Oil & Gas Corporate News
Gulfsands Petroleum (LON:GPX) (BUY, £3.00) (GPX, 281p, ? (0.14%)) has now confirmed that, following to yesterday?s announcement, the joint venture has elected to suspend the Lambouka -1 well in the Kerkouane Exploration Licence offshore Tunisia. Suspension will allow re-entry at a later date and provide the best opportunity to minimise rig time and maximise reservoir information expected to be acquired in the drilling and production testing of a side-track hole in the Aboid Formation up-dip of the existing gas discovery. The Kerkouane Licence is operated by ADX Energy Ltd; Gulfsands has earned a 30% participating interest in the Kerkouane Licence and Pantelleria Permit. Gulfsands also expects to participate in the drilling of another exploration well before the end of 2010 in the onshore Chorbane permit, to earn a 40% participating interest.
Comment: A better outcome than the possible alternative of plugging and abandoning the well. We have nothing to add to our comments yesterday, no change in either the rating or the target price.
Tower Resources (LON:TRP) (TRP, 3.45p, ? (7.81%)) announced that the Namibian 3-D seismic survey, undertaken by the "Geowave Master", was completed on 6th September. The data quality is excellent and it is expected that processing and interpretation can be completed as planned in early 2011. The processing of data gathered during the Uganda aero gravity gradiometry survey, which completed in mid June 2010, is near completion and a final interpretation is expected around the end of September when planning for a subsequent seismic survey can then be finalised.
Comment: Proceeding with exploration activities in both licences, no change to current Hold rating and recent increase of price target to 4p.
Dana Petroleum Plc (LON:DNX) (DNX, 1818p, ? (0.11%)) rejected as inadequate KNOC's offer of 1800p per share, saying that true value lies in a range of 2270-2465 p per share with major additional upside. The Board of Dana is today posting a circular to Shareholders setting out the valuation of Dana based on an Independent Expert's asset valuations. The Independent Expert's Report supports the Board's view that the offer made by Korea National Oil Corporation for all the issued and to be issued shares of Dana and its Convertible Bonds is inadequate and fails to recognise Dana's existing value and strategic importance to KNOC. The Board unanimously recommends that shareholders reject the inadequate and unsolicited…
