StockMarketWire.com - New Zealand-focused Kea Petroleum's [LON:KEA] shares rose despite a small increase in interim operating and pre-tax losses.

Chairman Ian Gowrie-Smith said the discovery of oil at Puka was a vital step towards the company achieving its ambition to become a significant player in oil and gas production.

He added: "The drilling results confirm our belief in our active drilling programme and we look forward to building on our recent successes over the next 12 months.

"The recent Puka results have favourably positioned Kea to continue growing its production, whilst the drilling of Mauku has the potential to provide the company with potentially significant near term upside."

Gasol [LON:GAS] affiliate, African Power Generation, has signed a memorandum of understanding with Ghana National Gas Co.

The MOU is for the development of a number of specific projects aimed at providing additional gas to Ghana, as well as supporting, in a complementary manner, the longer term security of gas supply needed to address the nation's power generation deficit.

Under the MOU, AfGen and Ghana Gas propose among others to explore the establishment of various joint venture arrangements for the supply of imported natural gas, into Ghana as well as the downstream sale and marketing of gas to power generators and industrial/mineral processing enterprises in Ghana.

Gasol has already previously entered into similar arrangements for the marketing of natural gas in other West African countries, including Benin and Togo, and will work with AfGen to create a strategic and mutually supportive partnership with Ghana Gas.

Gasol chief operating officer Alan Buxton said: "We are very pleased that Ghana Gas has agreed to explore collaboration with AfGen in a broadly defined partnership, including the importation and supply of non-indigenous gas to customers in Ghana, thereby assisting in bridging the Ghanaian gas deficit for power generation, serving industrial/mining users and assisting in progressing the Government of Ghana's Better Ghana Agenda.

"We look forward to developing the relationship established which is a platform for building a mutually beneficial and long term partnership."

Faroe Petroleum [LON:FPM] has acquired a 25% interest in the Pil prospect in the Norwegian Sea and a 50% interest in the Lowlander discovery in the UK central North Sea.

The Pil prospect is located within tie-back distance (33 kilometres) to the producing Njord field in which Faroe holds a 7.5% interest.

The prospect is a combined structural and stratigraphic closure and the primary target is at the shallower upper Jurassic Rogn formation sandstone which has proved to be an effective reservoir in the producing Draugen field located 60 kilometres to the north east. This exploration well is scheduled to be drilled in the first half of 2014 using the Transocean Arctic drilling rig.

Faroe Petroleum has acquired this interest from the operator VNG and the acquisition is subject to approval by the Ministry of Petroleum and Energy in Norway.

Faroe has also entered into an agreement with Talisman Sinopec to acquire a 50% interest in UK Licence P.324, block 14/20c containing the Lowlander oil discovery.

Lowlander was discovered in 1987 by the 14/20b-17 well (drilled by Texaco) and represents an Upper Jurassic Piper sand oil accumulation located in the Central North Sea, approximately 200 kilometres north east of Aberdeen.

Lowlander was fully appraised by subsequent wells and the field has sour characteristics, similar to those of the Perth Field (Faroe 34.62%), which is located 16 kilometres from Lowlander. The work programme will include a joint Perth/Lowlander development study. The acquisition is subject to approval by the Department of Energy and Climate Change.

Faroe chief executive Graham Stewart said: "We are very pleased to announce the acquisition of the Pil exploration prospect which builds on our existing acreage in the area centred on the Njord field with its Hyme satellite together with the Snilehorn exploration well which is scheduled to be drilled later in the year.

"The Pil exploration well is to be drilled in the first half of 2014, which adds to our already substantial forward drilling programme.

"The next well to spud in our programme will be the Darwin frontier well, our first in Norwegian waters of the Barents Sea; and in the meantime, we await the near term results of another frontier well, North Uist, located west of Shetland.

"Our acquisition of a 50% share of Lowlander helps create the potential for an attractive joint Perth/Lowlander development. The collective volumes in these fields are significant, considering their central location in the UK North Sea, and we look forward to making progress in the near term towards their development."

Sound Oil [LON:SOU] has signed an asset swap deal with Compagnia Generale Idrocarburi SpA, gaining a 100% stake in the Villa Gigli licence.

Under the deal, Sound Oil swapped its 50% interest in the Colle Ginestre licence with Compagnia Generale Idrocarburi for the 50% of the Villa Gigli licence it did not already own..

Prior to the deal, the companies each owned 50% stakes in the two licences.

The sector's biggest risers were Oilex [LON:OEX] and Frontera Resources [LON:FRR] - both up by nearly 5% - while the biggest faller was Petroneft Resources [LON:PTR], down by more than 7%.



At 4:18pm:
[LON:AUR] Aurum Mining share price was 0p at 3p
[LON:BOR] share price was +0.01p at 21.88p
[LON:CHAR] share price was +0.63p at 21.88p
[LON:DES] Desire Petroleum share price was +0.01p at 17.38p
[LON:DGO] Dragon Oil share price was +18.25p at 618.25p
[LON:ENQ] share price was +0.85p at 132.85p
[LON:FOGL] Falkland Oil and Gas Limited share price was +0.5p at 29.75p
[LON:FPM] Faroe Petroleum share price was +1.5p at 136.5p
[LON:GAS] share price was +0.75p at 22.5p
[LON:GKP] Gulf Keystone Petroleum share price was +2.38p at 188.88p
[LON:GPX] share price was -0.87p at 107.88p
[LON:INDI] share price was 0p at 955p
[LON:KEA] share price was +0.38p at 10.75p
[LON:OEX] share price was -0.25p at 4.88p
[LON:PET] Petrel Resources share price was -0.5p at 16.25p
[LON:RKH] share price was +0.13p at 143.13p
[LON:RPT] Regal Petroleum share price was 0p at 31p
[LON:SOU] share price was -0.25p at 6.88p
[LON:XEL] share price was +1.75p at 103.75p


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