Oil & Gas Corporate News
Cairn Energy Plc (LON:CNE) (CNE, 412p, ? (1.34%)) announced an update on exploration activities on its licences in Greenland. As previously announced, the Alpha-1S1 well encountered oil shows in the volcanic section and ceased drilling on 30th September in line with regulations. At this point the well was still in volcanics and the prognosed Mesozoic section had not been reached. The T4-1 well, which was targeting a Tertiary objective at a different stratigraphic level to T8-1, failed to encounter any significant hydrocarbons and found only thin reservoir sands, although geochemical analyses continue on selective samples. The T8-1 well, which, as announced on 24 August 2010, encountered gas in thin sands has been plugged and abandoned. The T8-1 and T4-1 wells did not result in commercial discoveries; consequentlythe well costs, including all associated demobilisation and other costs, of US$185 million are forecast to be written off in accordance with Cairn's accounting policies.
Providence Resources (LON:PVR) (PVR, 180.5p, ? (0.0%)) announced that it has been offered a petroleum exploration licence over Rathlin Island, Northern Ireland. The licence has been offered by Northern Ireland's Department of Enterprise, Trade and Investment in response to a recent application made by Providence. The initial licence term is for five years with a decision on a well commitment required within three years. Providence has committed to carry out a number of technical studies of the subsurface geology during the first three years to determine the petroleum potential and inform the decision on the well commitment. Providence will operate the licence with a 100% equity interest.
Faroe Petroleum Plc (LON:FPM) (FPM, 203p, ? (0.49%)) announced that it has agreed to acquire an 18.0% interest in the Blane oil field from ENI UK Limited and ENI ULX Limited. The headline consideration for the acquisition, calculated from the effective date of 1 July 2010 is £60 million, prior to working capital adjustments to completion, payable to the Vendors in cash together with the farm out, on promoted terms, of a 20% interest in three Atlantic Margin exploration licences. The Blane Oil Field (P111-Block 30/3a (Upper), UK North Sea) was discovered in 1989, and is located on the Central Graben of the UK continental shelf, extending…
