Oil and Gas Corporate News
Afren (LON:AFR) (AFR, 146.2p, ? 1.88%) announced yesterday the acquisition of interests in two contiguous Production Sharing Contracts ("PSCs") located in the Kurdistan region of Iraq. The Company has agreed to acquire an operated 60% participating interest in the Barda Rash PSC from Komet Group S.A. ("Komet") and a non-operated 20% participating interest in the Ain Sifni PSC from the Kurdistan Regional Government ("KRG"). The Acquisition delivers independently certified 890 mmbbls net 2C resources and total net un-risked resources of 1,074 mmbbls. Total acquisition cost is approximately US$588.25 million (US$0.66 per 2C bbl) inclusive of approximately US$81.0 million back costs and US$14 million 2011 capex related to Ain Sifni. The acquisition will be funded by a combination of equity financing, corporate credit facility, existing cash resources and cash flows from existing operations. The Company announced a proposed placing of up to 83,679,544 new ordinary shares representing about 8.49% of the existing issued share capital. BNP Paribas and VTB Capital mandated and terms and conditions agreed for an up to US$200 million corporate credit facility.
Providence Resources (LON:PVR) (PVR, 255p, ? 2.0%) announced that it has successfully completed the 3D seismic acquisition project in Frontier Exploration Licence (FEL) 4/08 in the Porcupine Basin, off the west coast of Ireland. This survey was carried out in an area adjacent to the Spanish Point and Burren discoveries. Providence operates FEL 4/08 (32%) on behalf of its partners, Chrysaor E&P Ireland Limited (60%) and Sosina Exploration Limited (8%).
Northern Petroleum (LON:NOP) (NOP, 79p, ? 1.25%) announced an update on its Southern Adriatic permits containing the Rovesti and Giove oil discoveries, which hold a combined 53.2 million barrels of 2P reserves. Highlights: Approval of increase in work programme on each of Southern Adriatic permits F.R39.NP and F.R40.NP to include 3D seismic of up to a maximum of 600km2 by Ministry of Economic Development; Contract signed for a 2D seismic survey over permits F.R39.NP and F.R40.NP, with survey scheduled to commence in late Q3 / early Q4 2011 to assist with de-risking of significant exploration prospects; and planning for two 3D seismic surveys scheduled for Q4 2011 will now intensify, targeting the Rovesti and Giove oil discoveries and a significant exploration prospect within the F.R39.NP and F.R40.NP permits.
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