Oil & Gas Corporate News
Xcite Energy (LON:XEL) (XEL, 246.5p, ? (14.92%)) announced that the 9/3b-6 well on the Bentley field is progressing on plan, on schedule and has reached target depth for the second part of the planned work programme, the horizontal section of the well, 9/3b-6z. The horizontal section has reached the planned total depth at 7085 ft measured depth in the well section and has successfully tracked the top of the reservoir. This provides over 1800 ft of gross reservoir section since reservoir entry point of 5261 ft measured depth. The reservoir in the 9/3b-6z well bore section was encountered at an estimated 3618 ft true vertical depth subsea, some 18ft higher than the pre-well prognosis of 3636 ft true vertical depth and thus giving more oil column. Petrophysical analysis is being undertaken and is expected to confirm close to 100% net to gross oil pay. The completion and testing of this horizontal section is expected by the end of November. The Bentley oil field is located on Block 9/3b (Licence 1078), approximately 160km east of the Shetland Isles, in which Xcite Energy holds 100% working interest.
EnQuest (LON:ENQ) (ENQ, 137.5p, ? (1.48%)) has completed the acquisition of all of the outstanding shares of Stratic, through a plan of arrangement effective 5 November 2010 under the Business Corporations Act (Yukon). As announced on 3 August 2010, Stratic shareholders receive 0.089626 EnQuest Ordinary shares per Stratic share. Based on EnQuest's average closing price on the London Stock Exchange between 28 July and 2 August 2010, this equated to an offer of 17.00 Canadian cents for each existing Stratic share, and valued the issued and to be issued share capital of Stratic at approximately US$45.7m. As part of the transaction EnQuest is refinancing Stratic's US$74.7m net debt. The transaction constitutes a change of control of Stratic for the purposes of Stratic's outstanding convertible notes and convertible debentures, requiring Stratic to make offers to purchase such securities in accordance with their terms. EnQuest intends to cause Stratic to make such offers and acquire such securities for cash consideration. The acquisition increases EnQuest's North Sea 2P reserves by 7.27MMboe at the time of the announcement in August, the purchase price equated, adjusted for tax, to paying US$11.2 per barrel of 2P reserves. The acquisition…
