(MENAFN- ProactiveInvestors)A mixed week from the oil sector with BP (LON:BP.) a big headline at the end of the week and fracking and shale exploration in the UK at the beginning. On Thursday the oil titan reached a £12bn (or US$18.7bn) settlement over the disastrous 2010 Gulf of Mexico oil spill. Earlier this week the Lancashire County Council rejected a bid by the energy company Cuadrilla to start drilling and fracking (fracture stimulation) to extract gas on the Fylde coast in Lancashire at the village of Little Plumpton between Preston and Blackpool. An application to start a fracking operation at Roseacre Wood also in Lancashire was similarly rejected on June 23 even though the county council's planning officials recommended both projects be given approval. In other news Dragon Oil (LON:DGO) shareholders now have until the end of July to accept the £1.7bn takeover offer from Emirates National Oil Company (ENOC). ENOC last month increased the offer price to 750p per Dragon Oil shares it doesn't already own which has been recommended by the independent committee of the board of Dragon Oil. ENOC already owns around 54% of Dragon Oil and it intends to take the group private if it secures the majority of the outstanding shares (but not full 100% ownership). Also this week Petroceltic International (LON:PCI) dismissed criticism of its proposed US$175mln bond financing. Activist shareholder Worldview Capital Management which owns 29% of Petroceltic called on the company on Thursday to call an extraordinary general meeting (EGM) to allow shareholders to 'decide the fate' of the proposed financing. Worldview said it is prepared to work with other investors to provide or arrange alternative financing to meet Petroceltic's operational requirements on the condition that 'certain members of the current board' resign. Worldview previously called an EGM in February in an attempt to oust chief executive Brian O'Cathain who survived with 61% of the vote. Elsewhere San Leon Energy (LON:SLE) has signed up a rig for a drilling programme onshore Morocco. The company has contracted Entrepose Drilling for the Cabot 750 rig which is now expected to begin the El Aaiun-4 well in the second half of next month. It is expected that it will take 30 days from the August spud date for the well to reach target depth at around 2000 metres. While Circle Oil (LON:COP) continues to make headway on the ground with strong production from its fields in Egypt and Morocco it is clear that lower oil prices have taken their toll on the AIM-quoted E&P. So too have cost overruns in drilling. Last year production averaged just over 4897 barrels of oil equivalent per day (boepd) and 4.24mln cubic feet of gas per day (mmcfpd) 2P (proved + probable) reserves in both countries moved in the right direction up 5% to 12.49mln boe in Egypt and up 19% to 3.74mln boe in Morocco while recent drilling results have also been positive. Yet the lower oil price environment is having an impact; revenues of US$84.6mln were down 9% on 2013 levels while group operating profits before write-offs and impairments were down 28% to US$23.31mln it was revealed this week. Tethys Petroleum (LON:TPL TSE:TPL) advanced this week with the news of a major new funding deal with Kazakhstan investors which promises to recapitalise the company. AGR Energy a vehicle for the Assaubayev family has committed to a US$47.7mln share subscription which will see it take at least 32% of Tethys' enlarged share capital. The cash-call which will see at least 318mln new Tethys shares issued has been priced at 19 Canadian cents per share which is a 6% premium to Tuesday's closing price in Toronto. John Bell Tethys' executive chairman believes the deal to solve the company's funding issues and he expects it will enable new investment into 'significant growth and earnings opportunities'. Senior managers at Independent Oil & Gas (LON:IOG) are subscribing for £50000 of new shares the firm said this week. Just over 210000 shares will be issued to chief financial officer Peter Young and chief operating officer Richard Jameson. The new shares are priced at 23.79p which is the same as the premium priced placing agreed last month. On June 22 a third party agreed to subscribe for 609500 shares to raise £145000 for the North Sea company. IOG today said this week it had not yet received the funds from the investor and it is in ongoing dialogue to confirm when the funds will be received. The cash will provide short term working capital whilst IOG continued to progress discussions over a significant long term financing to enable field development work to begin. An experienced global E&P man has joined Magnolia Petroleum (LON:MAGP) as non-exec director with immediate effect the US onshore firm said this week. Thomas Wagenhofer 44 is a highly respected petroleum engineer and oil and gas investment specialist with over 20 years' experience in the global E&P sector said Magnolia. Meanwhile Madagascar Oil (LON:MOIL) has arranged a US$5mln working capital facility with an associate of its 28% shareholder Outrider Management. The three-month loan which carries interest at a rate of 10% is expected to support the company whilst it continues to seek strategic partnerships. MOIL the previous week hired Jefferies International to assist an ongoing search. It told investors at the time that it is in dialogue with a number of parties though it believes Jefferies will open up a wider pool of potential partners.
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