Oil and Gas Corporate News
Sterling (UNDER REVIEW) (SEY, 38p, ? 0.33%) announced that the flow testing operations have been completed in the cased hole section of the Sangaw North-1 well. Two flow tests were conducted; the first across a 100 metre interval within the Jurassic aged Sargelu formation and the second across a 100 metre interval within the Cretaceous aged Kometan formation. Neither flow test produced hydrocarbons at commercial rates and the Sangaw North-1 well will now be plugged and abandoned. The current exploration phase of the Production Sharing Contract for the Sangaw North area will expire in November 2011 and the joint venture partnership (Sterling, Addax and KNOC) may elect to enter the next exploration phase which runs until November 2013; the Sangaw North-1 well has fulfilled the work commitment for this next phase. During the coming months Sterling will integrate and analyse the seismic, drilling, logging and testing data before making recommendations to the joint venture group.
Petroneft (LON:PTR) Resources plc (PFC, 1544p, ? 0.75%) provided an update on its operations in Licences 61 and 67, Tomsk Oblast, Russian Federation. Highlights: Kondrashevskoye No. 2 sidetrack well confirms 2P reserves (8.1 MMbbl); Lineynoye 206 contains thickest oil pay encountered to date; Lineynoye/West Lineynoye has materially thicker pay and extends significantly further north than originally anticipated; and several new oil bearing structures are now likely to the north of Lineynoye/West Lineynoye.
Valiant Petroleum (LON:VPP) plc (VPP, 595p, ? 0.0%) provided an update with regard to its offer to the shareholders of Sagex Petroleum ASA ("Sagex") to acquire the entire issued and to be issued share capital of Sagex (the "Offer"). Valiant has notified Sagex that all Conditions of the Offer have now been satisfied (the "Effective Date") and that the Settlement Date is anticipated to occur on or around 13 July 2011. Settlement will occur via the Settlement Mechanics detailed in the Offer letter and 941,657 new ordinary shares in the Company will be issued ("Consideration Shares") in respect of the acceptances received from 94.2% of Sagex shareholders. Application to the London Stock Exchange for admission of these Consideration Shares to trading on AIM has been made and admission is also expected on 13 July 2011. Following the Settlement Date, Valiant will own in excess of 90% of the shares in Sagex and its board of directors intend…
