Oil Round-Up: Falklands Oil & Gas, Coastal Energy, SOCO, Cairn Energyhttp://www.fool.com/investing/international/2012/09/25/oil-round-up-falklands-oil-gas-coastal-energy-soco.aspx Stuart Watson
September 25, 2012
It was a busy day for London's listed oil companies, with new wells, well results, and asset disposals at the top of agenda.
Falklands spuds Scotia
This well is located 315 kilometers east of Stanley, has a planned total depth of 5,000 meters, and is expected to take 75 days. Falklands Oil & Gas currently has a 75% interest, and is the operator of the well. However, Noble Energy (NYSE: NBL ) will take 35%, reducing Falkands Oil & Gas' stake to 40%, once a recent farm-out agreement has been ratified by the Falklands Islands Government.
Coastal reports Songkhla results
Randy Bartley, president and chief executive officer of Coastal Energy, commented:
SOCO to sell Angolan stake
Quill has paid a non-refundable deposit for the option to acquire, within 120 days, SOCO's entire shareholding in SOCO Cabinda. SOCO Cabinda had gross assets of $32.5 million as of June 30, 2012, but no figures were disclosed in relation to the amount of the deal.
Ed Story, president and CEO of SOCO, said: "This proposed Disposal is consistent with our strategy of refocusing the asset portfolio on projects where SOCO has larger equity interests and adding new ventures, which can potentially create more value for shareholders."
Cairn reduces its holding in Cairn India, raises $910 million
Cash proceeds from the sale are expected to be approximately $910 million (after transaction costs), and it reduces Cairn's shareholding in Cairn India from around 18% to 10%.
Simon Thomson, chief executive of Cairn Energy, said:
Cairn is delighted to have realized further value fro