Oil & Gas Corporate News
Ascent Resources (LON:AST) (BUY, £0.20) (AST, 4p, ? (14.29%)) through its subsidiary Ascent Slovenia Limited (ASL), has increased its interest in the Peti?ovci project in Slovenia, following the transfer of Kulczyk Oil Ventures Inc's (KOV) 30% stake in the Dolina shallow oil field, and 10.5% stake in the Globoki deep gas field. In addition to a small cash payment, a royalty will be paid by ASL to KOV of an additional $60,000 for each Bcf of independently certified 2P gas reserves produced in the future, applicable to the acquired interest. Under the terms, Ascent will assume all development costs related to the acquired interest.
Comment: This is a good deal for Ascent, increasing its interest in its flagship project in Slovenia against a small royalty increase. We remain Buyers with an unchanged target price.
Cairn Energy Plc (LON:CNE) (CNE, 414.9p, ? (1.64%)) announced that it has commenced drilling operations on the Alpha prospect (Alpha-1) in the Sigguk Block, approximately 175 kilometres offshore Disko Island, west Greenland. This drilling programme targets the Alpha and T8 exploration prospects which lie in water depths of between 300-500m. The wells have planned target depths of 4,200m and 3,250m and are anticipated to take 55 and 38 days respectively. Each well is being drilled using a pilot hole through the initial top hole section.
Aurelian Oil & Gas Plc (LON:AUL) (AUL, 41p, ? (1.2%)) announced that drilling has commenced on the Trzek-2 well in Poland. The rig will drill vertically to a target depth of 4,150m to evaluate the Rotliegendes reservoir as previously tested by the Trzek-1 well in 2007. Target duration for this pilot hole is approximately three months. Thereafter the well will be sidetracked and drilled some 1,500m horizontally towards the Trzek-1 well. The well will then be completed for fracture stimulation. This phase of operation is planned to take six to eight weeks therefore resulting in a total timeframe of four to five months from spud. The Halliburton fracture stimulation crew will then be mobilised to Trzek-2 and up to 10 fracture stimulations, a proven technology in shale and tight gas developments globally, will be carried out in sequence. The details of this operation will depend on the reservoir properties encountered. A flow test to determine the productivity of the stimulated well is expected to commence in late November with flow…
