The market's oil and gas small caps have had been fairly busy this week with AIM-quoted explorer () in focus at the end of the week as it saw its shares soar after it updated on activity in Iraq.
Negotiations are at an advanced stage, the firm said, with a private company with extensive oil and gas interests, whereby it would inject an asset into the firm in return for a minority stake and representation on the board.
House broker Northland kept its 'buy' stance on the stock and noted on the Iraq update: "We welcome the news that management is in discussions to bring in additional assets to the company without significant levels of cash going out of the business."
It added: Petrel?s management has significant experience and technical competence in Iraq, considered one of the world?s pre-eminent hydrocarbon territories."
Also yesterday, () ?revealed it had picked up two more UK coal gas licences to take its number in Britain to five.
The new awards are for deep underground coal gasification prospects at West Cumbria (8,200 hectares) and Largo Bay (8,000 ha) in Scotland. With recent licence awards at Kincardine, the Loughor Estuary and the Dee Estuary, Cluff's total UK acreage now amounts to almost 31,000 ha.
The company?s strategy is to target extended coal seams offshore UK to extract syngas through underground coal gasification (UCG) to supply to power stations and to provide a carbon capture option.
In other news in the week gone, () was boosted by a report that underlines the value of the proposed Barryroe oil field development in Ireland?s Celtic Sea.
Industry consultant Netherland Sewell & Associates Inc (NSAI) assessed the Basal Wealden oil sands, one of Barryroe?s two main zones, and estimated that Providence?s 80% share could generate cash flows in the order of US$10.6bn.
On a discounted basis the consultant puts the figure at US$2.6bn.
This is based on the April 2013 competent person's report, which was also prepared by NSAI, and the cash flows estimated would be further supplemented by the resources in the Middle Wealden sands.
Middle Wealden is estimated to contain 287mln barrels of oil-in-place, of which 45mln are currently thought to be recoverable ? the Basal has 761mln barrels in-place and 266mln recoverable.
The statement on Thursday comes as Providence continues to work on bringing in a development partner to take the project forward into production.
Also in the latter part of the week, () revealed plans to raise up to ?13mln to pay its share of drilling costsfor the upcoming Welwitschia-1 well in Namibia.
Operating partner is due to start drilling Welwitschia-1 in February.
The new cash will also help pay for the acquisition of Wilton Petroleum, announced earlier this month, and to enhance its ability to pursue new ventures.
"At this crucial time in the company's development it is important that we have the means to fund our share of 2013 costs for the Welwitschia-1 well and to have the flexibility to enter into further new ventures,? chief executive Graeme Thompson told investors.
() made an offer to buy more of its majority owned Australian subsidiary.
The explorer currently owns 96.9% of Australia (FOGA), following its recently completed acquisition of Sweetpea Petroleum, which gave it an extra 24.2% of the business unit.
The offer to certain FOGA shareholders is on the same terms as the Sweatpea deal: 2.25 shares for each share in FOGA and the deadline is August 22.
() can appeal the ban on an exploratory well at its Holmwood project in the Weald Basin, Surrey, it emerged last week.
An initial planning application for a well at the site was turned down in 2011 and a subsequent appeal dismissed by an appointed Inspector after a seven day public enquiry in July last year.
Europa (40%) and its partners, (38.4%), Warwick Energy 20% and Alywood Petroleum (1.6%) challenged that decision, which was upheld by High Court judge today.
Meanwhile, US focused () has further boosted future revenue as it unveiled "excellent" initial production at the Statoil operated Jake 2-11 2TFH well in North Dakota.
The well is producing at a rate of 2,244 barrels of oil equivalent per day (boepd).
Magnolia holds a 1.465% net revenue interest in the well and it adds 33 boepd to the firm's net production.
Chief operating officer of Magnolia, Rita Whittington said: "As a result of this second Statoil operated Jake well, the last four wells in which we have participated in North Dakota's prolific Bakken and Three Forks Sanish formations have added almost 200 boepd net to Magnolia."
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