Oil & Gas Corporate News
Caza Oil & Gas (LON:CAZA) (CAZA, 7.13p, ? (1.66%)) announced that the Matthys-McMillan #2 development well, located in the Wharton West Wilcox Field, was drilled to a total depth of 15,000ft. During the course of drilling, the well encountered multiple Wilcox sands that appeared to be gas-bearing. Significant pressure was encountered requiring the use of heavy drilling mud to control the well. Attempts were made to execute a natural completion in four separate sand intervals within the Wilcox formation. At this time an economic flow rate has not been established. The Company's post drill evaluation indicates poor reservoir characteristics at this particular location. However, Caza is continuing to pursue further investigative work concerning the Wilcox sands. The Company has sought and received approval from its partners in Matthys-McMillan #2 to come up the wellbore and perforate at a depth of 9,478ft in the Yegua sands. Both log and seismic data indicate that the Yegua interval could be productive in the Matthys-McMillan #2. Current lead times for fracturing equipment will mean this could take up to 90 days. Elsewhere, drilling of the O.B. Ranch #1 well on the Bongo prospect commenced on 19 June 2010, and is currently drilling at 10,300ft. The well is ahead of schedule to date, and its target depth should be reached within approximately 30 days.
The FT reported that Argos Resources, a company which holds licences in the North Falkland Basin, is looking to raise £70m in a London stock market listing. Argos Resources licences are adjacent to some of Rockhopper Exploration (LON:RKH) licences, where the Sea Lion discovery has recently been made. The report indicates that pre-marketing has already started this week.
Mining Corporate News
Polo Resources Ltd (LON:POL) (POL, 4.725, ? (9.25%)) announced it and its wholly owned subsidiary Polo Australasia Limited entered into an agreement with Nippon Uranium Resources (LON:URA) Proprietary Limited, a wholly owned subsidiary of ITOCHU Corporation, for the sale of Polo's entire interest of 22,550,849 shares in Extract Resources Limited at a price of AUD7.00 per Extract Share, representing total consideration of approximately AUD157.9M, subject, inter alia, to requisite approvals by shareholders of Polo at a general meeting of the Company and to Australian Foreign Investment Review Board approval for the acquisition of certain of the Extract Shares. The price of AUD7.00 per Extract Share represents a 3.7% premium…
