Oil & Gas Corporate News
Petroceltic (LON:PCI) International (PCI, 10.5p, ? 2.33%) announced the signing of a fully termed contract with KCA Deutag for a second drilling rig on the enlarged appraisal campaign on the Isarene Permit, as outlined in the recent funding announcement. KCA Deutag's Nomad class drilling rig T-211 will work alongside the existing Dalma Rig LR-12 on the Ain Tsila Field appraisal programme. Petroceltic also announced that it has signed two contracts for studies in support of the Final Discovery Report. These are with G3Baxi Partnership Limited for field development conceptual studies and with Ove Arup and Partners for a geotechnical study. These studies will assist with initial concept selection and the location of the facilities, infrastructure and pipelines for the Final Discovery Report. The T-211 rig contract period is for up to three wells and, in conjunction with the existing rig, will allow the enlarged programme of a minimum of six appraisal wells to be completed before the end of 2011, allowing sufficient time for the submittal of the Final Discovery Report on the Isarene Permit to the Algerian authorities.
Cadogan Petroleum (LON:CAD) (CAD, 43.25p, ? 3.35%) issued its Interim Management Statement for the period from 1 January to 16 May 2011. Commercial production at the Zagoryanska 3 well in eastern Ukraine continues with flow rates of approximately 42 mcm/day of gas and 8 tonne per day of condensate. Since the announcement of the deal with Eni S.p.A on 13 April 2011, good progress has been made in meeting the conditions precedent to the transaction and Cadogan intends to issue a shareholder circular and notice of general meeting by the end of May to seek shareholder approval to the transaction. Completion of the transaction is on track for early July 2011. The Group intends to award a drilling rig and services contract for a one-year period to a major company operating in Ukraine. The rig will initially deepen the Pok 1 well (suspended in December 2010) and subsequently either side-track the existing well or drill a new well at the Pok 2 location. These operations will be funded under the terms of the proposed transaction with Eni. Operations at Pok 1 are expected to commence on site in July 2011. Cadogan's cash balance at the date of this announcement is GBP22.9 million ($37.1 million). Monthly…
