Oil, Gas Roundup

JKX Oil & Gas (LON:JKX) has confirmed that Ukraine police carried out unexpected searches at the offices of its subsidiary Poltava Petroleum Company yesterday.

The searches are part of an ongoing investigation announced by the company on 15 June. JKX says PPC is fully cooperating with the investigation, but nevertheless believes that it is in full legal compliance with matters outlined in the warrant and that the action is completely without merit.

JKX chief executive Tom Reed said: "We will be bringing this matter up with the relevant authorities in Kiev. I believe these actions to be a distraction for JKX and damaging to Ukraine's investment climate."

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Faroe Petroleum (LON:FPM) has announced the start of the Bon� exploration well 7318/12-1 (Faroe 20%) and the decision to drill an appraisal well on the Brasse discovery in the 2017 drilling programme.

Licence PL716, which contains the Bon� prospect (previously named Dazzler), is located in the western part of the Norwegian Barents Sea in a similar structural setting to the Johan Castberg discovery.

The primary targets for the well are the Jurassic St�- and Nordmela sandstones with a secondary target within the Triassic Fruholmen and Snadd sandstone formations.

Licence PL716 was awarded to Faroe in June 2013 in the Norwegian 22nd Licensing Round together with co-venturers Eni Norge AS (30% and operator), Bayerngas Norge AS (20%), Petoro AS (20%) and Point Resources AS (10%). The Bon� well is being drilled using the Scarabeo 8 drilling rig and the results will be announced when drilling operations are complete.

Faroe Petroleum also announced that the Licence PL740 partnership has committed to the drilling of an appraisal well on the Brasse discovery in mid-2017 (Faroe 50%).

Faroe as operator has entered into a contract with Odfjell Drilling for the use of the semi-submersible drilling rig, Deepsea Bergen, for the drilling operations. Faroe announced the Brasse oil and gas discovery in PL740 in July 2016. The main wellbore 31/7-1 encountered an 18 metre gross gas column and a 21 metre gross oil column, and the sidetrack well (31/7-1A) encountered a 6 metre gross gas column and 25 metre gross oil column, with both wells encountering good quality Jurassic reservoir.

Total gross volumes of recoverable hydrocarbons have been estimated by the Company to be 28-54 mmbbls of oil and 89-158 bcf of gas (43-80 mmboe gross in aggregate). The main objectives of the appraisal well are to reduce the uncertainty in the reserves estimates and to provide important additional information for the development project.

The Brasse discovery is located within tie-back distance to existing infrastructure: 13 kilometres to the south of the Brage field platform, in which the Company holds a 14.3% working interest and 13 kilometres to the south east of the Oseberg Field Centre.

Chief executive Graham Stewart said: "We are very pleased to announce the spudding of Bon�, our first exploration well in 2017, located 90 kilometres to the northwest of the Johan Castberg discovery. This high impact well will test a large horst structure with very significant volume potential.

"We are also pleased to announce the forthcoming appraisal well on the Brasse licence which will serve to mature this discovery towards development. Together with Point Resources we are progressing feasibility studies which will be ongoing in parallel with the appraisal project.

"2017 will be another significant year for Faroe. We have a very full programme ahead of us in our core areas including exploration, appraisal, infill drilling and early stage development activity. Coupled with our strong production profile, solid cash position and recently increased and substantially undrawn debt facilities, we look forward to another period of growth across the business."

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Ithaca Energy's (LON:IAE) average production totalled approximately 9,300 barrels of oil equivalent per day in 2016 - exceeding full year guidance of 9,000 boepd.

Average production in 2017 is anticipated to be in the range of 19,000 to 22,000 boepd (approximately 75% oil). This range reflects the updated Stella start-up schedule, the programme of planned maintenance shutdowns during the year and sensitivities associated with the performance of those operational programmes.

Chief executive Les Thomas said: "The painstaking electrical inspection programme on the FPF-1 is nearing completion and the vessel will shortly be ready for start-up of the Stella field. While this will have taken longer than planned, the transformational step it delivers for the business remains undiminished. The company moves into 2017 in good health, with increasing cashflow, continued deleveraging and the launch of the low cost Harrier satellite development."

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Premier Oil (LON:PMO) reported a record production of 71.4 thousand barrels of oil equivalent per day (kboepd), which was 24% higher than 2015 and in line with previously upgraded guidance.

The company said opex per barrel was $15.7/bbl and estimated capex of $690 million. This was below guidance of $730m.

The firm said net debt was $2.8bn as of 31 December 2016, which was lower in the fourth as anticipated. Cash and undrawn facilities stood at $600m.

OUTLOOK

Premier Oil reported 2017 production guidance of 75 kboepd, before any contribution from Catcher and adjusted for lower Solan profile.

Catcher was on schedule for start-up later this year with total capex forecast at $1.6bn, 29% lower than sanctioned estimate.

The company said approval of Tolmount development concept is expected shortly to provide next phase of growth.

It also announced an increased equity interest to 25% in large Zama prospect, Mexico, which is expected to spud early Q2.

Premier Oil reported 2017 capex guidance of $350m, including abandonment spend.

It said net debt will continue to reduce at current forward curve.

REFINANCING

All substantial commercial terms were agreed with the Coordinating Committee of the RCF Group and representatives of other private lenders. The long form term sheet was at an advanced stage.

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Nighthawk Energy (LON:HAWK) has issued an update to current production levels, water flood injection wells, recompletion results and pricing.

The company says that as reported on 16 December, tit reached a settlement with Cascade Petroleum LLC with one of the provisions being that Nighthawk was to complete an up-hole zone in the Monarch 10-15 well, at the company's expense, estimated at US$75,000.

The recompletion has been finished within estimated costs and for the first 11 days of full production, the average daily production has been 205 barrels per day, gross and 33 barrels per day, net.

Nighthawk owns a 16% net revenue interest in the 10-15 wellbore, and a 76% net revenue interest in the surrounding acreage. Additional results will be announced in due course.

As reported on 3 January, Nighthawk received the final permit on 29 December to commence injection of water into the second of the two planned water flood injection wells. Injection commenced on 30 December 216 and results will be announced in due course. In addition, Nighthawk has entered into a six-month marketing agreement which locks in the transportation deduction costs to the company at $3.15 per barrel. This compares to $7.00 per barrel at 1 January 2016.

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Petro Matad (LONhas noted the recent movement in the company's share price and confirmed that there is nothing further to update since the company's update on 10 January.

At 4:01pm:

(LON:BOR) Borders Southern Petroleum PLC share price was +0.3p at 5p

(LON:CHAR) Chariot Oil Gas Ltd share price was -0.7p at 8.26p

(LON:ENQ) EnQuest Plc share price was -0.37p at 54.63p

(LON:FPM) Faroe Petroleum PLC share price was -3.12p at 100.88p

(LON:GKP) Gulf Keystone Petroleum share price was 0p at 137.5p

(LON:GPX) Gulfsands Petroleum PLC share price was +0.01p at 10.63p

(LON:HAWK) Nighthawk Energy PLC share price was +0.07p at 1.37p

(LON:IAE) Ithaca Energy Inc share price was +0.75p at 101.5p

(LON:INDI) Indus Gas Ltd share price was +0.13p at 400.13p

(LON:JKX) JKX Oil Gas PLC share price was -1.25p at 30p

(LON:PET) Petrel Resources PLC share price was 0p at 6.38p

(LON:PMO) Premier Oil PLC share price was +1.63p at 93.13p

(LON:RKH) Rockhopper Exploration PLC share price was -2.5p at 25.25p

(LON:RPT) Regal Petroleum PLC share price was +0.01p at 3.38p