Source - SMW
Bahamas Petroleum (LON:BPC) was the sector's biggest riser posted a total operating loss of $2.159 million for the six months to the end of June, down 8% on last time and 11% on the 2015 full year result on an annualised basis. 

The company says that on a true cash basis, considerably greater savings have been achieved as a result of measures implemented over the last few years and, in particular, over the 6-month period to June 2016. 

In particular, as previously announced, the board elected to increase its fee deferral from 1 April 2016 to 50% of contracted entitlements (up from the 20% deferral implemented in the fourth quarter of 2014). 

Additionally, chief executive Simon Potter took the decision to increase the deferral of his contracted salary to 90%, also effective 1 April 2016, and similar deferrals were agreed to by other executive employees of the company. These deferrals are only repayable once a successful farm-out or other financing arrangement has been concluded such that the Company's forward programme is secured.


- Final passage of the new Petroleum Act by the Bahamian legislature, with the new law formally enacted as at 31 March 2016

- Gazettal and implementation of the attendant Petroleum Regulations took place during the summer

- Process of updating the legal and regulatory environment of The Bahamas in anticipation of future exploration activities completed

- Anticipated drilling rig rates now at a quarter of where they were in 2012

- Independent analysis by Wood Mackenzie shows that the anticipated well ranks in the top 10 "Drilling and Future Wells by Prospect Size" in estimate of pre-drill volumes

- Meaningful farm-out discussions have continued with a number of suitably qualified potential partners

- Cost cutting has continued apace - Board elected to increase its fee deferral from 1 April 2016 to 50% of contracted entitlements, 90% for CEO

- Company has saved a total of $678k in cash fees / salary outgoings since the deferrals commenced in 4Q 2014

- As at 30 June 2016 the Company had a total cash balance of approx. $2.5m

Potter said: "Significant 'above ground' progress has been made this year with the passage of the Petroleum Act and implementation of the associated Petroleum Regulations. This has further facilitated farm-out discussion activity and we are in meaningful discussions with a number of parties. At the same time we have significantly cut costs.

"The company's core assets are compelling as they offer multi-billion barrel potential, competitive metrics, robust profitability at today's oil price, and advantaged location adjacent to the largest offshore operating environment and energy market in the world. Consequently, we remain confident that we will conclude a partnership agreement within the required timeframes." 

* * *

HaiKe Chemical Group's (LON:HAIK) total revenues decreased by 9.0% to CNY350.7million in the six months to the end of June but gross profit increased by 47.6% to CNY61.2million.

Profit for the period from continuing operations was CNY11.4 million (H1 2015: profit of CNY95,000) and the group had cash and cash equivalents of CNY73.5 million (31 December 2015: CNY CNY35.4 million).

Total borrowings as at 30 June 2016 were CNY80.0 million (31 December 2015: CNY80.0 million).

Executive chairman Xiaohong Yang said: "I am pleased to report the satisfactory performance for the Group over the first half of 2016, especially given the challenging trading environment. 

"The improvement in profitability was driven by the decisive actions taken by the Board last year to better position the business in the current environment and improve performance. We are pleased these are starting to bear fruit and we will continue our efforts in this area. 

"The Group has entered the second half of the year in a strong position and while we believe market conditions will remain difficult, we are well-positioned and look to the future with confidence."

* * *

Providence Resources (LON:PVR) has appointed Pat Plunkett as non-executive chairman with effect from October 1, 2016. 

Plunkett would replace James McCarthy, who would step down as non-executive chairman but had agreed to stay on as a non-executive director. 

The Company also announces that Phil Nolan has announced his intention to retire from the board with effect from October 1, 2016 due to other business commitments. Phil Nolan has served as a non-executive Director of the Company since 2004. 

* * *

Europa Oil & Gas (Holdings) (LON:EOG) has agreed to sell a 3.34% working interest in the  PEDL180 and PEDL182 licences in North Lincolnshire to Union Jack Oil plc.  The licences cover the Wressle discovery (PEDL180) and the Broughton North prospect (PEDL182).

UJO will acquire the working interest for a cash consideration of £600,000 The transaction implies a £5.4 million mark to market for Europa’s remaining 30% interest in the licences.

Wressle is anticipated to commence production at a gross rate of 500 bopd in early 2017.

Europa’s anticipated net share of 150 bopd from Wressle is expected to more than double existing production from the West Firsby and Crosby Warren fields and Whisby-4 well.

* * *

Xcite Energy (LON:XEL)  provides an update on the restructuring of its senior secured bonds issued by Xcite Energy Resources.

The company announced in its annual results that it has been in discussions with its principal bondholders over a potential restructuring of the bonds. On 16 June, the company announced an extension of the maturity of the bonds until 30 September in order to continue those discussions. 

On 12 September, the company subsequently announced that in light of its discussions with bondholders, it believed that there would be a minimal residual equity stake attributed to the company's existing shareholders following the restructuring.

Negotiations are being concluded between the principal bondholders and the Company to finalise the details of the restructuring, but the company expects that, subject to shareholder approval, the restructuring will comprise 100% of the value of the outstanding bonds (approximately US$149 million) being exchanged for 98.5% of the enlarged issued share capital of the company, through the issue of additional shares in the company. 

The company is also in discussions with principal bondholders in relation to the provision of a working capital facility of up to US$10 million, which remains subject to finalisation of terms and documentation. 

The proposed restructuring will provide the company with a significantly stronger balance sheet and the working capital to continue to pursue the development of the Bentley field in order to deliver value for all stakeholders in the future.

The directors of the company recognise that the proposed restructuring represents a very significant dilution to existing shareholders, however they believe that it is in the best interests of the company and, as a result, intend to call an extraordinary general meeting of shareholders to consider and vote upon the proposed restructuring. 

A circular to shareholders will be issued as soon as practicable, containing an explanation of, and rationale for, the proposed restructuring, including the likely consequences for shareholders and the company should the proposed restructuring not be supported at the shareholder EGM.

The directors understand that should shareholders not support the Proposed Restructuring at the Shareholder EGM, the Bondholders intend to pursue enforcement action against the Company. 

On the basis of advice received by the Company and the directors, the directors believe that such enforcement action is unlikely to result in the return of any value to the Company's existing shareholders. In order to conclude discussions with Bondholders and to hold the Shareholder EGM, the Company has requested a further short-term extension to the maturity date of the Bonds to the earlier of (i) 31 October 2016; or (ii) immediate demand by the bond trustee (acting on the instructions of Bondholders). 

The summons to Bondholders in relation to the further extension of the Bonds' maturity date can be found on the Xcite Energy Resources plc section of the Company's website   

At 4:17pm:

(LON:AUR) Aurum Mining PLC share price was 0p at 1.85p

(LON:BOR) Borders  Southern Petroleum PLC share price was -0.15p at 1.75p

(LON:BPC) Bahamas Petroleum Company PLC share price was +0.17p at 1.47p

(LON:CHAR) Chariot Oil  Gas Ltd share price was -0.76p at 9.74p

(LON:ENQ) EnQuest Plc share price was -0.62p at 25.13p

(LON:EOG) Europa Oil  Gas Holdings PLC share price was 0p at 4.63p

(LON:GKP) Gulf Keystone Petroleum share price was -0.01p at 2.15p

(LON:GPX) Gulfsands Petroleum PLC share price was 0p at 3p

(LON:HAIK) HaiKe Chemical Group Ltd share price was +0.75p at 13.25p

(LON:INDI) Indus Gas Ltd share price was +50.13p at 505.13p

(LON:PET) Petrel Resources PLC share price was -0.25p at 6.75p

(LON:PVR) Providence Resources PLC share price was 0p at 9.63p

(LON:RKH) Rockhopper Exploration PLC share price was -0.87p at 28.38p

(LON:RPT) Regal Petroleum PLC share price was +0.08p at 3.54p

(LON:XEL) Xcite Energy Ltd share price was -0.75p at 1.38p

Related Charts

Bahamas Petroleum Company (BPC)

-0.01p (-0.80%)
delayed 18:15PM

Europa Oil & Gas (Holdings) (EOG)

0.00p (0.00%)
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HaiKe Chemical Group (HAIK)

0.00p (0.00%)
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Providence Resources (PVR)

+0.13p (+1.06%)
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