Oil & Gas Corporate News
Falkland Oil and Gas Limited (BUY, 250p) (FOGL, 81p, ? 3.6%) announced that it has conditionally placed 45.7 million new ordinary shares at a price of 70 pence per share to raise GBP32 million before expenses. The net proceeds of the Placing, together with FOGL's existing cash resources and the proceeds of the settlement with BHP Billiton announced on 31 March 2011, will be used to provide additional drilling options for FOGL's planned 2012 drilling programme. FOGL also announced that it has signed heads of agreement with Borders & Southern Petroleum plc to share a rig to drill in the first half of 2012. FOGL intends to drill its next well on the Loligo complex (a prospect within the Tertiary Channel play which has estimated Pmean reserves of 4,700 mmbbls). The Loligo complex comprises several reservoir objectives which have previously been referred to as the Loligo prospect, together with a number of additional underlying reservoir targets.
Circle Oil (LON:COP) Plc (BUY, 90p) (COP, 33.5p, ? 2.9%) announced an update regarding the Geyad-3C appraisal/development well together with details on the future development of the NW Gemsa Concession. Geyad-3C, located to the south-east of the Geyad-1X ST well in the Geyad Development Lease, is planned to be drilled to a total depth ("TD") of 5,911 ft measured depth ("MD") in the Upper Rudeis. The well is currently rigging up and preparing to commence drilling. The main objective for this well is to appraise and bring into production the oil bearing Shagar and Rahmi sandstones of the Kareem Formation. Secondary objectives of the Geyad 3-C well are to penetrate and evaluate the hydrocarbon potential of the overlying South Gharib and Belayim formations. Following the drilling of Geyad-3C, further intensive exploration, appraisal and development drilling is planned over the next eighteen months. A programme of water injection wells will be drilled, as required, to support oil production in both the Al Amir SE and Geyad fields.
Heritage Oil (LON:HOIL) Plc (HOLD, 420p) (HOIL, 251.6p, ? 6.8%) announced its results for the year ended 31 December 2010. Operational highlights: Discovered the largest gas field in Iraq in the last 30 years; Highly productive Jurassic reservoir intervals tested in the Miran West-2 well at a restricted cumulative flow rate of over 75 MMscfd; Estimated gross P90-P50 in-place…
