Oil & Gas Corporate News
Borders and Southern Petroleum (BUY, £1.50) (BOR, 67.5p, ? (2.88%)) has signed a Letter of Intent with Ocean Rig UDW Inc. for the provision of mobile drilling rig services using the Eirik Raude drilling unit. The contract is subject to final documentation. Under the terms of the contract the Company is committed to drill two firm wells (to be used for testing the Darwin and Stebbing prospects) and has up to three option wells. The rig, currently active in West Africa, is a dynamically positioned, harsh environment semi-submersible. On completion of its drilling programme the rig will be mobilised to the Falkland Islands Hldgs (LON:FKL) in the fourth quarter 2011. More details will be provided on signature of the contract.
Comment: The Company indicated at the time of the AGM in June 2010 that a target drilling date was end 2010 / early 2011. While it is now obvious that end 2010 was no longer feasible, the mobilisation of a rig in Q4 2011 is later than anyone must have forecast. The lack of drilling news in the next 12 months is not welcome; however the end of the uncertainty on drilling plans is a good thing and the news is positive on balance. The stock might go sideways in the meantime though and might get the renewed attention of investors mid next year.
Petrel Resources (LON:PET) (PET, 20p, ? (4.26%)) reported that work continues on the Subba & Luhais EPC project in southern Iraq. Petrel has received the second tranche of US$2.5m due under the arrangement between the Iraqi authorities and our Joint Venture partners. The third tranche of US$2.5m is due in 6 months. The expected formation of an Iraqi Government should clarify oil policy and enable Petrel to move forward with our Iraqi projects.
Nighthawk Energy Plc (LON:HAWK) (HAWK, 14p, ? (0.0%)) has raised net proceeds of £3.275m by drawing down on its Equity Financing Facility with Darwin Strategic Limited, part of the Evolution Group (LON:EVG). The agreement was arranged by Darwin and was announced by Nighthawk on 14 October 2010. Under the terms of the agreement the Company has allotted, conditional on admission…
