Oil & Gas Roundup

EnQuest is proposing a financial restructuring of the group, which it has agreed with key stakeholders following an extensive period of engagement and negotiation.

"The Restructuring is comprised of a number of key elements, including the implementation of the Proposed RCF Amendments and the Proposed Note Amendments, the renewal of the Surety Bond Facilities and the Placing and Open Offer," EnQuest said in a statement.

"All of these elements are inter-conditional, meaning that none of the elements will become effective if any one of them is not delivered.

"So the Restructuring would not proceed if for example, the Scheme to effect the Proposed Note Amendments is not approved by the requisite majorities of Scheme Creditors or if the shareholder Resolutions in connection with the Placing and Open Offer are not approved by Shareholders.

"The Company believes that, if successful, the Restructuring will provide the Group with a stable and sustainable capital structure, reduced cash debt service obligations and greater liquidity. These will all contribute to the continued delivery by the Group of its strategic objectives."

Chairman Jock Lennox continued:

"We are very pleased to announce today a comprehensive package of measures to place EnQuest on a strong footing to deliver our Kraken development in H1 2017 and ensure that we are well placed to deliver value to our shareholders in the medium term.

"Over the last two years, EnQuest has taken action to implement extensive cost saving programmes to refocus the business for the low oil price environment, including reducing and re-phasing both capital and operating expenditures.

"Simultaneously, EnQuest has been working on a range of other funding and liquidity options, which culminate in the Restructuring announced today. We have agreed a range of improvements on the terms of our debt facilities and we remain grateful to our RCF lenders for their continuing support. We have also reached agreement with approximately 61 per cent of our High Yield Noteholders on the Proposed Note Amendments.

"The proposed Restructuring, which encompasses amendments to EnQuest's existing RCF facility, amendments to the High Yield Notes and the Retail Notes, the renewal of the Company's Surety Bond Facilities and the Placing and Open Offer which is expected to raise £82 million in gross proceeds, will significantly improve the liquidity position of the Company so that EnQuest can deliver first oil from the Kraken development in H1 2017 in accordance with management's projections. The Kraken development continues to be on track with the FPSO set for sail away in H2 2016.

"The Board remains confident in the long term potential of the EnQuest business plan, and is of the view that the proposed Restructuring, will enhance value for all stakeholders."


Polo Resources Ltd said investee company Hibiscus Petroleum Berhad has reported that its indirect wholly-owned subsidiary, SEA Hibiscus Sdn Bhd, has entered into a conditional sale and purchase agreement with Sabah Shell Petroleum Company Limited and Shell Sabah Selatan Sdn Bhd (together, Shell).

This would see it acquire Shell's entire fifty percent participating interests in the 2011 North Sabah Enhanced Oil Recovery Production Sharing Contract ("PSC") for a purchase consideration of $25m.

Shell's interest also include operatorship responsibilities which would be transferred to SEA Hibiscus through a transfer of operatorship program.

This acquisition is expected to complete in 2017 and is subject primarily to obtaining regulatory approval of Petroliam Nasional Berhad ("PETRONAS") and consent of Petronas Carigali Sdn Bhd ("Petronas Carigali"), a fifty percent joint venture partner in the PSC.

The PSC comprises of four producing oil fields and associated infrastructure; i.e. St Joseph, South Furious, SF30, and Barton oilfields which are located in a key hydrocarbon province in Malaysia and have delivered reliable production since coming onstream in 1979.

The PSC also contains pipeline infrastructure and the Labuan Crude Oil Terminal, an onshore processing plant and oil export terminal.

The PSC provides long-term production rights until 2040 with identified future development opportunities expected to add incremental 2P/2C resources up to 79 million barrels, this bodes well for the increased trajectory of Hibiscus Petroleum into its next milestone of growth.

The fields are reported by independent technical valuer, RISC Operations Pty Ltd to be producing over 16,000 barrels of oil per day and have an estimated remaining developed reserves (2P) of 62 million barrels as of April 2016.


DekelOil Public Ltd has issued a production and sales update for the quarter ended 30 September 2016.

Q3 2016 production and sales figures were for Crude Palm Oil (CPO), Palm Kernel Oil (PKO) and Palm Kernel Cake (PKC).


- Production for the nine months to 30 September 2016 totals 34,323 tonnes of CPO and 2,520 tonnes of PKO compared to 29,137 tonnes of CPO in the comparable nine month period in 2015

- The earlier start and finish of this year's peak harvesting season and unseasonally drier weather during the low production season has resulted in lower Q3 2016 CPO production and extraction rate compared to Q3 2015

- On track to reach full year 2016 production targets - October 2016 has to date seen a pick-up in volumes of fresh fruit bunches collected for processing

- 13% increase in CPO sales prices in Q3 2016 compared to H1 2016 - stock carried through Q2 period sold into higher Q3 pricing

- CPO prices have ramped up considerably in October 2016 with sales prices now 26% higher than H1 2016 at €680 per tonne

- Production and sales at the Company's Kernel Crushing plant continue to exceed management's expectations with the Palm Kernal Oil extraction rate up to 42.2% for the quarter (H1 2016 41%) and the average sales prices up to €832 (H1 2016 €781).


Rosneft has carried out necessary corporate actions to prepare for and execute the acquisition of the Government's stake in Bashneft Public Joint Stock Company representing 50.0755% of its charter capital.

The Company Board of Directors unanimously approved Rosneft's potential entry into Bashneft equity.

In accordance with the BoD resolution Igor Sechin, Rosneft Chief Executive Officer, signed the Sale and Purchase Agreement of 88 951 379 Bashneft shares for RUB 329.69 bln.


At 2:43pm:

(LON:AUR) Aurum Mining PLC share price was +0.5p at 2.93p

(LON:BOR) Borders Southern Petroleum PLC share price was -0.02p at 1.63p

(LON:CHAR) Chariot Oil Gas Ltd share price was -0.1p at 8.88p

(LON:DKL) DekelOil Public Ltd share price was -0.38p at 10.63p

(LON:ENQ) EnQuest Plc share price was -0.62p at 27.13p

(LON:GKP) Gulf Keystone Petroleum share price was -0.23p at 1.33p

(LON:GPX) Gulfsands Petroleum PLC share price was 0p at 2.88p

(LON:INDI) Indus Gas Ltd share price was -2.62p at 487.38p

(LON:PET) Petrel Resources PLC share price was -0.38p at 6.75p

(LON:RKH) Rockhopper Exploration PLC share price was -0.12p at 27.13p

(LON:RPT) Regal Petroleum PLC share price was 0p at 3.75p

(LON:XEL) Xcite Energy Ltd share price was -0.16p at 1.67p