Oceaneering Sells Ocean Legend

- Oceaneering Sells Ocean Legend

Monday, September 12, 2011
Oceaneering International, Inc.

Oceaneering International, Inc. announced Monday the sale of the Ocean Legend, a mobile offshore production system, to an undisclosed buyer.

Oceaneering's third quarter 2011 earnings will include an estimated pretax gain in the range of $17 million to $19 million on the sale of this asset in its Subsea Projects segment operating results.

Oceaneering's 2011 EPS guidance previously given did not include the anticipated results of this transaction.

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Chariot Sells Stake in Namibia Block to BP

- Chariot Sells Stake in Namibia Block to BP

Monday, August 08, 2011
Chariot O&G Ltd.

Chariot announced that its wholly-owned subsidiary, Enigma Oil & Gas Exploration (Pty) Limited, has entered into a farm-out agreement with BP, whereby BP will acquire a 50% share of Chariot's equity interest in Southern Block 2714A (License 20). As announced on June 28, 2011, Petrobras has elected to take up operatorship and retains a 50% stake in the block.

Under the terms of the agreement, BP has committed to cover Chariot's cost of drilling the first exploration well, as well as past costs incurred.

Block 2714A is located in the Orange Basin offshore Namibia and covers an area of 5,481km². The Nimrod prospect is situated within this license and is the largest of Chariot's prospects. With this farm-out, Chariot will continue to pursue its drilling campaign within this license area whilst sharing in the costs, risks and rewards of exploration. Funds received and retained through this deal will be used in further exploration and appraisal work.

This agreement remains subject to the full approval of the Ministry of Mines and Energy in Namibia. It includes standard representations and warranties given by both parties and other conditions precedent.

Paul Welch, Chief Executive of Chariot, said, "We are delighted to enter into this farm-out agreement with BP whose global expertise of deep water exploration and related petroleum systems is exceptional and whose contribution to our campaign going forward will be invaluable. It is a pleasure to welcome another major oil company as a partner.

"It has been a key strategic objective for us to farm down our assets in order to facilitate exploration drilling, retain capital and mitigate risk; we are very pleased to have made progress towards this. We look forward to proving up the potential of our assets alongside our partners, as we seek to deliver long-term value to our shareholder."

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Chevron Sells Union Oil Cook Inlet Assets to Independent

- Chevron Sells Union Oil Cook Inlet Assets to Independent

Thursday, July 21, 2011
Knight Ridder/Tribune Business News
by Lisa Demer, Anchorage Daily News, Alaska

Chevron, the biggest oil and gas operator in Cook Inlet, is selling its assets there to an independent company, Hilcorp Alaska LLC.

Chevron and Hilcorp announced Tuesday that Chevron's subsidiary, Union Oil Co. of California, is selling contracts and interests in the Granite Point, Middle Ground Shoals, Trading Bay and MacArthur River fields.

The sale to Hilcorp also covers Chevron's interests in 10 offshore platforms, onshore gas fields, two gas storage facilities and two pipeline companies.

Terms were not disclosed. The companies said the deal should close by the end of the year, after it clears regulatory steps. Chevron plans to maintain its interests in Alaska's North Slope fields and the trans-Alaska oil pipeline.

The current net production for Chevron in Cook Inlet is 3,900 barrels of oil and 85 million cubic feet of natural gas per day, the company said.

A state senator from Kenai said the changeover should be good for Cook Inlet production. An environmentalist said he wanted to look into whether the new player has the will and the ability to invest in Cook Inlet's crumbling infrastructure.

Hilcorp is one of the biggest privately held oil and natural gas exploration and production companies in the United States, but it is dwarfed by big producers like Exxon Mobil, BP and Conoco Phillips.

"The standard pattern is the majors come in and pick the low-hanging fruit, and then the independents and juniors come in and mop up," said Bob Shavelson, executive director of the environmental advocacy group Cook Inletkeeper. "The biggest question is: Do they have the assets to deal with aging infrastructure in Cook Inlet?"

Some of the platforms date back to the post-statehood era of the late 1960s, and there are serious maintenance and corrosion issues, Shavelson said.

Sen. Tom Wagoner, R-Kenai, said he didn't think Hilcorp would be making the deal if it wasn't ready to invest.

"They have looked at the assets. They know what's here in Cook Inlet," said Wagoner, who got a call from Hilcorp about the sale Tuesday.

Hilcorp may be better situated for upgrading and expanding than Chevron, which has numerous projects around the world competing for its investment dollars, the senator said.

Hilcorp, headquartered in Houston, Texas, operates in nine areas including the Gulf Coast and the Rockies. It has more than 700 employees and is actively growing. It's been recognized for a progressive corporate culture. Last year, the Houston Chronicle ranked Hilcorp the No. 1 midsize workplace.

Wagoner said he hopes Cook Inlet workers hold onto their jobs.

"Those are the people I worry about," Wagoner said. "Those platforms -- those are a lot of jobs in Cook Inlet. Most of those people are my neighbors."

The Hilcorp acquisition comes after the federal government announced there's far more oil and natural gas in Cook Inlet than previously thought.

Copyright (c) 2011, Anchorage Daily News, Alaska

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Synergy Sells Leases in Denver-Julesburg Basin

- Synergy Sells Leases in Denver-Julesburg Basin

Thursday, July 21, 2011
Synergy Resources Corp.

Synergy has sold certain mineral interests in 2,400 gross acres (1,355 net) in the Denver-Julesburg Basin for a total purchase price of $3,386,350 to an independent oil and natural gas company.

The leases are undeveloped and are located in Weld and Morgan Counties, Colorado. Use of proceeds from the sale will be directed toward further developing the Company's core oil and liquid-rich natural gas properties in the DJ-Basin's Wattenberg Field.

William Scaff, Vice President of Synergy said, "As a relatively small DJ-Basin player, we are continuing to seek new ways to maintain our strategic assets, expand our drilling program and maintain a strong balance sheet. The sale of select undeveloped acreage in Weld and Morgan Counties accomplishes these objectives. We divested a very small portion of our acreage position for proceeds of $3,386,350 and retained an overriding royalty interest on these properties. At the same time, we continue our disciplined approach towards the growth of the company."

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Det norske Sells Stake in North Sea

- Det norske Sells Stake in North Sea

Tuesday, July 05, 2011
Det norske oljeselskap ASA

Det norske oljeselskap has sold a 15 percent interest in production license 450 to North Energy.

The license is located in block 7/12 in the North Sea, southwest of the Ula field. Drilling of the prospect Storebjørn is planned for in the fourth quarter of 2011 with the jack-up rig Maersk Guardian.

Det norske is the operator, and will after the transaction hold a 60 percent interest in the license. Partners are North Energy with a 15 percent interest, and Dana Petroleum Norway with 25 percent.

The sale is part of Det norske's continuous effort to diversify and optimize its exploration portfolio. The agreement remains subject to government approval.

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Rocksource Sells U.S. Assets

- Rocksource Sells U.S. Assets

Friday, June 24, 2011
Rocksource ASA

Rocksource announced that its US subsidiaries have sold the U.S. onshore producing fields to a Texas-based oil and gas company. The transaction also terminates potential arbitration proceedings from the former owners of the US subsidiary Sandhawk Energy LLC, as described in Rocksource's Annual Report for 2010.

The US onshore assets, which in Rocksource's 1Q 2011 financial report were recorded as "assets classified as held for sale" in the consolidated statements of financial position, consist of gas producing fields in San Jacinto and Polk Counties, Texas and are owned through Rocksource's subsidiaries Rocksource Energy Corporation (REC) and Sandhawk Energy LLC (SHK). The fields are on a natural decline and have earlier been classified as non-core by Rocksource. The sale of these assets is in line with the Company's strategy to focus on drilling high potential, EM positive, exploration wells.

The US onshore assets were important in the build-up phase of Rocksource, providing cash flow to assist the Company growing its core business. Due to declining production coupled with a significant drop in US gas prices, the US assets have become increasingly marginal to Rocksource. The net proceeds from the sale are approximately USD 3.5 million and the sale will only have a marginal effect in the profit and loss statement.

Rocksource has a NOK 200 million bond maturing in May 2012 which has security in the U.S. onshore and other assets. The net proceeds from the sale will be used to make a partial early redemption of the bond.

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Maurel & Prom Sells Drilling Unit to Tuscany International

- Maurel & Prom Sells Drilling Unit to Tuscany International

Tuesday, June 21, 2011
Maurel & Prom

Maurel & Prom and Tuscany International are entering a definitive agreement whereby Tuscany's wholly-owned subsidiary Tuscany Rig Leasing S.A. will acquire all of the issued and outstanding shares of Caroil SAS, the drilling and work-over subsidiary of Maurel & Prom.

The purchase price will be paid by Tuscany in the delivery of US $120 million in cash, 82.5 million Tuscany shares and 27.5 million zero cost, non-transferable, non-voting common share purchase warrants (1/1).

Closing is expected to occur in the third quarter of 2011.

On the completion of the acquisition, it is expected that Maurel & Prom will own approximately 29% of the issued and outstanding Tuscany shares. Tuscany will be required to obtain the approval of a simple majority of its shareholders for the issuance of Tuscany shares and warrants to Maurel & Prom pursuant to the acquisition.

Caroil & Tuscany are joining forces to create a leading emerging market player, active in two high growth areas: Latam & Africa.

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Eni Sells Stake in TAG Pipeline

- Eni Sells Stake in TAG Pipeline

Friday, June 10, 2011
Eni S.p.A.

Eni signed a purchase agreement with Cassa depositi e prestiti Spa (CDP) for the sale of 89% of the existing shares, corresponding to 94% of the economic rights held in Trans Gasleitung Austria GmbH.

Trans Gasleitung Austria GmbH is the company owning the transport rights for the Austrian section of the pipeline that connects Russia to Italy and that, in 2010, reported total revenues of 270 million euro.

This operation is part of the commitments taken by Eni in response to the European Antitrust Commission ruling on September 29, 2010, and it is subject to its approval.

The sale provides for the payment of €483 million, plus reimbursement of a shareholder loan granted by Eni to the company equal to 192 million euro (a total of $986MM), and these amounts will be subject to review at the closing date as per market practice.

The parties have also agreed to recognize an additional charge based on some earn-out mechanisms linked to the occurrence of certain events.

Following the conclusion of the operation, the ship-or-pay contract signed by Eni with TAG will remain into force.

By virtue of the nature of the counterparty and the economic importance of the contract for Eni, the transaction takes the form of an operation with a related party of minor importance for which a non-binding opinion has been required from the Committee for Internal control.

Mediobanca – Banca di Credito Finanziario S.p.A. and Rothschild S.p.A. for Eni and Credit Suisse for Cassa Depositi e Prestiti issued fairness opinion on the operation based on the assessment methodologies currently used for this type of operations.

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Trinidad Drilling Sells Service Rigs

- Trinidad Drilling Sells Service Rigs

Thursday, June 09, 201
Trinidad Drilling Ltd.

Trinidad Drilling has entered into an agreement to sell its well servicing rigs and related equipment (TWS) to Central Alberta Well Services Corp. (CWC) for $38 million in cash, excluding positive working capital.

Well servicing has been an important part of Trinidad's operations for more than ten years and has provided a level of diversification as the Company has grown its contract drilling business. Trinidad now operates more than 120 drilling rigs across North America, providing broad geographic diversification and reducing the need for the diversification added by the well servicing division.

"As well servicing has become a less significant part of our overall business, we needed to invest capital to grow this division or to narrow our focus more tightly towards contract drilling," said Lyle Whitmarsh, Trinidad's President and Chief Executive Officer. "Our growth over past few years has largely been through adding deep, technically advanced drilling rigs and we have developed a reputation as an industry leader in this area. Our decision to sell our well servicing assets reflects our strategy to focus on the deep, modern contract drilling market where returns are generally stronger and where we see opportunities for future growth."

Trinidad's well servicing division has 22 well servicing rigs operating from three centers in Alberta. The well service fleet is made up of:

• Two skid doubles
• Six mobile free standing class III singles
• Five mobile class III doubles
• Two mobile class III free standing doubles
• Seven mobile free standing class II singles

CWC has agreed to purchase all 22 of TWS's service rigs and anticipates that they will retain the vast majority of employees currently working for TWS. The sale is expected to close on June 15, 2011. Trinidad expects to use the proceeds from the sale to fund the growth of its deep, technically advanced drilling fleet or to reduce overall corporate indebtedness.

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BP Sells Stakes in UK Fields to Perenco

- BP Sells Stakes in UK Fields to Perenco

Tuesday, May 17, 2011
BP plc

BP has agreed to sell its interests in the Wytch Farm, Wareham, Beacon and Kimmeridge fields to Perenco UK Ltd ('Perenco') for up to $610MM in cash. The price includes $55MM contingent on Perenco's future development of the Beacon field and on oil prices in 2011-13.

The sale of these interests is part of BP's plan, announced in July 2010, to divest up to $30 billion of assets by the end of 2011. Before today's agreement, BP had already announced sales agreements totaling around $25 billion.

BP group chief executive Bob Dudley said, "Today's agreement brings us even closer to the target of $30 billion of divestments by year end that we set out last summer. It demonstrates that we do have assets of quality that other operators see as more strategically valuable to them than to BP, thus unlocking value for our shareholders."

An immediate payment of $500MM has been made, a further $55MM will be paid on completion which is expected at the end of 2011 with the remaining $55MM contingent on submission of the Beacon field development plan and oil prices. Completion of the sale is subject to partner preemption rights and a number of third party and regulatory approvals.

The divestment of Wytch Farm is an outcome of BP's strategic aim in the UK to invest in a more focused North Sea business portfolio in the northern North Sea, central North Sea, West of Shetland and Norway.

Trevor Garlick, regional president for BP North Sea, said, "The North Sea Region is a very important area for BP and we will sustain a significant business here for the long term. We are currently investing around $4B per annum of capital and operating expenditure, which includes four major new field development projects in the UK and two in Norway."

It is expected that impacted BP employees based at Wytch Farm will transfer with the asset to Perenco.

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BP Sells Stake in North Sea Fields to Perenco

- BP Sells Stake in North Sea Fields to Perenco

Tuesday, May 17, 2011
BP plc

BP has agreed to sell its interests in the Wytch Farm, Wareham, Beacon and Kimmeridge fields to Perenco UK Ltd ('Perenco') for up to $610MM in cash. The price includes $55MM contingent on Perenco's future development of the Beacon field and on oil prices in 2011-13.

The sale of these interests is part of BP's plan, announced in July 2010, to divest up to $30 billion of assets by the end of 2011. Before today's agreement, BP had already announced sales agreements totaling around $25 billion.

BP group chief executive Bob Dudley said, "Today's agreement brings us even closer to the target of $30 billion of divestments by year end that we set out last summer. It demonstrates that we do have assets of quality that other operators see as more strategically valuable to them than to BP, thus unlocking value for our shareholders."

An immediate payment of $500MM has been made, a further $55MM will be paid on completion which is expected at the end of 2011 with the remaining $55MM contingent on submission of the Beacon field development plan and oil prices. Completion of the sale is subject to partner preemption rights and a number of third party and regulatory approvals.

The divestment of Wytch Farm is an outcome of BP's strategic aim in the UK to invest in a more focused North Sea business portfolio in the northern North Sea, central North Sea, West of Shetland and Norway.

Trevor Garlick, regional president for BP North Sea, said, "The North Sea Region is a very important area for BP and we will sustain a significant business here for the long term. We are currently investing around $4B per annum of capital and operating expenditure, which includes four major new field development projects in the UK and two in Norway."

It is expected that impacted BP employees based at Wytch Farm will transfer with the asset to Perenco.

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Petroceltic Sells Stake in Isarene Block

Petroceltic Sells Stake in Isarene Block

Thursday, April 28, 2011
Petroceltic International Inc.

Petroceltic announced the sale, subject to the satisfaction of certain conditions, of an 18.375% interest in the Isarene Production Sharing Contract ("PSC"), which includes the world class Ain Tsila gas condensate discovery, onshore Algeria, to ENEL Trade S.p.A. ("ENEL"), a fully owned subsidiary of ENEL.

The assignment is to be effected by way of a sale and purchase agreement under which, ENEL has agreed to acquire an 18.375% interest in the rights, benefits and liabilities of the PSC for the Isarene perimeter (Blocks 228 and 229a). The PSC was signed between Petroceltic and the Algerian National Company for Hydrocarbons ("Sonatrach") in April 2005.

Under the terms of the agreement ENEL has:

• Agreed to pay up to US $36.75 million to Petroceltic, which equates to 24.5% of all back costs incurred from signing of the PSC in 2005 until the end of the exploration period in April 2010.
• Committed to fund 49% of the cost of the first six appraisal wells in an enlarged Isarene appraisal campaign (including AT-4 which has been completed and the second well of the campaign, AT-5, currently drilling the horizontal section) and of a contingent additional well, which costs are capped, in aggregate, at US $145 million.
• Agreed to pay Petroceltic a contingent cash consideration, up to a maximum of US $75 million, determined by the level of recoverable hydrocarbon reserves approved by the Algerian Authorities in the Final Discovery Report, which is expected to be submitted by the parties in early 2012.

On completion of the appraisal drilling program, or if the agreed budget limits are exceeded, Petroceltic and ENEL will fund any additional costs relating to the PSC in proportion to their participating interests.

ENEL is Italy's largest power producer, and the second largest electrical utility company in Europe by installed capacity. Enel is Sonatrach's main end-user customer of Algerian gas, as well as a partner in both the Medgaz and the Galsi trans Mediterranean pipelines, the former in operation since early 2011 with a nominal capacity of 8 BCM of gas per year and the latter, still under development, with a planned capacity on completion of 8 BCM of gas per year. Both of these developments have been undertaken to facilitate increased Algerian gas pipeline exports to Southern Europe.

This assignment has been submitted for approval to Sonatrach which is a 25% partner in the PSC, and is also subject to the usual approvals by the Algerian regulatory authorities. Upon completion of the sale, ENEL will hold an 18.375% participating interest in the PSC, Petroceltic will hold 56.625% and Sonatrach will hold the remaining 25%. Petroceltic will continue as Operator for the permit.

Brian O'Cathain, Chief Executive of Petroceltic, commented, "We are delighted to have ENEL joining us in the Isarene Block in Algeria. ENEL is a well-established partner of Sonatrach, and their unparalleled knowledge of European gas markets will greatly enhance our ability to bring the Isarene gas to market. This transaction is a strong endorsement of the quality of the Isarene asset and an important financial support to our ongoing appraisal campaign and future development planning. We look forward to a long and fruitful partnership with ENEL and Sonatrach."

Petronas Sells Cairn India Stake for $2.1B

Petronas Sells Cairn India Stake for $2.1B

Tuesday, April 19, 2011
Dow Jones Newswires
by Ankur Relia, Raghavendra Upadhyaya & Eric Yep

Malaysia's Petroliam Nasional Berhad, or Petronas, Tuesday said it exited Cairn India by selling its entire 14.94% stake in the oil and gas explorer for about $2.1 billion.

Petronas held 283.4 million shares in the Indian unit of Cairn through its overseas arm Petronas International Corp.

"The transaction brings to a close a successful association as a shareholder with Cairn India since 2006," Petronas said in a statement.

Petronas had raised its holding in Cairn India to 14.94% in 2009-10 after acquiring a 2.3% stake from Cairn Energy.

Petronas didn't reveal the names of the buyers but a person with knowledge of the matter told Dow Jones Newswires that the stake was sold to India-focused miner Vedanta and institutional investors in India via block deals.

Bank of America Merrill Lynch was the sole adviser on the deal, said the person, who declined to be named.

The stake sale by Petronas brings Vedanta closer to its goal of acquiring a majority stake in Cairn India as analysts don't expect a big response to Vedanta's open offer. Petronas' sale may also allow Edinburgh-based explorer Cairn Energy to retain a larger stake in Cairn India.

In August last year, Vedanta had offered to buy a 51%-60% stake in the Indian unit of Cairn Energy, in a deal expected to cost up to $9.6 billion.

The deal is awaiting approval from the Indian government.

Cairn Energy owns a 62.37% stake in Cairn India.

Vedanta has proposed to acquire up to 51% of Cairn India from its U.K. parent for INR405 a share. Vedanta unit Sesa Goa launched an open offer on April 11 for up to 20% of Cairn India from minority shareholders at INR355 a share. The open offer price doesn't include the INR50 non-compete fee that Vedanta had offered to Cairn Energy.

The open offer closes on April 30. Shares of Cairn India, which had earlier risen to as much as INR370, closed up 2.3% on Tuesday at INR344.25.

Vedanta, Cairn Energy and Cairn India didn't immediately respond to queries.

Earlier Tuesday, data on Factset showed that about 283.43 million shares of Cairn India were traded through block deals on the Bombay Stock Exchange. The three largest deals were for 265.19 million shares traded at a weighted average price of INR331.08 apiece, 12.08 million shares at INR331.08 each and 5.07 million shares at INR331.07 apiece.

The CNBC-TV18 television channel reported, citing sources it didn't name, that Vedanta bought an 11% stake in Cairn India from Petronas.

Cairn Energy has extended by more than a month the deadline for the stake sale to Vedanta to May 20 in order to accommodate the completion of the open offer and as an Indian ministerial panel scrutinizes the deal.

Cairn India holds stakes in 10 oil and gas blocks in India, including the huge RJ-ON-90/1 oil block at Barmer in western Rajasthan state. The block's output of 125,000 barrels a day accounts for about 17% of India's total crude production.

Seadrill Sells West Juno Rig

Seadrill Sells West Juno Rig

Wednesday, April 13, 201
Seadrill Ltd.

Seadrill has entered into an agreement to sell the newly built jack-up drilling rig West Juno to an undisclosed buyer incorporated in the UK for a total consideration of US $248.5 million.

Seadrill expects to record a gain on sale of approximately US $18 million on closing. Closing of the agreement and the transfer of ownership of the unit is scheduled upon completion of the rig's present drilling assignment late second quarter or early third quarter 2011. Seadrill expects to have an EBITDA contribution from the rig in the period up to closing of approximately US $6 million.

Alf C Thorkildsen, CEO of Seadrill Management AS, said, "We are continuously evaluating sale and purchase opportunities in order to maximize the long term return for our shareholders. This dynamic approach can from time to time lead to divestments and reallocation of capital. We have through the sale of West Juno at an attractive price been able to monetize the underlying strength of the jack up market. Although we remain optimistic on the market outlook for premium jack-up rigs, we have decided to relocate the proceeds to fund investment in other new unit as we since October 2010 have committed to investing US $4.7 billion in newbuildings."

Seadrill's fleet of jack-up rigs remains the world largest modern jack-up fleet with a total of 19 units built after 2006. Furthermore Seadrill has options for construction of further six units at attractive prices compared to going market prices.

Chevron Sells Shell Stake in Wheatstone Project

Chevron Sells Shell Stake in Wheatstone Project

Monday, April 11, 2011

Chevron Corp.

Chevron announced the signing of agreements with Shell Development (Australia) Pty Ltd to bring Shell into the Chevron-operated Wheatstone Project as a natural gas supplier and equity participant.

George Kirkland, vice chairman, Chevron Corporation, said, "Chevron is pleased to welcome another participant into the Wheatstone Project. The Wheatstone hub will provide a reliable new source of energy to Australia and the region. It will also further enhance Chevron's position as a leading supplier of liquefied natural gas (LNG) in Asia-Pacific."

Under the unitization agreement with Chevron's Australian subsidiaries, Shell will assume an 8 percent participating interest in the Wheatstone and Iago natural gas fields in the Chevron-operated permits WA-253-P, WA-17-R and WA-16-R, located offshore northwest Australia.
The Wheatstone and Iago gas fields will supply Trains 1 and 2 of the Wheatstone Project, located onshore at Ashburton North in Western Australia.

Shell will also assume a 6.4 percent participating interest in the project facilities, with Chevron remaining project operator.

Chevron Australia managing director, Roy Krzywosinski, said front-end engineering and design (FEED) activity on the Wheatstone Project is nearing completion.

"The Wheatstone Project is set to become one of Australia's largest resource projects and Australia's first LNG hub. A final investment decision is expected in the second half of this year once environmental approvals and other associated agreements are finalized with various levels of government."

The first phase of the Wheatstone Project consists of two LNG processing trains with a combined capacity of 8.9 million tonnes per annum (MTPA) and a domestic gas plant.

Det norske Sells Stake in Garantiana

Det norske Sells Stake in Garantiana

Thursday, April 07, 2011

Det norske oljeselskap ASA

Det norske has sold a 20 percent interest in production licenses 554 and 554B to Svenska Petroleum Exploration, reducing its interest from 40 to 20 percent.

As consideration, Svenska Petroleum Exploration will carry part of the expenses related to the first exploration well to be drilled in either PL 554 or PL 554B.

The North Sea licenses are located due east of the Snorre field and were awarded in the APA 2009 and APA 2010 licensing rounds. The agreement includes the Garantiana prospect, scheduled for drilling in 2012.

This transaction should be seen as part of Det norske's continuous work to diversify and optimize its exploration portfolio. Following the transaction, Bridge as operator will hold 60 percent, while partners Det norske and Svenska will hold 20 percent each. Final agreement is subject to government approval.

Providence Sells GOM Assets

Providence Sells GOM Assets

Friday, April 01, 2011

Providence Resources plc

Providence announced the immediate sale of its US oil and gas portfolio in the Gulf of Mexico to Dynamic Offshore Resources LLC ("Dynamic") for a consideration of up to $22 million. The consideration comprises an initial cash payment of $15 million, and potentially an additional $7 million deferred cash payment.

This deferred cash payment is dependent on Dynamic reaching certain production levels from any new wells drilled on Ship Shoal 252, 253 and 267 prior to January 2013. Total current production from Providence's Gulf of Mexico portfolio amounts to c. 700 BOEPD.

The proceeds of the sale, which closed on March 31, 2011, are to be applied to a reduction of the Company's Reserve Backed Lending Facility with BNP Paribas. The sale will result in the impairment of the carrying value of the assets, and will necessitate a non-cash write-off to be taken in Providence's 2010 accounts. CIBC World Markets Plc acted as exclusive financial adviser to Providence on this transaction.

Commenting, Mr. Tony O'Reilly, Chief Executive of Providence said, "While the production from the Gulf of Mexico has played an important role in the development of the Company over the past 3 years, it is now less material going forward. With our major multi-year, multi-basin drilling program offshore Ireland starting, combined with our ongoing investment program at Singleton, the investment focus for the Company is now very clear. As such, the opportunity to realise cash from the Gulf of Mexico portfolio, and to deleverage the core business, made sense."

Tullow Sells Uganda Stake to Total, CNOOC for $2.9B

Tullow Sells Uganda Stake to Total, CNOOC for $2.9B

Wednesday, March 30, 2011
Tullow Oil plc

Tullow has signed Sale and Purchase Agreements (SPAs) with CNOOC and Total in respect of the sale of a one third interest to each party of the interests Tullow holds in Exploration Areas 1, 2 and 3A in Uganda. Tullow will retain a one third interest. The terms of the transactions include a total cash consideration payable to Tullow of US $2.9 billion.

With the signing of these SPAs, a key condition of the Memorandum of Understanding (MoU) agreed between Tullow, the Government of Uganda (GoU) and the Uganda Revenue Authority (URA) on March 15, 2011, has been satisfied. The next step is for Tullow to make certain tax related payments to the GoU, on receipt of which all relevant consents become final and the other provisions of the MoU become effective.

Under the MoU, Tullow and its new Partners, CNOOC and Total, have been granted new licenses over EA-1 and an onshore area of EA-3A and the partnership's rights to develop the Kingfisher discovery have been confirmed. A clear plan for the resolution of tax disputes on the various asset sales has been agreed by the GoU, the URA and Tullow.

Tullow and its Partners will now reactivate the significant program of exploration and appraisal drilling and progress their development plans for the basin which they will jointly present to the Government of Uganda for approval.

Commenting, Aidan Heavey, Chief Executive, said, "These agreements have secured the future of oil production in Uganda. Tullow, its partners and the Government of Uganda will now agree a development plan for the Lake Albert Rift Basin with a target of delivering production of at least 200,000 bopd and potentially much more as we continue to explore and appraise the basin. We are looking forward to working with CNOOC and Total, and continuing our strong relationship with the Government to bring the benefits of the oil to the people of Uganda."