Oil and Gas Corporate News
Cairn Energy (LON:CNE) plc (CNE, 289.7p, ? 2.95%) released its half yearly results. Highlights: Sale of 40% shareholding of the fully diluted share capital in Cairn India Limited (CIL) to Vedanta Resources plc (Vedanta) to be completed in two stages - the first tranche of 10% which realised $1.4 billion completed July 2011 and the second tranche of 30%, approved by the Government of India (GoI) in June, subject to certain conditions, will realise $4 billion; Two of the GoI conditions - Cess and Royalty payable - are currently with CIL shareholders for approval, Cairn has voted to accept these conditions, with voting results due on 14 September 2011; The Mangala field is currently producing at a rate of 125,000 barrels of oil per day (bopd): Bhagyam development on track; scheduled to commence production in Q4 2011; Multi well, multi basin Greenland exploration campaign ongoing, using two rigs; Gross operated production: 166,527 boepd (H1 2010: 87,523 boepd); Average net entitlement production: 77,056 boepd (H1 2010: 32,866 boepd); Group revenue on a continuing basis $1.3 billion (H1 2010: $333 million); and at 30 June 2011, the Group had net cash of $1,003 million (H1 2010: $267 million). CIL had net cash of $1,048 million, comprising $1,452 million cash and $404 million debt. PLC/Capricorn had net debt of $45 million, comprising $75 million cash and $120 million debt.
Ascent Resources (LON:AST) plc (BUY, £0.15) (AST, 2.97p, ? 9.17%) has successfully completed the drilling of the Pg-10 well at the Petiovci Project in Slovenia. The results confirm the reservoir quality and potential commerciality of the Middle Miocene reservoir section, which is independently estimated to contain over 400 Bcf of gas-in-place, and delineate the substantial new deeper reservoir section discovered by the Pg-11A well. The Pg-10 well was drilled to a total depth of 3,545m. The appraisal of the deeper Miocene or 'K' sand reservoirs showed a total of approximately 123m of new net additional reservoir with 63m of good to moderate sand quality along with another 60m of poorer quality sands in a 370m gross reservoir section. Importantly, gas is present throughout the 'K' sand in PG-10 and with the total depth of the well 45m below Pg-11A, it increases the depth of the deepest known gas. The independent audit of the gas-in-place estimate of 412…
