European Goldfields (LON:EGU) Ltd (EGU LN, 795.0p, ▲ 0.95%) announced that the Supreme Court of Yukon has granted the Company an interim order to commence the process of securing the required approvals pursuant to which Eldorado Gold Corporation will acquire all of the issued and outstanding securities of the Company via a plan of arrangement under the Yukon Business Corporations Act. The Arrangement is expected to close on or about February 24, 2012 and it is expected that the common shares of the Company will be delisted from the TSX and AIM as soon as practical thereafter.
African Minerals Ltd (AMI LN, 516p, ▼ 4.44%) announced the launch of a book-build offering of up to US$350 million of Convertible Bonds due 2017. The Company intends to use the net proceeds of the Offering primarily for the continued expansion of production at its Phase I Tonkolili iron ore operation to 20 million tonnes per annum. The Bonds are expected to have a coupon of 8.50% payable semi-annually in arrear and will be convertible into fully paid ordinary shares of the Company. The conversion price is set at US$10.98 being GBP 7.00 converted into US$ at today's exchange rate. The Company may increase the US$300 million issue by up to US$50 million.
Metminco (LON:MNC) Limited (MNC LN, 11.38p, ▲ 1.1%) announced its quarterly activities report for the 3 months to December 2011. The Phase 3 drilling program at Los Calatos was completed during Q4 2011. Final results from the Phase 3 drilling program completed in Q4 2011 include: 1,220 m @ 0.36% Cu, 153 ppm Mo, 347 m @ 1.03% Cu, 103 ppm Mo.
Oil and Gas News
Gulfsands Petroleum (LON:GPX) PLC (UNDER REVIEW) (GPX LN, 166.5p, ► 0.0%) today provided an update on operations in Syria. Drilling, logging and well testing operations have now concluded at the Khurbet East 102 ("KHE-102") appraisal well, which has tested the structural elevation, reservoir quality and reservoir fluids present in the Triassic Butmah and Kurrachine Dolomite Formations on the north flank of the field some 2.3 kilometres north of the Khurbet East 101 well ("KHE-101") drilled earlier in 2011. Originally spudded on October 13th 2011, KHE-102 has encountered gas and oil in the Butmah Formation and the results of the well are interpreted to be generally consistent with pre-drill expectations. The hydrocarbon columns and reservoir characteristics interpreted in the KHE 102 well are also seen as broadly confirming the Company's initial estimates of total recoverable hydrocarbon volumes from the Butmah Formation of 19.2 million barrels oil equivalent. KHE-102 encountered the Butmah Formation at a depth of 2847 metres Measured Depth below rotary table, and 2442 metres True Vertical Depth below mean sea. Interpretation of results confirms the presence of an oil reservoir with an overlying gas cap as seen in the original oil discovery at KHE-101. The KHE-102 production test initially flowed wet gas with a condensate yield of 49 bbls per MMcf, but as a result of the failure of the packer, it was not possible to subsequently flow oil from the oil leg. The well was deepened to the Triassic Kurrachine Dolomite Formation, which was encountered 7 metres shallow to prognosis at 3119m MD brt (2714m TVD bmsl). In spite of extensive shows of light oil being present on drill cuttings and a single core section recovered below this depth, the Kurrachine Dolomite failed to flow oil during an open-hole test, even following acidification of the reservoir interval, probably as a result of the absence of natural fractures within the low permeability reservoir interval at this location.
Overall, 2011 proved to be a positive year for Gulfsands Petroleum. Both Khurbet East and Yousefieh oil fields continued to perform extremely well during the year. Four new production wells were drilled raising oil production to a level in excess of 24,000 barrels of oil per day ("bopd") by August, prior to the impact of European Union sanctions. A total of seven exploration wells were drilled in 2011, four of which were oil discoveries, including Yousefieh East, Al Khairat and the Khurbet East Field Butmah Formation in Syria, and Sidi Dhaher in Tunisia. The potential development of oil and gas accumulations in the Khurbet East Field Butmah formations was declared to be commercial in December 2011. The Company's hydrocarbon reserves are currently being evaluated for all fields and results will be released in early April 2012.
San Leon Energy (LON:SLE) (BUY, 50p) (SLE LN, 9.9p, ▼ 2.54%) today announced the formation of an advisory committee. The Advisory Committee will initially be made up of the three members, Nick Butler, Gerard Medaisko, and Robert Price, with Nick Butler also serving as the Advisory Committee's Chairman. A key role of the Advisory Committee will be to work alongside the management team and evaluate new opportunities that the Company is investigating.
Oilfield Services News
Capital Drilling (LON:CAPD) (BUY) (CAPD LN, 89p, ► 0.0%) The group announced that it has concluded a comprehensive debt refinancing package to support current contract awards and expected continued growth. The refinancing package involves increasing the Groups bank facility limit to $47m from the existing facility of $15m, consisting of a $17m term loan and a $30m revolving credit facility. The new facility lowers the cost of funding by around 15 BP (LON:BP.) (1.5%).
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