- Caza Oil & Gas [LON:CAZA] was the sector's biggest faller after its forbearance agreement with Apollo Investment Corp was extended for another month to the end of November and it warned that existing shareholders faced 'significant dilution'.

Caza, as previously announced, is in advanced discussions with a third party regarding a potential equity financing.

Caza says that although it has had the continued support of Apollo during the course of these discussions, there can be no certainty that the potential transaction will close or that Apollo will continue to grant ongoing forbearance.

The amended forbearance agreement provides that if Apollo determines in its sole discretion that Caza and its operating subsidiary are not diligently pursuing a transaction substantially similar to the potential transaction during the forbearance period, Apollo may, by three days' advance written notice, shorten the forbearance period so that it ends on the latter of 15 November, or the third day after such notice is delivered. If the potential transaction is consummated, it is likely to take the form of an equity investment in the company which, given the current oil and gas commodity pricing environment, is likely to subject the existing shareholders to significant dilution.

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Ithaca Energy [LON:IAE] has successfully completed its planned semi-annual reserves based lending facilities review and continues to maintain in excess of $125 million of funding headroom ahead of planned first hydrocarbons from the Greater Stella Area at the end of the second quarter of 2016. As anticipated the company commenced deleveraging the business in the second half of 2015, reflecting the benefit of strong operating cashflow generation, lower capital expenditures and the cash received from sale of the non-core Norwegian business. The reduction in debt has been further accelerated by $66 million from the recently completed equity investment in the Company by Delek Group Ltd. The Company's net debt has reduced from a peak of over $800 million in the first half of 2015 to under $690 million at 31 October 2015. It is anticipated that net debt at the end of this year will remain broadly unchanged from the current level. Following the RBL redetermination process the Company's available bank debt capacity is $515 million prior to Stella start-up, reflecting lower future oil price assumptions adopted by the banking syndicate. When combined with its $300 million senior unsecured notes, the business continues to maintain funding headroom in excess of $125 million.

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Nostra Terra Oil and Gas [LON:NTOG] executive directo rAlden McCall is stepping down from the board with immediate effect.

The board thanked him for his contribution and wished him well in his future endeavours.

McCall will remain as a consultant to the company for the Paw Paw prospect as well as other potential acquisitions in the US.

Chief executive Matt Lofgran said: "On behalf of the board, I would like to express my gratitude to Alden McCall for his dedication to the business and wish him well for the future.

"Progress continues to be made on the Paw Paw prospect in Wyoming, where Nostra Terra has entered into a farm-out agreement with Koch Exploration Company, LLC a subsidiary of Koch Industries, Inc. Nostra Terra has made many positive changes recently and will continue to pursue additional acquisition opportunities with a focus on production and cash flow within the USA and globally."

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The sector's biggest risers were Borders & Southern Petroleum [LON:BOR] and Bahamas Petroleum [LON:BPC] - up by more than 13.1% and over 10.7% respectively in late trading.

At 4:23pm:

[LON:AUR] Aurum Mining PLC share price was +0.01p at 0.93p

[LON:BOR] Borders Southern Petroleum PLC share price was +0.29p at 2.41p

[LON:BPC] Bahamas Petroleum Company PLC share price was +0.16p at 1.6p

[LON:CAZA] Caza Oil Gas Inc share price was -0.1p at 0.38p

[LON:CHAR] Chariot Oil Gas Ltd share price was -0.05p at 5.95p

[LON:ENQ] EnQuest Plc share price was +0.63p at 27.63p

[LON:FOGL] Falkland Oil Gas Ltd share price was -0.62p at 12.13p

[LON:GKP] Gulf Keystone Petroleum share price was -0.12p at 26.88p

[LON:GPX] Gulfsands Petroleum PLC share price was +0.01p at 4.13p

[LON:IAE] Ithaca Energy Inc share price was -0.37p at 44.38p

[LON:INDI] Indus Gas Ltd share price was -0.12p at 116.38p

[LON:NTOG] Nostra Terra Oil Gas Company PLC share price was 0p at 0.1p

[LON:PET] Petrel Resources PLC share price was 0p at 3.75p

[LON:RKH] Rockhopper Exploration PLC share price was +0.25p at 39.75p

[LON:RPT] Regal Petroleum PLC share price was -0.24p at 3.86p

[LON:XEL] Xcite Energy Ltd share price was 0p at 21p

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