Oil and Gas Corporate News
Independent (LON:IIT) Resources (LON:IRG) (IRG, 38.5p, ? 9.41%) released its interim report for the six months ended 31 March 2011. Financial highlights: Net cash of GBP2.8 million; Committed third party funding at subsidiaries of GBP4.75 million; and interim loss before tax of GBP467,000. The Company also noted its intention to execute an appraisal programme for the Rivara gas storage project with the objective of documenting the technical, legal, and financial package underpinning the Final Investment Decision. The strategy includes the participation in Rivara of a large, integrated natural gas operator. The Company also highlighted the work carried out by DeGolyer and MacNaughton and Fugro-Robertson on the Ribolla asset with estimated original gas in place and gross prospective gas resources (mean estimates) for the main coal seam, together with associated low-grade coal and organic matter-rich shale of 537 and 160 billion cubic feet respectively. The Company expects to open a data room shortly so as to attract a suitable partner with unconventional gas operational experience for the development of Ribolla.
Mediterranean Oil & Gas (MOG, 9.5p, ? 7.32%) announced the signing of a gas sales contract with the Italian utility Elettrogas SpA covering the entirety of the Company's net gas production from the Guendalina gas field. The term of the contract is one thermal year, commencing from October 1, 2011 and is automatically renewed by a further year unless terminated by either party. First production from the Company's Guendalina gas field is expected in late September 2011. Based on the contract's gas price formula, the current and forecast average gas price is EUR0.306/cubic meter (US$11.50 /thousand cubic feet). Management expect net revenues to MOG to be approximately EUR12 million per annum, based on anticipated production of approximately 20 MMcf/day (20% net to MOG) and forecast gas prices.
Petroneft (LON:PTR) Resources (PTR, 38.25p, ? 1.92%) provided an operational update. Highlights: Production currently averaging about 2,500 bopd, primarily from 7 wells; Autumn production enhancement programme planned to re-frac, with larger frac sizes, existing wells on Pad 1 and new wells on Pad 2; Planned number of wells required from Pad 3 to be reduced recognising thinner oil pays; Extension of Lineynoye oil field north of Pad 2 with thicker pay zones expected in the longer term to compensate for reserve and production…
