A busy week for the energy sector.
Parkmead Group Plc (LON:PMG) chairman Tom Cross said it has been an excellent year for the firm, despite the challenges of low oil prices.
The North Sea growth firm confirmed it had remained cash flow positive since January on an operating basis, whilst highlighting expansions to the portfolio and progress for key field development programmes.
Notably, Parkmead had increased its interests in the Polecat and Marten fields, and separately increased their holdings in the Perth and Dolphin fields.
Perth and Dolphin are said to be core to Parkmead’s planned Perth-Dolphin-Lowlander or PDL oil hub project – a fully appraised project with some 80mln barrels of recoverable oil reserves – whereas Polecat and Marten are significant because they are close enough to PDL that they could also be developed.
On the exploration front, Parkmead secured access to the high impact potential of the Sanda North and Sanda South prospects located in the West of Shetland region of the North Sea. These potentially large projects have been estimated to have 280mln barrels of recoverable oil.
The group’s gas production, from operations the Netherlands, increased more than six-fold during the year ended June 30 amid the start-up of the Diever West field via a fast-track development over 14 months.
The memorandum of understanding was co-signed by the New Nigeria Development Company Ltd (NNDC) and Nigeria National Petroleum Corporation (NNPC).
It sets out terms by which the three parties will establish technical and steering committees to manage the process of evaluating the technical and commercial prospectivity of this materially underexplored region, Savannah told investors.
Meanwhile, President Energy PLC (LON:PPC) told investors it expects to receive US$55 per barrel of oil sold in Argentina for the rest of this year, though it acknowledged that it is quite probable that domestic prices will fall during 2017.
Argentina has in recent years support crude prices, holding domestic prices above international levels during the downturn.
“The Argentinian Government's intention to match local and international pricing has been in the public domain for some time, and, whilst it is quite probable that this will be in 2017, at the present time exact timings for this transition remain unclear though this could commence in the first part of 2017,” it said.
Meanwhile, closely watched Hurricane Energy Plc (LON:HUR) has expanded its footprint around the large Lancaster oil project in the West of Shetland region of the UK North Sea.
The UK Oil and Gas Authority has awarded Hurricane licence P2308, referred to as Halifax, which is contiguous to the north east from the Lancaster field.
Hurricane noted that the recently drilled Lancaster pilot well, which encountered oil down to a depth of 1,620 metres and indicated that the oil accumulation is likely to extend beyond the boundary of the Lancaster licence boundary.
Previous drilling in the Halifax licence area has encountered oil and gas shows in sandstones immediately above the basement, and Hurricane highlights that seismic interpretation indicates the presence of a well-defined fault network that is analogous to what is seen at Lancaster.
On Friday, it emerged that San Leon Energy Plc (LON:SLE) had sold its Polish assets to its partner Palomar Natural Resources.
The sale comes as the company continues to focus on its recently acquired Nigerian business.
It sold the 35% interest in the assets, which primarily comprises the Rawicz gas field, for a cash consideration of US$9mln and the release of its liabilities to the assets - namely US$3mln of loans advanced by Palomar to cover costs of drilling and testing of two wells.
The company’s Poznan assets, 35% owned, are sold for a nominal fee and a royalty.
The Kurdistan oil firm, following its debt-for-equity swap, now intends to reduce the number of shares in issue from 22.94bn down to 228.4mln. Shareholders will receive 1 new share for every 100 they hold.
“The number of existing common shares significantly increased as a result of the recently completed restructuring,” Gulf Keystone said in a stock market statement this week.