SDX Energy PLC (LON:SDX) on Tuesday told investors it had sold a non-core asset in the Eastern Desert of Egypt in a deal worth US$3mln.
The group said it has sold a 50% working interest in the North West Gemsa licence to Gulf Energy, a private Egyptian company. Some US$1.4mln of the proceeds are being immediately used to discharge the company’s remaining liabilities on the licence.
The company pointed out that the deal is part of an ongoing focus and commitment to capital discipline and careful portfolio management.
Thursday saw Echo Energy PLC (LON:ECHO) successfully restructure its relationship with Argentinean firm Compañia General de Combustibles (CGC) with a new arrangement that puts immediate focus on optimising capital allocation.
The small-cap exploration and production firm said that the new terms allow it to cease commitments to ongoing pre-drill expenditure at Tapi Aike. It will at least temporarily withdraw from the project, which was 19% owned by Echo. It will retain an ability to re-enter the ‘western cube’ of the licence area.
Reabold on Friday responded to an earlier rejection of its takeover approach by Deltic with a defence of its West Newton project in Yorkshire’s East Riding. The AIM-listed group currently has a 39.7% economic interest in the West Newton project through a 59.5% interest in Rathlin Energy, the prospect’s operator.
It said it would be pleased to provide access to detailed and up to date information and spend time with the Deltic board and its advisers to explain the significant upside potential in its portfolio and the forthcoming West Newton appraisal wells.
Reabold has proposed an all-share offer of 1.5 of its shares for each one in Deltic, which at the time of the offer valued the former Cluff Natural Resources at approximately £12.3mln or around 0.87p per share. Deltic said the offer did not even reflect its existing cash balance (£13.2mln) and said it also had concerns over a number of Reabold’s investments and, in particular, the West Newton project.
Elsewhere, Premier Oil PLC (LON:PMO) told investors that its debt pile has remained “broadly flat” amidst the downturn as its production form core assets held up during the first half of 2020. The company, in a statement, said that production averaged 67,300 barrels oil equivalent per day in the six months to June 30, in line with guidance for 65,000 to 70,000 boepd.
“The continued underlying performance of our core assets along with the decisive action we have taken to reduce our expenditure during the first half has resulted in our net debt remaining broadly flat despite significantly weaker commodity prices during the period.
At the same time, Aminex detailed some additional cost-saving measures including the waiving and surrendering of rights to director share options. There are also proposals, set out a week ago, which will see key employees sacrifice salary in return for share options. The moves aim to reduce the group’s overhead and are subject to shareholder approval.
Aminex added that it is exercising very tight control over costs. Payments related to the farm-out are expected to fund the company until around May 2021, according to the group’s management.
ADM Energy PLC (LON:ADME) appointed a pair of oil and gas industry veterans, Darrell McKenna and Dr Satinder Purewal, as advisory members to its technical team. McKenna joins as drilling and surface engineering lead, while Purewal bring his expertise to the role of petroleum and reservoir engineering lead.
Already on the technical team is Wilhelmus (Wim) Burgers who is the geologist and geophysical lead.
“Once more, we are adding seasoned professionals with major IOC backgrounds and experience working on some of the most prominent field development projects,” Osamede Okhomina, ADM chief executive said in a statement.