Oil & Gas Corporate News

Circle Oil (BUY, £0.72) (COP, 34.25p, ? (3.79%)) announced that the KSR-8 well, the most promising of the 2008/09 Moroccan drilling campaign in its Sebou Permit, has commenced extended test production. This follows the completion of engineering works and surface facilities construction. As announced in our December 2009 operational update, following completion of furnace maintenance by our consumer in the first quarter 2010, production in the permit will increase to a range determined by the consumer's day to day requirements but will not exceed 2.5MMscfd until the planned new 6" gas trunkline capable of delivering 16.0MMscfd is installed. Engineering, planning and preparations for the new infrastructure continue. With the start of production from KSR-8 other producing wells in the area will be periodically shut in for pressure build up tests as part of technical evaluation.

In line with expectations, the prognosed winter rainfall and associated flooding in the Rharb Basin has occurred and work on the new drill sites has been temporarily curtailed. Civil engineering work and drilling will recommence when conditions permit.

Comment: Excellent news out of Morocco this time for Circle Oil, after all the recent positive news flow coming out of Egypt. The production, albeit temporarily curtailed, should provide the Company with a US$4-6m cash flow on an annual pro-forma basis. This cash flow nicely complements the current cash flow of US$25-30m, also on an annual pro-forma basis, that current production levels in excess of 6,000b/d deliver out of the NW Gemsa concession in Egypt.

Regal Petroleum (RPT, 81.5p , ? (3.55%)) announced it has appointed former BP Plc manager Alastair Graham as a non-executive director. Before retiring from BP, Graham held a number of senior management roles and served as the leader of its Russia business unit and its shareholder representative for the TNK-BP joint venture.

Mining Corporate News

Anglo Pacific Group (APF, 241.5p, ? (0.73%)) announced that on 29th December 2009 it acquired a 1% Net Smelter Royalty on all future uranium  production  from  the Spanish  and Portuguese properties owned by Berkeley Resources Limited at a cost of A$4,137,500. As part of the royalty acquisition the Company also agreed to purchase from the MRA shareholders 750,000 ordinary fully paid shares for A$862,500, subject to completion.

Minco (MIO, 3.75p, ? (3.45%)) announced that its TSXV quoted subsidiary, Xtierra  Inc., yesterday reported it has completed oxide metallurgical test…

Unlock the rest of this article with a 14 day trial

Already have an account?
Login here