Echo Energy Plc (LON:ECHO) told investors that it has successfully brought gas to surface following the well workover of a three well programme at the Fracci??n D asset, onshore Argentina.
The existing well, tagged CSo-85, perforated a previously untapped gas reservoir which flowed to surface without any further intervention. Gas flows from the reservoir are estimated at 2mln cubic feet per day. A testing unit is due on site in the next 10-14 days, Echo said.
SDX Energy confirmed its latest well success, with the Ibn Yunus-1X well at the South Disouq project unearthing a larger than expected gas reservoir.
The company told investors that the well encountered 100.8 feet of natural gas pay in the Abu Madi horizon and the average porosity was measured at 28.5%. It highlighted that the well has come in on prognosis, but, the reservoir section was thicker and better quality than anticipated before drilling.
A production test will now take place, starting 30-45 days after the drill rig is removed, and it is expected that the Ibn Yunus-1X well will be subsequently hooked up to nearby production facilities, adjacent to the original South Disouq gas discovery well.
Hurricane Energy has reported on its 'transformative' 2017, highlighting that in the year the Lancaster oil field moved into the project execution phase. The project timeline puts Lancaster on course for 'first oil' in the first half of 2019.
In the results statement the company highlighted the key milestones achieved during the period, including the final investment decision, the approval of the field development plan by the UK regulator, major resource upgrades and first reserves, then the start of development operations.
"Last year saw the company gain both operational and commercial momentum as it moves toward first production and material cash generation," said Robert Trice, Hurricane chief executive.
There was plenty of broker commentary in the days following the results statement.
RBC Capital has repeated an 'outperform' rating for Hurricane after UK offshore oiler's financial results statement encouraged investors.
WH Ireland has a 'buy' recommendation with a 61.8p target that suggests around 63% upside to the current price.
And a new price target from Cantor Fitzgerald suggested the share could more than double in value as the Lancaster field advances towards production. It has a 'buy' recommendation and an 80p price target.
Gulf Keystone has reported its first profit since its entry to the Kurdistan region of Northern Iraq, with net profit stated at US$14.1mln, though the outlook remains contingent on a deal being done with the authorities on crude sales. The oiler is promising to restart investments into the Shaikan oil field, subject to an agreement with the Kurdistan regional government over crude oil sales.
In January, the Shaikan crude oil sales agreement was signed and it was described by the company today as an 'important commercial event" and a key milestone which has moved GKP closer to finalising commercial negotiations with the authorities.
Investment is needed to reinvigorate the field operations, which presently see declining output, and the company intends to provide the funds once certain commercial and contractual matters are finalised with the KRG.
KrisEnergy signed a deal with subsidiaries of engineering and services firm Keppel Corporation for potential future work programmes.
The Keppel FELS Limited and Keppel Shipyard Ltd businesses become the preferred contractors for specified areas - including the building or repair of marine vessels and assets, as well as the lease of similar products.
"The cooperation agreement sets out a framework for the cooperation arrangement between the group and Keppel, under which contracts for any work may be awarded to Keppel on normal or better overall commercial terms and so long as this is in the best interests of the group," KrisEnergy said in a statement.