Nighthawk Energy's (LON:HAWK) shares jumped after it reached a global settlement of all litigation and claims arising out of agreements with Running Foxes Petroleum and related issues with RFP's joint venture partner, American Patriot Oil and Gas Inc.
Nighthawk says the settlement agreement reflects the parties' desire to fully and completely resolve all claims and defences in the federal court litigation and state court litigation.
Under the terms of the settlement, Nighthawk, RFP and APO were released from all past, current, and future claims related to all current, pending and potential future issues between the parties within the Arikaree Creek Field.
The parties agreed to dismiss all current and pending federal and state litigation and administrative regulatory matters, between them related thereto.
As part of the global settlement, no money was exchanged by the parties, however Nighthawk has assigned RFP a minor override royalty interest in one lease in Arikaree Creek, and APO has assigned Nighthawk certain leases just south of Arikaree Creek totalling approximately 640 acres with Nighthawk assigning APO a minor override royalty interest in those leases.
Running Foxes has agreed to certain terms regarding any future water flood projects that Nighthawk might pursue in Arikaree Creek.
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Faroe Petroleum (LON:FPM) saw a significant reduction in cash flow from operations, as a result of lower production and a reduction in realised prices to $38.5 per boe in H1 2016 from $51.5 per boe in H1 2015.
Revenue in the period was £23.1 million (H1 2015: £51.1 million). Revenue adjusted for under-lifts and over-lifts was £43.3 million (H1 2015: £63.7 million).
The decrease in revenue reflects a reduction in production, mainly due to Njord and Hyme being suspended in June 2016 for upgrades and strengthening. Hedging gains of £4.1 million net of premium were realised in H1 2016 (H1 2015: £4.2 million) and are included in other income.
Hedging gains in H1 2016 were predominantly from gas sales where Faroe hedged a significant portion of production at a weighted average 44 pence per therm in the period.
Cost of sales for the period was £24.2 million (H1 2015: £36.0 million). Cost of sales excluding over-lifts and under-lifts (see paragraph above) was £44.4 million (H1 2015: £48.5 million) reflecting a reduction in production. DDA for the period was £13.7 million (H1 2015: £20.4 million). With lower revenue and higher opex per boe, EBITDAX in H1 2016 was lower at £16.8 million compared to £39.8 million in H1 2015.
Pre-tax expensed exploration costs for the half year were £25.9 million (H1 2015: £9.0 million) and include write-offs of the Kvalross (£14.5 million) and Perth (£6.4 million) costs and a number of licences where active exploration activity has ceased.
Expensed exploration costs also include £1.7 million (H1 2015: £3.3 million) of pre-award expenditure, which comprises costs associated with licence round applications. Expensed administration costs in H1 2016 were £4.2 million (H1 2015: £2.7 million).
The increase in administrative expenses was due to the time-writing charge out rate for 2015 being adjusted in March 2016 with retrospective effect. The Group made a loss before tax of £35.9 million (H1 2015: £0.4 million profit) which mainly reflects the operating loss as outlined above.
The non-cash tax credit for the period was £22.9 million (H1 2015 tax charge: £7.1 million) largely reflecting lower profits from production in Norway and higher exploration write-offs.
The post-tax loss was £13.0 million (H1 2015: £6.7 million).
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Sound Energy (LON:SOU) confirms the start of civil works at the Badile exploration well site, onshore Northern Italy. The rig is expected to be mobilised during Q4 2016 with a view to drilling commencing around the end of the year.
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The biggest fallers were Petro Matad (LON:MATD) and Iofina (LON:IOF) - down by more than 8.8% and over 7.2% respectively in late trading.
(LON:AUR) Aurum Mining PLC share price was 0p at 1.05p
(LON:BOR) Borders Southern Petroleum PLC share price was -0.12p at 1.73p
(LON:CHAR) Chariot Oil Gas Ltd share price was -0.01p at 8.24p
(LON:ENQ) EnQuest Plc share price was -0.62p at 26.63p
(LON:FPM) Faroe Petroleum PLC share price was +2.38p at 67.63p
(LON:GKP) Gulf Keystone Petroleum share price was -0.01p at 2.08p
(LON:GPX) Gulfsands Petroleum PLC share price was 0p at 3p
(LON:HAWK) Nighthawk Energy PLC share price was +0.35p at 1.23p
(LON:INDI) Indus Gas Ltd share price was +22.63p at 452.63p
(LON:IOF) Iofina PLC share price was -1p at 12.88p
(LON:MATD) Petro Matad Ltd share price was -0.23p at 2.33p
(LON:PET) Petrel Resources PLC share price was -0.38p at 6.75p
(LON:RKH) Rockhopper Exploration PLC share price was -0.62p at 29.38p
(LON:RPT) Regal Petroleum PLC share price was -0.1p at 3.4p
(LON:SOU) Sound Energy PLC ORD 1p share price was -3.62p at 93.38p
(LON:XEL) Xcite Energy Ltd share price was -0.09p at 2.39p