Oil & Gas Corporate News
Max Petroleum (LON:MXP) (BUY, £0.50) (MXP, 12.5p, ? (2.04%)) announced that it has executed a drilling contract with Sun Drilling LLP for a second rig capable of drilling to 3,600m. The ZJ-40 rig will mobilise to drill the ASK-1 exploration well on the Asanketken Prospect on Block E, and is expected to commence drilling activities on or around 30 November 2010. The Z-J40 rig will then be utilised in conjunction with the ZJ-30 rig to drill additional exploration and development wells in the Company's ongoing post-salt drilling programme.
Comment: Max Petroleum is accelerating its post-salt drilling campaign. The Company is taking the opportunity provided by last week?s positive development towards a resolution of the ongoing tax dispute to mobilise a second rig, which is the right strategy.
Northern Petroleum (LON:NOP) (NPT, 94p, ? (1.08%)) announced that commercial gas production from the Brakel field, onshore Netherlands, commenced on 23rd September 2010. The forecasted contracted gross sales volume is 7.4MMscfd. This brings into production the third gas field and pipeline development under a 2005 agreement between Northern and Nederlandse Aardolie Maatschappij (NAM), the joint Shell/Exxon company in The Netherlands.
Nautical Petroleum (LON:NPE) (NPE, 375p, ? (2.60%)) announced that a rig contract has been signed for the next drilling campaign to take place on UKCS Central North Sea Block 28/9, which contains the Catcher and Catcher East discoveries. The Transocean Galaxy II heavy duty jack-up rig is expected to return to the Catcher area later this week to drill up to four exploration and appraisal wells. The first well in the programme is on the Varadero exploration prospect situated to the west of the Catcher discovery. Nautical has a 15% equity interest in Block 28/9.
Leni Gas & Oil (LGO, 2.1p, ? (1.18%)) announced that oil was encountered at 1350m during the drilling of the Hontomin-2 well in northern Spain, with oil flowing to surface. Drilling of the top reservoir formation interval has been completed and light oil has been observed flowing to surface. Full monitoring of the well will be conducted during the next few days prior to recommencement of drilling to open the bottom reservoir formation interval.
