Gulf Keystone Petroleum's (LON:GKP) shares soared after it announced the release of an updated competent person's report - an independent third-party audit of the company's reserves at 30 June.
The CPR was again prepared by ERC Equipoise and revises and updates the previous report dated September 2015.
- With 12.4 million barrels produced in the period since the previous CPR, gross Shaikan 2P Reserves are effectively unchanged at 622 million barrels of oil
- GKP's net working interest Shaikan 2P Reserves have increased from 348 million barrels of oil to 360 million barrels, now reported on a 58% working interest basis subject to execution and consummation of the Second Amendment to the Shaikan Production Sharing Contract ("Second Shaikan Amendment"), as envisaged by the Bilateral Agreement between the Company and the MNR announced on 17 March 2016
- Inclusive of 2C Contingent Resources and Technically Recoverable Volumes, Shaikan has over 1 billion barrels of oil remaining
- With over 25 million barrels produced to date, the Company now has an increasingly confident understanding of the reservoir
- No unexpected changes in reservoir behaviour have been observed, demonstrating the stable and predictable performance of the field
- Contingent Resources totals now exclude volumes previously reported for the relinquished Sheikh Adi and Ber Bahr blocks
Chief executive Jon Ferrier said: "With cumulative production now totalling more than 25 million barrels, we have continued to build on our understanding of the field's characteristics.
"This updated CPR, prepared as part of the Company's Restructuring, is highly positive as it reiterates our assumptions of last year about the quality of the Shaikan field, and reinforces its prominent position in the region. We thank the Kurdistan Regional Government's Ministry of Natural Resources for their ongoing support.
"Our near term objective of restructuring the Company's balance sheet continues to be our primary focus, following which we will be armed with the leadership, knowledge, technical capability and funding to work with our partners to realise the field's full potential."
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Xtract Resources (LON:XTR) has provided an update regarding its Chepica gold and copper mine in Chile.
- Refurbishment of the crushing plant has been completed
- New floatation plant has been refurbished with rubber liners and construction is expected to be completed on schedule and within budget
- First shipment containing cleaner cells and electrical systems from Durban in South Africa to Santiago in Chile dispatched and second shipment containing rougher cells currently being packed
- Metallurgical and mineralogical test work carried out by SGS Lakefield laboratories indicate that, once the proposed upgrades have been completed, gold recovery in excess of 75% could be achieved at Chepica
- The Company believes that the proposed upgrades at Chepica will negate any problems relating to metallurgical issues at the processing plant and the production of concentrate
- Underground development continues at both Chepica main and Colin section with ore recovered being stock piled for treatment once the plant is recommissioned.
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Bahamas Petroleum Co (LON:BPC) has confirmed that all resolutions proposed at its annual general meeting earlier today were passed.
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Providence Resources (LON:PVR) has issued an update on Frontier Exploration Licence (FEL) 2/14, offshore Ireland.
The licence is operated by Providence Resources (80%) on behalf of its partner Sosina Exploration (Sosina) (20%).
FEL 2/14 contains the Paleocene "Druid" and the Lower Cretaceous "Drombeg" exploration prospects. An exploration well is currently being planned to drill the "Druid" prospect in June 2017, subject to regulatory consents.
Following a recent public procurement process, Providence and Sosina have appointed Senergy Wells Limited ("Senergy"), a wholly owned subsidiary of Lloyds Register ("LR"), to provide integrated well management services for the upcoming planned 2017 Druid drilling programme.
Under the terms of the contract, Senergy will provide management and well engineering services for the design and construction of the Druid deep-water well under the LR Global Management System - Well Project DeliveryProcess, reflecting the best of industry practice and standards to provide safe, effective and efficient well operations.
Based on updated market rates and definition of the preliminary well basis of design obtained through the well management tender process, the latest gross (100%) well cost for the Druid exploration well is now estimated at c. $35 million, with the final cost subject inter alia to the relevant service contracts being put in place and approved well design.
This updated well cost estimate of $35 million compares to the previous estimate of $46 million, which was based off provisional internally generated estimates.
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Sound Energy (LON:SOU) confirms the second Tendrara well, TE-7, has now been drilled to the first casing point at a measured vertical depth (MD) of 462 metres and that the 13-3/8-inch has been successfully set and cemented in the Aalenian dolomite formation.
The Company will now proceed to drill towards the second casing point at an MD of approximately 2,150 metres.
(LON:AUR) Aurum Mining PLC share price was 0p at 1p
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(LON:BPC) Bahamas Petroleum Company PLC share price was +0.07p at 1.52p
(LON:CHAR) Chariot Oil Gas Ltd share price was +0.01p at 5.7p
(LON:ENQ) EnQuest Plc share price was -1.12p at 26.38p
(LON:GKP) Gulf Keystone Petroleum share price was -1.42p at 3.42p
(LON:GPX) Gulfsands Petroleum PLC share price was +0.01p at 3.13p
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