Nighthawk Energy (LON:HAWK) was the sector's biggest riser in late trading following an update on its borrowing base and hedging.
The company said it closed the quarterly borrowing base redetermination with Commonwealth Bank of Australia on 2 November based on reserves at 30 September.
The redetermined borrowing base reflects the significant price drop seen by the market in the July-August period.
Consistent with many other operators' reserve based loans in a declining oil price environment, the company's borrowing base available to be drawn was reduced from $32.0 million to $27.0 million.
The existing loan agreement was amended which provides additional flexibility in the current market environment. The new amendments establish a minimum liquidity of $5 million and a waiver of the previous $5 million holdback by the bank.
In accordance with the credit agreement, to conform with the new borrowing base, the Company will make three payments of $1,000,000, due in early December, January and February. Based upon the results of the company's 30 November reserve review, the January and February payments may be avoided if additional reserve value is added.
Additional reserve value may be realized from the current drilling programme, upward adjustments to existing well recoverability and/or increases in the forward strip price of crude oil. As of 31 October, the company had approximately $11 million, on hand.
Based on current projections, the company has adequate cash on hand to meet the above debt payment obligations, maintain its necessary liquidity as well as meet projected expenditures, including on the remaining wells of its current drilling programme. The company's discussions with CBA continue regarding the Company's existing 2P reserves, drilling results and plans for increasing the borrowing base. Further announcements will be made at the appropriate time.
As of 1 November, the company had 54,000 barrels of production hedged at a weighted average price of $70.13 per barrel for the remainder of 2015. As these hedges settle in November and December, Nighthawk will realise approximately $1,350,000 in cash flows above the current market prices. Gross average price realised for September production volumes was approximately $53.00 versus the average WTI price of $45.47 per barrel.
For 2016, currently 167,000 bbls are hedged at a weighted average price of $63.63. Having hedges in place allows the company to manage the commodity risk around oil prices. Additional volumes for 2016 and 2017 are expected to be hedged as prices recover.
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Royal Dutch Shell (LON:RDSA) and Shell International Finance BV have extended their US$7,480m revolving credit facility with a group of relationship banks with one year. This 5 +1 +1 year facility was completed on 4 December 2013.
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Sefton Resources (LON:SER) believes there has been an aggressive dissipation of funds leading up to the appointments of chief executive Clem Chambers and non-executive director Michael Hodges on 23 October.
An update says Chambers and Hodges have not received material hand-over information and have yet been unable to take full control of the company's functions.
They are currently working on reconstructing the necessary access and information and due to a lack of cooperation from the previous administration; this will be likely be a long process.
Consequentially the annual general meeting will be delayed and depending on progress, the AGM will be held in the first half of December.
The company says that while an announcement on 23 October mentioned a bank position of $504,300, the actions of the board leading up to Chambers and Hodges' appear to be to the serious detriment of shareholders and 'leads us to fear the worse'.
The company says the board continues its search for a nominated adviser but after an already exhaustive search it seems unlikely one will be found.
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President Energy (LON:PPC) announces a proposed restructuring of its existing unsecured loan facility with IYA Global Limited and also an up to USD5.0m proposed non-brokered equity subscription.
The Loan Restructuring will result in the amount outstanding under the Company's Loan Facility being reduced from US$11.1 million to USD7.1m, by re-designating up to USD4.0m into an unsecured convertible loan at a lower interest rate of 10% a year with the ability to convert the loan into shares at a 30% premium to 7.075 pence, being the closing share price as at 2 November 2015 ("the Closing Price").
The Proposed Subscription is intended to be priced at the Closing Price. Both the revised Loan Facility and the Convertible Loan will have a maturity date of 30 April 2017.
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The sector's biggest fallers were Ascent Resources (LON:AST) and Lansdowne Oil & Gas (LON:LOGP) - both down more than 10.5% in late trading.
(LON:AST) Ascent Resources PLC share price was -0.01p at 0.09p
(LON:AUR) Aurum Mining PLC share price was +0.01p at 0.93p
(LON:BOR) Borders Southern Petroleum PLC share price was +0.2p at 2.31p
(LON:CHAR) Chariot Oil Gas Ltd share price was +0.28p at 6.03p
(LON:ENQ) EnQuest Plc share price was -1p at 28.5p
(LON:FOGL) Falkland Oil Gas Ltd share price was -0.75p at 10.75p
(LON:GKP) Gulf Keystone Petroleum share price was -0.12p at 28.38p
(LON:GPX) Gulfsands Petroleum PLC share price was +0.01p at 4.13p
(LON:HAWK) Nighthawk Energy PLC share price was +0.22p at 2.45p
(LON:INDI) Indus Gas Ltd share price was +0.13p at 116.63p
(LON:PET) Petrel Resources PLC share price was 0p at 3.75p
(LON:PPC) President Energy Plc share price was -0.01p at 6.92p
(LON:RDSA) Royal Dutch Shell share price was +2.25p at 1759.75p
(LON:RKH) Rockhopper Exploration PLC share price was +1.13p at 42.38p
(LON:RPT) Regal Petroleum PLC share price was +0.01p at 4.13p
(LON:XEL) Xcite Energy Ltd share price was +0.25p at 22.25p