PAIV:Providence Resources, Northern Petroleum, Cluff Gold, Capital Drilling and others feature in Fox-Davies Capital Newsflash
Providence Resources (LON:PVR, 242.5p, ▼ 1.82%) announced that it has, on behalf of itself and its partners, commenced its 3D seismic acquisition project in the north Celtic Sea, offshore Ireland. The survey, which is expected to be completed within 2 weeks, forms part of the planned pre-development drilling programme on the Barryroe oil discovery ("Barryroe"). Providence operates Barryroe (50%) with partners San Leon Energy (30%) and Lansdowne Oil & Gas (20%). Using a vessel supplied by Polarcus Limited, the 3D seismic survey will be used to assist in the pre-development drilling programme designed to progress Barryroe to first oil. The drilling of Barryroe is scheduled to commence late this summer, with the GSF Arctic III semi-submersible rig already contrac ted for the drilling programme. The partners believe that modern 3D seismic data, in tandem with modern well completions in the current high oil price environment, will be key components to unlocking value at Barryroe.
Global Energy Development (LON:GED, 68.5p, ► 0.0%) announced significant uplift in its oil production as a result of a successful workover programme of its Tilodiran 2 and 3 wells within the Colombian Rio Verde contract. Prior to the workover programme, during the first four months of 2011, the Company averaged total gross oil production of approximately 1,100 bopd from all of its producing properties. Subsequent to the workover programme, total gross oil production has reached sustainable levels of approximately 2,200 bopd. The Company has installed additional temporary surface equipment and is currently designing the expansion of permanent surface facilities in order to handle the increased production volumes within the Rio Verde field area. Following the workov er programme, the combined production tests of both wells stabilized at a gross lifted oil rate of approximately 1,800 bopd with oil gravities ranging from 15.3 to 16.2 degrees API. The workover programme targeted various un-perforated productive intervals in the middle to lower Cretaceous formations.
Oilex (LON:OEX, 23.25p, ▼ 4.12%) advised that the Cambay-76H horizontal well was spudded on 8th June 2011. The Cambay-76H "proof of concept" well will evaluate the production potential of the Y Zone interval of the extensive Eocene "tight" reservoirs in the onshore Cambay Production Sharing Contract ("PSC") in Gujarat State, India. It is estimated that the well, which includes a 610 metre lateral section, will take approximately 35 days to drill and complete. An 8 stage fracture stimulation program of the Eocene "tight" reservoir Y Zone will then be conducted. After well clean-up, it is anticipated that a long term production test will be performed to determine flow rates, quality of hydrocarbons and commercial viability.
Northern Petroleum (LON:NOP, 78.5p, ▼ 3.09%) announced its audited results for the year ended 31 December 2010. Operational highlights: Average production for the year increased to 1,195 boepd compared to a 2009 average of 365 boepd; 89.4 MMboe of net proven and probable reserves; Two further gas fields placed on production in the Netherlands in 2010, bringing total fields in production to six; Completion of 1,520 km2 3D seismic survey, and processing and interpretation thereof, over four permits in partnership with Shell Italia covering the Thrust and Fold Belt offshore Sicily; Shell Italia appointed as "Rappresentante Unico" (the sole representative with respect to the Italian authorities), while Northern remains Operator, allowing Shell Italia to advance discussion with the Italian authorities concerning future activitieson the Thrust and Fold Belt permits; Oil discovery announced at Markwells Wood, soon to be tested. Financial highlights: The Group achieved record revenues of EUR15 million; Pre-tax loss of EUR0.02 million for the year, as a consequence of additional non cash depletion and impairment charges of approximately EUR3 million; The Group made capital investments of EUR13.7 million to develop its reserves and resources; and as at 3 June 2011 Northern had EUR23 million of cash
Cluff Gold (LON:CLF, 85.25p, ▼ 0.29%) announce that it has amicably settled the labour dispute at its Kalsaka mine in Burkina Faso. Normal operations resumed on 7 June 2011 and the temporary disruptions have not affected the Company's annual production guidance of 70,000 ounces from Kalsaka in 2011.
Industry News – Continued positive rig data: Baker Hughes announced yesterday that the worldwide rig count for May 2011 was 3,130, up 27 from 3,103 in April 2011 and up 380 from 2,750 in May 2010. The US rig count for May 2011 was 1,836, up 46 from April 2011 and up 323 from the 1,513 in May 2010. The international rig count for March 2011 was 1,151, up 22 from 1,129 in April 2011, and up 61 from the 1,090 counted in May 2010. All this data, despite some volatility in respective regional areas indicates that oil and gas drilling continues to remain strong worldwide and in most geographical areas.
Capital Drilling (BUY) (LON:CAPD, 94.75p, ▲ 2.99%) announced three new contract awards – BHP Billiton (Potash), Kinross Gold (Ghana)- two diamond rigs for one year starting in Q3 2011 and Kinross Gold (Mauritania). The contracts represent the expansion of existing relationships with blue chip and major mining companies and further strengthens the long term visibility of the group’s revenue profile. In addition Major Drilling has just reported its Q4 2011(April Yearr end) results with a positive trading outlook statement. "Activity levels in the current fiscal year should be robust. Intermediate and junior mining companies with advanced projects continue to ramp up their already busy drilling programs by adding rigs. Most senior mining companies have significantly increased their exploration budgets for calendar 2011, and junior mining companies have had good access to capital markets. Also, we continue to see inquiries from all categories of customers. As demand expands, the industry is nearing capacity in terms of labour and pricing should continue to improve as the year progresses". We are not looking to make any major changes to our current forecasts for Capital Drilling. The shares are supported by a favourable valuation compared with its peers and we retain our Buy recommendation.
Saipem (LON:SPM IM, EUR60.13, ▼ 0.11%) Saipem and the Japanese company, Chiyoda Corporation, have reached a cooperation agreement to develop onshore Liquefied Natural Gas (LNG) and Upstream projects. According to the agreement, Saipem and Chiyoda will collaborate on an exclusive basis as an integrated JV to develop onshore LNG and Gas Treatment projects worldwide, excluding certain specific regions, as well as Upstream projects on a case by case basis. Chiyoda Corporation is one of the largest global engineering companies operating in the field of onshore LNG plants, as well as upstream and downstream EPC projects. It has a world leading track record and expertise, and record especially in the field of onshore LNG plants. Overall, this is very positive news for Sa ipem.
