Oil & Gas Corporate News
Caza Oil and Gas Inc (CAZA, 7.8p, ? (3.33%)) announced that the Bongo, O.B. Ranch #1 Well has reached a depth of 12,964 feet, and intermediate casing has been installed, cemented and formation integrity tested. Drilling has recommenced to the target depth of 16,000 feet, which should take approximately fifteen days. Preliminary drilling and log data indicate hydrocarbon bearing sands in a shallower horizon that will require further evaluation.
Cove Energy (LON:COV) (COV, 66.5p, ? (3.1%)) announced that it has concluded a conditional farm-in agreement with Dynamic Energy Exploration and Production Corporation ("DEPCO") to acquire a 15% participating interest in five contiguous deepwater blocks L5, L7, L11A & B and L12 (the "Blocks") covering an area of over 30,500 sq kms, offshore Kenya, East Africa. The five Blocks are held in a Joint Venture by Dynamic Global Advisors Kenya Limited, a wholly owned subsidiary of DEPCO with a 30% interest (15% after farmout) and Anadarko Kenya Company, an affiliate of Anadarko Petroleum Corporation ("Anadarko"), the operator of the blocks with a 70% interest. Cove is paying US$15.5m (the "Consideration") inclusive of acquisition costs, a reimbursement of DEPCO's past expenditure on the blocks and funding for Cove's and DEPCO's forward work programme during the first exploration phase which extends to June 2012. US$10.5m of the Consideration is payable in cash with the balance of US$5m in Cove shares to be allotted at the time of closing. It is expected that this transaction will close in Q3 2010 pending receipt of normal partner, and government consents ("Closing"). In this respect Anadarko has already given its preliminary approval.
Kea Petroleum (LON:KEA) Plc (KEA, 15.8P, ? (0.0%)) announced that the Kan Tan IV drilling rig has now been anchored out on the Tuatara-1 drill site in the southern area of the offshore Taranaki Basin of New Zealand; and the rig commenced drilling operations on Tuesday 27 July. The Tuatara-1 well will be drilled in 50m water depth to a 2000m target depth, which is expected to be reached by mid August. The well will target the oil bearing potential of Miocene aged sandstones, which are expected to be encountered below 850 metres depth. The Tuatara prospect is mapped, on modern 2D seismic, as a dip closed structural trap covering an area of approximately 10 sq km. The permit operator AWE New Zealand Limited, a subsidiary…
