FoxDavies Daily Monitor - Providence Resources, Fortune Oil and Green Dragon Gas
Providence Resources (PVR LN, 626p, ▼ 0.5%) - Barryroe Resource Update: The Company has identified additional resource potential (Lower Wealden and Purbeckian sands) at Barryroe field which is estimated to hold additional P50 oil in place resource of 778 MMBO and P10 resource of 1,165 MMBO. The Middle and Basal Wealden sands, which are into development stage, are estimated to hold 1,043 MMBO (P50) and 1,612 MMBO (P10) oil in place. Investors will now be looking forward to future well data over these two specific zones (Lower Wealden and Purbeckian sands) which will be required in order to firm up the final resource estimates.
Fortune Oil (FTO LN, 9.0p, ▼ 4.3%) - Construction of Gas Gathering System Commences: Commencement of the construction of the gas gathering system and the main export product trunk-line at the Liulin CBM project in Shanxi Province is an important milestone for the full development of Liulin CBM field. With the construction scheduled for completion by mid-2013, we can expect steep rises in production to align with the larger market potential. Expect positive movements today. In this news:
- Contract for construction of the gas gathering system approved and construction commenced
- The gas gathering system will connect the field production to the Company's existing compressed natural gas ("CNG") wholesale station allowing sales to commence in 2013
- Field gas rates continue to increase: currently approximately 28,000m3/day
Green Dragon Gas (GDG LN, 4.0p, ▲ 5.3%) - Interim update: During H1'12, the Company's primary focus was materially increasing the drilling activity across all 6 blocks. It drilled 34 additional wells which largely resulted in higher capex spend of $34.3mm ($19.9mm in H1 2011), consequently meeting the minimum capex requirements under all of the 6 PSCs. Total gas production from GSS Production Block increased by 31% y/y to 832.4 MMcf during the period. The Company plans to increase production to 18 bcf/year in the medium term and thus it is actively investing in expanding CNG station capacity and pipeline infrastructure. In this news:
- Cash of US$69.9 million (US$86.3 million at 31 December 2011)
- Capital expenditure increased to US$34.3 million (US$19.9 million in H1 2011)
- Decrease in revenue of 1% to US$35.7 million (US$36.2 million in H1 2011) due to a large BHY (Beijing Huayou) customer temporarily closing a power facility for an upgrade
- Retail gas sales increase 12% to US$8.6 million (US$7.7 million in H1 2011)
- Total gas production at the GSS Production Block was 832.4 MMcf in the first 6 months of 2012 a 31% increase year-on-year (635.2 MMcf in H1 2011)
Join 80,000 oil and gas professionals who receive our weekly newsletter.
You may unsubscribe at any time with one click.
Green Dragon Gas
This article is for information and discussion purposes only and does not form a recommendation
to invest or otherwise. The value of an investment may fall. The investments referred to in this
article may not be suitable for all investors, and if in doubt, an investor should seek advice from
a qualified investment adviser. More
Upcoming OilVoice Training Course
Petroleum Geology of West Africa (Two Day Course)
Please note that this course is spread over two days. The course reviews the key regional controls on petroleum systems and prospectivity across the West African continental margin, covering all onshore, shelfal and deepwater settings between South Africa and Morocco. This second run of the course h...
All OilVoice Training Courses