- Northern Petroleum [LON:NOP] was the sector's biggest riser following an update on production activities in north west Alberta, Canada.


� The Company is part way through the winter work programme with production currently in excess of 400 barrels of oil per day ("bopd")

� Further work to be executed during March to add additional 100 to 200 bopd subject to the timing of the arrival of warmer weather

� Winter programme on track to deliver an average production rate for 2016 of 400 bopd

� Additional production enhancement opportunities identified

� Capex costs of programme currently below budget

* * *

Nostra Terra [LON:NTOG] has appointed Strand Hanson Ltd as Nominated & Financial Adviser and Joint Broker to the Company, with immediate effect.

* * *

Aminex [LON:AEX] says final well integrity testing of the Kiliwani North-1 well (KN-1) has been concluded, recording a high tubing pressure reading relative to the other producing wells on Songo Songo Island.

A wellhead control panel has been installed and all work required by the company prior to gas production will shortly be complete. Tanzania Petroleum Development Corporation has provided a revised work schedule and informed the Company that the commissioning of the Songo Songo Island gas plant is expected to commence in early April.

During the commissioning programme, the initial production rates will be managed to allow for testing of the new gas processing facility and related pipelines. All KN-1 gas will be sold to the TPDC at wellhead for an agreed price of $3.00 mmBTU (approximately US$3.07 per mscf), payable in US dollars, and will ultimately be transported by pipeline to Dar es Salaam, where it will be sold into the local Tanzanian market. Aminex chief executive Jay Bhattacherjee said: "The successful conclusion of the well integrity tests and installation of the wellhead control panel finalises the Company's preparations prior to the commissioning of the new Songo Songo Island processing facilities. Aminex looks forward to the commencement of gas production and revenues from Kiliwani North."

* * *

Solo Oil [LON:SOLO] has been advised by the operator of the Kiliwani North Development Licence, Aminex, that all the integrity tests on the Kiliwani North-1 well (KN-1) have been completed successfully.

The gas pressures measured in the well exceeded those found on other producing wells in the area. The well and associated controls are now ready to supply gas to the nearby Songo Songo gas processing plant.

The partners in the KNDL have now been advised by the Tanzanian Petroleum Development Corporation to prepare the Kiliwani North-1 well to commence production in early April following a revision of the Songo Songo commissioning schedule.

During the commissioning program the initial production rates will be managed to allow for testing of the new gas processing facilities and related pipelines.

Solo currently holds a 6.175% interest in the KNDL where the Kiliwani North-1 well is located and has recently agreed to increase that holding to 10% through acquiring a further 3.825% from Aminex.

LR Senergy has ascribed gross 28 billion cubic feet best estimate contingent resources to Kiliwani North-1, which was contingent on completion of the GSA. It is therefore Solo's expectation that reserves at Kiliwani North will be booked later this year.

* * *

Management Resource Solutions [LON:MRS] has improved its H1 pretax profit to AUD0.52m, from a profit of AUD0.49m. Revenue was AUD6.2m, from AUD11.4m.

It said the fall in revenue was due to a decline in the provision of contract personnel and the slower than expected progress of the Papua New Guinea project, largely due to adverse weather and construction issues.

* * *

Cairn Energy [LON:CNE] posts a pre-tax loss of USD497.8m for the year to the end of December - down from USD559.1m last time.

Operating losses fell to USD178.7m - down from USD372.3m.

Cairn says it enters 2016 fully funded to complete an active exploration and appraisal drilling campaign focusing on Senegal, as well as to deliver first oil from the Kraken and Catcher development projects in the UK North Sea, which will generate cash flow for the group from 2017.

It says that as a result of actively managing its capital programme, reducing administrative expenditure and maintaining strong cash balances and undrawn debt facilities, the group is in a strong financial position, able to withstand and deliver returns from a lower oil price environment.

Chief executive Simon Thomson said: "We are delighted with the results to date of our multi-well evaluation programme offshore Senegal, which has confirmed the scale and extent of the significant resource base in this world class asset.

"Cairn's 2C current resource estimate for the SNE field has gone up by 20 percent and the positive results of the latest appraisal well provide the potential to further increase the size of the SNE field.

"A combination of financial strength and continued exposure to material growth opportunities leaves Cairn well-placed to deliver additional value for shareholders from its balanced portfolio."

* * *

Range Resources [LON:RRL] has widened its H1 pretax loss from continuing operations to USD24.3m, from USD13.1m. Revenue was USD4.3m, from USD7.8m. It was fully funded for its upcoming exploration, development and waterflood programme.


� The average oil production in Trinidad of 561 bopd was broadly unchanged from 545 bopd from the same period last year;

� The Company published updated reserves statement (1P of 19.4 mmbbls; 2P of 22.0 mmbbls and 3P of 27.6 mmbbls);

� Significant progress on the waterflood programmes continued with approvals for Morne Diablo and Beach Marcelle projects received. The Company identified implementation of these projects as the highest priority;

� Water injection on Morne Diablo project underway and expected to commence on Beach Marcelle during Q2 2016;

� Three development wells successfully drilled and put on production. The Company plans to drill a number of additional high impact wells onshore Trinidad during 2016; and

� Exploration work on the St Mary's and Guayaguayare licences continued, including preparations for spudding of the Canari North exploration well.

* * *

Tullow Oil [LON:TLW] will hold its annual general meeting at its registered address at 9 Chiswick Park, 566 Chiswick High Road, London, W4 5XT, on 28 April at noon.

* * *

Circle Oil [LON:COP] has initiated a formal strategic review of its business and assets with a view to considering all options to maximise value for shareholders and stakeholders. On 14 December, the company announced that following the redetermination of its Reserve Based Lending borrowing base, it expected its borrowing base to be reduced, potentially giving rise to a shortfall.

In the interim, given continuing oil price volatility, Circle has remained in constructive discussions with International Finance Corporation.

Circle says those discussions have culminated in agreement by IFC to suspend the December 2015 redetermination until 15 April with any repayments required under the RBL facility, which is currently drawn to $57.5 million, being postponed until that date.

IFC has indicated its willingness to consider further waivers as may be required to continue the Strategic Review process based on circumstances applying at the time of any application.

As announced on 8 February 2016, the company's cash flows and financial position remain under significant pressure, primarily due to the uncertainty and irregularity of US dollar receipts from EGPC. As at 31 December 2015 the Company had Cash and Cash Equivalents (including restricted Cash) of $10.0 million and receivables from Egypt and Morocco of $21.6 million. Inclusive of the $20.0 million convertible loan held by KGL Investment Company, the total debt position of the Company is $77.5 million and there is a further $14.1 million of trade creditors.

Further the Company is reliant on extracting US Dollars from its Moroccan operations to both satisfy its obligations to its creditors and fund operations.

On a separate note, the Company in its Annual Report for Year ended 31 December 2014, disclosed 2P Reserves of 16.23mmboe on a Working Interest basis. Since that date, these reserves are expected to have reduced, principally due to the production of hydrocarbons and the lower oil price environment. Initiation of Strategic Review As previously announced the Company has been considering a number of options to reduce debt and ensure that the Company has sufficient cash flows to fund future operations. The scope of the options being considered under the Strategic Review include, but are not limited to, a sale of one or more of the Company's existing assets, a corporate transaction such as a merger with a third party, the sale of the entire issued, and to be issued, share capital of the Company and the raising of capital in the form of a subscription for new ordinary shares in the Company by one or more third parties.

There can be no certainty as to whether any such agreement, offer or transaction will be forthcoming or as to the terms of such agreement, offer or transaction, if any, including any requirement for shareholder approval.

The Board has appointed Investec Bank plc ('Investec') to act as financial advisor to the Company in relation to the Strategic Review. Operating Update: Egypt: At the end of December 2015 11 wells in the Al Amir SE field (AASE) and 3 wells in the Geyad field were on production, with a combined average gross production rate of 8,871 boe/d for the year. Water injection through 3 wells in field is providing continuing pressure support to maximise recovery efficiency and optimise production levels. The AASE-23 well was first brought on stream on 6 February 2016 and is now being produced at around 800 boe/d. Drilling continues at the AASE-24 well, which was spudded on 8 February 2016, and an update will be provided in due course.

Morocco: As noted in the interim financial results, the Group continued to make a number of efficiency improvements in-country over the course of 2015. Led by Lonny Baumgardner, the recently appointed country manager, the focus has been on decreasing costs and improving overall operational efficiency. The Group also continues to benefit from the use of its own pipeline which means that no tariffs are payable for the transportation of gas. Sales from Sebou for 2015 averaged 5.85mmcf/d (gross), 4.39mmcf/d (net to Circle) utilising less than half of the pipeline capacity. Given the fixed price nature of the contracts and attractive fiscal terms in Morocco, Circle has been shielded from falling commodity prices with the average price realised during 2015 of over US$8.50/Mcf. As noted in the announcement of 8 February 2016, there is potential for a further improvement on these pricing levels as highlighted by the Memorandum of Understanding with SBS Porcher which would represent an increase of approximately 6% of production volumes compared to 2015.

Circle chief executive Mitch Flegg said: "The agreement we have reached with IFC to defer the December 2015 redetermination and to provide a waiver in relation to any immediate repayments is a welcome development and one which gives us the headroom to progress the Strategic Review and to put in place a sustainable long term financing structure for the business. Circle has excellent assets across our regions of operation and our aim, mindful of the sustained low oil price environment and the Company's stressed financial position is to maximise the value from these assets for the benefit of all stakeholders."

At 3:45pm:

[LON:AEX] Aminex PLC share price was +0.06p at 1.43p

[LON:AUR] Aurum Mining PLC share price was 0p at 0.95p

[LON:BOR] Borders Southern Petroleum PLC share price was -0.15p at 1.91p

[LON:CHAR] Chariot Oil Gas Ltd share price was +0.35p at 6.38p

[LON:ENQ] EnQuest Plc share price was -0.87p at 14.13p

[LON:GKP] Gulf Keystone Petroleum share price was +0.13p at 12.13p

[LON:GPX] Gulfsands Petroleum PLC share price was +0.88p at 5.75p

[LON:INDI] Indus Gas Ltd share price was 0p at 129.5p

[LON:MRS] Management Resource Solutions Plc share price was -0.13p at 14.5p

[LON:NOP] Northern Petroleum PLC share price was +0.75p at 3.25p

[LON:NTOG] Nostra Terra Oil Gas Company PLC share price was +0.02p at 0.08p

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

[LON:RKH] Rockhopper Exploration PLC share price was -1.12p at 28.63p

[LON:RPT] Regal Petroleum PLC share price was -0.01p at 2.57p

[LON:SOLO] Solo Oil PLC share price was +0.01p at 0.35p

[LON:XEL] Xcite Energy Ltd share price was +2.51p at 17.88p

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