Oil and Gas Corporate News
Ascent Resources (LON:AST) plc (BUY, £0.15) (AST, 3.82p, ? 3.85%) has placed convertible loan notes with existing Italian creditors to raise 552,525 with an option to issue a further 70,000 of convertible loan notes in the future for additional services. The proceeds will be used to advance work on the Company's Italian portfolio. The unsecured loan notes, which carry interest of 8.5% per annum, are convertible into ordinary shares of 0.1p each in the Company ('Ordinary Shares') at a conversion price of 12 pence per Ordinary Share on or before the 31 December 2013, reflecting a premium to the closing share price on 20 July 2010 of approximately 310%. The loan notes may be repaid for their principal value plus any outstanding interest at any time by the Company.
Dragon Oil (LON:DGO) plc (DGO, 550p, ? 0.20%) issued a trading statement for the six months' period ended 30 June 2011. Key operational highlights: 25% increase in average daily production rate at approximately 58,000 barrels of oil per day ("bopd") in 1H 2011 compared to 46,420 bopd in 1H 2010; Seven new development wells completed to date; and 2011 drilling programme updated to complete 12 wells, a sidetrack and a workover versus 11 wells previously targeted. Key financial highlights: Capital expenditure on infrastructure and drilling amounted to US$151 million for 1H 2011 (1H 2010: US$174 million); and the Group's cash balance net of abandonment and decommissioning funds at 30 June 2011 was US$1,256 million (31 December 2010: US$1,163 million); the Group remains debt-free.
Melrose (LON:MRO) Resources plc (MRD, 190.25p, ? 0.91%) provided an update on its exploration activities. Highlights: The Company is pursuing a number of high potential exploration initiatives and plans to allocate approximately 40% of its capital expenditure to drilling and seismic work programmes over the next three years; The exploration programme includes projects in proven hydrocarbon basins offshore Bulgaria and Romania, as well as new frontier exploration plays in northern and southern Egypt, Turkey and offshore France; The Company expects to complete three exploration wells in the second half of 2011, in Turkey (on its South Mardin acreage), Bulgaria (on the Galata block) and Egypt (on the South East Mansoura concession); The 2011 drilling programme is targeting net unrisked prospective resources of 43 MMbbl of oil…
