Nostra Terra (LON:NTOG) was the sector's biggest riser after it announced the acquisition of an 80% Working Interest in certain oil and gas interests comprising the Pine Mills oil field and associated assets in Wood County, Texas, which completed today.
Nostra Terra purchased the assets from GFP Texas Inc. ("GFP Texas"), which has exercised its pre-emption rights following the proposed sale of Pine Mills by its previous owner and operator, Cue Resources LLV ("Cue Resources").
In consideration for the purchase, Nostra Terra has paid US$1,025,000 to complete the acquisition, which has been majority financed from existing cash resources with the balance from a Director loan facility.
Pine Mills is a 2,400-acre producing oil field, currently producing an average of 100 barrels of oil per day (bopd) (gross).
Pine Mills is cash flow positive and has no legacy or other spending commitments attached to it. All leases are "Held By Production", giving Nostra Terra full control over the timing of any future capital expenditure decisions. The effective date of the acquisition is 1 November 2016.
Nostra Terra is now the operator of Pine Mills.
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Volga Gas (LON:VGAS) said directors have given preliminary authorisation to a project based at the Group's Dobrinskoye Gas Processing plant for the capture, storage and sale of liquid petroleum gases (LPGs) from the gas and condensate streams produced from the Vostochny Makarovskoye and Dobrinskoye fields.
LPGs, primarily comprising propane and butane, are currently either included in the sales gas stream or flared.
The LPG project will provide an additional product stream which is expected to increase total sales volumes by approximately 10% and to enhance profitability.
The construction of the project is expected, subject to the necessary regulatory approvals, to commence during 2Q 2017 and be completed before the end of 2017. The total capital investment in the project is estimated at $5.0 million.
The project can be funded from the Group's existing cash resources which currently stand at approximately $13 million.
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Sound Energy (LON:SOU) has signed the contract securing the drilling rig for its Badile exploration well in Italy.
Further to the memorandum of understanding signed between the Company and Pergemine S.p.A ("Pergemine") earlier this year, the Company is now pleased to announce that it has, on 28 November 2016, entered into a binding agreement with Pergemine for the use of the 3000 HP EMSCO C3 No.29 rig for the drilling of the Badile exploration well.
The rig is already in Italy and will be mobilised in January 2017, allowing the Company to proceed with drilling of the Badile well in the first quarter of 2017.
The terms of the rig will, as previously announced, include the payment of 23% of the service charges through the issue of new ordinary shares in the Company with a value of approximately 1 million.
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LGO (LON:LGO) has confirmed the successful conclusion of negotiations for the sale of over 10,000 barrels of oil stocks in Spain.
Further to the Company's announcement on 4 November, a commitment has now been received from a Spanish buyer for LGO's local subsidiary, Compañia Petrolifera de Sedano ("CPS"), to deliver a total of 11,200 barrels of Ayoluengo crude oil in December 2016 and January 2017. The oil has been sold at a price competitive with local fuel oil, and the funds generated will be used in CPS operations and general corporate working capital.
In separate news from the Ayoluengo Field, the CPS-owned workover rig has recently undergone a two yearly mechanical recertification and has now been returned to service.
Chief executive Neil Ritson said: "We are happy to have concluded the sale of accumulated surplus stocks of oil built up at the Ayoluengo field over 2016. Whilst the Company is still awaiting a final decision from the Spanish government on CPS's application for a 10-year concession renewal from 1 February 2017 we are continuing with normal operations and preparing for various contingencies, including potentially applying for a new 30-year concession should the Company consider that to be advantageous."
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The sector's biggest faller was Pantheon Resources (LON:PANR) - down by more than 19.6% in late trading.
(LON:AUR) Aurum Mining PLC share price was +0.3p at 4.5p
(LON:BOR) Borders Southern Petroleum PLC share price was -0.01p at 2.55p
(LON:CHAR) Chariot Oil Gas Ltd share price was +0.07p at 8.16p
(LON:ENQ) EnQuest Plc share price was -0.62p at 27.38p
(LON:GKP) Gulf Keystone Petroleum share price was +0.02p at 1.19p
(LON:GPX) Gulfsands Petroleum PLC share price was +0.13p at 6.75p
(LON:INDI) Indus Gas Ltd share price was -0.12p at 289.88p
(LON:LGO) LGO Energy PLC share price was -0.01p at 0.11p
(LON:NTOG) Nostra Terra Oil Gas Company PLC share price was +0.55p at 1.9p
(LON:PANR) Pantheon Resources PLC share price was -18.5p at 72.5p
(LON:PET) Petrel Resources PLC share price was 0p at 5.75p
(LON:RKH) Rockhopper Exploration PLC share price was -0.37p at 21.38p
(LON:RPT) Regal Petroleum PLC share price was +0.01p at 3.74p
(LON:SOU) Sound Energy PLC ORD 1p share price was -2.12p at 73.88p
(LON:VGAS) Volga Gas PLC share price was +0.5p at 47.5p