Rockhopper Exploration Plc (LON:RKH) said it is close to kicking off the first phase of development of the Sea Lion Field in the northern waters of the Falkland Islands.
At the company's annual meeting later investors will hear that it and partner Premier Oil PLC (LON:PMO), which holds 60% of the offshore acreage, are close to selecting a main contractor to carry out the work.
Needed first is US$400mln of vendor funding with negotiations on this key part of the process "near completion".
Premier Oil PLC (LON:PMO)
Earlier this week, Premier told investors that the Catcher oil field ramp-up has now seen production exceed 60,000 barrels of oil per day, driving the group production rate above 90,000 barrels oil equivalent per day.
The rate averaged 74,000 boepd for the first quarter, Premier said in an update ahead of today’s annual general meeting. It said the company remains on track to hit production guidance of 80,000 to 85,000 boepd.
Premier noted that first quarter cash flow would be neutral which, as previous communicated, reflects the phasing of the group’s 2018 capex programme, the Catcher ramp-up and still pending receipt of asset disposal proceeds.
It highlighted that a significant reduction in group debt is anticipated in the second half of this year.
"The improved commodity price environment puts us in a strong position to generate significant free cash flow in the second half of the year,” said Tony Durrant, Premier chief executive.
SDX Energy Inc (LON:SDX, CVE:SDX)
Friday’s update from SDX revealed better than expected gas flow rates from the latest gas discovery well at the South Disouq project, onshore Egypt.
The Ibn Yunus 1X well had encountered just over 100 feet of net natural gas pay in the Abu Madi formation, and, in flow testing it yielded a stabilised rate of 39.3 mln cubic feet. Not only did the rate exceed pre-drill expectations, it was limited by the equipment at surface – meaning the possible peak rate is higher still.
On Thursday, SDX financial results for the first quarter confirmed SDX Energy Inc (LON:SDX, CVE:SDX) is benefitting from its operational successes in Egypt and Morocco. The months were punctuated by exploration and appraisal achievements, which add to the group’s growing production profile.
Output for the three months, ended March 31, averaged 3,036 barrels of oil equivalent. Production grew further in the subsequent period, with the rate rising to 3,474 boepd by May 15.
Echo Energy Plc (LON:ECHO)
Echo announced a gas discovery in the ELM-1004 exploration well, at the Fracción C asset, onshore Argentina. As the first well in a four well programme, it marks a successful start to Echo’s exploration campaign.
The well was drilled down to 1,760 metres and it encountered over 40 metres of gas shows through the Upper Tobífera. The company highlighted that it saw gas peaks of over 195,000 parts per million and a full distribution of C1 to C5 hydrocarbons.
Echo noted that, as in other areas of the basin, determining net pay is complicated because of the mineralogy of the volcanic reservoir. Nonetheless, it estimates the net pay at around 14.5 metres within the gas section - which it said was towards the upper end of the anticipated range. The well is now being prepared for testing and production, and, the next phase of work on ELM-1004 will utilise a completion rig.
Hurricane Energy Plc (LON:HUR)
Hurricane had a week of projects for the Lancaster field. On Thursday, telling investors that the newly-fabricated buoy for the early production system has now departed dry dock in Dubai.
Before its release, the buoy was successfully testing and it passed final inspections. The company highlighted that the buoy is a critical element of the turret mooring system for the Aoka Mizu FPSO, which will be deployed at the Lancaster field.
The completion concludes a key part of the construction phase of the project, it added.
Wednesday, Hurricane said it started the offshore installation phase which begins with the installation of enhanced horizontal ‘xmas trees’ on Lancaster’s two existing wells. An offshore construction vessel has taken on board both xmas trees and it is now due to mobilise to the field.
It is among a number of work tasks that are taking place ahead of the installation of the turret mooring system for Lancaster’s float production storage and offloading (FPSO) vessel.
Falcon Oil & Gas Ltd’s (LON:FOG)
Falcon’s partner at the Beetaloo basin shale gas project in Australia’s Northern Territory has identified four additional potential plays.
At an oil and gas conference in Adelaide, Origin Energy said initial indications are that each of them is a “material multi-TCF” (trillion cubic feet) play, although it added that the Velkerri shale dry gas play – the one the two have been focused on – is still the most mature resource.
More drilling at the four new plays is required to get a better understanding of their viability, but Origin believes each of them has the “potential to redefine Australia's energy market”.
Falcon chief executive Philip O’Quigley said: “The Beetaloo sub-basin provides us with an exciting diversified portfolio, having exposure to all five identified plays.
“When activity resumes, the JV will look to demonstrate improved well deliverability through longer laterals in the Velkerri shale while simultaneously seeking to prove up high value plays with increased liquids potential with lower well cost and improved economics.”
United Oil & Gas Plc (LON:UOG)
Shares in United gained on Monday as the group confirmed the completion of a 3D seismic exploration programme at the Tullow Oil plc (LON:TLW) operated Walton-Morant licence offshore Jamaica.
The survey captured data over 2,250 square kilometres, of the large 32,065 licence area, and it included the Colibri target, which was estimated at some 200mln barrels. Its aim was to de-risk multiple exploration targets so that they are ‘drill ready’, ahead of future exploration drilling which would take place in 2020 or 2021.
Processing is underway and fast-track data is anticipated by mid-July, whereas the full data set will be due later in the year.
On Tuesday, United highlighted that partner Corallian Energy has now has an agreement for a rig for the upcoming Colter well, off England’s south coast. A letter of intent has been signed with Ensco UK which, subject to approvals, sees drilling taking place during the third and/or fourth quarters of this year.
The Colter discovery is adjacent to Wytch Farm, the largest onshore oil field in Europe, where more than 450mln barrels of oil have been produced.
A previous well at Colter encountered a 10.5 metre oil column and following seismic work in the area the new well will target a location up-dip from the original site. United, via a farm-in option, has a 10% interest in the project and it estimates that its share of the costs to drill the well will be less than £1mln.