Oil & Gas Sector: Salamander Energy up as SK-1 completes as oil and gas discovery
The well had discovered hydrocarbon-bearing, high-quality channel sandstone sequences and delivered an excellent DST result, flowing 6,000 barrels of oil per day on test.
Salamander said it did not believe the gas resource discovered in the main channels necessarily represented a commercial volume on a stand-alone basis and work was ongoing to define the additional resource potential of the thinner sands.
"However, with light oil discovered at South Kecapi in well-developed, high quality reservoir on the down dip, western flank of the large Bedug structure, there is a material upside case for both oil and gas," the company said in a statement.
Gold Oil [LON:GOO] says production at the Nancy Burdine field averaged 500 barrels of oil per day in January. Gold Oil has increased its interest in the field to 81.9%.
Hardy Oil and Gas [LON:HDY] has been successful in obtaining an extension of the CY-OS/2 licence.
A tribunal award provides for the CY-OS/2 joint venture to undertake appraisal activities on the CY-OS/2 block, in accordance with the governing production sharing contract, for a further three years from the date on which the block is restored.
The tribunal also awarded the joint venture recovery of costs incurred as a result of the arbitration.
SeaEnergy [LON:SEA] said the integration of recently-acquired energy services business Return to Scene Ltd was progress well, and that it had met its revenue target for the six months to February ahead of schedule.
As a result, a further Â£500,000 of considerations would be paid.
Looking forward R2S was close to securing new contracts in the North Sea, and internationally, from both existing and new customers.
Platform operators are increasingly recognising that in addition to enhanced safety, having their installations captured by the R2S software gives them the ability to reduce the number of platform visits, cutting helicopter trips, freeing up bed spaces and ultimately reducing their operating costs.
An additional potential earn-out payment of up to Â£4.6 million may become payable in March 2014. For the maximum figure to be payable the EBITDA generated by R2S in the year to 28 February 2014 must exceed Â£2.5 million. Any amount due at that time, subject to certain restrictions, can be settled at the company's option either in cash, SeaEnergy shares or a combination of the two.
EnQuest's [LON:ENQ] output averaged 22,802 barrels of oil equivalent per day in 2012 which compares with a guidance range of 20,000 to 24,000 boepd.
The company said it had another good operational performance in 2012 and the output results reflected good year-end production performances from all its fields.
Chief executive Amjad Bseisu said: "It is good to be able to report average production of 22,802 boepd for 2012, above the middle of the range of our guidance, which is a testament to the success of our drilling programme and good reservoir management.
"First oil for the Alma/Galia project is still anticipated for Q4 2013. The first phase of the project is now expected to generate significantly greater returns than those foreseen at the time of sanction.
"The further increase to 34 MMboe in gross 2P reserves for Alma/Galia represents a more attractive first phase development and, with the newly sanctioned improvements, more potential reserves with a second phase."
The sector's biggest faller was Fortune Oil [LON:FTO] - down by 10.75% in late afternoon trading.
[LON:AUR] Aurum Mining share price was -0.12p at 3.38p
[LON:BOR] share price was +0.25p at 27p
[LON:CHAR] share price was -1.62p at 29.63p
[LON:DES] Desire Petroleum share price was 0p at 19p
[LON:DGO] Dragon Oil share price was -11.5p at 567.5p
[LON:ENQ] share price was +1.7p at 132.4p
[LON:FOGL] Falkland Oil and Gas Limited share price was -0.87p at 31.13p
[LON:GKP] Gulf Keystone Petroleum share price was -7.5p at 207.5p
[LON:GOO] Gold Oil share price was +0.07p at 1.84p
[LON:GPX] share price was 0p at 107p
[LON:HDY] share price was +4.13p at 113.5p
[LON:INDI] share price was -37.5p at 937.5p
[LON:PET] Petrel Resources share price was +0.25p at 20.5p
[LON:RKH] share price was -2p at 157.5p
[LON:RPT] Regal Petroleum share price was +0.26p at 30.63p
[LON:SEA] Stream Group share price was +0.88p at 29p
[LON:SMDR] share price was +20.05p at 206.05p
[LON:XEL] share price was -1.5p at 100.75p
Story provided by StockMarketWire.com