Rocksource ASA (OSE: RGT) gained 25% in today’s session as the company announced it has signed a strategic assets transactions with Valiant Petroleum Norge AS. Rocksource is seling 13% interest in the Norvarg discovery, leaving it with 7 per cent. The transaction strengthens Rocksource’s financial position as Valiant will be paying 60 million NOK in cash and will cover 200 million in exploration costs on Rocksource’s remaining license interests.
Rocksource said that the implied value of this transaction represents a premium on the company’s current market value. Short and medium term financing needs are covered and a new drilling campaign is expected to start in early 2013. Rocksource is still down heavily in the past year on the heels of several duds from its 2011 campaign.
Valiant Petroleum (LON:VPP) announced it is happy to take stakes in substantially all of Rocksource’s licenses on the Norwegian Continental Shelf for a toal pst-tax effect consideration of 104 million NOK as the carry up on the 200 million NOK will be reclaimed at 78% in the year following the expenditure. The transaction is subject to government approvals and certain other conditions.
Showing posts with label Rocksource. Show all posts
Showing posts with label Rocksource. Show all posts
Tuesday, 20 March 2012
Tuesday, 9 August 2011
Successful wells bring some joy into a miserable day in the markets
Statoil (40%) as the operator and partners Petoro AS (30%), Det norske oljeselskap’s (OSE: DETNOR) (20%) and Lundin Norway AS (part of Lundin Petroleum AB (STO:LUPE))(10%) made a high-impact oil discovery on the Aldous Major South prospect (PL 265) in the North Sea. The reservoir is of excellent quality and preliminary volumes are estimated 200-400 million barrels of oil equivalent for this part of the prospect. Statoil estimates further upside adjacent to the discovery.
Lundin Petroleum estimates that the discovery is most likely an extension of the Avalsdnes discovery made by Lundin Petroleum in PL501. Together the discoveries may allow for a new stand-alone development in the North Sea. Markets had high hopes for the project as it was described as high-impact in prior investor meetings.
Total E&P Norge AS as operator.made a gas discovery at Norvarg prospect in the Barents Sea. North Energy ASA (OSE:NORTH),(20%) RockSource (OSE:RGT) (20%) and DETNOR (20%) are the partners in the license. Preliminary estimates indicate potential from 10 to 50 billion cubic metres of recoverable gas corresponding to between 63 and 315 million barrel of oil equivalents.
DETNOR’s stock benefited the most from being a part of both of the discoveries and was up nearly 15% for the day. The company said that Norvarg may represent significant value. Other public companies mentioned here were down with the rest of the market.
Lundin Petroleum estimates that the discovery is most likely an extension of the Avalsdnes discovery made by Lundin Petroleum in PL501. Together the discoveries may allow for a new stand-alone development in the North Sea. Markets had high hopes for the project as it was described as high-impact in prior investor meetings.
Total E&P Norge AS as operator.made a gas discovery at Norvarg prospect in the Barents Sea. North Energy ASA (OSE:NORTH),(20%) RockSource (OSE:RGT) (20%) and DETNOR (20%) are the partners in the license. Preliminary estimates indicate potential from 10 to 50 billion cubic metres of recoverable gas corresponding to between 63 and 315 million barrel of oil equivalents.
DETNOR’s stock benefited the most from being a part of both of the discoveries and was up nearly 15% for the day. The company said that Norvarg may represent significant value. Other public companies mentioned here were down with the rest of the market.
Wednesday, 27 July 2011
Another dry well deals a blow to Rocksource investors
Rocksource ASA (OSE:RGT) lost nearly half of its stock market value today after the company announced completion of drilling on the Kora-1 well, which turned out to be dry. The well was a frontier exploration well in 2,600 metres of water and was drilled to a total depth of 4,447.5 metres. The company says that the well encountered predominantly claystone and thinly bedded limestone instead of sandstone as the company was predicting.
Rocksource says that better data analysis is required before prospectivity of the Senegal-Guinea Bissau portion of the MSGBC Basin can be determined. Rocksource deal on the Kora-1 was such that the company comes out of the matter without direct losses. Rocksource has now completed three exploration wells this year with two of them being dry. Two more wells are expected to spud in September.
Rocksource’s vision is to deliver among the highest exploration success rates in the industry by approriate application of technology. Rocksource tackles projects where electromagnetic (EM) data may have a big impact on success rates.
Rocksource says that better data analysis is required before prospectivity of the Senegal-Guinea Bissau portion of the MSGBC Basin can be determined. Rocksource deal on the Kora-1 was such that the company comes out of the matter without direct losses. Rocksource has now completed three exploration wells this year with two of them being dry. Two more wells are expected to spud in September.
Rocksource’s vision is to deliver among the highest exploration success rates in the industry by approriate application of technology. Rocksource tackles projects where electromagnetic (EM) data may have a big impact on success rates.
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