit 14.5 feet of heavy oil pay before being completed as a producer. SDX chief executive Paul Welch said: “We are encouraged by the result, which reaffirms our view of the area's significant development potential.
“The well came in ahead of expectations, based upon the results of the offset Rabul 1 location. The ultimate potential in this new Bakr structure is currently under review and will be better understood once the well is completed and tested.”
Sound Energy PLC (LON:SOU) has struck a deal to sell its entire Italian portfolio of assets, allowing it to focus on core assets in Morocco. The deal is, however, structured as a share-based transaction that’s more akin to a ‘spin-out’ rather than a cash boosting exchange.
Sound is selling the assets to Saffron Energy plc (LON:SRON), which is at the same time combining with its major shareholder (with 53%) ASX-listed Po Valley Energy Limited (ASX:PVE), and it will reboot as a new vehicle called Coro Energy. James Parsons, Sound chief executive, will become chairman of the new company.
Green Dragon Gas Ltd (LON:GDG) detailed three new supplementary agreements between its subsidiary Greka Energy and China United Coalbed Methane Corporation (CUCBM) which confirm that exploration activities can begin for three blocks in China.
The new agreements with CUCBM, a unit of state backed CNOOC, will allow the partners to advance operations across the Fengcheng (GFC), Qinyuan (GQY) and Panxie East (GPX) Blocks. Additionally, the proposed exploration period has been extended until the second quarter of 2019.
Oil-junior, Canadian Overseas Petroleum Limited (LON:COPL, CVE:XOP), has announced a new £2.5mln funding, with new shares being issued at a price of 1p each.
Cash raised in the equity funding is earmarked to cover on going general and administrative expenses which mainly comprises covering the head count of geologists, a geophysicist, reservoir engineers, a drilling engineer as well as in-house counsel.
The company said it has achieved ‘encouraging progress’ in the project funding efforts, adding that it remained confident that it will meet the target to drill an appraisal well with an early production scheme following shortly after.
Arthur Millholland, COPL chief executive, said in a statement : "This placing will strengthen our balance sheet while we concurrently work towards finalising the project financing, operations program and plan for our OPL 226 project offshore Nigeria."