Some excitement in the oil sector, with Tullow Oil reportedly facing more problems in the Congo, Heritage Oil on the acquisition trail and a bid approach for Regal Petroleum.
First Tullow. The company lost the rights to two oil blocks in the Democratic Republic of Congo in June, and according to documents seen by Reuters, its has now lost an injunction preventing two offshore companies developing them. The two British Virgin island-registered companies, Caprikat and Foxwhelp, are owned by businessman Khulubuse Zuma (a member of the South African president's family). Tullow shares have slipped 6p to £11.90.
Meanwhile Heritage Oil has said it is on the lookout for a significant acquisition, helped by the proceeds of the recent sale of Ugandan assets to Tullow. The Ugandan government still says it is owed tax on the deal, and Heritage has set aside $404m for any claim. Heritage is 1.3p lower at 377.6p.
Finally, Regal Petroleum has risen 5p to 17.5p after it revealed it was in the early stages of takeover talks. The company's shares have fallen recently after a number of setbacks including disappointing drilling results in Ukraine.
