Oil & Gas Corporate News
Global Energy Development (LON:GED) (GED, 84.5p, ? (0.05%)) has reached an agreement to farm-out 60% of its interest in the Peruvian Block 95 Licence Contract to Gran Tierra Energy, Inc. Following the farm-out, Global will retain a 40% interest in the contract through its wholly-owned subsidiary Harken del Peru Limitada. Under the terms of the agreement, GTE will become the operator of the contract, subject to and following approval from the Peruvian authorities, and will assume 100% of the costs of an exploration well up to a maximum of US$15m. GTE will also assume its share of the past costs incurred by the Company on the contract for US$ 2m. The contract is currently under force majeure until the final environmental sub-permits are received. The Company anticipates receiving the remaining sub-permits in the first half of 2011. The exploration well is therefore expected to be drilled before the end of 2011. The contract area is located in the Marañon Basin of north-eastern Peru and contains the Bretaña-1 discovery well, which was drilled in 1974 and tested 18oAPI gravity oil at natural flow rates of approximately 800bopd. As certified by independent reserve engineers Ralph E. Davis Associates, Inc. the 2P reserves associated with the contract are estimated at 21mmbbl and 3P reserves at 63.9mmbbl. This agreement represents an important opportunity for Global to accelerate its development and unlock these important 2P and 3P reserves.
Regal Petroleum (LON:RPT) (RPT, 24.25p, ? (31.08%)) and Energees Investments Limited, the principal holding company of the Smart Holding Group announced that they have reached agreement on the terms of a recommended cash offer to be made by Energees Management Limited, a wholly-owned subsidiary of Energees Investments, for the entire issued and to be issued share capital of the Company. Energees Investments is jointly controlled by Mr Vadim Novinskiy and Mr Andrey Klyamko. Under the terms of the Offer, Shareholders will receive 24p, in cash, for each Regal share. The terms of the Offer value Regal's fully diluted share capital at approximately £77m. Subsequently, Heamoor Limited announced its interest in Regal. Heamoor stated that it has carried out significant due diligence on Regal and has been in discussions with the Board of Regal with respect to making a cash offer for the whole…
