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Proactive Weekly Oil & Gas Round-up: Trinity Exploration & Production, Range Resources, UK Oil & Gas Investments ...

A look at the world of small cap oil and gas news this week
Trinity wells
Trinity Exploration & Production announced on Friday that it has agreed to sell a block of producing assets in Trinidad to its neighbour Range Resources

Trinity Exploration & Production PLC (LON:TRIN) announced on Friday that it has agreed to sell a block of producing assets in Trinidad to its neighbour Range Resources PLC (LON:RRL).

The assets are offshore the west coast of the island and will release capital to invest in the company’s operations on the other side of Trinidad, Trinity said.

Range is paying US$4.55mln for the assets, which are in the Brighton Marine/Point Ligoure-Guapo Bay licence areas.

Earlier in the week, Range had also unveiled a move in a new direction, with the acquisition of an interest in oil and gas assets in Indonesia announced on Tuesday.

In a deal worth US$3.2mln, paid out of existing cash resources, the company said it is acquiring an initial 23% stake in the Perlak field which is said to have a long history of oil production - with some 60mln barrels produced to date – albeit it is presently offline.

Meanwhile, on Wednesday, Trinity had told its investors that it has seen a step-change in its financial performance in the first half, delivered during a period of transition.

In an operational update ahead of interim results, due on September 25, the company said that it continued the upward trajectory in production into the second half.

Overall, for the six months to June 30, Trinity said net production averaged 2,397 barrels of oil per day, compared to 2,659 bopd in same period of last year, while realised prices were reported at US$46.4 per barrel up from US$32.8 in the previous year.

Broadford Bridge broached

Elsewhere, UK Oil & Gas Investments PLC (LON:UKOG) traded positively on Thursdayafter the UK onshore oiler told investors it had completed a side-track in the recently drilled Broadford Bridge exploration well.

UKOG revealed that the side-track, which will be used for flow testing, has been drilled and cased through an entire reservoir section of 1,480 feet. It runs parallel to the Broadford Bridge well bore, some 200 feet to the south.

The company, in a statement highlighted that it has all permissions in place for a comprehensive extended flow test, which will address an aggregate of 926 feet of perforated reservoir sections.

Stephen Sanderson, UKOG chief executive, has explained that the side-track has ensured the integrity of the planned testing programme.

Cairn boost continues

On Monday, Cairn Energy PLC (LON:CNE) revealed that it has continued to boost its win ratio offshore Senegal, where the latest well at the SNE project hit oil and gas.

The well, SNE North 1, located some 15 kilometres from the SNE discovery, encountered oil and gas in its primary target as well as a new deeper oil discovery in a second target. It marks the end of the current five-well programme in Senegal.

Other news on Monday saw Mosman Oil & Gas Ltd (LON:MSMN) give investors an update as efforts to grow production continues at its new projects in America.

The AIM-quoted oil minnow said that production at the Strawn project, in Texas, amounted to 440 barrels (gross) in the month of July, it also noted there was a second shipment and sale of oil (amounting to 177 barrels) and it had 650 barrels left in its inventory.

Andalas advantage

Elsewhere, Andalas Energy and Power Plc (LON:ADL) shares shot up on Tuesday after it announced a new consortium agreement which foresees the development of a wellhead power project in Indonesia.

The AIM-quoted firm has signed the deal with PT PP Energi (PPE), a subsidiary of state-owned Indonesian construction and engineering group PT PP (Persero), for a proposed Jambi-1 which would involve a 30 megawatt gas-fired power facility.

And Highlands Natural Resources Plc (LON:HNR) was a strong gainer on Friday after it said it has achieved a “major milestone” after it started drilling the first well at its East Denver shale oil and gas project in Colorado.

Only a few weeks ago, Highlands raised almost £3mln of fresh capital to fund that first well.

COPL upbeat on discussions

Meanwhile, Canadian Overseas Petroleum Limited (LON:COPL) revealed with second quarter results on Friday that discussions over funding for an appraisal well on its OPL 226 licence offshore Nigeria are advancing well.

Investment bankers Cofarco and Zeus Capital are in discussions with a number of oil traders, merchant banks and service providers, COPL said.

Empyrean Energy PLC (LON:EME) updated investors on operations on the Dempsey 1-15 well, in the Sacremento basin in California this week, where it says drilling is going to plan.

And Premier Oil PLC (LON:PMO) this week announced the appointment of Roy Franklin as the group’s new chairman with effect from September 1.

Franklin is presently interim chair at Statoil, he will be deputy chair and senior independent director at post-merger Amec Foster Wheeler / Wood Group and he is on the advisory board of private equity investment group Kerogen Capital.

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