There was deal news this past week in the small-cap oil and gas sector.
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 () 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.
Much of the week involved deal talk concerning PLC () and (LONL:DELT).
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, () 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.
() extended the long stop date in the Ruvuma farm-out transaction has been, giving it an extra fortnight to close the transaction – with the new date set as July 31.
At the same time, Aminex detailed some…
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