Prelims from Bowleven (LON:BLVN) reveal it is in a healthy position for a junior oiler as it is sitting on US$145mln of cash.
The source of the company’s riches is a US$250mln deal struck with Russia’s LUKOIL and privately-owned NewAge, which now each own 30% of the Etinde Permit, offshore Cameroon.
Bowleven, which has been left with 20% (the remainder is owned by the state oil firm), is now carried on a two well programme next year.
That carry is estimated to worth US$40mln, while Bowleven will receive a further U$15mln on completion of appraisal drilling and US$25mln once the final investment decision is made on the project.
Tullow Oil (LON:TLW) shares dropped 5% after it promised further cutbacks, with capital spending planned to reduce by around 36% in 2016.
The oil firm said that capital expenditure (capex) for full year 2015 would amount to around US$1.9bn and next year it was expected to drop to US$1.2bn. It comes as the major TEN oilfield development nears completion (it is now 75% done). The project is currently said to be on-schedule and on-budget for ‘first oil’ in mid-2016.
From current operations Tullow’s production for the year-to-date is on track, and the company said it now expects full year net production to average between 66,000 and 67,000 barrels of oil per day (bopd).
Ophir Energy (LON:OPHR) has finalised commercial terms with a short-listed group of possible off-take partners for the liquefied natural gas (LNG) production from the Fortuna project. It says the total requested demand for LNG exceeds the available off-take from Fortuna.
The arrangements give the company the flexibility to competitively deliver the gas into either the Atlantic or Pacific Basin, the company added. Chief executive Nick Cooper described it as “another major step” in de-risking the Fortuna project.
Among the small caps there were some exciting stories.
88 Energy (LON:88E) told investors that its drilling operation in Alaska has been catching up lost time.
Following the replacement of faulty equipment - relating to the blow-out preventer (BOP) – which initially caused a three day delay, drilling resumed and the new piece of kit is now actually improving drilling capability.
The Icewine-1 well has now been drilled down to 6,258 feet, according to the weekly update released this morning. The company highlighted that an interval of 2,600 feet had been drilled in 48 hours, which is significantly higher than the budgeted rate.
Northern Petroleum (LON:NOP) has struck a deal to acquire producing assets in Northern Alberta, and it is launching a share placing to help fund the new venture. The assets the company plans to acquire currently produce around 211 barrels oil equivalent per day - of which 80% is oil – and have 1.185mln barrels of oil equivalent proved and probable reserves.
A new work programme is envisaged with the aim of doubled the rate of production over the next 12 months.
NOP predicts that net cashflow from the acquired assets will “broadly cover” all of the company’s general and admin costs, based on the assumption of a US$47 per barrel oil price in 2016.
Independent Oil & Gas (LON:IOG) has told investors it is now at the advanced stages of planning for the Skipper appraisal well in the North Sea. Subject to formalisation of contracts and funding the drilling rig is ready to mobilise, the company said.
The company has been working on these plans with the support of oil services partners. The rig contractor has agreed to take deferred payment, other contractors will provide loans or accepted to be paid in equity to help fund their work.
IOG, meanwhile, continues its efforts to secure sufficient additional capital to make sure the project is fully funded, including contingencies, and to complete the acquisition of the other 50% of the project and transfer operatorship.
NU-Oil and Gas (LON:NUOG) has raised £435,000 through the placing of shares to institutional investors. The company, formerly Enegi Oil, is issuing 124.2mln new shares at a price of 0.35p each.
Cash proceeds are earmarked for the group’s stranded and marginal field strategy, and to support the acquisition of projects.
Nigeria-focused oil group Canadian Overseas Petroleum (LON:COPL CVE:XOP) ended its third quarter with cash of around US$3.5mln.
The explorer, which is partnered with ExxonMobil on a venture in Liberia, posted a sharply reduced net loss of US$980,000 (US$2mln) for the quarter to September and US$4.7mln for the nine months of 2015 so far.