SKY Response to announcement by the UK Takeover Panel.
RNS Number : 7197K
Sky PLC
12 April 2018
----------------------------------------------------------------------------------------------
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION
For immediate release
12 April 2018
Sky plc ("Sky")
Response to announcement by the UK Panel on Takeovers and Mergers
Sky notes the ruling announced by the Panel Executive, earlier today, that The Walt Disney Company ("Disney") will be required to make a mandatory offer for Sky at a fixed price of £10.75 in cash per Sky Share within 28 days of completion of Disney's proposed acquisition of Twenty-First Century Fox, Inc. ("21CF"), unless by then 21CF has acquired 100% of the Sky Shares, or any third party has acquired more than 50% of the Sky Shares.
At this stage, Sky Shareholders are advised to take no further action. Further advice to Sky Shareholders will be announced in due course.
RNS Number : 6093K
SDX Energy Inc.
12 April 2018
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.
12 April 2018
SDX ENERGY INC.
("SDX" or the "Company")
Gas discovery at Ibn Yunus-1X well, Egypt
SDX Energy Inc. (TSXV, AIM: SDX), the North Africa focused oil and gas company, is pleased to announce that a gas discovery has been made at its Ibn Yunus-1X exploration well at South Disouq, Egypt (SDX 55% working interest and operator).
The Ibn Yunus-1X well was drilled to a total depth of 9068 feet and encountered 100.8 feet of net conventional natural gas pay in the Abu Madi horizon, which had an average porosity in the pay section of 28.5%. The well came in on prognosis but with a reservoir section that was of better quality and thicker than pre-drill expectations.
The well will be completed as a producer in the Abu Madi section and then tested after the drilling rig has moved off location. The testing is anticipated to commence between 30 and 45 days after the rig departs, depending on the availability of testing equipment. After a successful test, it is anticipated that the well will be connected to the infrastructure located adjacent to the original SDX discovery in the basin, SD-1X, where production start-up is anticipated in the second half of 2018.
Paul Welch, President and CEO of SDX, commented:
"We are extremely encouraged with today's discovery, our second consecutive discovery at South Disouq. This highly positive drilling result further demonstrates the very significant natural gas potential the licence holds. Combined, these two successful wells confirm our views of the subsurface geology and demonstrate that we are on course to realise the full potential of the licence. We look forward to updating shareholders on future developments at South Disouq in due course."
RNS Number : 7490J
DNO ASA
04 April 2018
DNO Announces Acquisition of Minority Shareholding in Faroe Petroleum
Oslo, 4 April 2018 - DNO ASA, the Norwegian oil and gas operator, today announced that it has agreed to acquire 15.37 percent of the share capital of Faroe Petroleum plc from Delek Group Ltd.
The acquisition covers all Faroe Petroleum ordinary shares held by Delek, totaling 56,355,825, at a price of GBP 1.25 per share for an aggregate purchase price of GBP 70,444,781.
DNO re-entered the North Sea upstream sector in 2017 through the acquisition of Origo Exploration Holding AS after a six-year hiatus during which the Company built a successful Middle East presence anchored by the DNO-operated flagship Tawke field in the Kurdistan region of Iraq.
Following Norway's latest Awards in Predefined Areas (APA) 2017 licensing round, DNO holds interests in 19 exploration licenses offshore Norway and the United Kingdom. In addition to its direct stake in these licenses, the Company has disclosed that it will pursue additional strategic investments and partnerships with established North Sea players. DNO has a long history of strategic shareholdings in oil and gas companies such as Det norske oljeselskap ASA, Rocksource ASA and RAK Petroleum plc.
DNO now has decided to build a long term strategic shareholding in Faroe Petroleum and to support Faroe Petroleum management's growth focused North Sea strategy.
Faroe Petroleum is an independent oil and gas company listed on the UK's Alternative Investment Market (AIM) since 2003 and focused on exploration, appraisal and production activities in Norway and the United Kingdom. At year-end 2017, Faroe Petroleum has stated 2P reserves of 97.7 million barrels of oil equivalent (MMboe) and 2C resources of 78.6 MMboe; 2017 daily production averaged 14,300 boe.
At year-end 2017, on a Company Working Interest (CWI) basis, DNO's 2P reserves stood at 384.1 MMboe and 2C resources at 98.9 MMboe, with 2017 daily average CWI production of 73,700 boe.
Lambert Energy Advisory Ltd and Pareto Securities AS have acted as advisors to DNO in connection with the acquisition.
Faroe Petroleum PLC - FPM Significant discoveries - Hades & Iris prospects
RNS Number : 7163J
Faroe Petroleum PLC
04 April 2018
4 April 2018
Faroe Petroleum plc
("Faroe", "Faroe Petroleum", the "Company")
Significant gas/condensate discoveries in Hades and Iris prospects, Norway
Faroe Petroleum, the independent oil and gas Company focusing principally on exploration, appraisal and production opportunities in Norway and the UK, is pleased to announce significant discoveries in both the Hades and Iris prospects in licence PL 644 B (Faroe 20%), located in the Norwegian Sea.
The exploration well 6506/11-10 targeted two formations: the Cretaceous Hades prospect and the Jurassic Iris prospect located directly underneath. The well has been drilled to a total depth of 4,536 metres (MD). Preliminary results based on coring, wireline logs, fluid sampling and pressure data show that the well has encountered gas/condensate bearing reservoir within both prospects.
Hades Discovery
In the Hades prospect, at a depth of 3,932 metres (MD), the well encountered a c. 35 metres gross gas/condensate column within the Cretaceous Lange Formation of which 15 metres are net reservoir sandstones of moderate to good reservoir quality. Preliminary gross volumes of recoverable hydrocarbons for the Hades prospect are estimated to be 19 - 113 mmboe, exceeding pre-drill estimates.
Iris Discovery
In the Iris prospect, at a depth of 4,223 metres (MD), the well encountered a 218 metre, high net-to-gross sandstone interval, within the Jurassic Garn Formation, containing a 93 metre column of gas/condensate. Within the gas/condensate column, net reservoir has been estimated at 85 metres, consisting of sandstones of moderate to excellent reservoir quality. Pressure data indicates that the Hades and Iris prospects are separate hydrocarbon accumulations. Preliminary gross volumes of recoverable hydrocarbons for the Iris prospect are estimated to be 19 - 132 mmboe, exceeding pre-drill estimates.
Location within proximity to production infrastructure
The Iris and Hades discoveries are located approximately 8 kilometres to the north of the producing Morvin Field and 20 kilometres to the northwest of the Åsgard Complex, where large quantities of gas and condensate continue to be produced and transported to several landing points on the European continent.
Appraisal programme to be initiated
All data from the two discoveries are being assimilated and a follow-up appraisal programme is now being considered by the operator and partners.
The well was drilled by the Deepsea Bergen semi-submersible drilling rig. Licences PL 644 and PL 644 B are both operated by OMV (Norge) AS (30%), Faroe Petroleum Norge AS (20%), with partners Statoil Petroleum AS (40%)1 and Spirit Energy Norge AS (10%)1. The well will now be plugged and abandoned as planned.
Graham Stewart, Chief Executive of Faroe Petroleum, commented:
"We are very pleased to announce significant discoveries in both the Hades and Iris prospects; both are well in excess of pre-drill estimates. These discoveries are located in one of our core areas and build on Faroe's already significant position in the Norwegian Sea.
"The Hades and Iris prospects, previously known as Aerosmith and Zappa respectively, have been part of Faroe's portfolio for many years, forming the main part of a successful APA licence application made in 2009. It is extremely gratifying to see both of these prospects delivering significant discoveries, further confirming Faroe's consistent and industry-leading exploration track record, which has directly and indirectly generated approximately 75% of our 2P reserves.
"Aside from the ongoing Fogelberg appraisal well, results from which are expected shortly, the Company's exploration programme continues over the remainder of the year, with three further committed exploration wells in Norway: the Rungne (Faroe-operated), Cassidy and Pabow wells."
1Assignment of interest subject to completion
RNS Number : 5316J
Petrofac Limited
03 April 2018
Press Release
3 April 2018
PETROFAC SECURES FURTHER INDIA EPC AWARD
Petrofac has received a letter of award from Vedanta Limited for its Raageshwari Deep Gas Field Development Project located in Barmer, Rajasthan, India.
The lump-sum engineering, procurement and construction (EPC) project, valued at approximately US$233 million, is for integrated gas surface facilities and includes pre-commissioning and commissioning. Under the terms of the 23-month contract, the scope of work includes well pads, flowlines and a new gas processing terminal.
Sunder Kalyanam, Group Managing Director for Petrofac's Engineering & Construction Growth business said: "This award is further confirmation of our organic growth ambitions in action. It is particularly pleasing that we continue to build our presence in-country following two other recent EPC contract awards. We are delighted to be supporting Vedanta Limited in the safe and efficient delivery of this important project and look forward to building a long and successful relationship together."
PETROFAC SECURES CONTRACT WITH PETROLEUM DEVELOPMENT OMAN
Petrofac has been awarded a contract worth US$265million for the development of the Marmul Polymer Phase 3 (MPP3) Project in southern Oman. This is the first award to be secured under a 10-year Framework Agreement with Petroleum Development Oman (PDO) signed in 2017, which enables Petrofac to provide Engineering, Procurement and Construction Management (EP+Cm) Support Services for PDO's major oil and gas projects.
The award of the MPP3 project builds on Petrofac's existing track record of EP+Cm support contract delivery for the Rabab Harweel Integrated Project and Yibal Khuff Project on behalf of PDO and further consolidates the effectiveness of its EPCm business unit in aligning to client needs through tailored delivery models. It is the latest in a series of awards for Petrofac in Oman, where the Group has been operating for more than three decades, delivering projects and services on both a lump-sum and reimbursable basis.
The scope of MPP3 involves Engineering, Procurement and Construction support for the extension of off-plot and on-plot production facilities associated with around 500 producing and 75 injector wells. In line with its commitment to further increasing in-country value, Petrofac will undertake the engineering, procurement and project management activities from its Muscat office, which will be expanded to support the needs of the MPP3 project.
Roberto Bertocco, Managing Director, EPCm for Petrofac said: "We are delighted to have been awarded our first project within the framework agreement with PDO. This not only builds on our collective achievements and track record for EP+Cm support service delivery, but also paves the way for future success through the transfer of key people, skills and experience in our Muscat office.
"Our priorities are to mobilise our teams quickly and to ensure MPP3 is delivered with a focus on technical quality, on time and within budget. We have returned significant value to PDO through our previous project execution and we intend to take the same approach to delivery with MPP3."
Said Al-Maktoomi, Frame Agreement Contract Holder, PDO, said: "MPP3 is a key project for PDO. Upon completion it will significantly expand our Enhanced Oil Recovery programme for heavy crude. Petrofac has already demonstrated its effectiveness as a partner to PDO and our teams will continue to work with shared goals and true collaboration as we move forward."
RNS Number : 3620I
Petrofac Limited
21 March 2018
Press Release
21 March 2018
PETROFAC EXPANDS ACTIVITY IN INDIA WITH SECOND EPC CONTRACT IN 2018
Petrofac has been awarded a contract by Hindustan Petroleum Corporation Limited (HPCL) for its Sulphur Recovery Unit (SRU) Block Package for the Visakh Refinery Modernisation Project (VRMP), Visakhapatnam, Andhra Pradesh, India.
The lump-sum engineering, procurement and construction (EPC) project, valued at approximately US$200 million, includes licensing and commissioning. The SRU package will be constructed within the existing refinery under the terms of the 30-month contract.
Sunder Kalyanam, Group Managing Director for Petrofac's Engineering & Construction Growth business said: "We are delighted to be supporting HPCL in the delivery of this important package at the Visakh Refinery. It is particularly satisfying to be expanding our EPC activities in-country with this award and our recent contract award in Kerala. Both demonstrate our growth strategy in action and the continued strength of our capability in the refinery sector."
RNS Number : 5008I
Petrofac Limited
21 March 2018
21 March 2018
Petrofac Limited (the "Company")
Notification of Transaction by
Persons Discharging Managerial Responsibilities (PDMRs)
Pursuant to Market Abuse Regulation 19, the Company hereby notifies that Hark PTC Limited, of which Ayman Asfari, the Company's Group Chief Executive is a beneficiary, has purchased a total of 2,023,800 ordinary shares ("Shares") of US$0.02 each in the Company at 494.113 pence per Share, with a total consideration of GBP10 million.
Following this transaction, Mr Asfari has a discloseable beneficial interest in 64,982,226 Shares, representing 18.79 per cent of the total voting rights of the Company.
The Company's issued share capital consists of 345,912,747 Shares with voting rights. Each Share carries the right to one vote. The Company does not hold any shares in Treasury.
Petrofac Limited Petrofac awarded US$580million EPC contract
RNS Number : 1418I
Petrofac Limited
19 March 2018
Press Release
19 March 2018
PETROFAC AWARDED US$580 MILLION EPC CONTRACT
Petrofac Limited is pleased to announce it has signed a binding letter of intent, for a contract worth around US$580 million with a GCC National Oil Company for the engineering, procurement and construction (EPC) of a major project. Specific details in relation to the project remain confidential at this time and additional information will be announced in due course.
E S Sathyanarayanan, Group Managing Director, Engineering & Construction, commented: "Petrofac has a very strong record of project execution in the GCC. This latest contract award further cements our footprint in our core markets, and we look forward to delivering a safe and successful project."
Mon, 12th Mar 2018 07:00
RNS Number : 3709H
Petrofac Limited
12 March 2018
Press Release
12 March 2018
PETROFAC AWARDED INDIA EPC CONTRACT
Petrofac has been awarded a lump-sum Engineering, Procurement and Construction (EPC) contract by Bharat Petroleum Corporation Limited (BPCL) valued at approximately US$ 135 million.
Located at BPCL's Kochi Refinery, Kerala, India, the scope of work encompasses engineering, procurement, construction, pre-commissioning and assistance with commissioning. The 27-month contract is for the addition of a new Motor Sprit (MS) block of refining units, which will increase the current output of the facility to meet India's BS-VI automotive fuel quality.
Sunder Kalyanam, Group Managing Director for Petrofac's Engineering & Construction Growth business said: "Having previously executed EPC projects in India between 1997 and 2004, we are delighted to have secured this contract to deliver a new complex of units at the BPCL Kochi Refinery. This award demonstrates our organic growth ambitions in action, and attests to our strategy of a continued increase in our capabilities in India, a country which holds a special place in our service offering.
"Petrofac has thriving operational centres in Mumbai, Chennai and Delhi that provide engineering services through a multidisciplinary capability, supporting our projects globally. In addition to our core activities, we offer a comprehensive graduate training programme and are committed to social investment. We look forward to continuing to build a sustainable and long-term presence in-country through the safe and timely delivery of this project for BPCL."
RNS Number : 3526G
Petrofac Limited
01 March 2018
PETROFAC LIMITED
FULL YEAR RESULTS FOR THE YEAR ENDED 31 DECEMBER 2017
· Business performance net profit (1) up 7% to US$343 million
· Reported net loss of US$29 million post impairments and exceptional items of US$372 million
· New order intake (2) of US$5.2 billion; backlog (3) of US$10.2 billion
· Net debt of US$0.6 billion reflecting strong capital management
· Full year dividend of 38.0 cents per share in line with dividend policy
Year ended 31 December 2017
Year ended 31 December 2016
US$ million
Business performance
Exceptional items and certain re-measurements
Total
Business performance
Exceptional items and certain re-measurements
Total
Revenue
6,395
-
6,395
7,873
-
7,873
EBITDA
730
n/a
n/a
704
n/a
n/a
Net profit/(loss)
343
(372)
(29)
320
(319)
1
Ayman Asfari, Petrofac's Group Chief Executive, commented:
"We have delivered solid full year results, good operational performance and strong financial discipline, while maintaining our focus on best-in-class and safe project execution for our clients.
"We are also delivering our clear, focused strategy. The Group has secured awards in a broad range of markets during the year. Operational excellence is maintaining our strong competitive position and protecting our differentiated margins. Furthermore, we are continuing to reduce capital intensity and enhance returns, evidenced by the disposal of non-core assets and our decision to exit the deep-water market.
"Our competitive position has helped secure a strong recovery in new orders in 2017, particularly in the second half of the year. Tendering activity remains high, we are well positioned on several bids and we are maintaining our bidding discipline in a competitive market. With a healthy order backlog and good revenue visibility, I am confident that Petrofac is well positioned for 2018."
Chairman Rijnhard van Tets said: "Over the course of 2017 the leadership team has worked relentlessly to deliver for our clients, secure a strong recovery in new orders and continue to execute our stated strategy. The Board continues to have full confidence in Ayman, in Petrofac's people, its processes and its long-term prospects, and looks forward to continued good progress in 2018."
DIVISIONAL HIGHLIGHTS
Engineering & Construction (E&C)
Good operational performance, delivering strong margins in line with guidance
· High level of activity with 218 million manhours worked, up 3%
· US$4.1 billion of new order intake, including GC 32, Duqm, Sakhalin and Khazzan Phase 2
· Good progress across our portfolio of lump-sum projects
- Completed Khazzan central processing facility in Oman
- Sohar Refinery Improvement project in Oman in commercial operation
- Many projects in pre-commissioning or commissioning phase
· Revenue of US$4.8 billion, down 19%, reflecting project phasing
· Net profit up 10% to US$342 million
· Net margin increased to 7.1%, with an improvement in project mix partly offset by higher tax
Engineering & Production Services (EPS)
Solid operational performance in a challenging market environment
· Secured US$1.1 billion of new contracts and extensions predominantly in UK, Turkey, Iraq, and Kuwait; long-term framework agreement signed with Petroleum Development Oman
· Revenue of US$1.4 billion, down 19%, reflecting phasing of EPCm projects as well as lower new order intake, activity and utilisation in EPS West
· Net profit of US$90 million, down 19%
· Net margin stable at 6.5%, with improved project profitability largely offset by lower overhead recovery and deferred tax charges
Integrated Energy Services (IES)
Underlying performance improving as we reposition the portfolio
· Improving trend in operational performance across our upstream portfolio
· Revenue of US$228 million, down 16% (up 8% excluding asset sales)
- Production down 34% to 7.3 mmboe (net) reflecting asset sales
- Higher average realised oil price of US$57/bbl (2016: US$53/bbl)
- Lower cost recovery in Mexico, reflecting lower capital investment
· EBITDA of US$97 million, down 2% year on year (up 43% excluding asset sales)
· Net loss halved to US$21 million, benefitting from lower costs
· Continued to reposition IES through sale of Pánuco PEC and migration of Santuario PEC to PSC
EXCEPTIONALS AND CERTAIN RE-MEASUREMENTS
The reported net loss of US$29 million was impacted by exceptional items and certain re-measurements of US$372 million, of which approximately US$350 million were non-cash items.
The Board has today confirmed its intention to exit the deep-water market triggering an impairment charge of US$176 million (post-tax) in relation to the JSD6000 installation vessel, which has been reclassified as an asset held for sale. We continue to pursue options to maximise value for the JSD6000.
In our IES division, impairments and exceptional items totalled US$179 million after tax, predominantly in relation to the Greater Stella Area development, following re-assessment of production profiles, including a lower oil to gas ratio, Block PM304, due to a rephasing of future production, and Santuario, reflecting the terms secured on migration to a PSC. The resultant carrying amount of the IES portfolio was US$1.0 billion as at 31 December 2017 (2016: US$1.2 billion) excluding working capital balances.
NET DEBT AND LIQUIDITY
Net debt was US$0.6 billion as at 31 December 2017 (2016: US$0.6 billion), reflecting strong capital management. A 44% reduction in capital expenditure to US$170 million and better than expected working capital flows at the year-end delivered free cash flow of US$281 million in the year.
The Group retained good liquidity of US$1.6 billion as at 31 December 2017 (2016: US$1.8 billion). During 2017, Petrofac extended US$1.0 billion of its revolving credit facility by one year to 2021 and refinanced US$200 million of term loans, extending their maturity by up to two years.
DIVIDEND
In August 2017, the Board approved a sustainable dividend policy that targets a dividend cover of between 2.0x and 3.0x business performance net profit as the Group transitions back towards a low capital intensity business model. Going forward, it is proposed that the interim payment each year will be approximately 33% of the prior year total dividend.
In line with this policy, the Board is proposing a final dividend of 25.3 cents per share (2016: 43.8 cents). The final dividend will be paid on 25 May 2018 to eligible shareholders on the register at 27 April 2018 (the 'record date'). Shareholders who have not elected to receive dividends in US dollars will receive a sterling equivalent. Shareholders can elect by close of business on the record date to change their dividend currency election. Together with the interim dividend of 12.7 cents per share (2016: 22.0 cents), this gives a total dividend for the year of 38.0 cents per share (2016: 65.8 cents). The total dividend is covered by free cash flow.
OUTLOOK
The Group had a healthy order backlog of US$10.2 billion (2016 restated (4): US$11.7 billion) at the end of 2017 and has US$5.2 billion of secured revenue for 2018. Reported backlog excludes the framework agreement signed with Petroleum Development Oman in June 2017, which will add to backlog as projects are sanctioned.
31 December 2017
31 December 2016
US$ billion
US$ billion
Engineering & Construction
7.5
8.2
Engineering & Production Services
2.7
3.5
Group
10.2
11.7
Tendering activity remains high, and we are well positioned on several bids. We are maintaining our bidding discipline in a competitive market.
We are taking measures to deliver a sustainable reduction in net debt and strengthen our balance sheet. Group capital expenditure is expected to decrease to around US$150 million in 2018 (2017: US$170 million), and we remain committed to delivering operational excellence and divesting non-core assets.
BOARD AND MANAGEMENT CHANGES
The Board has concluded that restrictions imposed on Group Chief Executive Ayman Asfari in May 2017 are no longer appropriate. He will resume full executive duties with immediate effect and re-join the Nominations Committee. Mr Asfari will continue to fully respect and support the process and independence of both the SFO investigation and the sub-committee of the Board with delegated responsibility for this matter.
Marwan Chedid has elected to leave the business to pursue other interests and consequently has today stepped down as Group Chief Operating Officer. He will act in an advisory capacity for a transitional period to assist on his succession. He will remain ring-fenced from the SFO investigation in his temporary advisory role.
Separately, at the Annual General Meeting in May, Non-executive Director and Chairman of the Remuneration Committee Matthias Bichsel will be appointed Senior Independent Director. David Davies will also join the Board as a Non-executive Director and will be appointed Chairman of the Audit Committee.
David has more than 35 years' experience as a financial professional, most recently as Chief Financial Officer and Deputy Chairman of the Executive Board at international, integrated oil and gas producer and petrochemical solution provider OMV Aktiengesellschaft. He also served as Group Finance Director for Morgan Crucible Company plc and London International Group plc. David is a Chartered Accountant with a BA(Hons) in Economics from the University of Liverpool and an MBA from the Cass Business School. He is a Non-Executive Director of Ophir Energy Plc where he is Chairman of the Audit and a member of the Remuneration committee, a member of the Supervisory Board at Uniper SE where he also chairs the Audit and Risk Committee and Deputy Chairman of the Supervisory Board of Wienerberger AG and Chairman of their Audit Committee. David is also a member of the Senior Advisory Board at First Alpha Energy LLP.
NOTES
(1) Business performance profit attributable to Petrofac Limited shareholders before exceptional items and certain re-measurements. Business performance net profit is after US$38 million of deferred tax asset derecognition resulting from a combination of the previously announced changes in UK tax loss relief rules, which were enacted in October 2017, and a reduction in UK profit forecasts.
(2) New order intake comprises new contract awards and extensions, net variation orders and the rolling increment attributable to EPS contracts which extend beyond five years. Order intake is not an audited measure. In addition, backlog was reduced by US$0.6 billion following a revision of the expected work from EPS call-off contracts.
(3) The Group no longer recognises backlog in respect of the IES division. Backlog at 31 December 2017 includes US$1.0 billion for Petrofac's share of the Duqm refinery project in Oman. The full notice to proceed is expected shortly following formal contract signature on 15 February 2018.
(4) Restated to exclude backlog from the IES division.
PRESENTATION
Our full year results presentation will be held at 9.00am today, which will be webcast live via:
http://cache.merchantcantos.com/webcast/webcaster/4000/7464/16532/99371/Lobby/default.htm
SEGMENTAL PERFORMANCE AND FINANCIAL REVIEW
Click on, or paste the following link into your web browser, to view our Segmental performance and Financial review for the year ended 31 December 2017 - http://www.rns-pdf.londonstockexchange.com/rns/3526G_2-2018-3-1.pdf
GROUP FINANCIAL STATEMENTS
Click on, or paste the following link into your web browser, to view the Group financial statements of Petrofac Limited for the year ended 31 December 2017 - http://www.rns-pdf.londonstockexchange.com/rns/3526G_1-2018-3-1.pdf
The attached documents are extracts from the Group's Annual Report and Accounts for the year ended 31 December 2017. Page number references refer to the full Annual Report when available.
Ends
Duqm refinery signs deals with EPC contractors
Muscat: Duqm Refinery, a joint venture equally owned by Oman Oil Company and Kuwait Petroleum International, recently signed contracts with its engineering, procurement and construction (EPC) contractors for building the 230,000 barrels per day (bpd)-refinery in Duqm.
This was a follow up from the intention to award EPC contracts announced by the project in mid-2017, according to a press release.
Duqm Refinery’s EPC scope of work was divided into three separate packages. The scope of first EPC included the process units of the refinery, while the second EPC consisted of the utilities and offsite facilities. The third EPC package included the product export terminal in Duqm Port, the Duqm Refinery dedicated crude storage tanks in Ras Markaz and the 80 km interconnecting pipeline from these crude tanks to Duqm Refinery.
“This mega project will ultimately lead towards transforming Duqm area into one of the most important hubs for encouraging and promoting energy related industries regionally as well as internationally,” said Eng. Nabil Bourisli, Chairman of Duqm Refinery. “The project creates a great value proposition and can enhance prosperity for both countries,” he added.
“This is indeed a very important milestone for the project, it signifies the seriousness of the shareholders decision to proceed on the project. This project will boost the developments efforts in Duqm,” said Eng. Hilal Al Kharusi, Deputy Chairman of Duqm Refinery. “The financing of the project has reached an advanced stage and we aim to issue a notice to proceed to contractors very soon,” added Eng. Al Kharusi.
The ceremony was attended by Yahya bin Said bin Abdullah Al Jabri, Chairman of the Special Economic Zone Authority at Duqm, in presence of Eng. Isam bin Saud Al Zadjali, Chief Executive Officer of Oman Oil Company, Eng. Nabil Bourisli and Eng. Hilal Al Kharusi. Also present were ambassadors representing the contractor’s countries of origin, senior officials from Oman Oil Company, Kuwait Petroleum International, the refinery project and EPC contractors.
The Duqm Refinery is being established in the special economic zone of Duqm. It is a project that would synergize the area of Duqm and make it a viable and strategic energy hub in the region.
The first EPC package for building processing units was won by a joint venture of Tecnidas Reunidas and Daewoo Engineering & Construction Co. The second package for developing utilities and offsite facilities was bagged by a joint venture of Petrofac International Limited and Samsung Engineering Co Limited.
Also, the third package for offsite facilities was awarded to a joint venture of Saipem SpA and CB&I.
The initial mobilisation of both Duqm Refinery and the contractor personnel is scheduled to commence in the third quarter of 2018.
Colleagues working on the Suhar Refinery Improvement Project (SRIP) in Oman were delighted to represent Petrofac at a milestone event to celebrate the completion of the Suhar Refinery facility.
The team were joined by representatives of our client Orpic, our joint venture partner Daelim Industrial Co Ltd, and other partners.
The ceremony marked the completion of the project’s overall performance test on 30 December 2017.
Around 400 people attended the event, including Ahmed Saleh Al-Jahdhami, CEO of Orpic, and Christiaan van der Wouden, COO – both of whom presented a number of awards in recognition of outstanding contribution.
Petrofac’s Project Director, Srikanth Nagaraj, was thrilled to be presented with an “Outstanding Achievement” award from Ahmed Saleh Al- Jahdhami, CEO of Orpic. He said: “This is a very proud moment marking the signing of the overall Performance test. The event has been a wonderful opportunity to get together with some of the key partners who have worked so closely since we were awarded the contract in 2013.”
Located 230 km north west of Muscat, Petrofac’s scope in delivering the project encompassed engineering, procurement, construction, start-up and commissioning services. The contract included building a state of the art refinery and as well as improvements at the existing Refinery.
Now complete, it is anticipated that the facility will increase previous output by more than 70%.
The project’s safety performance was exemplary, achieving more than 53 million man-hours without a lost time incident. The creation of In-Country Value (ICV) was a guiding principle throughout, involving the training and development of Omani nationals and the support of local supply chains.
A video charting the revamping of the facility, including impressive time-lapse sequences and aerial footage can be viewed below:
https://youtu.be/BMUSYnS7cDk
RNS Number : 1164E
Highlands Natural Resources PLC
07 February 2018
7 February 2018
Highlands Natural Resources plc ('Highlands' or 'the Company')
Successful Permian Basin Deployment of DT Ultravert in Horizontal Well Protection
Highlands, the London-listed natural resources company, is pleased to announce the results of its most recent DT Ultravert deployment in a horizontal well in the Permian Basin. Highlands' patented parent well protection technology, DT Ultravert, was deployed in a one-mile horizontal well operated by a private upstream oil and gas company in one of the most active shale plays in the United States. The operations utilized both membrane and cryogenic Nitrogen gas injections to pressurize the parent well during the fracking of an offsetting child well. Operations were executed safely and efficiently, which resulted in the desired pressure increases and confirmed Highlands' expectations that DT Ultravert is capable of restoring and maintaining protective reservoir pressures in a horizontal wellbore. The DT Ultravert pressure shield is a proven technique for protecting parent wells against "bashing," which occurs when fracture fluids from offsetting child wells invade a partially depleted parent well.
Readers are encouraged to visit the Company's website for a brief animated explanation of bashing and parent well protection: http://highlandsnr.com/technology/dt-ultavert/parent-well-protection/
Importantly, nearby parent wells had been bashed by child wells, resulting in significant destruction of proved reserves in parent wells as well as underperformance of child wells. Relative to those neighboring bashed wells, DT Ultravert protected the parent well, and child wells completed during the DT Ultravert deployment are outperforming child wells completed without DT Ultravert.
Highlights:
· The reservoir pressure in the parent well was boosted by up to 400%, proving that DT Ultravert can restore reservoir pressure in horizontal wells just as effectively as previously observed in prior vertical well tests
· Elevated pressures were maintained above pre-treatment levels throughout the child well frac operation lasting approximately one week, demonstrating sustained, long-term pressure benefits
· The parent well has resumed production, and negative effects of bashing have been minimized relative to neighboring bashed parent wells
· New child wells fracked during the DT Ultravert deployment are significantly outperforming neighboring child wells fracked without DT Ultravert
· DT Ultravert will be displayed broadly at this week's North American Prospect Expo (NAPE) conference in Houston, which is among the industry's most widely attended trade shows
· Highlands has numerous issued and pending patents covering DT Ultravert technology
Highlands' Chairman and CEO Robert Price said, "The result of our Permian Basin operation marks a milestone for Highlands as it reaffirms our belief in DT Ultravert's ability to transform the shale industry. Successful parent well protection by DT Ultravert in a horizontal well in the highly active Permian Basin is a major step forward in the technology's commercialization process. This news should draw attention from many operators currently concerned by the threat of bashing. Horizontal wells represent the bulk of today's development activity in North America and therefore constitute the primary market for DT Ultravert. Highlands looks forward to arming the broader shale industry with our patented DT Ultravert technology as a way to protect existing production and enhance child well performance in shale plays. DT Ultravert will be prominently displayed at NAPE, and I look forward to personally sharing these test results with our industry colleagues at the conference in Houston this week.
"Beyond DT Ultravert, Highlands recently crossed the 100,000 barrels of cumulative production milestone at our East Denver Niobrara project, and also recently completed a promising gas production test at our 220,000-acre Helios Two project in Montana. All in all, 2018 is off to a fast start, and I look forward to updating the market with additional news in due course."
Technical Summary:
· The Operation's first stage consisted of injecting membrane-sourced Nitrogen into the parent well for a duration of 5 days prior to the commencement of fracking in the child well
· First stage injections resulted in parent well pressure rising from 1,000 psi to 1,600 psi
· Following the completion of first stage injections, the second stage of operations started with injection of cryogenic Nitrogen, which was carefully synchronized with commencement of frac operations in the child well
· Injections from the second stage raised the parent well pressure from 2,500 psi to 4,000 psi
· The third and final stage of the parent well protection operation started in the middle of the child well frac process, and entailed additional cryogenic nitrogen injection
· As a result, parent well pressure again rose from 2,500 psi to 4,000 psi
THIS RELEASE CONTAINS INSIDE INFORMATION.
**ENDS**
RNS Number : 1047E
Savannah Resources PLC
07 February 2018
Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining
7 February 2018
Savannah Resources Plc
Exercise of Options
Savannah Resources plc (AIM: SAV) ('Savannah', or the 'Company'), the AIM quoted resource development company, announces that it has issued 233,336 new ordinary shares of 1 pence each in the capital of the Company ("Ordinary Shares") in respect of 2013 Share Options at an exercise price of 4.62 pence per share (the "New Shares"), following an exercise of share options.
Application will be made for the New Shares, which will rank pari passu with existing Ordinary Shares, to be admitted to trading on AIM ('Admission'). It is expected that Admission will become effective and dealings will commence at 8:00am on or around 12 February 2018.
Total Voting Rights
Following Admission, the total issued share capital of the Company will consist of 637,083,722 Ordinary Shares. This number may be used by shareholders as the denominated for the calculations by which they will determine if they are required to notify their interest, or a change to their interest in, the Company under the FCA's Disclosure and Transparency Rules.
This Announcement contains inside information for the purposes of Article 7 of the Regulation (EU) 596/2014.
*ENDS*
RNS Number : 1466E
Tullow Oil PLC
07 February 2018
Tullow Oil plc - 2017 Full Year Results
$1.7 billion sales revenue; $543 million free cash flow; 2.6x gearing ratio
Kenya's potential confirmed; proposed First Oil in early 2020s
Exploration portfolio fully re-set: multiple high impact campaigns over next three years
7 February 2018 - Tullow Oil plc (Tullow), the independent oil and gas exploration and production group, announces its full year results for the year ended 31 December 2017. Details of a presentation in London, webcast and conference calls are available on the last page of this announcement or visit the Group's website www.tullowoil.com.
COMMENTING TODAY, PAUL McDADE, CHIEF EXECUTIVE OFFICER, SAID:
"I am pleased to report that Tullow made excellent progress in 2017 as demonstrated by our substantial free cash flow generation and significantly reduced gearing. Strong production and disciplined cost management has allowed us to continue to both reduce debt and invest in our high-return production assets in Ghana. The assessment of the results from our appraisal campaign in Kenya also fully supports progress towards a major development of the South Lokichar Basin. As we continue to retain a keen focus on the financial discipline that has served us so well, we are now also looking to grow the value of our business both through exploration, following a full re-set of the portfolio, and through other opportunities that the recovery in the sector will present."
2017 FULL YEAR RESULTS SUMMARY
· Revenue of $1.7 billion plus lost production insurance proceeds of $162 million; gross profit of $815 million; post tax loss of $189 million after write-offs and non-cash impairments; free cash flow of $543 million
· $2.5 billion RBL re-financed in November 2017; year-end 2017 net debt of $3.5 billion with facility headroom including free cash of $1.1 billion; net debt to adjusted EBITDAX gearing ratio of 2.6x
· 2017 capex of $225 million; 2018 capex forecast of $460 million (excluding Uganda expenditure of $110 million which will be repaid following completion of the Uganda farm-down)
· West Africa 2017 net working interest oil production, including production-equivalent insurance payments, averaged 89,100 bopd; 2018 production is expected to average between 82,000 and 90,000 bopd
· Incremental drilling programme due to start in February 2018; this additional well capacity combined with current strong production from both Jubilee and TEN fields will maximise and sustain production in the coming years
· Kenya resources assessment completed: 240 - 560 - 1,230 mmbo (1C-2C-3C) contingent recoverable resources from an overall discovered STOIIP of up to 4 billion barrels. Phased development is planned with FID in 2019 and First Oil in 2021/22
· Uganda deal completion expected in H1 2018; JV Partners working towards FID around mid-year
· Exploration portfolio now reset through disposals, farm-downs and the addition of significant new positions in Côte d'Ivoire and Peru. Multiple high impact exploration campaigns planned over next three years, starting with the high-impact Cormorant well in Namibia in H2 2018
Full RNS can be read, here.
http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/TLW/13524038.html
RNS Number : 8848D
Petrofac Limited
05 February 2018
Press Release
5 February 2018
BOARD UPDATE ON UK SERIOUS FRAUD OFFICE INVESTIGATION
The Board of Petrofac Ltd ("Petrofac") today provides an update on the investigation into the Company by the UK Serious Fraud Office (SFO), announced on 12 May 2017. The investigation is wide ranging in time and scope, and relates to the activities of Petrofac its subsidiaries, and their officers, employees and agents for suspected bribery, corruption, and/or money laundering.
The Company continues to engage with the SFO. This engagement has involved and is expected to continue to involve the interview of Directors of the Company, including the Chairman, Executive Directors and Non-Executive Directors, as well as employees, either under Section 2 of the Criminal Justice Act or under caution. In addition, the Company has provided and will continue to provide relevant documents to the SFO.
No further comment will be made on the basis that this may prejudice an ongoing investigation. We also do not anticipate providing further updates on this matter.
Since the events of last year the Board and management have worked together to ensure safe and reliable delivery for clients and secure new orders, whilst at the same time responding as constructively as possible to the SFO investigation.
Separately, the Company will announce its Full Year results for the year ending 31 December 2017 on 1 March 2018.
RNS Number : 8847D
Faroe Petroleum PLC
05 February 2018
5 February 2018
Faroe Petroleum plc
("Faroe", "Faroe Petroleum", the "Company")
Fogelberg appraisal well commences drilling in the Norwegian Sea
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 Fogelberg appraisal well and contingent sidetrack 6506/9-4S &4A in the Norwegian North Sea (Faroe 28.3%).
Faroe announced the Fogelberg oil and gas discovery in licence PL433 in April 2010. The 6506/9-2 S well encountered gas and condensate in the Middle Jurassic Garn and Ile formations, and no fluid contacts were observed.
The gross size of the discovery has been estimated to be in a range between 105 and 530 bcf (between 19 and 116 mmboe including the condensate) of recoverable gas and condensate. The volumetric range is large due to the Fogelberg discovery well being located high on the structure. The main objectives of the appraisal well are to narrow this range in the reserves estimates and to provide additional information for development planning.
Fogelberg is located 18 kilometres north west of the producing Åsgard complex where large quantities of gas and condensate have been and continue to be produced and transported to several landing points on the European continent.
The appraisal well will be drilled with the Island Innovator semi-submersible drilling rig, and the joint venture partners are Spirit Energy Norge AS (operator 51.7%) and PGNiG Upstream Norway AS (20%)*.
Graham Stewart, Chief Executive of Faroe Petroleum commented:
"We are pleased to announce the spud of the Fogelberg appraisal well, which aims to derisk and prove up commercial volumes in the Fogelberg field ahead of any decision to develop the field. Fogelberg was one of Faroe's earlier discoveries and has the potential to join a number of development and pre-development projects which are on track to significantly grow Faroe's production, cash flow and value in the coming years. The majority of these developments are a direct result of our drilling success.
"Looking ahead to Faroe's 2018 exploration programme, we continue drilling on the Iris/Hades exploration well in the Norwegian Sea, before drilling the Rugne and Cassidy prospects later in the year."
Petrofac hires Bain & Company to explore North Sea business
Bain & Company has been hired by British oilfield services company Petrofac to explore options for the group’s North Sea operations. This could include the sale of Petrofac’s North Sea operations, as the firm looks to stabilise itself following corruption allegations and the accruing of high levels of debt.
Petrofac has lost about half its value since May, when the Serious Fraud Office (SFO) commenced an investigation into the company and its units. The organisation has a current market capitalisation of £1.45 billion, amid the UK SFO’s investigations for its dealings with Monaco-based Unaoil, and has been struggling to reduce a $1 billion debt pile. The group also saw its CEO, Ayman Asfari, face down allegations of insider trading in Italy, recently, however UK courts backed the embattled Petrofac boss, ruling that he was not served notice of the charges levelled against him by the Italian authorities.
Oilfield service companies had also been hurt by weak demand in recent months, as subdued oil prices forced exploration and production companies to cut capital expenditure and defer or cancel contracts. In spite of this, Petrofac, which designs, builds, operates and maintains oil and gas facilities, said it secured $5.2 billion in new orders over 2017, and it continued to see a high level of tendering activity in its core markets. The company also claimed its backlog stood at $10.3 billion on November 30 2017, reflecting a recovery in new order intake.
Petrofac is a provider of oilfield services to the international oil and gas industry. It is registered in Jersey, with its main corporate office on Jermyn Street, London. The group has reportedly been mulling the sale of its North Sea operations, amid several charges of corruption across its practices. At the end of 2017, the British press reported that US oilfield services companies Schlumberger and Halliburton, as well as a Middle Eastern company were among those circling Petrofac, with an acquisition bid being values at around 600 pence per share.
In order to weigh up its options, Petrofac has hired Bain & Company. The firm is said to be helping the group explore its options for its North Sea operations – options which include a potential sale. Neither Petrofac or Bain have issued a comment on the hire, although in the case of Bain, it is standard practice for consulting firms not to comment on pending client work.
LEKOIL (AIM: LEK), the oil and gas exploration, development and production company with a focus on Africa, announces the completion of a Technical Evaluation Report for OPL325, located offshore in the Dahomey Basin, straddling the western Niger Delta, 50km south of OPL310. The Company holds 62% equity interest in OPL325, through Ashbert Oil and Gas Limited.
Oil and gas industry specialists Lumina Geophysical ("Lumina") carried out a geophysical evaluation of approximately 800 sq km of 3D seismic data provided by LEKOIL. As a result of this seismic review, Lumina have identified and reported on a total of eleven prospects and leads on the block, estimated to contain potential gross aggregate Oil-in-Place volumes of over 5,700 mmbbls (un-risked, Best Estimate case).
Lumina's efforts focused primarily on the Paleocene section of the block, generating new structural and stratigraphic maps using 3D pre-stack time migration seismic data. These maps were used in the volumetric approach to come to an estimation of potential resources in OPL325.
The Company intends to farm-down a portion of its working interest in OPL325 following a detailed prospect/lead risking study.
Lekan Akinyanmi, LEKOIL's CEO, said, "This independent report underlines our belief in the prospectivity of this asset that was part of our original Dahomey Basin study. The deep water turbidite fan play is particularly exciting for OPL325. As one of LEKOIL's key assets, we are delighted to have third party endorsement of our prospective resources, and our significant equity holding in the block gives us plenty of optionality for the next phases of exploration."
The full report will be available on the Company's web site shortly.
Review by qualified person
Samuel Olotu, Chief Technical Officer, and technical expert for the Company, has reviewed and approved the technical information contained within this announcement in his capacity as a qualified person under the AIM Rules. Mr. Olotu holds a BSc degree in Geology and an MSc in Geophysics from the University of Ibadan, and has over 20 years' experience in the oil and gas industry (ranging from asset management, field development, reservoir management and seismic data processing and interpretation) in Nigeria, Europe, Middle-East and Asia. He is a member of the Society of Petroleum Engineers, Society of Exploration Geophysicists, the National Association of Petroleum Explorationists and the Nigerian Mining and Geosciences Society.