Oil & Gas Corporate News
Petrel Resources (LON:PET) (PET, 27p, ? (9.09%)) announced the settlement of all outstanding issues on the Subba and Luhais oilfield development in Southern Iraq. Petrel has handed over primary responsibility for the final phases of the work, in accordance with the original Joint Venture Agreement of December 2005, but maintains a role. Petrel no longer has any liability or exposure to any possible project losses but maintains a profit share. Mobilisation for the project, which has been in suspension for 20 months, will begin shortly. Under the terms of the agreement reached between Petrel, Makman, its local Iraqi partner, and SCOP, an arm of the Iraqi Ministry of Oil: Petrel will receive a total of $7m, of which $2m has been received, and two further bank guaranteed payments of $2.5m each in 2 tranches over 12 months; The Petrel/Makman joint venture will complete the development, with Makman assuming primary responsibility for the final phases of the work, including bulks procurement and implementation; Petrel will receive a 10% profit interest based on audited accounts; A new Letter of Credit for the balance of the contract is being put in place by the Iraqi authorities.
Providence Resources (LON:PVR) (PVR, 3.35p, ? (0.0%)) announced that it has agreed to farm out a 40% equity interest in Licensing Option 10/1 to Nautical Petroleum plc. Licensing Option 10/1 contains the Baltimore heavy oil discovery situated some c. 30km offshore Ireland in the North Celtic Sea Basin in c.100m water depth. Discovered in 1992, this 11º API heavy oil accumulation is estimated to have an in place resource potential of up to c. 300MMboe. In return for the 40% equity stake, Nautical will fund and carry out a focused work programme on the development feasibility of the Baltimore discovery.
Nostra Terra Oil Gas Co Plc (LON:NTOG) (NTOG, 0.88p, ? (2.34%)) announced that drilling has begun on the Liberty #1 exploratory well in the Utah Overthrust, Juab County, Utah. Nostra Terra has a 7% working interest before payout and 5% WI after payout in the Liberty #1 well. Other participants in the Liberty #1 well are Hewitt Petroleum, Inc (HPI), which is also operator of the well, and Freedom Oil & Gas, Inc.
Mining Corporate News
Atlantic Coal (LON:ATC) (BUY, £0.025) (ATC, 0.69p, ? 1.47%))…
