Oil & Gas Corporate News
San Leon Energy (LON:SLE) (BUY, £0.65) (SLE, 30.75p, ? (8.85%)) announced that, subject to Irish governmental approval, OMV (Ireland) Killala Exploration GmbH has agreed to pay £3m to San Leon to be removed from the Irish Continental Shelf Petroleum Exploration Licence No: 3/05, the ?Rockall Licence? and assign San Leon with 100% interest in the licence. OMV and San Leon, through a subsidiary, currently each hold an undivided legal interest and 50% beneficial interest in the Rockall Licence. Subject to government approval, OMV will assign its 50% interest to San Leon and pay San Leon £3m. The agreement will become effective upon receiving Irish government consent and executing a deed of assignment between the respective parties. San Leon is currently engaged in a farm out process relating to its Irish Atlantic Margin assets with significant equity being made available on all licenses, including the Rockall Licence which comprises the Killala and Kingfisher prospects.
Comment: Licence 3/05 is the northernmost of the Atlantic Margin blocks on the West of Ireland in the Company?s portfolio. It is located in water depths of 1,900-2,300m and the Killala Prospect is estimated to have GIIP of 4.0TCF in Triassic Sherwood Sandstone. The Block was part of the Island Oil & Gas portfolio that San Leon acquired for a total consideration of £10m. Today?s news is a positive development as it enables the Company to seek farm-in partners from a stronger base and also provides a £3m unexpected pay-back. We remain very positive on the stock.
Gulfsands Petroleum (LON:GPX) (HOLD, £3.50) (GPX, 375p, ? (2.60%)) provided an update on its operations in Tunisia. ADX Energy, the Operator of the Chorbane Block onshore Tunisia, has advised that is has now signed a Letter of Intent with Challenger Limited for the use of the Rig 37 onshore drilling unit to drill the planned 2150m Sidi Daher exploration well. The spud date for the well is currently expected to be in early February, subject to completion of civil works and receipt of approvals from the Tunisian authorities. The Sidi Daher prospect contains multiple potential reservoir intervals of Tertiary and Cretaceous age that will be evaluated with this well. ADX has estimated prospective resources of 175BCF of gas in the Eocene aged Metlaoui Formation and 44mmbbl of oil in the Cretaceous aged…
