Source - SMW
President Energy (LON:PPC) was the sector's biggest faller after  it was forced to temporarily suspend well DP1002 S/T so that the Drilling Rig can be mobilised to the company's neighbour for drilling their well. 

This was due to the significant difficulties encountered in running casing in the drilled well, due to a twist-off of a 1000m section which was lost downhole and not practical to recover within the timeframe. 

The mobilisation of an appropriate workover rig to fish the casing is now being considered.

As previously reported, there have been significant service quality issues encountered in this well and the challenges presented have been enormous. Issues with the Rig were followed by a fractured drill pipe and then two failed cement plugs through compressive strength issues.

Whilst President continued to drill through all these difficulties and intercepted the target formation, the attempt at casing this well has proved an issue too far at this present time.

Investigations will now commence with all contractors to identify the failings in operations as it is extremely unusual to encounter such a combination of issues in the course of a single well. 

On the well we had leading names in the industry, Helmerich & Payne drilling contractors, Schlumberger mud contractors, Weatherford supplying Company Men, directional drilling and casing running and Baker Hughes cementing. 

All of the issues were unforeseen even after taking into account the detailed risk analysis and peer review undertaken before drilling commenced.

Nevertheless, as the decision has been taken to temporarily suspend further attempts at completing this well at this time, President is reviewing further action on this well and on the drilling programme. 

As well as the fishing operations being considered, the well remains available for a further side track to re-intersect the producing formation. In the interim the Company is therefore releasing the Drilling Rig on to Petro AP, currently operating in the neighbouring block in order, to drill its Pizarro well.

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JKX Oil & Gas (LON:JKX) has appointed Stockdale Securities as sole broker with immediate effect.

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Ithaca Energy's (LON:IAE)  output averaged 9,550 barrels of oil equivalent per day in the first nine months to the year - ahead of 9,000 boepd guidance.

Average production during the third quarter was approximately 9,900 boepd.

Ithaca anticipates that full year base production, excluding any contribution from the start-up of the Stella field during 2016, will be modestly ahead of the 9,000 boepd guidance range. 

During the final quarter of the year, base production volumes will be reduced compared to the previous quarters as a result of the approximately two week planned maintenance shutdown of the Brent Pipeline System that serves the company's Northern North Sea fields.

Ithaca says good progress has been made on the final stages of the Stella development programme since the FPF-1 floating production facility set sail from Poland in August 2016. The FPF-1 was safely towed to the field, moored on location and the dynamic risers and umbilical connecting the subsea infrastructure to the vessel installed as planned. 

Technip is in the process of concluding the remaining subsea commissioning works. At the same time the FPF-1 offshore commissioning programme is on-going, with preparation of the topsides processing and utility systems for the introduction of hydrocarbons underway. 

The scheduled completion of these activities remains in line with previous guidance, with first hydrocarbons from the Stella field anticipated in November 2016.

Ithaca says significant progress was also made during the quarter on the work programme associated with making the switch from tanker loading to oil pipeline exports for the Greater Stella Area in 2017. 

The 44 kilometre spurline from the FPF-1 to the Norpipe system was successfully installed as planned in September 2016. The key outstanding activities that now remain to be completed are the manufacture and installation of pipeline export pumps on the FPF-1 and the final subsea connections that need undertaking immediately prior to the switchover.

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The sector's biggest risers were Bahamas Petroleum (LON:BPC) and Global Energy (LON:GED) - up by more than 13.6% and 12.5% respectively in late trading.

At 4:21pm:

(LON:AUR) Aurum Mining PLC share price was -0.03p at 2.13p

(LON:BOR) Borders  Southern Petroleum PLC share price was +0.01p at 1.55p

(LON:BPC) Bahamas Petroleum Company PLC share price was +0.17p at 1.42p

(LON:CHAR) Chariot Oil  Gas Ltd share price was +0.59p at 9.61p

(LON:ENQ) EnQuest Plc share price was +0.13p at 27.63p

(LON:GED) Global Energy Development PLC share price was +3p at 27p

(LON:GKP) Gulf Keystone Petroleum share price was +0.05p at 2.23p

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

(LON:IAE) Ithaca Energy Inc share price was +4.75p at 74.25p

(LON:INDI) Indus Gas Ltd share price was -3.12p at 481.88p

(LON:JKX) JKX Oil  Gas PLC share price was +0.25p at 18.25p

(LON:PET) Petrel Resources PLC share price was 0p at 6.25p

(LON:PPC) President Energy Plc share price was -3.91p at 7.59p

(LON:RKH) Rockhopper Exploration PLC share price was -0.75p at 27.75p

(LON:RPT) Regal Petroleum PLC share price was 0p at 3.5p

(LON:XEL) Xcite Energy Ltd share price was +0.06p at 1.59p

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Bahamas Petroleum Company (BPC)

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Global Energy Development (GED)

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Ithaca Energy Inc (IAE)

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JKX Oil & Gas (JKX)

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President Energy (PPC)

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