Oil & Gas Sector: EnQuest up after it acquires stake in Alba field
The agreement is subject to the normal regulatory consent.
This acquisition adds reserves and producing barrels and further diversifies EnQuest's asset base. EBL will pay a base consideration of £18.75m in cash, plus a further deferred cash consideration of up to £0.5m contingent on certain project milestones.
The acquired 8% interest had net remaining 2P reserves of 5.9 MMboe attributable as at the economic date.
Heritage Oil [LON:HOIL], an independent upstream exploration and production company, today announces that it has completed the previously announced disposal of the remaining 49% interest in the Miran Block in the Kurdistan Region of Iraq).
On 12 November 2012, Heritage issued the Exchange Repayment Notice signifying the intention to repay the $294 million loan made by Genel Energy plc to Heritage in August 2012 through the transfer of Heritage's remaining 49% participating interest. Completion of the sale was subject to the approval of Heritage's shareholders, which was received overwhelmingly at the Extraordinary General Meeting on 12 December 2012. Completion was also subject to other customary closing conditions including relevant approvals being granted by the Regional Council for the Oil and Gas Affairs of Kurdistan, which have been received.
Following completion and receipt of formal approval of the transfer by the Regional Council, Heritage no longer has an interest in Kurdistan.
Chief executive Tony Buckingham said: "We are delighted to have received final approval for the disposal which means we have not only monetised the asset at an attractive valuation but have also used the proceeds to fund a significant part of our entry into a new region through the recent acquisition of a major interest in OML 30, Nigeria. This brings the total disposal proceeds generated by Heritage from asset sales to over $2 billion."
Caza Oil & Gas [LON:CAZA] has stared drilling on its Lennox prospect in Lea County, New Mexico.
The Lennox State Unit 32 No. 2H horizontal well is the initial test well at Lennox.
The well will be drilled to a total vertical depth of approximately 11,850 feet with a total measured depth of approximately 14,740 feet.
The primary target is the Bone Spring Sands with potential secondary targets in the Delaware, Lower Brushy Canyon, Avalon Shale and Wolfcamp.
After selling an additional 7.5% working interest on a promoted basis and trading a 20% working interest on an acreage basis between Lennox and Madera/Roja prospects, Caza now has a 40.00% working interest before payout (31.88% net revenue interest) and a 50.00% working interest after payout (39.85% net revenue interest) in the Lennox State Unit 32 No. 2H well.
Chief executive W. Michael Ford said: "We continue to progress our Bone Spring drilling programme in south-east New Mexico, and are very pleased to have commenced drilling operations on the Lennox horizontal Bone Spring prospect.
"This is the company's third operated Bone Spring test well with a material participation interest since August 2012.
"We are equally pleased to have closed the working interest trade for interests in Madera and Roja prospects. These are very good projects, and we look forward to participating in test wells to be drilled on them along with a development well at Copperline later this year.
"Additionally, the Quail Ridge wells continue to produce good results and provide valuable drilling and completion information. This bodes well for future drilling operations on our Lynch property, located in the adjacent section, as well as the company's other horizontal Bone Spring projects."
The sector had three double-digit risers in late afternoon trading - Ascent Resources [LON:AST], Oilex [LON:OEX] and Afren [LON:AFR] which were up by more than 20%, over 14% and nearly 12% respectively.
[LON:AST] Ascent Resources share price was +0.18p at 1.03p
[LON:AUR] Aurum Mining share price was +0.13p at 3.75p
[LON:BOR] share price was +0.75p at 25.75p
[LON:CAZA] share price was -0.12p at 13.63p
[LON:CHAR] share price was -0.37p at 32.38p
[LON:DES] Desire Petroleum share price was 0p at 20.25p
[LON:DGO] Dragon Oil share price was -4.25p at 565.75p
[LON:ENQ] share price was +5.85p at 130.25p
[LON:FOGL] Falkland Oil and Gas Limited share price was -0.25p at 30.75p
[LON:GKP] Gulf Keystone Petroleum share price was +2.13p at 212.88p
[LON:GPX] share price was -1.87p at 111.38p
[LON:HOIL] share price was -0.8p at 194.1p
[LON:INDI] share price was -10p at 965p
[LON:OEX] share price was +0.76p at 5.88p
[LON:PET] Petrel Resources share price was +0.5p at 20.25p
[LON:RKH] share price was -0.75p at 163.5p
[LON:RPT] Regal Petroleum share price was -1p at 34p
[LON:XEL] share price was +1p at 102.5p
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