Fox Davies Capital Update featuring Salamander Energy, Leed Petroleum, Petroinvest and Berkeley Resources
Oil & Gas News
Salamander Energy Plc (LON:SMDR, 297.5p, ▼ (3.62%)) announced that it intends to make an offering of approximately US$85m of senior, unsecured convertible bonds due 2015. The Bonds will be convertible into ordinary shares of the Company and are expected to have a semi-annual coupon in the range of 4.75%-5.75% per annum and a conversion price set at a premium in the range of 32.5% - 37.5% above the volume weighted average price of the Shares on the London Stock Exchange between launch and pricing. The Company will have the option to call the Bonds after the first three years, if the price of the Shares exceeds 130% of the then prevailing conversion price over a specified period. The company also announced that it has agreed to acquire a 50% interest in and operatorship of Block 101-100/04 from Santos Vietnam Pty Ltd and Singapore Petroleum Vietnam Song Hong Co Ltd. There is over 500km2 of existing seismic on the block, and the Cat Ba prospect will be drilled next year.
Leed Petroleum Plc (LON:LDP, 4.9p, ▼ (0.20%)) announced that the Company has been confirmed as successful bidder in the Central Gulf of Mexico Minerals Management Services Lease Sale 213. The MMS has confirmed that Leed was the successful bidder on Grand Isle Block 96. The Company bid US$427,699 for the Block which is adjacent to the Company's Grand Isle 95/100 blocks. Final award of this lease is subject to a geological review by the MMS to confirm the adequacy of the bid value.
Petrolinvest (OIL PW, 40zł, ► (0.0%)) is reported, in the Polish press, to be in talks with Russia’s OAO Gazprom on the joint exploration of oil fields in northern Siberia.
Opec decided to maintain the current production quotas at their meeting yesterday, a widely expected outcome. Oil price is at a level that satisfies everyone in and outside the industry; hence the motivation not to disturb a fragile equilibrium was strong. However global oil demand is expected to increase by about 2% this year but despite growing confidence the recovery is still fragile and any deviation to the worse could have a material impact on prices.
Mining Corporate News
Berkeley Resources Ltd (LON:BKY, 76p, ▼ (1.94%)) announced the completion of the first phase confirmatory drilling program at the Águila and Alameda areas and to release the final results from the program at the Alameda South deposit. 19 diamond holes (1,667m) were drilled at the Alameda South deposit, all of which intercepted their intended targets. The thickness and grade of the intercepts continues to provide a high level of confidence in the historical drilling information upon which Berkeley has based it's exploration targets (Alameda exploration target is 25.5 – 29Mt @ 450 - 500 ppm U[3]O[8]). It is anticipated that a Mineral Resource Estimate will be completed for the Alameda area by the end of the 1^st Quarter.
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Disclaimer:
Salamander Energy PLC is a holding company. The Company is engaged in oil and gas exploration, development and production, which focuses on building a portfolio of assets in Asia. The Company operates in Thailand, Indonesia, the Philippines, Lao PDR, Vietnam and Other. The Company focuses on assets in and around three areas: Greater Bualuang, Gulf of Thailand; North Kutei, Indonesia, and Greater Kerendan, Indonesia. It operates two licenses in the Greater Bualuang area, B8/38 and G4/50. The Bualuang oil field and East Terrace has 34.2 million barrels of oil equivalent of proven and probable (2P) reserves. The Company operates the Bangkanai PSC in the Barito basin, Central Kalimantan, having 80% operated interest in this PSC. It has interest in North Kutei Basin through Bontang PSC (100%) and the Southeast Sangatta PSC (75%). more »
Leed Resources PLC, formely Leed Petroleum PLC, is a United Kingdom-based oil and natural gas exploration, development and production company. The Company, along with its subsidiaries, is engaged in the business of exploring, developing, producing and operating oil and natural gas properties from onshore and offshore locations within the Gulf Coast region of the United States. As of June 30, 2009, the Company had interests in 17 United States Federal Outer Continental Shelf blocks and one onshore field, in Lafayette, Louisiana. As of 30 June 2010, it had working interests in seventeen offshore blocks, including eight producing and nine non-producing, and one onshore field. The Company also holds a small interest in a gas processing plant and a fractionation plant located onshore in Louisiana. During the fiscal year ended June 30, 2010 (fiscal 2010), the Company acquired one new offshore block from the Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE). more »
