StockMarketWire.com - Exillon Energy's [LON:EXI] output averaged 12,066 barrels per day in December.

Average daily production for Exillon Timan-Pechora was 2,555 bpd, and for Exillon West Siberia it was 9,511 bpd during the period.

Peak daily production was 12,469 bpd.

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EnQuest [LON:ENQ] has agreed to acquire from BP an initial 25% interest in the Magnus oil field as well as a 3.0% interest in the Sullom Voe oil terminal and supply facility, 9.0% of Northern Leg Gas Pipeline, and 3.8% of Ninian Pipeline System.

Magnus represents around 15.9 MMboe of additional net 2P reserves (gross reserves of 63.4 MMboe) with net production of 4.2 Mboe/d in 2016 (gross production 16.6 Mboe/d)

EnQuest currently has existing interests of 3.0% in SVT, 5.9% in NLGP and 2.7% in NPS.

EnQuest will become the operator of the assets.

The transaction is subject to certain regulatory, government authority, counterparty and partner consents.

The transition for the change in operatorship is anticipated to take between 6 and 12 months.

The consideration for these interests is $85 million (subject to working capital and other adjustments), which will be funded by deferred consideration payable from the cash flow of the assets.

EnQuest also announced that output averaged 39,751 barrels of oil equivalent per day in 2016, up 8.7% on 2015, with production in the UK North Sea up 11.3%.

This was EnQuest's highest annual production since the company started in 2010.

Final production was adversely affected by the shutdown period at the end of the year, where maintenance of the Brent Pipeline System took more than a week longer than was anticipated, with winter weather also hampering the work necessary to bring production fully back onstream.

EnQuest said: "Final reported 2016 unit opex is expected to be around the lower end of latest full year guidance range of $25/bbl to $27/bbl.

"Reported 2016 cash capex is also expected to be around the lower end of the range, of $620m to $670m.

"Net debt as at 31 December 2016 expected to be approximately $1.8bn."

Outlook highlights:

- The Kraken FPSO has arrived in the North Sea on schedule and is continuing under budget and on track for delivery of first oil in Q2 2017

- Production in 2017 is expected to average in the range of 45,000 boepd to 51,000 boepd for the full year and will be dependent on the timing of Kraken first oil

- EnQuest is on course to further reduce average unit opex, in 2017 in the range of $21/bbl to 25/bbl including Kraken production an it continues to seek cost reductions across the supply chain

- Cash capital expenditure will reduce in 2017 and is expected to be in the range $375m to $425m, the majority of which is being invested in the Kraken development

- Hedging of 6 million barrels is in place for 2017, at an average of c.$51/bbl

- EnQuest has agreed to acquire from BP an initial 25% interest in the Magnus oil field as well as a 3.0% interest in the Sullom Voe oil terminal and supply facility, 9.0% of the Northern Leg Gas Pipeline and 3.8% of the Ninian Pipeline System.

Chief executive Amjad Bseisu said: "EnQuest is delivering reductions in operating and capital expenditure and we continue to streamline our operations.

"Our low cost operating structure and our low cost approach to operatorship are integral parts of our way of doing business - whilst always retaining safe operations as our number one priority.

"The average production of 39,751 Boepd in 2016 included good performance at Heather/Broom and at PM8/Seligi with a promising start after first oil from Scolty/Crathes.

"Delayed and extended third party shutdowns reduced production at the end of the year, and productivity from Alma/Galia has been negatively impacted by well performance including ESP reliability.

"Discussions with the ESP supplier on rectification plans are ongoing.

"The Kraken development remains under budget and on schedule for first oil in Q2 2017."

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South America-focused oil and gas producer and explorer Amerisur Resources [LON:AMER] is pleased with the result from the latest results at the Platanillo field in Colombia.

It said that Platanillo 24 had been tested and placed on commercial production at a rate of approximately 420 barrels of oil per day in natural flow.

An interval of 7ft was perforated in the Lower U sand only.

It added: "Water cut is currently 0.1% with 80psi wellhead pressure through a 28/64-inch choke.

"OBA volumes continue to increase, with current average daily throughput of 3,100 bopd."

It said that subject to resolution of local social protests, it planned to mobilise the Serinco Rig D-10 to Pad 2N in order to drill the first appraisal well from that Pad, Platanillo 22.

Chief executive John Wardle said: "We are pleased with the result of Platanillo 24 and to have placed it on to commercial production and look forward to spudding Platanillo 22."

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LGO Energy's [LON:LGO] fourth quarter production was an average of 540 barrels of oil per day, with production from Trinidad averaging 459 bopd.

Production was impacted by the decision to commence temporary suspension of production activities at the Ayoluengo field in Spain pending agreement on a new concessions at the end of this month.

The group said that as announced on 13 January the decision to temporarily suspend production in Spain has minimal impact on operating finances.

LGO Group production for full year 2016 averaged 548 bopd.

Chairman and chief executive Neil Ritson said: "Regaining momentum in our Trinidad production and business development activities is a key objective for the company in early 2017.

"Recommencing development drilling at Goudron, progressing the Goudron waterflood for which we hold over 60 million barrels of independently certified contingent resources and continuing with the high value South West Peninsula exploration programme are all key to building shareholder value from the excellent underlying assets in the company."

The company said its local operating subsidiary, Goudron E&P Limited, had now received approval from the Petroleum Company of Trinidad and Tobago and the Ministry of Energy and Energy Industries for the first two of its planned Mayaro Sandstone infill wells, currently designated H18E G11(5) and H18E N4.

It added: "All relevant rig and services contracts have been agreed and mobilisation of equipment and crews for the site preparation work will commence as soon as Petrotrin receives approval from the forestry authorities for the cutting of trees necessary to clear the drilling sites.

"GEPL is looking at ways to expedite this approval process for the current and future wells, and will provide a further update once final approval has been granted."

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Tower Resources [LON:TRP] confirms the completion of the sale of wholly-owned subsidiary Comet Petroleum Ltd to Red Rio Petroleum Ltd, the privately-held oil and gas exploration company.

Red Rio is purchasing Comet for a cash consideration of £1, future contingent payments and an over-riding royalty interest (ORRI) of 10% over future production revenue from Comet's assets in the Saharawi Arab Democratic Republic (SADR).

Tower has also completed an amendment agreement to eliminate the previously announced contingent payments due to the original vendors of Comet, who would now share part of the above consideration, leaving an ORRI of 5%-10% net to Tower depending on the asset.




At 4:07pm:

[LON:AMER] Amerisur Resources PLC share price was 0p at 26p

[LON:BOR] Borders Southern Petroleum PLC share price was -0.13p at 4.45p

[LON:CHAR] Chariot Oil Gas Ltd share price was -0.03p at 8.26p

[LON:ENQ] EnQuest Plc share price was +0.63p at 49.88p

[LON:EXI] Exillon Energy PLC share price was +7p at 155.5p

[LON:GKP] Gulf Keystone Petroleum share price was -0.75p at 129.25p

[LON:GPX] Gulfsands Petroleum PLC share price was -0.88p at 12.25p

[LON:INDI] Indus Gas Ltd share price was +2.51p at 397.63p

[LON:LGO] LGO Energy PLC share price was -0.01p at 0.12p

[LON:PET] Petrel Resources PLC share price was 0p at 5.63p

[LON:RKH] Rockhopper Exploration PLC share price was +0.25p at 27.5p

[LON:RPT] Regal Petroleum PLC share price was -0.49p at 4.51p

[LON:TRP] Tower Resources PLC share price was -0.5p at 2.13p



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