Independent Resources (LON:IRG) was the sector's biggest riser after it announced that Sahara Resources GOS, which holds a 50% interest in the East Ghazalat concession, has been issued with a commercial registration and tax ID number by the General Authority for Investments and Free Zones which formally establishes a branch of SRGOS in Egypt.
SRGOS is the wholly owned subsidiary of the company's 50% owned associate Independent Resources (Egypt) Limited, IRG's joint venture vehicle owned jointly with Nostra Terra Oil and Gas, which was formed to facilitate IRE's acquisition of its interest in the East Ghazalat concession.
IRG believes the establishment of an Egyptian branch of SRGOS completes all the necessary legal formalities and will allow IRE to seek to conclude arrangements with the Egyptian General Petroleum Corporation ("EGPC") in respect of their registration process.
Once EGPC have concluded their process, the timing of the payment of accrued revenues remains, however, solely within the control of the relevant Egyptian authorities. The Company is liaising with these authorities so that payments can commence and will update the market further when it has visibility on when payments may be received.
Chief executive Greg Coleman said: "We are delighted that SRGOS has established a branch in Egypt, a significant step in the process to make it eligible to receive payment of the material accrued revenues due to the JV from the East Ghazalat concession. We will continue to liaise with EGPC in an effort to secure payment of these revenues however the timing of any payment is controlled by these authorities.
"We appreciate the continued patience of our investors and look forward to updating the market with further developments as they arise."
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Nostra Terra (LON:NTOG) has noted an announcement by Independent Resources concerning Sahara Resources GOS, the wholly owned subsidiary of the company's 50% owned associate Independent Resources (Egypt) Limited, Nostra Terra's joint venture vehicle owned jointly with IRG, which was formed to facilitate IRE's acquisition of its interest in the East Ghazalat concession.
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Xtract Resources (LON:XTR) has decided to develop the Manica gold project in Mozambique solely on an open pit basis.
The company said underground development would require crown pillars which would sterilise a significant portion of the resource while weak wall rock conditions mean back-filling would be needed which would drive up costs.
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The sector's biggest fallers were Indus Gas (LON:INDI) and Hardy Oil & Gas (LON:HDY) - down by 9.2% and more than 8.6% respectively in late trading.
(LON:AUR) Aurum Mining PLC share price was 0p at 5.15p
(LON:BOR) Borders Southern Petroleum PLC share price was -0.12p at 2.5p
(LON:CHAR) Chariot Oil Gas Ltd share price was -0.36p at 8.06p
(LON:ENQ) EnQuest Plc share price was +0.63p at 27.63p
(LON:GKP) Gulf Keystone Petroleum share price was +0.02p at 1.17p
(LON:GPX) Gulfsands Petroleum PLC share price was +0.01p at 3.38p
(LON:HDY) Hardy Oil Gas PLC share price was -1.63p at 17.25p
(LON:INDI) Indus Gas Ltd share price was -29.62p at 292.38p
(LON:IRG) Independent Resources PLC share price was +0.03p at 0.11p
(LON:NTOG) Nostra Terra Oil Gas Company PLC share price was +0.1p at 1.28p
(LON:PET) Petrel Resources PLC share price was -0.13p at 6.13p
(LON:RKH) Rockhopper Exploration PLC share price was +0.13p at 24.38p
(LON:RPT) Regal Petroleum PLC share price was 0p at 3.76p
(LON:XTR) Xtract Resources Plc share price was 0p at 0.03p