Oil & Gas Corporate News
Mediterranean Oil & Gas (MOG, 20.13p, ? (0.0%)) announced the appointment of CIBC World Markets to advise the Company in a review of its strategic options, which may include a sale of the Company or the divestment of certain assets. This was to address the combined effect of Legislative Decree no. 128, which amends the Italian Environmental Code, restricting development of oil and gas fields within 5 miles of the Italian shoreline and within 12 miles of natural reserves , and the adverse economic climate which were materially impairing the Company's ability to raise further funds required to develop and progress its exploration, development and producing assets, as well as to meet the Company's future working capital requirements. As part of the strategic review process, the Company and CIBC have been in a number of discussions regarding potential strategic alliances and funding solutions for the Company. As part of these discussions and considering the Company's longer term financing needs, the Company is in dialogue with its bank to extend the maturity of the Company's loan facility which is due for repayment in September 2011. The Company continues to review its operational and exploration activities with the aim of preserving its cash resources and manage its working capital whilst it seeks further finance. Negotiations with potential investors are on-going and the Company is hopeful that one of the current opportunities will resolve the Company's financial position satisfactorily. There can be no certainty that these discussions will result in a satisfactory outcome. Regarding the Decree, there has been no further clarification from the authorities as to whether fields upon which previous exploration has confirmed the existence of commercial hydrocarbon quantities are exempted thereunder. As previously stated, the Company intends to challenge any assessment that the Decree is applicable to Ombrina Mare.
Global Energy Developments (GED, 100.25p, ? (0.0%)) announce a summary of its new UK reserve report dated 31 December 2010, which has been produced by the independent petroleum engineers Ralph E. Davis Associates, Inc ("RED"). The Company has also completed an additional reserve data document this year reflecting the requirements of Canadian Form 51-101. GED?s proved and probable net reserves at 31 December 2010 are approximately 47MMbbl and 76MMbbl respectively. Both the UK reserve report and the complete 51-101 report will be posted on the Company's website for review by qualified parties.
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