Oil & Gas Corporate News
Providence Resources (LON:PVR) plc (PVR, 250p, ? (2.9%)) has signed a 10 month option agreement with Star Energy Group in relation to its 100% owned and operated Standard Exploration Licence (SEL) 1/07 ('Dragon Licence') in the St George's Channel Basin, offshore south-east Ireland. The Dragon licence is situated in c. 90m water depth and is located c. 40km offshore, south east Ireland. The licence contains the mapped extension of the UK Dragon gas discovery into Irish waters, as well as the deeper Orpheus and Pegasus exploration prospects. The option agreement provides for Star to acquire a non-operated 50% interest in the Dragon Licence in return for carrying out a number of subsurface studies on the Dragon gas discovery. Should Star subsequently exercise this option, Star will participate in the drilling of the planned appraisal/development well on the Dragon discovery. This transaction is subject to Irish governmental approval.
Salamander Energy Plc (LON:SMDR) (SMDR, 229p, ? (0.0%)) has signed a Sale & Purchase Agreement to acquire the entire share capital of Elnusa Bangkanai Energy Ltd. ("EBE") from PT Elnusa Tbk. EBE holds a 69% interest and operatorship of the Bangkanai PSC, located in the Barito Basin, onshore East Kalimantan, Indonesia. The Bangkanai PSC contains the Kerendan gas field. With strong demand for gas in Indonesia and the wider SE Asian region, Salamander has been targetting access to gas resources with both commercial and technical upside. This acquisition broadens Salamander's portfolio through the addition of an operated development project that fits the Company's portfolio of gas assets in East Kalimantan. This includes the Tutung discovery in the North Kutei basin and the South Sebuku gas discovery and South Sembakung gas field development in the Tarakan basin. This East Kalimantan gas portfolio will add materially to the Group's production and cash flow from 2013 onwards. Salamander is to acquire EBE for a cash consideration of US$11.2m and the transaction is expected to close before end November 2010. EBE's sole asset is a 69% interest in and operatorship of the Bangkanai PSC, which contains the Kerendan gas field together with a number of step-out exploration prospects. The field has an approved plan of development, certified proven resources of 157Bcf, proven and probable resources of 207Bcf and production from the Kerendan gas…
