Sterling sells out to Oranje-Nassau Energie

Sterling Resources has announced it has entered into an agreement to sell its SRUK Holdings subsidiary to Oranje-Nassau Energie for a net consideration of USD113 million, assuming the bonds are fully redeemed and the super senior revolving credit facility is cancelled. Sterling anticipates a completion date of 15th May. Following Sterling’s recapitalization in May 2016, the board of continued to review and pursue various M&A opportunities to rebuild the business. Sterling considered a number of opportunities and alternatives, including mergers...

Read More

More success at Jacana

GeoPark today announced the successful drilling and testing of the Jacana-11 appraisal well on block LLA-34. The well, located 2.5km southwest of Jacana-6 and extends the Tigana/Jacana oilfield to the south-west edge of the block. The well reached TD of 11,618ft and did not encounter the oil-water contact. Jacana-11 tested at c.2,100b/d (18.7 API, <1% water cut) with an ESP from the Guadalupe formation, and the well is already in production. The...

Read More

BP continues foray into clean energy and US gas supply

BP has agreed to acquire Clean Energy Fuels Corp's biomethane production assets for USD155 million, expanding BP's gas supply portfolio in the US. BP will take over Clean Energy Fuels Corp's existing and two new biomethane production sites as well as supply contracts from third parties. As part of the deal, the Clean Energy will also signed a long-term agreement to purchase biomethane from BP. Press release: CHICAGO, Ill. and NEWPORT BEACH, Calif....

Read More

Africa Oil - slowly progressing

Africa Oil published its 2016 financials last night - the USD850 million company (market capitalisation) ended the year with cash-in-hand of USD463 million. The release included few updates – G&A was down c.50% year-on-year as a result of lower equity-based payments and the impact of the weak Canadian dollar on head office salaries, and the company reported a small USD6.5 million write off on its Ethiopian assets. Attention remains focused on the Lokichar Basin development - preparations for FEED are underway, the pipeline Joint Development...

Read More

Kosmos exploration - 2017 rising stars

With a strong balance sheet, cash flow generation in Ghana and exploration/development carry provided by BP through the recent Mauritania and Senegal deal, Kosmos is well positioned to focus on its 2017+ exploration drilling plans, which will "test some of the largest prospects identified by the industry". Despite its current gassy position in West Africa, management emphasises its confidence in finding higher value liquids: "Updated hydrocarbon...

Read More

Premier refinancing terms agreed

Following an extensive negotiation process, the terms around the refinancing of Premier Oil’s debt have been agreed. This will be followed by “lock-ups” with lenders in February and final implementation by the end of May. On 3rd February, Premier Oil announced that it had agreed with key members of the “Private Lending” group on the refinancing terms. The terms include: Retaining the existing USD3.9 billion facilities with maturity extended to May 2021 Covenants relaxed to 7.5x in 2017, 5x by end 2018 and returning to 3x by 2019 Covenant net...

Read More

Equalising the buyer and seller: Shell and Chrysaor's oil price contingent payment structure

After a tumultuous period of oil prices with investment decisions and M&A transactions put on hold, the outlook is beginning to stabilise in 2017. With more comfort on the near term trajectory of oil prices, the corporate mind-set is shifting from balance sheet management to strategic re-focussing and growth. Nevertheless, buyer-seller price expectation gaps still remain and a way to bridge this gap is the use of oil price contingent payments in a transaction. The last time this mechanism was seen in a major market deal was Seplat’s acquisition...

Read More