Two offshore workers have been injured in an incident on the Aker BP-operated Tambar field offshore Norway. One of the workers fell into the sea.
Norwegian operator Aker BP confirmed on Thursday that a serious incident was reported on its operated Tambar field in the North Sea at 12.10 local time.
The incident took place on the Maersk Drilling-owned Maersk Interceptor jack-up rig, which currently drills wells on the offshore field.
“Two people employed in Maersk Drilling are injured in the incident. One fell to sea,” Aker BP said.
According to the oil company, the worker was retrieved by a standby boat, and the company is working to bring both involved to land.
Offshore Energy Today has reached out to Aker BP as well as the rig owner, Maersk Drilling, for further information about the incident.
A spokesperson for Aker BP has confirmed to Offshore Energy Today that two SAR helicopters are bringing the injured onshore.
“We have activated our emergency preparedness organization and cooperate closely with the relevant authorities to handle the situation,” the spokesperson added.
A spokesperson for Maersk Drilling has also confirmed the incident, adding that one of the workers was treated on board the rig for injuries and is now being picked up by helicopter. The other employee fell overboard and is on route to the hospital by SAR helicopter and has received immediate medical attention, the spokesperson said.
The Tambar installation is located 16 kilometer southeast of Ula in 68m water depth. It is a normally unmanned wellhead platform (NUI), remotely controlled from Ula. The Ula field center serves as an area hub for the satellite field Tambar, and as a third-party host for the Oselvar and Blane fields.
Aker BP is currently working on a redevelopment project on the Tambar field which consists of two additional wells and gas lift. This is expected to extend the production period from the field by about ten years. The gas lift is being installed because the reservoir pressure at Tambar is no longer sufficient to ensure satisfactory production.
As for the Maersk rig, it was hired to drill and complete two new wells on the field, designated 1/3-K-4 and 1/3-K-2.
Petrofac’s Training Services business and the State Oil Company of the Republic of Azerbaijan (SOCAR) today signed a Shareholders Agreement to form a Joint Venture for the pursuit of training opportunities across the country’s oil & gas and petrochemical industries.
Under the Agreement, SOCAR’s stake in the Joint Venture has been determined at 51% and Petrofac’s at 49%. The Shareholders Agreement was signed by SOCAR’s President, Rovnag Abdullayev, and Petrofac’s Global Head of Training Services, Engineering and Production Services, Karim Osseiran.
The Joint Venture will provide tested, contemporary training and educational services for the workers of Azerbaijan’s energy sector and those engaged in energy projects in other countries.
In recent years, SOCAR’s Training, Educational and Certification Department has organised training in accordance with standards of world renowned organisations, such as OPITO and IOSH. In addition to installation of high quality equipment necessary for carrying out this training, the range of skills development offered by SOCAR has increased.
Petrofac brings its extensive experience of designing, building and operating unique training facilities which combine immersive technical training techniques and digital technology. In order to improve the links between academic education and production, the company will also provide capability to develop and assure competence across the HSSE, engineering, construction, operations, maintenance and drilling disciplines.
SOCAR is focused on driving nationalisation initiatives and its experience of establishing and operating energy-related facilities, including training centres, will be fully utilised within the Joint Venture. SOCAR will realise its competitive advantage by having the opportunity to provide training and certification services to personnel of foreign companies, thus utilising the commercial potential of training centres at its disposal.
Karim Osseiran, Global Head of Training Services, Petrofac Engineering and Production Services, speaking at the signing ceremony said: “We are delighted SOCAR has chosen to partner with us. Through our Joint Venture we are combining our industry credentials, local knowledge and depth of capabilities. This will enable us to deliver a step-change in workforce training and competence assurance in support of SOCAR’s nationalisation agenda.”
Speaking at the ceremony, SOCAR’s Vice President Khalik Mammadov stated: This is the next step in transforming oil capital into human capital. We believe establishing a partnership with Petrofac, renowned for the provision of training and development services globally, will be successful for SOCAR and of benefit to the oil and gas industry in Azerbaijan. SOCAR Petrofac will foster a sustainable approach to meeting the demand of the technical workforce in Azerbaijan and the wider region, through supporting local content and nationalisation goals.”
RNS Number : 2200Y
Genel Energy PLC
04 December 2017
4 December 2017
Genel Energy plc
Update on Taq Taq PSC
Genel Energy plc ('Genel' or 'the Company') is pleased to announce an update on activity at the Taq Taq field (Genel 44% working interest).
The TT-29w well, which was drilled to appraise the northern flank of the Taq Taq field, has been completed as a producer after successfully encountering oil bearing Cretaceous reservoirs.
The well, which was drilled to a measured depth of 3,100 metres, encountered good quality oil bearing Cretaceous Shiranish and Kometan reservoirs. Six zones were subsequently tested over a 20 day period, with test rates of up to 6,400 bpd (40/64 inch choke) of 48° API oil delivered from individual zones. Four of the five tests in the Shiranish produced dry oil, with one test tight. The Kometan reservoir test produced oil with a 40-50% water cut, confirming the oil water contact within the Kometan reservoir at this location in the field. TT-29w production has commenced from the Lower Shiranish reservoir at a rate of 3,200 bpd of dry oil on a restricted 24/64 inch choke, with the expectation that this rate will increase following an initial observation period.
The TT-29w well has proved a current oil water contact at this location on the northern flank of the field at a level at least 145 metres deeper than pre-drill estimates. Combined with the testing results, management is optimistic for the potential of the northern flank of the Taq Taq field. However, it is too early to estimate what impact the well result will have on reserves, long-term production rates or future investment activity in the northern flank and the field as a whole.
In addition to the positive result from TT-29w, the TT-30 Pilaspi well was also successfully drilled as a producer in November and is currently producing around c.650 bopd. A further Pilaspi development well (TT-31) is planned before the end of 2017.
Gross production from the Taq Taq field is currently 15,100 bopd. Gross field production averaged 13,700 bopd in November 2017 and has averaged 18,300 bopd in 2017 to date.
RNS Number : 0711Y
Carillion PLC
01 December 2017
Carillion plc
(the 'Company')
Board Appointment
Carillion plc is pleased to announce that Justin Read has been appointed a non-executive director of the Company with effect from 1 December 2017. Justin has been appointed as Chairman designate of the Audit Committee and he will assume that post following the preliminary announcement of the Group's 2017 results. At the same time, Andrew Dougal will stand down as Chairman of the Audit Committee and retire from the Board having served as a Non-Executive Director since joining the Board in October 2011.
Justin will also serve as a member on the Remuneration, Nomination, Business Integrity and Health, Safety and Sustainability Committees.
Justin, aged 56, was Group Finance Director of Segro plc from August 2011 to December 2016. Between 2008 and 2011 he was Group Finance Director at Speedy Hire plc. Prior to this, Justin spent 13 years in a variety of roles at Hanson plc, including Deputy Finance Director, Managing Director of Hanson Continental Europe, Head of Corporate Development, Head of Risk Management and Group Treasurer. Justin has also held positions at Euro Disney S.C.A. and Bankers Trust Company. Justin's previous roles have given him financial and management experience working across a number of different industry sectors, including real estate, support services, building materials and banking; and across a number of jurisdictions.
He is currently a Non-Executive Director of Ibstock plc, the FTSE 250 building products manufacturer; and Grainger plc, the FTSE 250 real estate business which is one of the UK's largest professional landlords. Justin is also Chairman of Segro Pension Scheme Trustees Limited.
Commenting, Carillion Chairman Philip Green said, "Andrew Dougal has made a substantial contribution to the Group and leaves the Board with our grateful thanks and best wishes for the future.
"We are very pleased that Justin Read has joined the Board. He has substantial operational experience across the finance function of significant and international businesses, having served as a Group Finance Director for over eight years and a proven track record of driving business growth. I look forward to his contribution to the Group."
There are no disclosures in respect of paragraph 9.6.13 (1) to (6) of the FCA's Listing Rules.
Richard Tapp
Company Secretary
1 December 2017
RNS Number : 0693Y
EnQuest PLC
01 December 2017
ENQUEST PLC, 1 December 2017.
ACQUISITION OF 25% INTEREST IN THE MAGNUS OIL FIELD COMPLETED
EnQuest PLC ('EnQuest') today announces that it has completed the acquisition of an initial 25% interest in the Magnus oil field ('Magnus'), a 3.0% interest in the Sullom Voe Oil terminal and supply facility ('SVT') and additional interests in associated infrastructure from BP as planned. EnQuest is now the operator of both Magnus and SVT.
This acquisition and the associated details of the transaction were originally announced on 24 January 2017.
LEKOIL Limited
("LEKOIL" or the "Company")
Otakikpo Update
Production Now at 7,600 bopd; Focus Shifts to Phase Two Programme
LEKOIL (AIM: LEK), the oil and gas exploration, development and production company with a focus on Africa, is pleased to announce an increase in current production at the Otakikpo Marginal Field ("Otakikpo") in OML 11. Since starting production on 20 February 2017 at an initial rate of 5,000 bopd, daily production levels have steadily increased through 27 November 2017. Average production for October was approximately 6,400 bopd. Current production at Otakikpo from both wells is now approximately 7,600 bopd.
Additional perforations in one of two production strings at well-003 were recently performed before subsequently re-opening it for production. The Otakikpo Joint Venture Partners - LEKOIL as Financial and Technical Partner and Green Energy International Limited ("GEIL") as Operator - have agreed to hold production at current levels for a few more weeks to gather and analyse essential production and reservoir data and information prior to increasing production at the field.
As the Otakikpo field nears Phase One target production of 10,000 bopd, the Joint Venture is now focused on Phase Two of the Otakikpo Field Development Plan which aims to increase steady state production up to approximately 20,000 bopd. Phase Two includes 3D seismic coverage of the entire Otakikpo field, neighbouring prospects and the incremental development of the rest of the field with new wells planned. Next steps will be to gather the 3D seismic data, process and interpret the data and subsequently release an updated Competent Person's Report. The Company expects the Phase Two development to be fully funded by industry players, which the Company is already in discussions with.
The Company has completed five liftings YTD and has received cash proceeds within 30 days of each lift as prescribed by the terms of the Crude Sales Agreement with Shell Trading. The Company has realised an average premium for the Otakikpo blend of $1 or more above Brent pricing since inception. At current oil prices, the cash netback is above $30 per barrel.
RNS Number : 7775X
Tullow Oil PLC
29 November 2017
News Release
Tullow secures US$2.5 billion debt refinancing
29 November 2017 - Tullow Oil plc (Tullow) is pleased to announce that it has completed the refinancing of US$2.5 billion of Reserves Based Lending ("RBL") credit facilities.
The US$2.5 billion of credit facilities are split between a commercial bank facility of US$2.4 billion and an IFC facility of US$100 million. The fully committed facilities are revolving with a three-year grace period and final maturity of November 2024.
The transaction, which was formally launched in early October following the resolution of the Ghana - Cote d'Ivoire border dispute, was materially over-subscribed and extends the maturity of the Group's existing RBL credit facilities. Tullow has also decided to reduce the commitments of its Revolving Corporate Credit Facility to US$600 million from US$800 million, ahead of the scheduled amortisation in January 2018.
Following the refinancing of the RBL credit facilities and the reduction of the Revolving Corporate Credit Facility, Tullow has total headroom including free cash of US$0.9 billion with no material near-term debt maturities.
Les Wood, Chief Financial Officer, commented today:
"The refinancing of our RBL credit facility was a key objective for 2017 and we are very pleased to have completed this process in line with stated guidance and ahead of our year-end target. The success of this transaction clearly demonstrates the high quality of the Group's assets, our ability to generate free cash flow and the strength of our long-standing banking relationships. Following this refinancing, we have no material near-term debt maturities and will enter 2018 in a strong financial position."
RNS Number : 7866X
Ascent Resources PLC
29 November 2017
Ascent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas
29 November 2017
Ascent Resources plc
("Ascent" or "the Company")
Notice of Shareholder Conference Call
Ascent Resources plc (AIM: AST), the European focused oil & gas exploration and production company, further to the previous announcement on 07 November 2017, announces that it will host a shareholder conference call today at 17:30 GMT to update analysts and investors.
The CEO, Colin Hutchinson, will host the call followed by a question and answer session.
To participate in this conference call, please dial in to the following:
Standard International Access
+44 (0) 20 3003 2666
UK Toll Free
0808 109 0700
Password
Ascent Resources
Shortly following the conference call, a recording will be available to download from the Company website www.ascentresources.co.uk for the next seven days.
RNS Number : 8183X
Faroe Petroleum PLC
29 November 2017
29th November 2017
Faroe Petroleum plc
("Faroe", "Faroe Petroleum" or the "Company")
Iris/Hades (Aerosmith) exploration well commences
Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in Norway, the UK and Atlantic Margin, is pleased to announce the commencement of the Iris/Hades (Aerosmith) exploration well, 6506/11-10 (Faroe 20%) in licence PL644/PL644B.
The Iris/Hades (Aerosmith) well is located in the Halten Terrace, some 200 kilometres offshore in the Norwegian Sea and adjacent to the producing Morvin and Aasgard fields, operated by licence partner Statoil. The well will target two formations, one in the Cretaceous and the other in the Jurassic.The Cretaceous Hades prospect is a closure on the flank of the Sklinna Ridge, with the Jurassic Iris prospect located directly underneath, within a rotated fault block.
Licence PL644 and PL644B (Faroe 20%) were awarded in February 2012 and are operated by OMV (30%) with partners Statoil (30%) and Centrica (20%). The semi-submersible drilling rig, Deepsea Bergen, will be used for the drilling operations. Results will be announced when operations have been completed, which is estimated to take approximately 90 days.
Graham Stewart, Chief Executive of Faroe Petroleum commented:
"We are pleased to have spudded this well; not only is it good to end the year with another high impact exploration well but it is also good to be drilling a prospect which has been part of our portfolio for a number of years and which is located in an area we know very well and have had significant success in.
"The Iris/Hades (Aerosmith) well marks the end to our 2017 exploration drilling programme, which has continued to deliver value and an industry leading success rate of over 30% due to the diligence and hard work of our in-house technical teams.
"We end 2017 in a great position, with a pipeline of high quality, world class development projects, to grow materially our production and with a very strong balance sheet, which we recently further strengthened with the successful issue of a $100m unsecured bond. I look forward to updating the market on Faroe's progress in early 2018."
RNS Number : 6588X
Ascent Resources PLC
28 November 2017
Ascent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas
28 November 2017
Ascent Resources plc
("Ascent" or "the Company")
Favourable Decision on IPPC Permit Preliminary Screening Appeal
The Board of Ascent Resources plc (AIM: AST), the European focused oil & gas exploration and production company is pleased to report that the appeal against the correctness of preliminary screening procedures in relation to the IPPC Permit has been rejected by the Administrative Court. As such we look forward to the Environmental Agency awarding the permit in due course.
In addition, we note that the body which has repeatedly objected at every stage in the process, and whose objections have been consistently rejected as being without merit on every occasion, has recently had their preferential status in Slovenia as an NGO revoked. This will bar them from making any further spurious objections.
The IPPC Permit is required for the construction of a processing facility adjacent to the Petišovci field. The processing facility will enable the partners to treat gas to a standard suitable for transmission into the Slovenian & European gas transmission network.
The IPPC Permit, will remove the last regulatory barrier to producing Slovenian gas for the Slovenia market. Additionally it is likely to significantly improve the margin realised on gas production, as currently our gas is being sold untreated and therefore at a discount to the market price.
Colin Hutchinson, CEO of Ascent, commented:
"We are pleased that the Administrative Court confirmed the correctness of the preliminary screening process and now we can look forward to the Environmental Agency awarding the permit in due course. The award of the permit will enable the construction of our own processing facility in Slovenia which underpins the full field development plan."
RNS Number : 6386X
Frontera Resources Corporation
28 November 2017
28 November 2017
Frontera Resources Corporation
("Frontera" or the "Company")
Update on Ud-2 well
Frontera Resources Corporation (AIM: FRR), the European focused oil and gas exploration and production company, is pleased to provide an update regarding interim results on testing of the Ud-2 well, situated inside the 950km2 Mtsare Khevi Gas Complex area, located in onshore Block 12, Georgia.
After perforation and small-scale mechanical stimulation of a 20m thick interval of the Miocene-aged Gareji reservoir, situated between 2600m - 2620m, the well started to flow natural gas, which has been flared during cleanup.
State Oil and Gas Service Company has performed analysis of the flowed natural gas. Chemical composition is shown below:
Methane - 90.4%
Ethane - 4.15%
Propane - 1.4%
Nitrogen - 3.1%
Others - 0.95
Lower Calorific value - 8818 kcal/m3 (State standard: not less than 7600 kcal/m3)
Higher Calorific value - 9763 kcal/m3
The natural gas quality satisfies all requirements of the applicable GOST standard and corresponds to the applicable regulations of the State Standard 5542-87, which makes it acceptable for distribution through Georgia's natural gas grid.
The natural gas quality matches expectations and samples of natural gas from the Miocene-aged Gareji reservoir in other wells of the Mtsarekhevi Gas Complex and the Taribani Complex.
Together with natural gas, the Ud-2 well is flowing hematite (used by previous operator as a weighting material for Ud-2 drilling mud) and water (used during small-scale mechanical stimulation). The gas flow rate has increased with progressing of the cleanup of the well.
Once the well cleanup is completed and a stabilized gas flow is established, the Company will update the market regrading accurate gas flow volumetrics.
As previously announced, the Ud-2 well had been drilled by a previous operator with significant gas shows recorded while drilling in the Gareji and Maykop reservoirs between 2450m and 5289m, with drilling mud weights of 17.5 ppg and 17.9 ppg respectively. Based on the Netherland, Sewell & Associates resource estimate, the Gareji and the Maykop reservoirs of the Mtsare-Khevi Gas Complex are estimated to contain 8.3 TCF of Gas in Place (OGIP), with 5.8 TCF considered to be recoverable.
As previously announced, the Company is in the process of completing technical design of the 18km natural gas pipeline connecting the Ud-2 well with the Mtsare Khevi gas processing facility (which is connected to Georgia's natural gas distribution grid). The Company is also in the process of securing right of way for this new flow line.
Zaza Mamulaishvili, President and Chief Executive Officer, commented:
"We are hugely excited with the interim results of the Ud-2 well testing. Flowing gas from Miocene-aged Gareji reservoir is a transformational milestone for the Company and a big step towards the energy independence for Georgia.
"Natural gas with similar quality as at Ud-2 well had been sampled by a previous operator whilst drilling the Gareji reservoir at V-1 well, situated 14 km north of Ud-2 well in the Mtsarekhevi Gas Complex, and also at wells T-39 and T-40 in the Taribani Complex, situated 50 km east of Ud-2 well. Within Block 12, the thickness of the Miocene-aged Gareji reservoir is estimated at approximately 2,000m and extends for about 130km from northwest to southeast. Oil and gas contained in this reservoir is sourced from the world class Maykop source rock. 500km further southeast from Block 12, the giant Shah-Deniz gas field contains natural gas sourced from the Maykop formation as well. Current progress at Ud-2 well brings all abovementioned into context for future drilling operations and tremendously increases our confidence while flowing Miocene-aged Gareji natural gas first time in Georgia's history.
"As expected, we have drilling debris and fluids (hematite) still coming out of the formation and perforations, and once the well cleanup is completed and we are in a position to accurately measure gas flow rates, we look forward to updating market in due course."
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
RNS Number : 6248X
Physiomics PLC
28 November 2017
Physiomics plc
("Physiomics") or ("the Company")
Completion of VT Clinical Project with Merck and announcement of Master Services Agreement
Physiomics plc (AIM: PYC) is pleased to announce that the human Virtual Tumour ("VT") project with Merck, a leading science and technology company, first announced in March 2015, has now been successfully completed and that it has today entered into a Master Services Agreement ("Agreement") with Merck. The Agreement envisages a multi-year relationship and its minimum value to Physiomics in the first twelve months will be €500,000. Physiomics believes this Agreement represents a significant milestone in the relationship between the two companies and reflects the value that it has been able to add over five years of working with this key client.
Physiomics can now confirm that it has been working with Merck since March 2012, during which time it has completed twelve projects involving pre-clinical and more recently clinical predictions, with other projects in progress.
Physiomics believes that the Agreement represents a significant external validation of its Virtual Tumour technology by Merck. The Company believes that its ability to successfully model the combination effect of treatments having different mechanisms of action at the cellular level and its ability to scale this up to allow meaningful predictions of overall tumour growth has provided unique and valuable insights.
Dr Jim Millen, CEO Physiomics said: "We are very proud to be working with Merck, one of the world's top pharmaceutical companies, in an area as important and rapidly growing as oncology. We believe this Agreement marks the beginning of a new longer term relationship with this important client".
RNS Number : 6497X
Alexander Mining PLC
28 November 2017
28 November 2017
Alexander Mining plc
("Alexander" or the "Company")
'HyperLeach®' Patent Granted in US for a Method of Oxidative Leaching of Sulfide Ores and/or Concentrates
Alexander is pleased to report that it has received notification that its MetaLeach Limited ("MetaLeach") subsidiary has been granted a patent for a Method of Oxidative Leaching of Sulfide Ores and/or Concentrates in the United States, patent number 9,771,631. The patent has a standard term of 20 years from the effective date of 13 June 2010 (being the date of original filing).
The patent describes a method for leaching one or more target metals from a sulphide ore and/or concentrate containing such.
Martin Rosser, Chief Executive Officer, said: "The technology described in the patent has significant potential application in the US, both for sulphide deposits and for converting sulphide concentrates, the source of the majority of the world's base metals production and resources, through to metal at the mine site."
Notes
HyperLeach® Process
MetaLeach's HyperLeach® process, although less advanced in its commercialisation progress than AmmLeach®, has very significant potential for application. HyperLeach® is a hydrometallurgical process which has been developed by MetaLeach for the extraction of metals, especially copper, zinc, nickel, cobalt, molybdenum and rhenium from sulphide ore deposits and concentrates.
The process utilises chlorine based chemistry to solubilise metals from ores under ambient temperature and pressure conditions. The HyperLeach® process can be operated as either heap leach or tank leach.
RNS Number : 6603X
Ocado Group PLC
28 November 2017
This announcement contains inside information
28 November 2017
Ocado Group plc / Groupe Casino
Announcement of international partnership between Ocado Solutions and Groupe Casino
We are pleased to announce the signing of an agreement between Ocado Group plc ("Ocado") and Groupe Casino to develop the Ocado Smart Platform ("OSP") in France.
Ocado is the world's leading dedicated on-line grocery retailer with a strong technological advantage. The scalable, modular end-to-end solution provided by the OSP is a unique answer to the opportunities and challenges posed by shifting offline/online trends in grocery.
This highly innovative and effective commercial formula will be achieved through access to Ocado's end-to-end solution, including the construction of its latest generation, state-of-the-art automated warehouse (for which Ocado will invest to install its grid and its robots), Ocado's best-in-class front-end web site functionality, last-mile routing management and big data, real time implementation.
Groupe Casino's banners will benefit from this innovative grocery e-commerce platform, firstly Monoprix.fr, which will provide its customers with the largest assortment of food items at the best levels of service and costs.
The agreement sets out plans for the immediate initiation of the development of a Customer Fulfilment Centre ("CFC") using Ocado's proprietary mechanical handling equipment ("MHE") to serve the Greater Paris area, the Normandie and Hauts de France Regions. The build and launch is expected to take at least two years.
In consideration of the investments made by Ocado, of maintenance and of provision of technology, Groupe Casino will pay Ocado certain upfront fees upon signing, and during the development phase, then ongoing fees linked to its utilisation of capacity within the CFC and service criteria.
In addition to the initial CFC, Groupe Casino and Ocado will consider further development of other CFCs close to other large urban areas.
Jean-Charles Naouri, CEO of Groupe Casino, said:
"Groupe Casino is pleased to announce the agreement with Ocado Group which will allow it to develop an integrated customer and logistics platform, considered the best in the market.
"This agreement is a major leap in terms of quality: 50,000 food items will be offered in the first stage to customers in the Greater Paris area with precise and speedy delivery at home and through a platform which makes it achievable to do this profitably. Groupe Casino is very proud to have sealed this deal with Ocado which will further strengthen the quality of service available to its customers, at the core of its commitments for 120 years."
Tim Steiner, CEO of Ocado, said:
"We are delighted that Groupe Casino has decided to partner with Ocado Solutions to grow and develop its online food business. We believe that the scalable, modular end-to-end solutions provided by the Ocado Smart Platform, will allow retailers such as Groupe Casino to build their online grocery offer in a way that is profitable and sustainable, creating value for customers, suppliers and shareholders.
"We continue to make investments to commercialise our proprietary platform and expect this deal to be one of many successful collaborations with leading retailers to use it the world over."
Luke Jensen, CEO Ocado Solutions, said:
"Groupe Casino is a successful multi-format, multi-banner and multi-channel business with top-three market positions in all the countries in which it trades. Its decision to adopt the Ocado Smart Platform to build and drive its online food business in France gives it a unique, innovative, and world-leading solution to the challenge of delivering groceries profitably online. We look forward to working closely with Groupe Casino going forward".
Expected financial impact for Ocado
Ocado expects this deal to create significant long term value to the business. It will have minimal impact to earnings in FY17, given the current financial year ends on 3 December 2017. In FY18, Ocado expects the transaction to be earnings neutral with the costs of establishing the partnership, offsetting the initial fees payable. Ocado expects to incur additional capex of £15m in the FY18 to support this partnership and accelerate the development of the platform, with further capex in future years.
In FY19 and beyond, the profitability of Ocado Solutions is likely to grow as the fees from the transaction increase and as other deals are signed.
In order to provide greater clarity on the split between Ocado Retail and Ocado Solutions Ocado will, from the publication of FY17 results, be introducing segmental reporting of sales and EBITDA. The Group will be hosting a call in mid-January when it will publish historic numbers for each segment to enable analysts and investors to prepare their numbers accordingly.
Petrofac has been named a top engineering, procurement and construction (EPC) contractor by MEED (formerly Middle East Economic Digest).
It was tied for first place with Saipem and JGC Corporation in MEED’s annual survey of the value of EPC contract awards in the Middle East and North Africa (MENA) hydrocarbon sector.
Each company was awarded US$1.9 billion of work on oil, gas and petrochemicals projects across the MENA region (excluding Iran and Turkey).
MEED referred to three significant contracts Petrofac has won in 2017:
A 50/50 joint venture with Samsung Engineering worth approximately US$2 billion with Duqm Refinery and Petrochemical Industries LLC in Oman
A US$600 million lump-sum EPC contract for the Salalah LPG extraction project in Oman
A US$1.3 billion lump-sum EPC contract for Kuwait Oil Company’s gathering centre project, GC 32
Find out more about our operations in the Middle East and North Africa.
LONDON--(BUSINESS WIRE)--
23 November 2017
Centrica plc (‘the Company’)
Trading Update
Summary
The Company continues to make good progress in the implementation of its strategy and portfolio repositioning and remains on track to achieve the 2017 targets set out at its 2016 Preliminary Results in February. However, trading conditions continue to be highly competitive and performance delivery since mid-year within the Centrica Business energy supply businesses has been disappointing.
Iain Conn, Centrica Group Chief Executive, said “Although some aspects of our delivery in the second half of 2017 have been disappointing, I remain encouraged by our progress in implementing our strategy. The balance sheet has been materially strengthened, and we continue to focus on improving our underlying performance. We have also provided a broad and definitive set of proposals this week to improve the UK energy market for customers and look forward to engaging with the Government and regulator in the coming weeks.”
In Centrica Consumer, delivery from the Group’s efficiency programme is offsetting overall gross margin decline. Energy supply accounts have fallen, but this largely reflects choices we have made to focus on customer value, while in recent weeks account holdings in UK Home Services have stabilised and growth in Connected Home continues. In Centrica Business, we have experienced significant market pressures in our North America Business retail power book, and in UK Business we are not yet seeing improved operational performance flowing through to the bottom line. We are also reflecting a one-off non-cash post-tax charge of £46m in North America Business, relating to a reassessment of the historic recognition of unbilled power revenues. In the asset businesses, the Morecambe field is back on production and Spirit Energy, Centrica’s E&P joint venture with Stadtwerke München, is on target to close before the end of the year, subject to regulatory approvals.
Performance and 2017 Group outlook
We remain on track to achieve our 2017 targets and expect:
Adjusted operating cash flow to be above £2bn.
Group capital investment, including any small acquisitions of less than £100m each, to be below the £1bn limit with E&P capex around £500m.
Incremental revenue investment of around £100m in growth areas.
2017 efficiency savings approaching £300m, in excess of the original £250m target, and in addition to 2016 savings of £384m.
Like-for-like direct headcount reduction of over 1,500.
Net debt to be within the targeted £2.5-£3.0bn range.
2017 full year adjusted earnings per share are expected to be around 12.5p, including a 0.8p impact from the North America Business one-off non-cash charge. This is lower than market consensus, largely reflecting lower than expected adjusted operating profit in North America Business and UK Business. We are also reflecting the expected impact of warmer than normal weather across October and November. Actual financial performance remains subject to the usual variables of commodity prices, weather and asset performance over the balance of the year.
However, with net debt expected to be within the Group’s targeted £2.5-£3.0bn range, the level consistent with our financial framework parameters, and 2017 adjusted operating cash flow expected to be above £2bn, the current level of the full year dividend per share is underpinned. For a period of time, while the Group is implementing its strategy to continue to shift the portfolio towards the customer and diversifying and growing new sources of gross margin, we would be willing to operate with dividend cover from earnings below historic levels.
Divisional Performance
Centrica Consumer
In UK Home, despite the impact of account losses and warmer than normal weather in the year to date, cost efficiency delivery means 2017 full year adjusted operating profit is expected to be broadly in line with 2016. The number of UK energy supply accounts at the end of October had reduced by 823,000 since 30 June 2017, although over 650,000 of these losses relate to collective switch, white-label fixed price and prepayment tariffs, and 150,000 reflect market switching trends and the impact of our price rise in September. UK Home services account holdings are down 39,000 since the half year, having stabilised in recent weeks. Our Ireland business continues to perform well, while in North America Home accounts have fallen slightly, with H2 2017 adjusted operating profit expected to be at a similar level to H1 2017. The cumulative number of Connected Home hubs installed has now reached 750,000, up 223,000 or 42% since the start of the year, and we have now sold over 1.2m connected products in total, up 59% since the start of 2017.
Centrica Business
North America Business is expected to report full year adjusted operating profit of around £80m, with highly competitive market conditions and low price volatility putting significant downwards pressure on realised power margins, and low volatility also reducing opportunities for gas optimisation. In addition energy prices are currently backwardated, meaning the booked profit of fixed price multi-year power contracts will be weighted towards latter years, compressing short term realised margins. As noted above, we expect to recognise a one-off non-cash post-tax charge of £46m (£76m pre-tax) in North America Business relating to a reassessment of the historic recognition of unbilled power revenues. UK Business is also facing competitive pressures and we now expect the business to be broadly break-even in 2017. In Distributed Energy & Power (DE&P), we continue to see growth with the number of active customer sites up 4% since the half year. Energy Marketing & Trading (EM&T) continues to perform well, and as previously disclosed in the Interim results full year adjusted operating profit is expected to be heavily weighted towards H1 2017.
Asset businesses
In E&P, higher commodity prices have been beneficial for unhedged volumes, although production volumes, and therefore the full year E&P result, will be impacted by the outage at Morecambe until late October related to asset integrity works to improve safety and operational efficiency. We expect H2 2017 E&P adjusted operating profit to be similar to H1 2017. In Centrica Storage, cushion gas production from the Rough asset has been stronger than expected, with up to 25bcf expected to be produced in H2 2017. As a result, the business is now expected to be profitable in H2 2017 and be close to break-even for the full year.
Group net finance charge and tax rate
The 2017 full year net finance charge is expected to be approximately £350m, consistent with the H1 2017 run rate. The 2017 full year effective tax rate is expected to be around 26%, lower than the H1 2017 rate of 29% reflecting changes in operating profit mix and the settlement of provisions. In 2018, we would expect the effective tax rate to return to a higher level.
Strategic progress
As referenced at its Interim results in August, the Group expects to have completed the first phase of its portfolio transformation by the end of 2017, fundamentally repositioning the Group as it continues to shift resources from its asset businesses to its customer-facing activities, and as it pursues long-term shareholder value through returns and growth. The Company has continued to make good strategic progress during H2 2017, developing capabilities and technology in its customer-facing Centrica Consumer and Centrica Business divisions, and reducing scale in and strengthening its asset businesses.
Customer-facing progress
Continued investment in customer service and digital platforms resulting in a further reduction in energy supply complaints to October across all businesses relative to the same period in 2016.
Over 500,000 customers now signed up to British Gas Rewards, providing them with personalised offers including those that reward loyalty.
Acceleration of growth in technology-led ‘Local Heroes’ on-demand services platform, with around 6,000 tradespeople signed up and over 17,000 jobs now completed.
Connected Home partnership agreed with Italian energy company Eni gas e luce, enabling 8m energy customers to purchase Hive products and solutions; Hive leak sensor launched.
Enhanced DE&P capability through €70m acquisition of REstore NV, Europe’s leading demand response aggregator.
Continued development of EM&T route-to-market services, including the signing of a balancing and hedging contract for the 650MW Markbygden wind farm in Sweden.
Asset business progress
Completion of CCGT and Canadian E&P disposals in H2 2017, taking total proceeds over 2016 and 2017 to £946m, at the upper end of the £0.5-1.0bn targeted range.
The formation of Spirit Energy, the E&P joint venture between Centrica and Stadtwerke München, is on target to be completed by the end of the year, creating a self-financing, more sustainable, more capable European E&P business.
Provisional decision from the CMA announced on 15 November to terminate the Rough undertakings and release Centrica Storage from its obligation to offer storage capacity from Rough; publication of final decision expected in December.
UK energy supply market
On 11 October, Ofgem announced an extension of the pre-payment tariff cap to a further 1m vulnerable customers, in addition to those already covered by the cap. They also announced they would permit the use of default tariffs other than “evergreen” contracts. Following the Prime Minister’s speech at the Conservative Party Conference in early October, the UK Government also published a draft bill on 12 October designed to give Ofgem powers to impose a cap on all default energy tariffs.
On 20 November, we announced a comprehensive package of actions and proposed measures to reform the UK energy market and benefit customers. We have announced seven unilateral steps we will take, including withdrawing the standard variable tariff (SVT) for new customers, and introducing new propositions and a new fixed-term default tariff. We will aim to move all of our SVT customers to other tariffs and to introduce engagement steps to minimise the number of customers ending up on a new default arrangement. We are also proposing a further seven recommended actions for Ofgem and the UK Government designed to improve the market further. These include the phase-out of the SVT and all “evergreen” contracts, a levelling of the playing field regarding supplier obligations, and the move of energy policy costs from energy bills to a less regressive method such as general taxation. We believe our package of proposals will increase customer engagement and choice, give people better deals and make the market fairer and more sustainable. We believe they will be significantly more effective than further Government intervention through temporary price controls.
As the UK’s largest energy supplier, we will continue to work constructively with the Government, Ofgem and the industry to ensure we have an energy market that works for everyone. Whichever final path is chosen to improve the energy market for UK customers, we believe we can deliver a sustainable and attractive business in UK energy supply and will update on our progress at our 2017 Preliminary Results in February 2018.
Centrica will be hosting a conference call for institutional investors and analysts at 08:00 GMT on 23 November 2017 to cover the Trading Update and Centrica’s proposals for the UK energy market. Please dial in using the following number:
+44 (0) 20 3059 8125
The call title is “Centrica investor and analyst call”. A full transcript of the call will be available on www.centrica.com from Monday 27 November 2017.
Centrica is due to release its 2017 Preliminary Results on 22 February 2018.
RNS Number : 9049W
Shanta Gold Limited
20 November 2017
20 November 2017
Shanta Gold Limited
("Shanta Gold", "Shanta" or the "Company")
Singida JORC Resource Estimate and NLGM Operations Update
Shanta Gold (AIM: SHG), the East Africa-focused gold producer, announces a JORC compliant Mineral Resource Estimate ("MRE" or "Resource") on the Singida Gold Mining Project ("Singida" or "the Project") in Central Tanzania and provides an operational update for its New Luika Gold Mine ("NLGM"), in Southwest Tanzania.
Highlights
Singida
· JORC compliant Resource at Singida totaling 12.3 Mt, grading 1.84 g/t and containing 728koz of gold using a cut-off grade of 1.0 g/t consisting of:
o Measured and Indicated Mineral Resource totaling 5.11 Mt, grading 2.09 g/t gold and containing 345 koz of gold, and;
o Inferred Resource of 7.17 Mt, grading 1.66 g/t gold and containing 383 koz of gold.
· The MRE incorporates three mining licenses and seven mineralised zones with a combined strike length of 4.9 km, with widths ranging from 5-15m and mineralisation extending approximately 500m below the topographical surface;
· Gold Tree 1, which is at the centre of the three mining licenses, contains measured and indicated resources of 1.1 Mt, grading 3.14 g/t gold and containing 111 koz of gold at a cut-off grade of 1.0 g/t is located near to surface (
RNS Number : 9377W
Carillion PLC
20 November 2017
Framework Award
Carillion plc ('Carillion' or 'the Group') confirms that it has been awarded two lots on the Education & Skills Funding Agency's ('ESFA') school building framework.
The new framework is for a period of four years and replaces the existing ESFA Contractors Framework, on which Carillion was also a provider. The framework provides a procurement route for education providers to access pre-selected contractors to deliver new education facilities.
Carillion has been appointed on both lots it bid, covering the north and south of England, for high value projects (worth more than £12 million). These are anticipated to be worth c£2.64 billion in total over the period to 2021, with the Group one of nine contractors selected on these lots.
Commenting Keith Cochrane, Interim Chief Executive, said:
'We are pleased to have re-secured our position on this framework, demonstrating that we continue to retain the confidence of key customers despite the Group's current challenges.'
RNS Number : 8941W
Sound Energy PLC
20 November 2017
Sound Energy PLC
("Sound Energy" or the "Company")
Eastern Morocco: Aerial Gradiometry Results
Sound Energy, the African and European focussed upstream gas company, is pleased to announce completion of the Airborne Full Tensor Gravity Gradiometry (FTG) and magnetic survey acquisition in Eastern Morocco.
The survey team, provided by AustinBridgeporth, flew a total of 26,700 survey line kilometres, across a total area of 22,800 square kilometres over the Tendrara, Matarka and Anoual licences in just less than twelve weeks. The survey, together with the new 2D seismic programme which is now underway, was commissioned to develop a better understanding of the subsurface structure and sedimentary succession.
The Company confirms receipt of a preliminary high resolution FTG and magnetic dataset, delivered on schedule and to budget, with highly encouraging results. Critically, these results include the delineation of previously unrecognised subsurface features and a clearer view of the deeper structure across the three licences. The preliminary data provides a far more detailed view of a deep, thick Paleozoic basin extending over the three permit areas, bounded by a series of NE-SW and NNE-SSW faults. The NNE-SSW fault trend is coincident with the Paleozoic anticline identified on 3D seismic beneath the TE-5 Horst (the possible third well location in the 2018 exploration programme). Other similar fault trends may indicate further Paleozoic potential. Following further data processing, likely mid-December, the Company expects to have an improved understanding of the exploration potential of the licence areas.
RNS Number : 9016W
SDX Energy Inc.
20 November 2017
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY SDX TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU) NO. 596/2014 ("MAR"). ON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE ("RIS"), THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
20 November 2017
SDX ENERGY INC.
("SDX" or the "Company")
Updates on the Sebou and Gharb Centre permits
SDX Energy Inc. (TSXV, AIM: SDX), the North Africa focused oil and gas company, is pleased to announce an update on its KSR-14 and KSR-15 development wells on the Sebou permit in Morocco (SDX 75% working interest). KSR-14 and KSR-15 are the first two wells of a nine well drilling programme on the Company's Sebou, Gharb Centre and Lalla Mimouna permits in Morocco.
Further to the update on 13 November, the KSR-14 well has now been tested and has recorded an average flow rate conventional natural gas into the sales line of 6.4MMscfd. The well will remain on production for an extended period prior to being shut in for a pressure build-up as part of the year end reserve estimate process.
At the KSR-15 development well the completion equipment has been run and connection to the nearby infrastructure is now underway. Completion of the well is expected to occur within three weeks of rig departure with flow testing targeted for early December 2017. The rig move to the next location, KSR-16, has now commenced.
On the Gharb Centre exploration permit, the seismic tender for 240km2 of new 3D seismic has been completed and the contract awarded to CGG, a market leading seismic provider. The seismic acquisition is expected to commence at the end of Q2 2018.
Paul Welch, President and CEO of SDX, commented:
"This is further positive newsflow from our active Moroccan drilling campaign. In particular, the KSR-14 test results are ahead of our internal expectations, especially in light of the fact that we are only flowing from the Hoot sand, as opposed to both the Hoot and Guebbas. Despite this, the well still managed to produce at a rate that would allow it to meet our entire daily sales commitment by itself. This increases our confidence that we can reliably increase our production rates to meet additional customer demands based upon the results of the current program as we target an increase in our sales volumes by 50% in 2018.
"Overall, we are moving forward with the campaign apace and are pleased with the progress to date. We look forward to providing further updates in due course."
About SDX
SDX is an international oil and gas exploration, production and development company, headquartered in London, England, UK, with a principal focus on North Africa. In Egypt, SDX has a working interest in two producing assets (50% North West Gemsa & 50% Meseda) located onshore in the Eastern Desert, adjacent to the Gulf of Suez. In Morocco, SDX has a 75% working interest in the Sebou concession situated in the Gharb Basin. These producing assets are characterised by exceptionally low operating costs making them particularly resilient in a low oil price environment. SDX's portfolio also includes high impact exploration opportunities in both Egypt (South Disouq) and Morocco (Gharb Centre and Lalla Mimouna).