PAIV:Coastal Energy, Chariot Oil & Gas, AMEC, Salamander Energy, Urals Energy and others feature in Fox-Davies Capital newsflash
Coastal Energy (LON:CEO, 447.5p, ▲ 0.56%) announced the results of two wells drilled at the Bua Ban North B field, offshore Thailand. The Bua Ban North B-08 well was drilled to a total depth of 5,900 feet TVD and encountered 92 feet of net pay with 28% porosity and 25% water saturation in the Miocene interval. The B-08 well was drilled on the easternmost fault block of the field and successfully appraised the discovery made by the B-03 well. As a result of the B-08 drilling, the lowest known oil was moved 140 feet lower in this fault block. The B-07 well was drilled as a water injection well and to establish the oil water contact in the field. The B-07 encountered the oil water contact at 3,824 feet, which was in line with the prognosis based upon previous drillin g results. Pressure and log data from the B-08 well indicate that the oil water contact may be deeper on the eastern side of the field.
Chariot Oil & Gas (LON:CHAR, 323.7p, ▲ 0.09%) announced that its wholly owned subsidiary, Enigma Oil & Gas Exploration (Pty) Limited, has received formal approval from the Ministry of Mines and Energy in Namibia to enter the First Renewal Phase for its Central Blocks, 2312 A & B and Northern Halves of 2412 A & B, and Southern Block, 2714 A, offshore Namibia. The First Renewal Phase will take effect from 31 August 2011 until 30 August October 2013. In order to move into the next phase of these licences, Chariot (and its partner) are required to complete the following work programmes over the next two years: 2312 A & B and Northern Halves of 2412 A & B - to acquire 2,000km of 2D seismic or 200km2 of 3D seismic for a minimum exploration spend of US$5MM; and 2714 A - to drill one well to a minimum depth of 3,000m for a minimum exploration spend of $US20MM. Petrobras, as part of entering the renewal phase in block 2714A, has exercised the option granted at the time of its original farm-in (May 2009) and thus has committed to both drill and operate the commitment well.
Salamander Energy (LON:SMDR, 260.6, ▲ 3.37%) announced that its wholly-owned subsidiary Salamander Energy (Bangkanai) Limited has today signed a Gas Sales and Purchase Agreement ("GSPA") with PT PLN (Persero), the Indonesian State Power Company, for the sale of gas from the Kerendan gas field, Bangkanai PSC, onshore Kalimantan. The gas will be used for power generation locally. Salamander has 69% operated interest in the Bangkanai PSC. As a result of commercialising this volume of gas, Salamander will book a net 16.5 MMboe of proved reserves from the Kerendan field, comprising 84 Bcf (with a conversion factor of 5.5 Bcf per MMboe) and 1.25 million barrels of condensate. The Kerendan field has a further gross 162 Bcf of gas resource (111 Bcf net to Salamander) whic h is yet to be commercialised. Key terms of the Kerendan GSPA include: A gas price of $4.79/MMBtu ($5.08/Mscf) with 3% escalation per 3 years; A daily contract quantity of 16.2 BBtu per day, rising to 20.3 BBtu per day by December 31, 2011; and contract period of 20 years.
Urals Energy (LON:UEN, 11p, ▼ 1.12%) announced its audited financial results for the year ended 31 December 2010. Operational highlights: Current production at Petrosakh is 1,527 BOPD; Current production at Arcticneft is 711 BOPD; Well #51 spudded in March 2011, with production expected by the Board in early July 2011; and 12 well workover program at Petrosakh started, expected by the Board to increase production by early July 2011. Financial highlights: Net profit (including one-offs) in 2010 increased to $52.9 million from a loss of $304.0 million in 2009; and restructuring of Petraco loan and successful private placement in December 2010 raising US$9.24million. Outlook: On-going focus to ensure that the Company's remaining debts are repaid, the bala nce sheet continues to be strengthened; Focus on further increasing production from Petrosakh and Arcticneft with plans to achieve target production of 3,400 BOPD by the end of 2011 and 5,150 BOPD by the end of 2013 respectively; and Urals will continue to consider and evaluate possible acquisition targets with a view to expanding and optimising the Company's asset portfolio.
Ferrum Crescent (LON:FCR, 13.13p, ▼ 2.78%) announced the results from the remaining six reverse circulation drill holes at its Moonlight Iron Ore Project. These holes are part of a twelve hole programme that was completed during March 2011. Significant intersections include 43m @ 35.26% Fe, 16m @ 36.72% Fe, and 15m @ 32.34%. The RC drilling was planned to provide additional information allowing refinement of the geological model in areas of sparse drilling. The Company is in the process of confirming final details of a comprehensive metallurgical programme that will include comminution and beneficiation studies. Moonlight contains a current JORC compliant resource of 74Mt in the Indicated Resource category and 225Mt in the Inferred Resource category at a grade of 30% Fe. A new geological model is being developed using the assay results from the current drilling. Ferrum expects that the updated resource model will be available during the third quarter of 2011.
Greatland Gold (LON:GGP, 2.78, ▲ 11.0%) announced results from drilling at its Warrentinna project in Tasmania. A program of Reverse Circulation drilling was completed at the Derby North prospect during April 2011. Drilling comprised seven holes for a total of 701m. Recent drilling has confirmed additional mineralisation at Derby North with best results including 4m at 5.16g/t gold from 88m in hole WTR026 in a broader intercept of 24m at 1.79g/t gold from 76m, and 12m at 2.95g/t gold fr om 80m. This hole ended in mineralisation and remains open at depth.
Rambler Metals and Mining (LON:RMM, 33.5p, ▼ 2.19%) provided an update on each of its copper and gold projects on the Baie Verte Peninsula. Mining and milling of the Nugget Pond crown pillar is now complete. After refining and cleanout, a total of 1053 gold ounces were recovered. The total cash cost was $401 per ounce providing the Company with a net profit of CAD $ 1,132,437 from the operation. The company also announced that the transportation and processing of the Tilt Cove stockpile to the Nugget Pond mill began early June. To date 5424 tonnes of material have been processed at an average feed grade of 2.64 g/t gold with an estimated recovery of 92%. Processing is expected to continue throughout the summer until construction of the new concentrator is completed and ready for commissioning.
Tri-Star Resources (LON:TSTR, 0.8p, ▼ 2.45%) announced that it has signed a non-binding letter of intent with Portage Minerals Inc under which Tri-Star will potentially fund up to CAN$12.5 million in exploration and development expenditures related to Portage's Bald Hill antimony project in New Brunswick, Canada in order to earn up to a 50.1% interest in the Project. Under the terms of the LOI, Tri-Star will invest CAN$5.0 million by 31 October 2011 to earn a 15% interest in the Project . These funds will be used to fund a drilling and exploration program. Tri-Star will have the right to invest a further CAN$7.5 million in the Project within two years of the entering into the definitive joint venture agreement, in order to earn a total 50.1% interest. Portage will then have the option to fund its proportionate share of mine development costs or be diluted to a 20% carried interest. In addition, Tri-Star will be granted the right to purchase 100% of the mineral production from the Project at rates to be negotiated by the parties and Portage will be granted a 1% net smelter royalty.
AMEC (LON:AMEC, 1049p, ▼ 1.04%) announced has been appointed by BASF Polyurethane Company Limited and Chongqing Chemical and Pharmaceutical as the project management contractor for the development of a new 400,000-tonnes-per-year MDI (diphenylmethane diisocyanate) facility at Changshou, Chongqing, China. The facility will form the centre of an integrated chemical production complex operated by the Changshou Economic & Technological Development Zone. MDI is the main raw material used for the production of polyurethanes. The value of AMEC's multi-million dollar three-year contract has not been announced but the overall capital cost of the complex will be over US$ 5 billion.
CGG Veritas (EUR23.19, ▼ 0.34%) announced today that it has signed a five-year marine charter agreement with Bourbon for six new support vessels to assist its seismic operations. The new vessels will be delivered starting at the end of 2012. The chartered vessels will support CGG Veritas seismic vessels during their survey operations around the world, by providing them with the requisite ancillary services.
