A big week for well-followed oiler Gulf Keystone Petroleum (LON:GKP) this week.
Shares shot up more than 300% on Wednesday after the oiler weighed in with an updated report that essentially confirmed the world class potential of the company’s Shaikan field in the Kurdistan region of northern Iraq.
Not a great deal has altered since the last reserve statement a year ago – if anything the numbers look slightly lower.
However, the data has been compiled after pumping 25mln barrels of crude from Shaikan and they continue to underpin the previous, bullish assumptions about what GKP has tapped into.
The numbers show the proven and probable reserves are little changed at 622mln barrels of oil while the technically recoverable volumes of crude remain intact at above 1bn barrels.
Shares had earlier taken a tumble after the launch of a US$25mln open offer as part of a survival bid.
Its refinancing also includes plans to convert US$600mln into equity, leaving it with borrowings of around US$100mln and the current investor base with a paltry 5% of the company.
In the mix also is a US$300mln cash-and-share takeover bid from Middle East-focused Norwegian oiler DNO, which the company has still to decide upon.
Meanwhile, Sound Energy PLC (LON:SOU) is joining the ranks of the big boys, it emerged on Friday.
Well, the big boys of the junior market at least.
For the Italy and Morocco-focused gas exploration and production firm has, by virtue of its advancing market capitalisation, been promoted to the FTSE AIM UK 50.
As the name suggests, this is the index charts the highs and lows of the 50 largest firms on AIM and includes ASOS, which at £3.8bn, would almost be big enough to join the FTSE 100.
Sound, valued at £355mln, will take its place in the AIM 50 on September 19.
Meanwhile, to offshore and the North Sea, and the next few weeks are critical for Xcite Energy Limited (LON:XEL) as it works to escape its debt trap, so says Cantor Fitzgerald analyst Sam Wahab.
Some US$140mln of debt is overdue and whilst lenders have so far shown some leniency by giving the company three months to seal a refinancing the clock is ticking loudly. Bondholders have given the North Sea firm until September 30.
Lumbered with debt it can’t repay and facing the prospect of a hefty debt-to-equity swap, Xcite Energy’s predicament is similar to what Gulf Keystone faced just weeks ago, wrote Proactive this week.
This week saw a brief update from Sound Energy PLC (LON:SOU) on its drilling operations at the Tendrara gas project in Morocco, where the latest well has now been drilled to the first casing point.
The well, Tendrara 7 (TE-7), has now reached a depth of 462 metres, and casing has been set and cemented in the Aalenian dolomite formation, Sound Energy told investors.
Drilling will now continue down to a depth of around 2,150 metres, which will be the second casing point.
Over in Trinidad, Range Resources Limited (LON:RRL) said production testing of its latest well will take place next month after oil was discovered.
A total of 40 feet of net pay was found at QUN 159 on the Morne Diablo field. The well was drilled down to 2,500 feet and tested the Lower Forest and Upper Cruse horizons.
“The programme to perforate the well has been approved by the government and Range intends to proceed with production testing of the well during early September,” the company told investors.
Production testing on the two previously-drilled development wells (MD 250 and MD 251) is also underway.