Hurricane Energy PLC (LON:HUR) stormed higher this week after the explorer revealed that its Lincoln oil discovery is probably larger than it first thought.
The group said its latest North Sea drilling has uncovered a ‘significant oil column’ estimated at 660 metres.
Pre-drill estimates for Lincoln suggested it was host to 250 million ‘recoverable’ barrels of crude. Hurricane says after early analysis that figure looks conservative.
READ: Hurricane Energy's silver lining ...
Work carried out by Transocean Spitsbergen rig in the waters to the west of the Shetland Islands was designed to prove up a new, deep-lying North Sea oil horizon called a fractured basement play.
The data from the Lincoln well, a follow-up to the Lancaster discovery, definitively does this.
BP deals ...
Among the oil majors, BP PLC (LON:BP.) provided the week’s main headlines after the FTSE 100-listed firm announced two big deals.
BP unveiled plans to inject almost US$1bln (£800mln) into a gas field off the coast of west Africa as it looks to battle low energy prices by expanding its output.
The oil giant has signed an agreement with Kosmos Energy Ltd. (NYSE:KOS) to partner on its discoveries in Mauritania and Senegal and co-operate on future exploration.
The move came in the wake of a deal struck over last weekend, which saw BP snap up a 10% stake in the output of one of the largest oilfields in Abu Dhabi.
The Arabian Gulf deal will dramatically raise BP's share of oil and gas production in the emirate, from 95,000 barrels of oil a day to 260,000 barrels a day next year.
In return Abu Dhabi will receive shares representing a 2% stake in BP worth almost £2bn.
San Leon soars ...
Back among the small caps, there was bid excitement for San Leon Energy PLC (LON:SLE) which saw its shares soar on Monday after the oil and gas firm confirmed it had received an approach from a possible bidder which could lead to a takeover offer being made.
Later in the week, San Leon confirmed that a relatively unknown Chinese investment group was behind the possible £485mln takeover deal, revealing that Geron Energy Investment has lodged an indicative offer of 80p-a-share.
Other speculative moves saw Gravendonck Private Foundation, a long-time backer of Active Energy PLC (LON:AEG), increase its equity stake in the renewable energy specialist. Active’s major shareholder is to convert US$1.02mln of existing debt into equity.
Drilling news mixed ...
A big sector loser this week was Canadian Overseas Petroleum Limited (LON:COPL) which is having to take stock after drilling results from its highly-anticipated exploration well offshore Liberia disappointed.
The recent drill tests carried out at the Mesurado-1 well by owner and oil super major ExxonMobil failed to find hydrocarbons.
Elsewhere in the news, drilling updates were mostly positive.
Aminex plc (LON:AEX) and SOLO Oil PLC (LON:SOLO) hailed the spudding or start of the latest well at the Ntorya gas field in the Ruvuma Basin in Tanzania.
An appraisal well, Ntorya-2 is being drilled four years after Ntorya-1, the original exploration well, and 1500m away.
Oil production at Genel Energy PLC’s (LON:GENL) Tawke field in Kurdistan is slightly ahead of expectations, according to one City broker.
Genel said in an update on Friday that gross production at its other Kurdistan licence, Taq Taq, has averaged 45,000 barrels of oil per day (bopd) so far in the fourth quarter of the year.
Meanwhile, Victoria Oil & Gas plc (LON:VOG) said it had successfully completed phase II and III of a gas pipeline extension into industrial area of Doula, Cameroon’s second city.
Highlands Natural Resources Plc (LON:HNR) revealed it has revised its drilling agreement at its East Denver, Colorado shale project to reflect last week’s expansion deal.
Trinidad focus ...
Elsewhere, LGO Energy PLC (LON:LGO) is itching to get drilling again at the Goudron field in Trinidad.
In an end-of-year operational update following its recent fund-raising exercise, it revealed the signing of an initial two well drilling contract is imminent.
Staying in Trindad, Trinity Exploration & Production PLC’s (LON:TRIN) creditors approved their part of a US$15mln refinancing of the oil company.
Meanwhile, Falcon Oil & Gas Ltd (CVE:FO LON:FOG) reported that an extended production test of the Amungee NW-1H horizontal well confirmed consistent gas flows of more than one million cubic feet per day.
Looking to the future, US Oil and Gas PLC (OTCMKTS:USLGF) told investors that the recent recovery in oil prices has left it “well-positioned” to kick on in the New Year.
Sirius Petroleum (LON:SRSP), the investing company focused on the Nigerian energy sector, revealed it has contracted oilfield services giant Schlumberger for a multi-well campaign next year.
Mosman Oil & Gas (LON:MSMN) said it will continue to look for acquisitions despite being thwarted in two deals over the past year.
Falkland Islands-focused Rockhopper Exploration Plc (LON:RKH) revealed that it expects to finish 2016 with around £65mln on the bank – which equates to more than two-thirds of the company’s current market capitalisation.
And a good monsoon season has put India-based renewable energy group Mytrah Energy Ltd (LON:MYT) on track to hit targets this year.