Afren Energy (LON: AFR)
More bad news from Afren this week. The Board has temporarily suspended Iain Wright and Galib Virani, both Associate Directors of the Company. This is in addition to the 31 July 2014 suspension of the CEO, Osman Shahenshah, and the COO, Shahid Ullah, pending investigation in relation to the receipt of unauthorised payments potentially for the benefit of the CEO and COO. No conclusive findings have yet been reached and the investigation is ongoing. The investigation has not found any evidence that any Board members, other than Osman Shahenshah and Shahid Ullah, were involved.
Amerisur Resources (LON: AMER)
Updated on Platanillo-18 in the Platanillo Field, Colombia, the 14th new well of the current drilling campaign, in addition to three successful sidetracks.
The well has been successfully drilled to a total depth of 9,511ft MD. The reservoir section was logged and log analysis indicated the presence of 20ft gross, 7ft net oil column in the U sand formation and the presence of 13ft gross, 12ft net oil column in the N sand formation. AMER tested the N sand. A total of 5ft of the 12ft net oil pay was perforated and flowed 340 BOPD of 18.0 API oil on test.The Company subsequently completed the well for commercial production from the U sand. A total of 5ft of the 7ft net oil pay was perforated and flowed 530 BOPD of 29.7 API oil on test. The well has now been placed on commercial production at approximately 360 BOPD. Current field production remains constrained in the range 7,000 to 7,500 BOPD. The Colombia and Ecuador bi-national agreement has been ratified and provides for the movement of oil and gas between those countries under favourable terms. Ecuadorian documentation has been submitted and formal approval is expected soon. In the meantime the Colombian environmental license process is underway. All indications are that the transfer line will be in operation by the end of the year.
Bowleven (LON: BLVN)
Said that all parties to the LUKOIL/NewAge Etinde farm-out agreement announced on 24 June 2014 have agreed to an extension to the longstop date. With the majority of conditions to transaction completion now satisfied, the longstop date has been extended by two months, to 31 October 2014, to enable satisfaction of the few remaining conditions. The principal condition still to be met is approval by the Cameroon government of the transfer of the equity interest and operatorship. The approval process by the Cameroon authorities has commenced and the longstop extension provides additional time to enable logistical arrangements to be made for this requisite step in the process.
Cadogan Petroleum (LON CAD)
Released their Half Yearly Report for the Six Months ended 30 June 2014. You can read t by clicking HERE
Caza Oil & Gas (LON: CAZA)
Announce THE result at Gramma Ridge and provided a drilling update at Lennox. Both properties are operated by the Company. Click here to read it.
Chariot Oil & Gas (LON: CHAR)
Update on its Namibian portfolio, its repositioning in the region and forward work programmes across these licences. Click HERE to read it. Also announced today that all conditions of the Placing Agreement relating to the GBP8.8 million Placing of 58,596,038 new ordinary shares in Chariot have been fulfilled and the Placing Shares will be admitted to trading today at 8am.
Circle Oil (LON: COP)
Some good news from COP re’ the El Mediouni-1 well. EMD-1 was spudded on 8 June 2014 and drilled to a TD of 1,200 metres MD in the Upper Ketatna carbonates. The stratigraphy encountered in the well was exactly as prognosed and very good light oil shows were encountered both in the Lower Birsa carbonate primary target and the Upper Ketatna carbonates secondary target over a combined interval of 133 metres. Strong hydrocarbon indications encountered in the Birsa and Ketatna carbonates confirm the existence of a working petroleum system in the Mahdia Permit for this and other prospects. The robustness of the El Mediouni trap has also been proven. The losses incurred within the target formations, as described below, give further confirmation of high quality permeability. The gross oil zone interval in the Lower Birsa is 77 metres and the Upper Ketatna has a minimum interval of 48 metres, subject to confirmation by logs. Using known reservoir and fluid parameters from equivalent formations in the Gulf of Hammamet, the internally estimated most likely recoverable prospective resources discovered by the EMD-1 well are approximately 100 MMBO. The hole conditions in the well deteriorated rapidly and multiple attempts at open hole logging by wireline and tough logging conditions equipment failed. Ultimately the decision was taken to terminate further efforts and suspend the well.
Falcon Oil & Gas (LON: FOG)
Announces that it has filed its results for the three and six months ended 30 June 2014. To read them CLICK HERE
Gulf Keystone petroleum (LON: GKP)
Issued its results for the six months ended 30 June 2014. Click HERE to rad it.
Mosman Oil & Gas (LON: MSMN)
The Australia and New Zealand focussed oil exploration and development company, advises that it has entered into an agreement to acquire the entire issued share capital of OilCo Pty a wholly owned subsidiary of High Peak Royalties Limited (formally Torrens Energy Limited).
Northcote Energy (LON: NCT)
Has completed the acquisition of its interest in the 1,670 gross acre producing Shoats Creek Project in Beauregard Parish, Louisiana, US. Northcote is now the operator of this project, which further strengthens the Company’s portfolio beyond its operations in Oklahoma, where the Company has work ongoing across its properties, with the main focus being on the non-operated Zink Ranch Project.
Ophir Energy (LON: OPHR)
Announced a successful Mzia-3 flow-testin Block1 Tanzania which was completed in November 2013 having successfully encountered gas in the main Lower and Middle sand targets. A Drill Stem Test has now been successfully completed. The well flowed slightly ahead of expectations at an average controlled rate of 90mmcfd for 6 days with peak flow of 101mmcfd, constrained by equipment limits. The Deepsea Metro I drillship will now move to Block 4 to drill the Kamba-1 exploration well which will also target the shallower Pweza North structure. The Tonel North-1 appraisal well has been completed on Block R, Equatorial Guinea. The Tonel North-1 well was drilled approximately 5km north-east of the original Tonel-1 discovery well. The well encountered gas pay combined in the lower target sands but the upper sands appear to be low gas-saturation. Analysis of the well data is ongoing. The result is expected to marginally reduce the discovered volumes in the Tonel field but will not impact the commerciality of the base case 2.5mmtpa FLNG project. The Vantage Titanium Explorer drillship has now moved to complete the Silenus East-1 exploration well which is targeting ca.420bcf of low-risk mean prospective gas resource as a primary target and will be deepened to test a secondary, high-impact but high-risk oil target that on current mapping could be a potentially extensive play across the Block.
Salamander Energy (LON: SMDR)
Announces its half year results for the six months ended 30 June 2014. Click HERE to read them.
Quiet week but a good week for the bitter GKP holders. Kozel has gone. Not that Kozel gives a flying fuck about you. You were warned on here many times over the last couple of years about GKP. Yes we like you were positive in the early days. Unlike you once we realised and got the evidence that he was “At it” we acted and reported it! Kozel has shate on you all from a great height. Did you enjoy it! Next time when people tell you maybe you’ll listen! Dan x
Bowleven (LON: BLVN)
Has reached a mutually acceptable agreement with Petrofac to terminate the Strategic Alliance Agreement. This satisfies one of the conditions of the LUKOIL and NewAge farm-out transaction announced on 24 June 2014. The termination agreement is subject to completion of the farm-out. Under this arrangement Bowleven will pay $9 million to Petrofac upon completion of the farm-out transaction as full and final settlement and the Strategic Alliance Agreement shall terminate. Kevin Hart, CEO of Bowleven said: “We have worked closely with Petrofac over the last two years and we appreciate their co-operation in reaching a mutually acceptable termination agreement.”
Falcon Oil & Gas (LON: FOG)
Initial drilling operations on the Besa-D-1 well have reached total depth of 3,000 metres having encountered gas shows. Besa-D-1 is the second of a planned three well programme to evaluate the gas potential of the Algyo Formation in the Mako Trough License. The well has now been cased to TD and is suspended pending further technical evaluation in order to determine an appropriate testing programme later this year. No operational problems occurred during drilling. In January 2013, Falcon agreed a three-well drilling programme with Naftna industrija Srbije jsc (“NIS”) to target the Algyo Play, whereby NIS made a cash payment of US$1.5 million to Falcon in February 2013, and agreed to drill three wells by July 2014 at their cost. The July 2014 date for completion of drilling and testing of the NIS three well programme has been extended to 31 December 2014.
Gulf Keystone Petroleum (LON: GKP)
Out finally goes Todd Kozel, ex CEO now ex Executive Director, who has over the years filled his pockets with tens of millions of dollars of share-holder money. God knows how much this greedy bastard has taken out of the coffers of GKP. Good riddance to Todd Kozel. Total Bastard! In comes? John Gerstenlauer, who assumes the role of Chief Executive Officer.
Kea Petroleum (LON: KEA) WARNING! Not quite sure what’s going on here yet but I’m very sceptical about the recent rise coinciding with this Darwin death spiral drawdown. I will get to the bottom of it. I do hope there’s not been any SHENNIGANS boys? A notice of exercise by Darwin Strategic to convert £500,000 of Darwin’s Convertible Loan Notes at a gross conversion price of 1.302036p per share. Details of the Convertible Loan Notes were announced by Kea on 23 May 2014 pursuant to which 38,401,396 ordinary shares now fall to be issued.
Leni Gas & Oil (LON: LGO)
Pissed off investors this week. Myself included! The Company has raised £7 million before expenses, by way of a Company arranged placing of 200 million new ordinary shares at a placing price of 3.5p per share. This placing will enable the Company to accelerate the closing of the US$5 million Trinity-Inniss Oil Field transaction announced yesterday without drawing down on the Company’s short-term debt facilities and will provide LGO with capital for its expansion plans in Trinidad. I did hear that the original placing was for £4 million however the amount of interest was over-whelming. So LGO upped the placing and took the extra £3 million!
Magnolia Petroleum (LON: MAGP)
A quarterly update on its operationacross proven and producing US onshore hydrocarbon formations, including the Bakken/Three Forks Sanish in North Dakota and Montana, and the Mississippi Lime nd the Hunton/Woodford in Oklahoma. Click HERE to read Rita’s’ guff.
Nighthawk Energy (LON: HAWK)
Released a drilling & production update this week on its 100% controlled and operated Smoky Hill and Jolly Ranch projects in the Denver-Julesburg Basin, Colorado. Click HERE to read it
Petrel Resources (LON: PET)
Agreement has been reached with the Ghanaian authorities which clarifies the co-ordinates of the signed Petroleum Agreement on a licence Block in the Tano area of Ghana. It was agreed that additional, contiguous acreage would be added to preserve the size of the Block. The agreement is between Pan Andean Resources 60% (LON: PRE)Clontarf Energy 30% (LON: CLON) Petrel 10%. The Ghana National Petroleum Corporation and the Government of Ghana. All parties agreed to seek to expedite the ratification process which requires Cabinet and Parliamentary approval. As a consequence of this, Petrel has discontinued its High Court proceedings with rights to reapply.
Sirius Petroleum (LON: SRSP)
Were forced to come out this week and admit that they were “Fund raising” Speculation regarding an equity fundraising for the Ororo 1 well leaked out. The Company confirms that it is in the process of raising funds in order to bring its offshore assets into production and to provide it with additional working capital. The fundraising is not yet concluded and the Company will update shareholders in due course.
Sound Oil (LON: SOU)
The Mediterranean focused upstream oil and gas company, has appointed, with immediate effect, Marco Fumagalli as a Non Executive Director of the Company following the institutional investment announced on 25 April 2014. Marco Fumagalli is Continental Investment Partners’ Managing Partner and a well-known Italian businessman who was previously a Group Partner at 3i. Marco is a 25% shareholder in Continental Investment Partners. Sound also announced a significant upgrade in the recoverable volume of the Santa Maria Goretti gas prospect, onshore Italy. The SMG CPR has estimated Gas Initially In Place as 66.4Bscf and recoverable Best Estimate Prospective Resources as 32.8Bscf. The study has also estimated a 68% geological chance of success for the Thin Beds objective. James Parsons, Sound Oil’s Chief Executive Officer, commented: I need to get my ears pinned back! Opps sorry. Online Tourette’s. He actually said “This CPR uplifts the Company’s previous resource estimate by 82% and confirms the addition of a further low risk, yet hugely material, asset into Sound Oil’s Italian onshore gas portfolio. The top hole location has already been identified and an application to drill will be submitted to the permitting authorities shortly, with a view to drilling during 2015.”
Sterling Energy (LON: SEY)
Announces its results for the six month period ending 30 June 2014. Click HERE to read them.
Tangiers Petroleum (LON: TPET)
Updates on the drilling of the TAO-1 exploration well, located offshore Morocco. No major operational issues have occurred to date and the well is expected to intersect the Assaka and Trident objectives within 60 days from spud. As the well has been designated as “tight”, no information related to depth or formation will be provided during the drilling, beyond what is required by the ASX and AIM continuous disclosure obligations.
Victoria Oil & Gas (LON: VOG)
Out goes Austen Titford. TITford resigned as Executive Director of the Company effective 16 July 2014 for personal reasons. Austen will continue to work with the Company to ensure a smooth handover. Commenting on the announcement, Kevin Foo, Chairman of the Company, said: “As an employee since 2008 and as a Director, Austen has helped mould VOG’s success. We wish him the very best in his future endeavours”. “What success would that be Foo?”
Zoltav Resources (LON: ZOL)
Following the receipt of a notice to exercise warrants over 15,000 ordinary shares of $US0.2 in the Company ZOL has authorised the issue of 15,000 new Ordinary Shares. Big deal!
The famous, witty BMD smallcap oil & gas round up!
Cadogan Petroleum (LON: CAD)
The Interim Management Statement for the period from 1 January 2014 to 19 May 2014 can be read by clicking HERE
Circle Oil (LON: COP)
Updated on their Moroccan Sebou & Lalla Mimouna Permits. 12 locations have initially been chosen for drilling, targeting resources of approximately GIIP of 25 bcf and the first well, SAH-W1, is targeting a dipping three-way fault bounded sand lens with TD at 1,225 metres MD and primary targets in the Guebbas Formation at 1,060 and 1,160 metres MD. The Company’s pre-drill estimates are for GIIP of 1.85 bcf and 1.0 bcf respectively for the two targets. Both the Sebou and Lalla Mimouna permits are a partnership between Circle Oil Morocco Ltd (75%) and ONHYM (Office Nationale de Hydrocarbures et des Mines) (25%). CEO, Chris Green, commented; “Circle is very pleased to announce the start of our third drilling campaign in Morocco. We have previously enjoyed significant drilling success in the Sebou permit and our technical team have worked hard to maximise opportunities and ensure this success continues. Reserve replacement and enhancement is the key to maintaining and uplifting our revenues in what we regard as a core country to invest in for the future. We sincerely thank our partner ONHYM for their continuing support and assistance as we start this third drilling campaign.”
Empyrean Energy (LON: EME)
Came out this week shouting from the rooftops. A significant increase in its Reserves and Resources at its flagship Sugarloaf AMI asset (‘the Project’) in the liquids rich core of the Eagle Ford Shale in Texas, USA, following the receipt of an independent appraisal and report prepared by DeGolyer & MacNaughton. Empyrean has a 3% working interest. It was 1p! 2c! 2p! 3p! 2c+2p But like most there was no reference to the 1c! (work it out)
Essar Energy (LON: ESSR)
In ,out shake it all about! Out go the following directors Mr Sattar Hajee Abdoula, good riddance. Mr Philip Aiken AM, good riddance, Mr Subhas C Lallah, good riddance, Mr Steve Lucas, good riddance, Mr Simon Murray CBE, double good riddance, Mr Prashant Ruia, good riddance and Mr Ravi Ruia good riddance. Yes the boyos have really worked their magic, leaving investors in ESSR high & dry having to take a 70p share offer from EGFL Bidco that seriously under-values the company assets. Assets that were trading at close to 600p in 2011. Thanks for all your good work at losing thousands of UK investors millions upon millions of pounds! Take a bow! Essar Energy also announces the appointment Mr Yogendra (Robin) Appadoo (Welcome to the aptly named ROBIN!) as a director of the Company with immediate effect.
Falkland Oil & Gas (LON: FOGL)
The Report and Financial Statements for the financial year ended 31 December 2013 has been posted to shareholders and is available on the Company’s website: www.fogl.com
Global Energy Development ( LON: GED)
Opined that the rig mobilisation has commenced for the Catalina #1 well in the Company’s Bolivar Association Contract located in the northern section of the Magdalena Valley in Colombia, South America. The workover rig is being transferred from the central Magdalena Valley area and the rigging up of all existing equipment is expected to be completed over a seven day period, with key new equipment expected to be ready for shipment from Houston, USA. to Colombia shortly. The transferral process involves the removal of existing production equipment from the wellbore and the installation of surface pressure control equipment and production tubing suitable for use in high pressure operating conditions, after which the workover rig will then be demobilised and removed from the location. After all surface equipment is installed and pressure tested, stimulation of the Simiti will then proceed with initial testing results expected in July.
Leni Gas & Oil (LON: LGO) How much mileage can a company get out of one well? More Goudron Field redevelopment activities in Trinidad.(Yawn!) Well GY-664, the first of 30 planned development wells, has now been logged and cased to total depth. The second planned well, expected to be designated GY-665, will be spudded shortly. After provisional analysis of the full electronic logs, GY-664 has penetrated over 1,500 feet of gross sand in three formations; the Goudron, Gros Morne and Lower Cruse, with a calculated total net oil pay of 571 feet. After analysis of the logs it has been decided to complete the well as a Gros Morne production well. What next from TrinaDADDY David Leni? We’ve painted the rig fluorescent orange so that it can be seen from the international space station!
Madagascar Oil & Gas (LON: MOIL)
Has been advised, via a “Communique de Presse: Conseil des Ministres”, that the decree approving test sales of Tsimiroro crude oil in the local market was approved at a meeting of the Council of Ministers on 21 May 2014. It is intended that test sales of, in aggregate, between 55,000 and 73,000 barrels of Tsimiroro crude oil will commence in the second half of 2014 and will last for a period of up to six months under the terms of the current exploration licence. This would be the first market test of crude oil produced within Madagascar, with sales due to commence after the conclusion of a tender process involving oil marketing companies currently operating in Madagascar. This test is designed to establish Tsimiroro crude as a blended heavy fuel oil substitute in the local market, mainly for power generation purposes. Currently stored oil volumes will initially be made available for blending. As at 20 May 2014, cumulative oil production from the SFP, which commenced on 28 April 2013, was 90,789 barrels of oil of which 51,870 barrels of oil are stored in the Tsimiroro SFP Storage Tanks. The remainder of the oil has been used for fuel for steam generation since the start-up of SFP operations. Oil production rates in 2014 from the SFP have averaged 395 barrels of oil per day to the end of April 2014.
Magnolia Petroleum (LON: MAGP)
Has increased the borrowing base limit of its Credit Facility (MORE DEBT) has been increased to US$2.75 million from US$2.1 million.
Mosman Oil & Gas (LON: MSMN)
The Company haven’t wasted any time getting out their first placing (as predicted by yours truly) which will be one of many! 60 days since admission! Now that has to be a record! Mosman raised £350,000 by way of the placing of 3,500,000 new ordinary shares in the capital of the Company at 10p per share. The funds raised will be used to increase the June drilling programme at Petroleum Creek Project in New Zealand, with the addition of a third well and the deepening of the proposed Crossroads-1 well from the initial 250m to basement, estimated to be c.400 metres. Following the issue of the Placing Shares the Company’s total issued share capital will comprise 64,833,701 Ordinary Shares. Lets see how high the shares in issue go.
Nighthawk Energy (LON: HAWK)
A Skeleton in the HAWK cupboard jumped out this week, as the Company were caught with their pants down by the sheriff of AIM, T Winnifrith. Hawk were forced to admit that they were embroiled in a lawsuit brought by Running Foxes Petroleum, Inc against a subsidiary of the Company, in a Colorado state court in the United States. Why Nighthawk failed to tell the market is a question they should answer. No doubt their NOMAD is working on the A mealy-mouthed response. Disgraceful! Time to dump the stock. Any other skeletons out there Steven?
Nostra Terra Oil & Gas (LON: NTOG)
A healthy set of final results landed this week from the tiddler. Click HERE to read.
Rockhopper Exploration (LON: RKH)
Takeover news this week as RKH announced they’d reached agreement on the terms of a recommended acquisition under which Rockhopper will swallow Mediterranean Oil & Gas (LON: MOG). Shareholders of MOG will receive an Initial Consideration Offer of 6.5 pence per share comprising 4.875 pence in cash and 0.0172 shares of Rockhopper per MOG share. MOG Shareholders will also receive a contingent entitlement up to a maximum amount of 3.550 pence in cash for each MOG Share. Which equates to a approx. £29.3 million in total.
Solo Oil (LON: SOLO)
The operator of the Ruvuma Petroleum Sharing Contract, Aminex PLC, has notified the Company that the 2D seismic acquisition to appraise up-dip portion of the Ntorya-1 discovery is now complete and processing has begun. Fully interpreted results are expected during Q3 2014.
Sound Oil (LON: SOU) It’s getting very hot in Italy, in more ways that one! A good set of finals (Audited) came out this week from the Mediterranean focused upstream oil and gas company for the year ended 31 December 2013. BMD Says; With the Introduction of a cornerstone institutional investor announced earlier this month, following the year-end at a significant premium to market expected to complete in June 2014, investors should be on their Marks here! There’s a lot of background noise in the City so take a tip and get them on your watch-lists! Strong Italian business fundamentals, including: High upside asset portfolio: 18 MMboe (P50) discoveries with NPV10 of €227M and 96MMboe (P50) exploration. High energy and ambitious team. Strong funding outlook. Successful Nervesa discovery with agreed Heads of Terms for a 3.6 to 1 farm out. This farm out fully funds the next well addressing the southern part of the structure and enables achievement of first gas without significant further capital. Continued preparation for the drilling of the world-class Badile prospect end in late 2014 / early 2015. A competitive farm out process is underway. Strong production from Rapagnano, which has been in production since May 2013, resulting in maiden revenues for the Company during 2013. Italian cost base to be covered by production from Rapagnano and Casa Tiberi (first gas expected by end H1-2014). James Parsons, Chief Executive Officer of Sound Oil, commented: “We are continuing our strategy of building a mid cap Mediterranean focused upstream oil and gas company. In Italy this involves continuing to drill, at a minimum, two material wells every year whilst focusing our financial and human resources on game-changing assets such as Badile. The combination of the introduction of an institutional investor and the farm-in on Nervesa, both of which we expect to close during June, positions our Company to fully exploit the potential of our assets.” Of course it does Jimmyboy! Any news from ENI? Nudge! Nudge! Wink? Wink?
Tangiers Petroleum (AIM: TPET)
Yet another company caught out telling whoppers this week via a mail shot organised by an Aussie (now why doesn’t that surprise me?) webShite www.nextoilrush.com/drilling-just-weeks-away-for-tiny-explorer-targeting-1-6-billion-barrels-of-oil/ which slipped past the eagle-eyed sheriff Tom Winnifrith through the onefreesharetip email list! Run in partnership with ADVFN who ran the mailing shot.. Life is stranger than fiction! Sheriff Tom moved quickly to sort out just what had gone on! Suffice it to say all’s well that ends well. Click HERE to read all about the cock-up! The mail shot quoted fantastic oil resource numbers of 1.6 billion barrels which is why you’ll now find an asterix* in the TPET RNS oil numbers which qualifies their 190 million barrels* of net best estimate unrisked prospective resource. A far cry from the 1.6 billion barrels headlined!
Tower Resources (LON: TRP)
More delays at the Welwitschia-1 well. In summary, there has been a delay to the drilling schedule. It presently appears that the financial consequence for the Company will not be material, but the Company does not expect drilling operations to recommence until the end of May.
Trinity Exploration & Production (LON: TRIN)
Released an update on the B-9X infill well-drilled at the Trintes Field on the Galeota license. As a result of the high formation pressure encountered in the B-9X well, a revised completion strategy is required to ensure safe production operations and includes higher pressure rated surface equipment and gas handling facilities, and, potentially, down-hole intervention. It’s estimated that it will take approx. 4 to 6 weeks to bring the well into production. The well is expected to flow naturally with an estimated IP rate in the range of 200-300 bopd and will be the first Trinity-drilled, naturally flowing well in the Trintes field. (Trinidad). Attention is now being moved towards preparing for drilling the B-13X (horizontal) and B-18 (J type) wells that are testing a new well design to increase initial production rates and recoverable reserves per well. Importantly, this well design will also be utilised in the TGAL development so this drilling will de-risk the new field development.
A busy, busy week in the Smallcap Oil world. Plenty to bemoan about. Enjoy it!
Antrim Energy (LON: AEY)
Released a tome! Their Interim financial report – first quarter 2014 Click HERE to view.
Azonto Petroleum (LON: AZO)
Announced the completion of an updated Resources Report (also known as a Competent Persons Report or “CPR”) for Block CI-202 offshore Cote d’Ivoire prepared by RPS Energy Services on behalf of Vioco Petroleum, Azonto’s 35% owned affiliate, as operator of the block. A copy of the CPR has been uploaded to the Azonto website www.azpetro.com
Bahamas Petroleum (LON: BPC)
Final results for the year ended 31 December 2013. Click HERE
Borders & Southern Petroleum (LON: BOR)
Released preliminary unaudited results for the year to 31 December 2013. Highlights included were; Acquired 1,025 sq.km. of 3D data to the north of the Darwin gas condensate discovery…. Evaluation of the fast-track processed data confirms that the Lower Cretaceous play extends to the north of Darwin. Fully processed data, received at the end of April 2014, will enable detailed prospect mapping…. Completed conceptual well design for Darwin appraisal wells and near field exploration wells….ompleted a preliminary reservoir engineering and facilities studies for a Darwin gas condensate development project…. Initiated farm-out of acreage – currently in progress…. Post year end activities – final processed 3D data from the 2013 acquisition programme and the reprocessed 3D data from the 2008 3D survey have been received and are being interpreted to produce an enhanced model of the Darwin area and a revised prospect inventory…. Cash balance as at 31 December 2013: $23.2 million – sufficient to cover forward overhead costs and all necessary short-term technical studies. What about the long term company expenditure?
Falcon Oil & Gas (LON: FOG)
Heralded the spudding of the second well in Hungary & an Operational Update. Click HERE
Faroe Petroleum (LON: FPM) How to write an RNS eithout all the puffery.
The Butch East exploration well 8/10-5S and a subsequent up-dip appraisal well 8/10-5A, the first of two back-to back-wells in Licence PL405. The Butch East exploration well encountered no oil. Well 8/10-5S will now be plugged & abandoned. How to write an RNS with the puffery. Click HERE
Fastnet Oil & Gas (LON: FAST)
Will Holland has been appointed to the Board of Directors as Chief Financial Officer, with immediate effect. Big deal!
Frontier Resources (LON: FRI)
An Oiler with assets in Oman, Zambia and Namibia updated on its activities in the Sultanate of Oman. Frontier’s 100% owned Block 38 located in the Rub Al Khali Basin in southwest Oman covers a surface area of approx. 17,425 square kilometres. An Exploration and Production Sharing Agreement was signed on 25 November 2012. Frontier is the operator. The Company has now completed the initial interpretation of available legacy 2D seismic data, both original and data re-processed during 2013 by BGP in Houston. These reprocessed data have enabled Frontier to identify geologic horizons previously unseen on the original seismic. Frontier has identified a number of potentially attractive exploration targets. These targets, or their stratigraphic equivalents, include formations within Precambrian – Cambrian units, many of which contain hydrocarbons at the analog Khazzan – Makarem Field in central Oman currently under development by BP as presented at the Gas Arabia Summit, December 2011. In addition to the above formations there is also the potential presence of an Ara formation intra- salt play on the Block as seen after recent reprocessing of a test line. Based on this encouraging information, Frontier has decided to reprocess up to an additional 400 kilometres of legacy 2D seismic data over the area where this lead was identified. There is a plan to acquire new seismic data to mature the identified leads to prospect level and accordingly the company is hi-grading the portfolio to determine the optimal location for a 3D seismic survey.
JKX Oil & Gas (LON: JKX)
Said this week that that the Court of Appeal ruled that the restriction notices served by JKX on Eclairs Group & Glengary Overseas & their nominees on 31 May 2013 were valid. The Court dismissed the cross-appeals brought by Eclairs. The High Court held that the Board had reasonable cause to believe that information provided by Eclairs & Glengary in response to requests from JKX was false or materially inaccurate and that the Board acted in good faith with the intention of protecting JKX & its shareholders as a whole. The Court of Appeal did not disturb these parts of the judgment. In consequence, the restrictions imposed by the Board on Eclairs & Glengary are wholly valid. Eclairs & Glengary have been given permission to appeal to the Supreme Court limited to the issue of the Board’s purpose. Pending the hearing of that appeal, the current arrangements concerning the counting of Éclairs’ & Glengarry’s votes remain in place. The company also released their Interims up to March 31 2014. Click HERE to read it.
Leni Gas & Oil (LON: LGO) Lot of RNS news this week from Neil & Dave at LGO. LGO Sold over 100,000 barrels of Goudron oil since taking over operations in October 2012. Furthermore the development well GY-664 has now intersected over 1,000 feet of gross oil bearing sands having drilled a further estimated 720 feet of oil sands in the Gros Morne formation, the first of the primary targets of the well. GY-664 earlier drilled over 350 feet of oil bearing sands in the Goudron formation. Drilling is continuing in the Lower Cruse, which is the third reservoir target of the well. In October 2012, when LGO took control of the Goudron Field under an IPSC with the Petroleum Company of Trinidad and Tobago. Field production was less than 40bopd. Since that time LGO’s wholly owned subsidiary Goudron E&P has reactivated over 70 pre-existing wells and has begun a major new 30 well development programme to access the estimated 122 million barrels of proven and probable oil in place independently verified as remaining in the Field.
Magnolia Petroleum (LON: MAGP)
Final results to the year end 31 December 2013. To read Ckick HERE Yawn!
Mediterranean Oil & Gas (LON: MOG)
2 RNS’s this week. 1/Production has been increased on the Guendalina Field well GUE 3ss. After a period of monitoring production, post the well intervention conducted in January 2014, production has been increased to an average of 31,350 scm per day (6,270 scm per day net MOG), which is an increase of 25% over the last reported stabilised production. The Operator has a stated goal of increasing production to 40,000 scm per day (8,000 scm per day net MOG) by the end of May at GUE 3ss. MOG expects that the production will be further increased in June, as the well continues to improve performance. The Guendalina Field is currently producing approximately 35,650 scm per day net to MOG, which is an increase of 23% above average net production for December 2013, when production was it its lowest level. 2/Energean Oil & Gas SA & MOG have jointly submitted a bid for the exploration and production of hydrocarbons in offshore areas 4118/05, 4218/30 and 4118/10 in Montenegro. If successful, Energean will act as the Operator with 60% working interest, while MOG would have a 40% working interest. Energean currently holds 4 exploration and 2 development licences and is the only Operator of hydrocarbon fields in Greece. It has produced over 115 million barrels of oil and 850 million cubic metres of natural gas from the Prinos and South Kavala offshore fields.
Mosman Oil & Gas (LON: MSMN)
New Kid on the block MSMN said that its wholly owned New Zealand subsidiary, Petroleum Creek, has issued the mobilisation notice and made the initial payment to Drillforce (NZ), the drilling contractor. Drillforce (NZ) has advised that the drill rig and equipment mobilisation will commence this weekend and all equipment is expected on site before the end of May. Drilling is anticipated to commence in the first week of June.
New World Oil & Gas (LON: NEW)
Confirm that it has signed a Sale Purchase Agreement with the shareholders of Al-Maraam Al-Ahliya Company for General Trading and Contracting Osma Khalid Al Masoud Al Fuhaid, Fahad Osama Khalid Al Masoud Al Fuhaid and Dr Muaaz KH M Alfahaid (the ‘Sellers’). The SPA provides the mechanism for New World to become a 49% shareholder & hold a 60% economic interest in Al-Maraam with a view to fully developing Al Maram’s opportunities in the oil and gas sector in Kuwait. An initial consideration in the amount of EUR1 million shall, subject to a number of material pre-conditions including due diligence on Al-Maraam, be payable to the Sellers upon the transfer of the Target Shares to New World; provided, however, that it shall be subject to a put option whereby if Dr. Muaaz KH M Alfahaid does not complete the previously announced subscription of 20% of the equity of Niel Petroleum for an amount of US$20 million BY 30 July 2014, New World will have the option to “put” the Target Shares to Dr. Muaaz KH M Alfahaid in exchange for EUR1 million plus related expenses. A balance of the consideration for the Target Shares in the amount of EUR4 million shall be payable to the Seller upon and subject to the completion of the Subscription.
Northern Petroleum (LON: NOP)
Released a production update on 3 wells in north west Alberta, Canada. The wells were successfully drilled & completed as planned. Operations then moved to a production testing phase. Highlights; Production results support the development of the Keg River play as part of the low risk production led growth strategy… Wells 13-33 & 14-22 both currently producing at a combined test rate of 280 bbls/d…. Well 16-19 initially produced as expected; a cemented liner now needs to be run to replace the inflatable packer and isolate the water aquifer below the oil column… Production being trucked and sold locally at a sales price of approximately Cdn$96 per barrel…. Short and medium term development of the play underway with three new wells planned in the summer.
Ophir Energy (LON: OPHR)
Released an Interim Management Statement and Operational Update for the period 1 January 2014 to 15 May 2014. Click HERE to read it.
Petroceltic (LON: PCI)
Has completed another equity placing. (Yes more dilution on top of the recent share CONsolidation! A 21.58% DILUTION! ) A total of 37,940,000 new Ordinary Shares of the Company have been conditionally placed at a price of 157 pence each, to raise approximately US$100 million (£59.7 million) before commissions and expenses.
Range Resources (LON: RRL) Rory’s Stories began in earnest this week as RRL entered into a Subscription Agreement with Abraham Ltd, Surely you mean a dilution agreement Dan? No it’s a Rory Story! A Hong Kong based private institutional investor will subscribe US$12 million in cash and will be issued with Ordinary Fully Paid Shares of the Company at a price of £0.01 per Share, representing a premium of approx. 49% to the mid market share price at the close of business on AIM on 14 May 2014. So that’s a further 712,000,000 shares to add to the story! The funds will be used to repay existing debt, (racked up by who? The previous CEO who is currently keeping a low profile) Commenting on the piss poor announcement, Rory Scott Russell, CEO, said “I am delighted” sic The US$12 million Subscription will allow us to refinance the expensive and dilutionary corporate debt and provide working capital as we now move forward with Range’s operational and long term financing objectives, particularly in Trinidad.” (What ever happened to Somalia/Puntland, Georgia, Columbia, and the good old USA? to name but five!) PS Don’t mention International Petroleum.
Ruspetro (LON: RPO)
Released an interim management statement for the period from 1 January 2014 to 14 May 2014:The Highlights of which were, (Was there any Highlights?) Drilling commenced in April 2014 on the Company’s first multi-stage fractured horizontal appraisal well. The pilot vertical well for this has now been successfully completed and the horizontal drilling phase of the well has commenced…. April 2014 average production of 3,277 bopd, 1Q 2014 average production of 3,496 bopd (4Q 2013 average production of 4,010 bopd). Cash balance of US$8 million as at 30 April 2014. Sberbank Capital put option exercise period deferred by one year to the period of 30 April 2015 to 29 April 2016. Prepayment facility with Glencore Energy UK renewed in March 2014. John Conlin, Chief Executive Officer, commented: “While 2013 was a year of reassessment for Ruspetro, (What an understatement!) 2014 should be a year of progress. (What an overstatement!) That’s enough of that!!!
Solo Oil (LON: SOLO)
Opined that Angus Energy, operator of the Horse (Shit) Hill Prospect in the Weald Basin, has advised that the proposed Horse Hill-1 well is on schedule for a spud date in July 2014.
Tethys Petroleum (LON: TPL) Pulled another placing fast one this week! Conditionally raising USD 15,000,000 through the issue of 36,894,923 new ordinary shares to new and existing investors at GBP 0.24 per share. Here’s why! In November 2013, Tethys announced that it had entered into a definitive agreement for the sale of 50% (plus one share) of its Kazakh oil & gas assets to SinoHan Oil & Gas Investment B.V. part of HanHong, a Beijing, PRC based private equity fund for an initial payment of USD 75,000,000 plus potential bonuses. The sale is subject to Kazakh State approvals, including the waiver on pre-emption (Article 36). The Company is confident that these approvals will be given at some point this year, but does not know the precise date. As such it was necessary to carry out this equity placing to provide the funds to ensure that the increased gas production rates can be achieved as planned. It should be noted that if the Kazakh State elects to pre-empt, an event that the Company considers extremely unlikely, then the State should fulfill the terms of the definitive agreement with SinoHan including paying the initial USD 75 million to Tethys to become a 50% shareholder in the project. So basically they need some cash to tidy them over? Will they give this back in a special dividend. No chance! Any excuse for a dilution! Also released was the 1st Q 2014 Financials. Click HERE to read it!
Sterling Energy (LON: SEY)
Has completed the Farmout Agreement with Jacka Resources Somaliland for the acquisition of an additional 15% interest in the Production Sharing Contract for the Odewayne Block, located onshore in the Republic of Somaliland. Genel Energy Somaliland 50%. Sterling Energy 40%. Petrosoma 10%. Sterling will be carried by Genel for the costs of all exploration activities during the Third Period and the Fourth Period of the PSC. The PSC covers block SL6 and part of blocks SL7 and SL10, onshore. In 2013 an aero-magnetic and gravity survey confirmed the geometry of a broad basin over the Odewayne block believed to be of Jurassic to Cretaceous origin, analogous to productive basins in Yemen. Fieldwork in the block has highlighted the presence of numerous seeps giving encouragement that a working hydrocarbon system is present in this undrilled basin. The forward work program includes acquisition of an extensive 2D seismic programme to define drillable targets. Operations in Somaliland have been delayed by security concerns and the operator, on behalf of the joint venture partners, is working with the Ministry of Energy and Minerals to resume operations as soon as practicable. As previously announced future conditional payments by Sterling of $8m are to be paid to Petrosoma upon various operational milestones being met.
Tangiers Petroleum (LON: TPET)
Placed A$5 million worth of shares, before costs, through the private placement of 31.25 million shares to specified wholesale, institutional and sophisticated investors at A$0.16 per share in Australia, the United Kingdom and Hong Kong. The Placement will be completed in two tranches consisting of: Approx. 23.6 million shares issued in the first tranche & THE balance of approx. 7.5 million shares issued in the second tranche. Subject to shareholder approval at the Annual General Meeting of shareholders. The proceeds of the raising will be applied to the 33% share of any costs in excess of the US$33m free carry provided by the Tarfaya Farm-Out Agreement for the drilling of the TAO-1 well, due to be spudded next month and for general working capital expenditure.
Wessex Exploration (LON: WSX)
The WSX red faces sighed ‘relief’ this week as they scrapped through the Milroy Capital EGM REQUISITION. All the resolutions proposed by the Requisitionists were defeated. Still no figures! Boo!
Amerisur Resources (LON: AMER)
Reported an update on the Platanillo Exploration and Production contract in Colombia. Amerisur has been notified that the Agencia Nacional de Hidrocarburos, the governing body of hydrocarbon exploration and production in Colombia, has approved a request by the Company to increase the commercial area of the Platanillo field. This further extension of the southern part of the field will extend the current contract essentially to the national frontier with the Republic of Ecuador and is made without associated drilling obligations or payments. AMER expects to sign the required annexe to the Platanillo E&P contract within the next weeks, and is currently designing the wells which will be drilled to drain the additional field area awarded.
Bankers Petroleum (LON: BNK)
Announces 2014 First Quarter Financial and Operational Results. Which can be viewed by clicking HERE
Circle Oil (LON: COP)
Updated on their Egyptian operations this week. The AASE-21 well was spud on 9 March 2014 and is located about 1,100 metres south-east of the AASE-4 well and 750 metres north-west of the AASE-1X well to appraise both the Shagar and Rahmi sands for production. The well encountered the Kareem sands with 19 feet of net oil pay in the Shagar and 4 feet of net oil pay in the Rahmi, both zones of good reservoir quality. The well has been completed as a Shagar producer & initial short term testing has yielded flow rates, on a 48/64″ choke, of 3,005 bopd and 3.228 MMscf/d of gas (587 boepd) for a total of 3,592 boepd. Current gross daily production rate over the last month from the AASE and Geyad fields continues at approx. 11,000 bopd & 11 MMscf/d. Total gross production from the NW Gemsa fields has now exceeded 15.3 MMbo of 42 degree API crude oil with a water injection total of 19.9 MMbw. After drilling the AASE-21 well the rig was moved to drill AASE-22, planned as an infill support injector well, 500 metres north and up dip of the AASE-8 injector in the western central part of the field. Following completion of AASE-22 the rig will be released on sub contract for the rest of 2014. A dynamic reservoir model to assess reservoir behaviour for the future is in construction to provide input for the effective and efficient management of the AASE field. This reservoir management study will also permit the planning for any future infill drilling both for producers and injectors to maximise reserve recovery for the medium and long term. The Al Amir and Geyad Development Leases cover an area of 82 square kilometres, and lie about 300 kilometres south-east of Cairo in a partially unexplored area of the Gulf of Suez Basin. The concession agreement included the right of conversion to a production licence of 20 years, plus extensions, in the event of commercial discoveries. The NW Gemsa Concession partners include: Vegas Oil and Gas 50% operator; Circle Oil 40%; and Sea Dragon Energy 10%.
Edge Resources (LON: EDG)
Said it was “very pleased” to have finalised its Competent Person’s Report, which has resulted in a large increase to its year-end reserves. The Company also issued an operational update. Which can be viewed HERE
Falcon Oil & Gas (LON: FOG)
He who has kissed the Blarney stone, Phillip O’Quigley, take a bow. Falcon released an RNS titled; Transformational Farm-Out of Beetaloo Unconventional Acreage, Northern Territory, Australia. Click HERE
Fastnet Oil & Gas (LON: FAST)
Tanked this week as the company had to utter those immortal words that send investors running for cover. Plugged & Abandoned. In Morocco, the FA-1 well in the Foum Assaka Offshore block will be plugged and abandoned after failing to encounter commercial hydrocarbons.
Global Energy Development (LON: GED)
Has signed a farm-out agreement with respect to its Bocachico Association Contract area, in the Middle Magdalena Basin, with Everest. Under the terms of the Agreement, Everest will acquire a 50% interest in the Contract Area, including any and all rights, obligations and duties in respect of the Contract Area in exchange for payment of the work commitments stipulated in the Agreement and the cash payment of $1 million. The Agreement is subject to certain conditions, including Ecopetrol approval. Under the Agreement, Everest commits to undertake the funding of a work program with respect to the Contract Area, including an obligation to pay all future costs and expenses incurred with respect to the proposed operations:
Ithaca Energy (LON: IAE)
Updated on their Greater Stella Area operations & overall development schedule. Continued progress has been made on execution of the main GSA development work programmes since the start of 2014. Construction activities on the main deck of the FPF-1 have been advancing and are currently centred on fit-out of the main pre-assembled units that were lifted on to the vessel in the first quarter of the year along with preparation for the installation of additional equipment packages. While progress has been made on the FPF-1 modification works over recent months, the topsides construction programme has advanced more slowly than planned. As a consequence, Petrofac is now forecasting that the vessel will be ready for sail-away from the Remontowa yard in Poland to the Stella field in spring 2015. This schedule is anticipated to result in first hydrocarbons from the GSA hub in mid-2015.Ithaca is working with Petrofac to expedite the remaining construction and commissioning works on the FPF-1. Updates on the progress of the modification works will continue to be provided at regular intervals over the coming months. The delayed start-up is estimated to be between $5-10 million, relating primarily to project management costs.
Leni Gas & Oil (LON: LGO)
It’s been a fantastic month or so for David Lenigas, Neil Ritson & LGO share-holders. The SP has started on a trajectory that DL thinks will break 2p. Leni announced that the first new development well in the Goudron Field, GY-664, successfully reached a depth of 1,680 feet at 7 am (Trinidad) on 3 May 2014, after logging and casing was reported to be drilling ahead midnight on 5 May 2014. A full suite of conventional electric logs have been run to 1,680 feet and initial analysis of those logs confirms the presence of over 350 feet of hydrocarbon bearing Goudron Sands. The first casing point was deepened from an anticipated depth of 1,540 feet to 1,680 feet due to the well encountering a thicker than expected section of oil bearing Goudron Sands. The first 1,680 feet of well has now been successful cased and cemented with 9 5/8 inch steel casing. Drilling is now continuing with an 8 1/2 inch hole section to a planned total depth of approximately 4,000 feet in order to test the primary objectives in the Gros Morne and the Lower Cruse Sands at depths below 2,800 feet. Lenigas is now in Trinidad tweeting some (amateurish) photographs directly from the field! But we here at the BMD blog admire a tryer. Stick to oil David!
Madagascar Oil (LON: MOIL)
Released a Declaration of Commerciality and Field Development Planning statement this week. The Tsimiroro Oil Field, the Group’s flagship asset, is a giant heavy oil field in western Madagascar with independently audited contingent oil in place of 1.7 billion barrels (P50) Stock Tank Oil Originally In Place. Madagascar Oil S.A. has been operating the SFP since April 2013 and the data from the SFP, together with field development, technical and marketing studies have been used to support this weeks declaration of a Commercial Discovery under the terms of the PSC. The Group plans to continue to operate the SFP throughout 2014 and into 2015 to provide additional data on how the Tsimiroro Amboloando reservoir responds to both Cyclic Steam Stimulation and steam-flood thermal recovery methods to inform the future development plans for the Licence. MOIL proposes to commence development of the well-defined high quality reservoir areas close to the existing SFP area, while also addressing the geological uncertainties in other areas of the Tsimiroro Main Field. Appraisal programmes including drilling, seismic acquisition & the newly tested land magnetometer techniques are being prepared for implementation in 2014 and 2015.
Magnolia Petroleum (LON: MAGP
Poor Rita. You were all warned about this company many times. Click HERE to read the latest fantastic news. (Not)
Max Petroleum (LON: MXP)
Announced further successful drilling results in the East Kyzylzhar I Field. The KZIE-4 appraisal well has reached a vertical depth of 1,318 metres with electric logs indicating 15 metres of net oil pay in two Jurassic reservoirs, including ten metres of net pay in an interval at vertical depths between 837 and 861 metres and five metres of net pay in an interval at vertical depths between 1,155 and 1,171 metres. Reservoir quality is excellent with porosities ranging from 30% to 36%. The Company is setting production casing in the well and will begin testing KZIE-4 as soon as practicable. The Zhanros ZJ-30 rig will next move to drill the KZIE-3 appraisal well before moving onto the Zhana Makat field.
New World Oil & Gas (LON: NEW)
Has signed a Binding Framework Agreement for oil production in Kuwait and updated on a Subscription to raise US$25 million. The company has continued to work with the Subscriber, Niel Petroleum SA to complete the subscription on the agreed terms. In line with this, New World has been informed that Dr. Muaaz KH M Alfahaid, a Kuwaiti national representing Al Maram Trading & Contracting LTD, will be acquiring a 20% ownership stake in Niel for a consideration of US$20 million, and in turn Niel will be using this consideration to complete the Subscription with New World.
Nighthawk Energy (LON: HAWK)
Released a drilling and production communique at its 100% controlled and operated Smoky Hill and Jolly Ranch projects in the Denver-Julesburg Basin, Colorado. The Snow King 13-33 well commenced production on 12 April 2014. Average gross oil production from all wells in the 24 day period since Snow King 13-33 commenced production was 2,153 bbls/day. Over this period the Snow King 13-33 well performed strongly with the average gross production rate at the upper end of the 300-400 bbls/day range. Applications for permits to drill three additional Snow King wells have been submitted to the State of Colorado and these wells will be scheduled into our drilling program this summer. Average gross oil production in April 2014 was 1,998 bbls/day, a monthly record production level. Production in April benefitted from the commencement of production at Snow King 13-33 and a steady 100 bbls/day contribution from the Pennsylvanian formation in the John Craig 1-2 well. The drilling rig has completed the drilling of the John Craig 2-2 well and is expected to spud the John Craig 10-10 well within the next few days. Based on the recent success with Pennsylvanian production at the John Craig 1-2 well, the primary targets for additional production in these wells are the Pennsylvanian Morrow, Cherokee and Marmaton formations. Both wells will collect further valuable data on the Mississippian formations in this area which is some 25 miles south of Arikaree Creek. Completion of the John Craig 2-2 well will commence next week and a number of potential oil bearing zones will be evaluated and tested. Financing Arrangements As previously disclosed discussions are currently underway with a number of potential providers of finance with the objective of re-financing all existing short-term, non-convertible loans with new longer term borrowing facilities. The Board is confident that these discussions will be successfully completed within the next two months.
Northcote Energy (LON: NCT)
Has entered into a heads of terms agreement to acquire a 35% interest in and become operator of the producing wells at the 1,670 gross acre Shoats Creek Oil Field in Beauregard Parish, Louisiana. Northcote will initially acquire a 70% interest in the Shoats Creek Field from Springer Oil & Gas and will simultaneously farm-down 50.0% of this interest (35%) to North American Petroleum plc (‘NAP’) on the same terms. The acquisition of the 70% interest is to be satisfied via issue of Northcote ordinary shares valued at US$350,000 (valued at the date of closing); and a production payment of $10.00 per barrel up to a maximum of US$3.15 million. On completion of the farm-down to NAP, NAP will make a payment to Northcote of US$175,000 in cash and will assume 50% of Northcote’s production payment (US$1.575million). In parallel Springer has agreed to acquire 100% of the ordinary share capital of Aminex USA Inc for total consideration of $5,000,000. Click HERE to read the May 2 2014 Operations Update
Nostra Terra Oil & Gas (LON: NTOG)
Announce that, in line with its increase in production, there has been a 120% increase in the borrowing base on its US$25m Credit Facility to US$1,100,000. In addition, the Company also announces the collection of US$231,000 from Richfield Oil and Gas. The redetermination has been approved by Texas Capital Bank and the borrowing base has been immediately increased from US$500,000 to US$1,100,000. Nostra Terra will use the increased funds available to expand its portfolio further. CEO Matt Lofgran, said: “The increase in the Facility and the collection from Richfield gives us an additional US$831,000 to be used in the field to continue growing our portfolio. I’d like to add that the increase in the Facility’s borrowing base doesn’t take into account the newest wells in our portfolio where Nostra Terra has an 11% and 20% working interest. Once those wells have stabilised production we anticipate a significant increase in production and subsequently a further increase in the borrowing base. This should help demonstrate the ability for the Company to grow its production and cash flow without the need for dilution to shareholders.”
Petro Matad (LON: MATD)
Provided a rather long winded update on its operations, results of the interpretation of the 220 kms of seismic acquired over Blocks IV and V in November 2013 and the continuing farmout process RNS. You can read it by clicking HERE
Range Resources (LON: RRL)
More bad news from Range as the company once again tried to pull the wool over their share-holders. Cash strapped Range, announces that, given its focus on Trinidad, it has made a “strategic decision” for a partial withdrawal from Colombia and has relinquished its investment obligations on PUT-7 block in the Putumayo Basin in Colombia. In relation to PUT-6 block or to the $3.48 million performance bond that it holds over PUT-6. The Company is currently reviewing its options with regards to PUT-6 and will update the market accordingly in due course. Or to put it plainly. They’re looking to flip-on the PUT-6 option so they can get their hands on the $3.48 million bond. Range then went on to announce yet another debt for equity share issue of 25,000,000. Rotten to the core.
Salamander Energy (LON: SMDR)
Issued an Interim Management Statement for the period from 1 January 2014 to 6 May 2014. Click HERE
Sterling Energy (LON: SEY)
Has signed a second Farmout Agreement with Jacka Resources Somaliland to acquire an additional 15% interest in the Production Sharing Contract for the Odewayne Block, located onshore in the Republic of Somaliland. Click HERE
Wessex Exploration (LON: WSX)
What in the name of Jumping Jehovah is going on at Wessex? This weeks sharp rise in the share price looks like a manipulation caused by the on-going battle for control of the company. Wessex came out and said that it remains in advanced negotiations regarding a potential acquisition which, on completion, would result in the addition of a prospective offshore asset in the Far East. The acquisition which only came to light AFTER Milroy Capital requisitioned a General Meeting (to kick out the failed board) scheduled for 15 May 2014. The unknown mysterious Far East Acquisition will only proceed if the resolutions proposed by Milroy Capital are defeated. Does Wessex think that we were all born yesterday? The fact that this rotten failing BOD have the audacity to attempt such a schoolboy trick on UK Share-holders is proof positive that share-holders should vote them OUT!
Xcite Energy (LON XEL)
Said that its 100% owned subsidiary, Xcite Energy Resources (“XER”), has entered into a Collaboration Agreement with Statoil (U.K.) and Shell U.K, which allows all the Parties to make available and share field-specific technical and operational information for the evaluation of potential synergies and collaboration between the Bentley and Bressay Fields. A joint XER, Statoil and Shell team will work together to analyse the current available information and develop a number of proposals for assessment, including the potential utilisation of common infrastructure, assets and operational solutions during the phased development of the Bentley Field and the future development of the Bressay Field. XER believes that collaboration in a number of key areas, along with a coordinated approach to an area development, will realise a number of mutual opportunities which have the potential to benefit all stakeholders.
Amerisur Resources (LON: AMER)
Released an update on operations in Colombia and Paraguay. The highlights of which were thus; . Platanillo-16 becomes the 11th successful well in the current campaign… Data acquired strengthens field model… Good test flow rates – 320 BPD of 30.7 API oil at 17% drawdown… Placed on commercial production… Platanillo-17 on platform 3N has been spudded… Good progress on the Ecuador pipeline project in Environmental, Technical and Commercial terms… San Pedro 2D Seismic acquisition programme proceeding.
Egdon Resources (LON: EDR)
Didn’t you just know it. Here comes the first of many placing’s. A placing of 12,000,000 new ordinary shares at a placing price of 25 pence per share to raise approximately £3.0 million.
Ithaca Energy Inc. (LON: IAE)
Plugged & Abandoned the Handcross prospect (204/18b-2A) well. No hydrocarbons were encountered in the target T36 or T35AA sands.
Leni Gas & Oil (LON: LGO)
Has now signed a contract with Well Services Petroleum Company Limited, Trinidad’s largest drilling contractor, for the drilling of the first seven wells of the planned 30 well development drilling programme at the Goudron Field.
Matra Petroleum (LON: MTA)
Released the results of an independent reserve audit conducted by DeGolyer and MacNaughton. As announced on 22 January 2014, Matra’s wholly owned subsidiary, Matra Petroleum U.S.A., Inc. has completed its Phase II acquisition of interests in certain oil and gas leasehold interests in the Texas Panhandle region of the USA through its investment in PGM-JV, a joint venture vehicle incorporated in Texas of which Matra owns 50%. D&M conducted a review of all of the assets included in both the Phase I and Phase II acquisitions and the results of the independent reserve audit can be read by CLICKING HERE: I’d strongly advise investors to read it!
Max Petroleum (LON:MXP)
Announced the successful drilling results of an appraisal well in Sagiz West Field, with electric logs indicating 16 metres of net oil pay over a 24 metre gross interval in the Triassic Formation at vertical depths between 1,225 and 1,249 metres. Reservoir quality is very good with porosities ranging from 15% to 27%. The Company is setting production casing in the well and will begin testing SAGW-10 as soon as practicable.
Nighthawk Energy (LON: HAWK)
Released a production & drilling update this week. The Big Sky 13-11 commenced production on 13 February 2014. An update on production levels will be released once the well has settled down. Aggregate gross oil production for January 2014 was 52,737 barrels an average of 1,701 bbls/day, a new monthly production record. Production in January was adversely impacted by planned treatment to the productive zone in the John Craig 1-2 well and some minor weather related problems. The John Craig 1-2 well is currently in production but it is anticipated that the well will require further treatment during this quarter. Completion of the Big Sky 13-11 well was moved ahead of the Telluride 13-2 well due to the interpretation of the logs and the potential for better production rates. The Telluride 13-2 is in the early stages of the completion process and the Big Sky 14-11 well has been completed in the initial zone of interest with evaluation of this zone currently underway. Nighthawk’s drilling campaign continues in the Arikaree Creek oilfield. The Big Sky 5-11 well is in the final stages of drilling and a substantial core has been taken. The well will be logged and cased ready for completion. In March 2014 the drilling rig will be moved to the Snowking 13-33 location, some three miles south-west of Arikaree Creek and, subject to permitting, Nighthawk expects to spud this well around mid-March 2014.
Northern Petroleum (LON: NOP)
Iain Lanaghan has been appointed as a non-executive director of the Company. Iain is an experienced public company director whose most recent position in the exploration and production industry was with AIM quoted Faroe Petroleum.
Nostra Terra Oil & Gas (LON: NTOG)
Two RNS’s this week as Matt Lofgran came out with the bull case for investment. “Nostra Terra’s portfolio of wells in the Chisholm Trail Prospect includes 7 wells which are in commercial production, 5 wells in various stages of election to production, and with more wells anticipated beyond these, we expect a significant increase in net production over the coming weeks and months.2 sic<The Company received confirmation of its election to acquire additional interest in the Jones 1-5H well (CT8). The Company’s working interest in the well has increased from 2.00% to 2.92%. The most recent ten days of production averaged 521 barrels of oil equivalent per day. This represents an increase in net production to the Company from the well from 10.42 boped to 15.21 boepd. Read our latest article on Nostra Terra HERE
Petroceltic (LON: PCI)
Has agreed the sale of an 18.375% interest in the Isarene Production Sharing Contract, which includes the world class Ain Tsila gas condensate discovery, onshore Algeria, to Sonatrach, the Algerian National Company for Hydrocarbons.
Range Resources (LON: RRL)
A shocking RNS from Range yesterday. Released when the market was closed. Headlined Notice of General Meeting. Sadly for those who care to take the time to read it you’ll see pots and pots of share issues, dilutions and options as well as more bad news buried within it. I’m afraid there’s no hope here.
Salamander Energy (LON: SMDR)
Further to the update on 27th January, the damaged risers have now been repaired and production from the Bualuang field has recommenced. The Company has also reached agreement for a new, two year sales contract for Bualuang crude. The agreed pricing is set at a small discount to Dubai benchmark and reflects an improved price relative to the previous agreement. The new price will be backdated to 1st January 2014.
San Leon Energy (LON: SLE)
The Serial failures announced that it has signed a Letter of Intent with Baker Hughes Poland Sp. z o.o. to jointly begin to develop the Siekierki Gas Field1 in Poland, including Polish Concessions 206, 207 and 208. The Companies plan to start gas production from four existing wells, namely Trzek-1, Trzek-2ZH and Trzek-3H on the Siekierki structure, and the nearby Krzesinki-1 well. Under the proposed agreement, it is envisaged that Baker will provide all funding necessary to recomplete and bring into production the Wells
Sterling Energy (LON: SEY)
Updated for the Ntem Concession, offshore Cameroon. The operator, Murphy Cameroon Ntem Oil Co, has confirmed that drilling operations have commenced on the Bamboo-1 well using the Ocean Confidence, a fifth generation semi-submersible drilling rig. The well, located approx. 56 kilometres from the coast of Cameroon, has an estimated target depth of 4200 metres true vertical depth sub-sea and will be drilled in a water depth of approximately 1600 metres. Drilling operations are anticipated to take approximately 60-70 days. Sterling Cameroon has a 50% non-operated working interest in the Ntem Concession. Murphy will pay Sterling’s share of the costs for the drilling of the Bamboo-1 well. A series of stacked fan targets have been identified and will be intersected by the Bamboo-1 well with the primary objective estimated to have a mean un-risked, gross prospective resource of 422 million barrels of oil and 170 billion cubic feet of gas, a total of some 450 million barrels of oil equivalent.
Several of our researched success’s are mentioned this week. Urals Energy researched at 5p hit 12p now trading at 10.6p. Nighthawk researched at 6p hit 12.25p now trading at 10.25p and Exillon Energy tipped at 98p hit 274p now trading at 259p!
A bit of a free one here for the chaps. Positions are being taken in the fight for the Urals Energy Crown. It’s going to get very dirty. One Russian wag thinks they’ll have to up the anti (Offer) if they want Urals!
Caza Oil & Gas (LON: CAZA)
The West Copperline 29 Fed #1H horizontal Bone Spring test well reached its intended total measured depth of approximately 15,035 feet in the 2nd Bone Spring Sand interval on October 11, 2013, and was subsequently fracture stimulated beginning on November 1, 2013. Under controlled flowback the producing rates have remained steady, and the well produced at a peak 24 hour gross rate of 800 barrels of oil and 1.21 million cubic feet of natural gas, which equates to 1,002 bbls of oil equivalent on November 15, 2013. The well continues to clean up and is producing on a 22/64ths adjustable choke at 1,835 pounds per square inch flowing tubing pressure. Caza currently has a 62.5% working interest (approx. 47.25% net revenue interest) in the West Copperline 29 Fed #1H well.
Chariot Oil & Gas (LON: CHAR)
Confirms that the Special Resolution proposed to shareholders at the EGM held on 21 November 2013 was duly passed. The Company’s Articles of Incorporation will now be amended and Chariot will no longer be prohibited from holding Board Meetings and General meetings of shareholders in the United Kingdom.
Exillon Energy (LON: EXI)
Notes the announcement by Flowdale Investments Limited, the ultimate beneficial owner of which is Mikhail Gutseriev, that states Flowdale holds 24,065,588 shares in Exillon, which represents approximately 14.9% of the Company’s issued share capital. The formal sale process that was described in the Company’s announcement dated 18 September 2013 is proceeding as planned. The acquisition of this 14.9% stake by Flowdale was undertaken without the knowledge or consent of the Board of Exillon.
Fastnet Oil & Gas (LON: FAST)
Notes that its partner in the Foum Assaka license, offshore Morocco, Kosmos Energy provided a Technical Update on its exploration assets on 14 November 2013. In its presentation to analysts and investors, Kosmos covered the Foum Assaka permit, offshore Morocco following its farm-out agreement with BP plc (LSE: BP) Kosmos indicated that well planning is underway at the Eagle-1 Well in the Foum Assaka Block, which is estimated to contain 360 mmboe of Pmean resources. The well is scheduled for drilling in Q1 2014 and will target lower Cretaceous reservoirs and multiple deepwater reservoir objectives with a planned target depth of 4,500 metres in water depth of 600 metres.
Forum Energy (LON: FEP)
Said yesterday that an agreement had been reached with the Philex group of companies to increase and extend the repayment date of the current loan facility which was provided to the Company’s wholly-owned subsidiary, Forum Philippines Holdings Limited in 2010. The US$15 million Facility, which was US$10 million when first announced on 24 November 2010, and has been fully drawn down, has now been increased to US$18 million. In addition, the repayment date for all amounts drawn under the Facility has been extended for three years to 24 November 2016. Terms of the Facility remain otherwise unchanged, with funds continuing to be borrowed at an interest rate of LIBOR + 4.5% and with Forum Energy remaining as the guarantor under the Facility.
Parkmead Group (LON: PMG)
Announces that a new gas field has been discovered in the UK Southern North Sea by the Pharos exploration well. Parkmead holds a 20% working interest in the new discovery at Pharos. The other joint venture partners are Dana Petroleum (operator), Dyas Exploration UK Limited, MPX North Sea Limited and Hansa Hydrocarbons Limited.
Petro Matad (LON: MATD)
Mongolian geophysical contracting company Khet Co., completed acquisition of 200 km of 2D seismic on Blocks IV and V on 19 November, 2013. Preliminary analysis indicates that initial brute stacks of seismic across the prospect area in Block V confirm the previous interpretation and subject to further processing are expected to result in the delineation of at least two prospective drilling locations for 2014. The initial brute stacks across the prospect area in Block IV shows the presence of a cross fault that indicates an additional trap closure in this area. In light of the encouraging result from the seismic acquisition, Petro Matad has contracted with Khet to acquire a further 30 kms of seismic to confirm this closure as a potential drilling prospect for 2014. his seismic will commence immediately and is anticipated to be completed within one to two weeks.
Range Resources (LON: RRL)
Peter Landau came out fighting this week shouting that he would like to? A/ Silence his detractors. b/Resign for failure? C/ Release a Guatemala Update and draw attention to the announcement released by Citation Resources Limited (ASX:CTR) with respect to the Company’s interest in Guatemala?
Solo Oil (LON: SOLO)
Starts the infill seismic survey planned to assist in the appraisal of the Ntorya discovery and to finalise locations for future exploration drilling in the Ruvuma onshore Petroleum Sharing Agreement in Tanzania. The operator, Ndovu Resources Limited, a subsidiary of Aminex plc has indicated that a contract has been signed with AGS and that the survey will shortly commence with 2D seismic data intended to be collected at Ntorya and to support future exploration drilling.
Sound Oil (LON: SOU)
Updated on the Casa Tiberi onshore gas discovery in the Marche region, Central Italy. Following Board approval to develop the Casa Tiberi gas field, an Engineering, Procurement, Construction and Lease contract has been awarded to TESI Srl, a local company with proven experience in onshore processing plants in Italy. The contract is for a total of Euro 300,000 and involves the three month construction and subsequent lease of a production skid in anticipation of first gas from the field in early 2014. The plant will be based on modular skids with nitrogen used for both gas dehydration and as “service gas” providing an effective and extremely environmental friendly solution to deliver the gas to the local low pressure network.
Tullow Oil (LON: TLW)
Good news came today from TLW as the company announced that the Agete-1 exploration well in Block 13T, onshore Northern Kenya, has discovered and sampled moveable oil with an estimated 100 metres of net oil pay in good quality sandstone reservoirs. The Agete-1 wildcat well is part of a major exploration campaign and has made the fifth consecutive oil discovery in the first of a chain of multiple rift basins across Tullow’s acreage in the region. This discovery de-risks several follow-on prospects located to the north and is on trend with the Twiga South, Ekales, and Ngamia oil discoveries and adds to the significant resource base already discovered. The Sakson PR5 rig drilled Agete-1 to a total depth of 1,930 metres. Following completion of logging operations the well will be suspended for future flow testing which will confirm the net pay count. The rig will then move to drill the Ewoi-1 wildcat in the east of this basin, targeting a rift flank prospect similar to the recent Etuko oil discovery. Tullow operates the Agete-1 well with a 50% interest and Africa Oil (50%) has a non-operated interest.
Urals Energy (LON: UEN)
The independent exploration and production company with operations in Russia, released an Operational update, tanker loading and alleged debt repayment agreement update/RNS. You can read it by CLICKING HERE.
Wentworth Resources (LON: WRL)
Yet more dilution at Wentworth for private share-holders. This is after the company got off a Private Placement of 61,696,024 new Shares to raise USD 40.0 million in October last month. Now we get the euphemistically titled “Over Subscribed Offering” RNS which effectively dilutes by another 9,000,000 million shares on top of the 61 million already soaked up by PI’s. Yes a thumping 70% dilution. What’s the betting that there’s another dilution within the next 12 months?
“Quiet” week in the Smallcaps world of oil & gas. Nostra have taken a hiding while trench warfare has broken out over at Urals Energy. Rita from MAGP keeps on rolling along while wonders never cease Max Petroleum NEVER released an RNS this week!”
Antrim Energy (LON: AEY)
Routine maintenance of the North Cormorant Platform has been completed and oil production from the Causeway Field in UKCS P1383 Block 211/23d (Antrim working interest 35.5%) and the Cormorant East Field in UKCS P201 Block 211/22a Contender Area (Antrim working interest 8.4%) has resumed. Production rates from the Causeway Field are expected to rise over the next year with the startup of the electrical submersible pumps and commencement of water injection.
Caza Oil & Gas (LON: CAZA)
Trousered £500,000 pursuant to its £6 million Standby Equity Distribution Agreement dated November 23, 2012 between the Company and YA Global Master SPV Ltd., an investment fund managed by Yorkville Advisors Global, LP. Caza has issued and allotted 5,263,158 common shares to Yorkville at a price of £0.095 per New Common Share. Following admission, the Company will have 182,965,097 common shares outstanding.
Egdon Resources (LON: EDR)
The UK-based exploration and production company primarily focused on the hydrocarbon-producing basins of onshore UK and France, announces that its Preliminary Results for the year ended 31 July 2013 will be announced on Wednesday 6 November 2013. An analyst meeting will be held at 9.30am on 6 November 2013 at the offices of Buchanan, 107 Cheapside, London, EC2V 6DN.
Europa Oil & Gas (LON: EOG)
Announced this week the completion of a 1,500 sq km 3-D seismic acquisition programme on Frontier Exploration Licences (`FELs’) 2/13 and 3/13 in the South Porcupine Basin, offshore Ireland. Kosmos Energy Ireland Ltd (`Kosmos’) is operator and holder of an 85% interest in both licences with Europa holding the remaining 15%. Processing of the newly acquired seismic data has already commenced and delivery of the processed data is expected in Q1 2014.
JKX Oil & Gas (LON: JKX)
Reports that it is reaching the end of the flowback period following the 10 stage multi-stage frac in well R-103. The gas rate is settling at around 3 MMcfd with 25 bpd of condensate. The rate of frac fluid recovery has fallen to 7 cubic metres per day (45 bpd) and the total frac fluid recovered is now 1,900 cubic metres (12,000 bbl), approx. 35% of the total volume injected during the frac operation and in line with expectations. A production logging tool is currently being run on coiled tubing to assess the relative production from each of the fracced intervals as part of the post frac evaluation. The well will continue to be monitored closely for confirmation of the plateau gas flow rate and the well’s ultimate performance capability.JKX’s Chief Executive, Dr Paul Davies, commented: “Whilst the well performance to date is at the lower end of our expectations, the frac has been effective and the drainage area of the well has been considerably increased. We have commenced correlation of the production results with the existing reservoir data and are looking to identify a location for the next well. Based on our improved knowledge of multi-frac operations, we will be seeking to design our next multi-frac well at a lower cost with improved production rates.” A targeted high resolution 3D seismic programme to aid in the evaluation of the reservoir distribution is under consideration for early 2014 and, based on the PLT results from well R-103, drilling options could include a multi-frac vertical well over the anticipated reservoir thickness of 300 metres. Evaluation work also continues on the northern part of the Rudenkovskoye field where younger, but no less deep reservoirs form the main targets.
Magnolia Petroleum (LON: MAGP)
Lot of RNS releases this week from Rita. For the purposes of clarity I’ll concentrate on just two. MAGP released an operations update across its portfolio of interests in proven US onshore formations including the Bakken, North Dakota and Mississippi Lime, Oklahoma. This update is in line with the Company’s strategy to rapidly build production through drilling and in the process prove up the reserves on its leases. As at 1 August 2013 production stood at 214 boepd. But what is it as of today Rita?Magnolia also announced it has entered into a US$5 million three year Credit Facility. Don’t you mean debt facility?
Nostra Terra (LON: NTOG) * RNS Released at 12pm today
Hit back at BBLoons this afternoon. The AIM quoted oil and gas producer with projects in the USA, commented on speculation about the Company in the context of the recent share price movement and significant volume of trades in recent days. There has been recent speculation on certain message boards (BBLoons/Bashers/DayTraders) regarding a potential placing by the Company of new ordinary shares. These are false rumours and completely unfounded. The Company confirms that it has no intentions to undertake a placing. Matt Lofgran, Chief Executive Officer of Nostra Terra, commented: “We previously announced that in January we had surpassed cash flow positive on an operational basis. This still remains the case, where free cash flow generated from production has been reinvested into additional wells throughout the year. Since that time we have also collected in excess of $1,400,000 from Richfield, and these funds will also be used for upcoming leasing and drilling.”
Ophir Energy (LON: OPHR)
Noted media speculation that it is looking to sell down its interests in Blocks 1, 3 and 4, Tanzania.The Company confirmed it has a process ongoing to sell down a part interest in these Blocks but there is no certainty that this process will conclude successfully nor can there be any certainty over the value of any such deal if it were to complete. Ophir will update the market further on this process as appropriate.
San Leon (LON: SLE)
Further to the Company’s announcement on 25 September 2013, and following the admission of the 542,631,579 Second Placing Shares to trading on AIM this week, San Leon Energy completed the second tranche of the Placing, raising gross proceeds of £25,775,000 million. The Company’s share capital, as enlarged by the Second Placing, now comprises 2,531,726,642 ordinary shares. SLE also released news on the next operational steps for the vertical hydraulic fracture stimulation of the Lewino-1G2 well on its 221,000 acre Gdansk W Concession in Poland’s northern Baltic Basin. The initial vertical frac was performed to test both the fracture stimulation and flow potential of the lower Ordovician shale and to gather necessary data for future horizontal drilling and multi-staged hydraulic fracture stimulation. The Company announced on 16 September 2013 that, in conjunction with United Oilfield Services and other specialist frac consultancies, it would use the data to optimise further frac operations in the well. That design work has now been completed, materials and services have been ordered, and mobilisation of the snubbing unit to prepare the well for the fracs will commence shortly. As with any drilling operation, the timescales can be subject to some variation, however, the snubbing unit will be mobilised in the coming days and the Company expects flowback, clean-up and testing to begin at the end November or early December. During these operations, two further fracs will be performed on Lewino-1G2. The first will be a re-frac of the existing zone, while the second will frac a new overlying part of the Ordovician Caradoccian formation. The design work is expected to optimise these operations by changing several parameters relative to the initial frac, including the use of ceramic propant, which has significantly higher strength than sand, reducing propant crushing, and therefore expected to yield better frac conductivity and communication to the wellbore. Although this is believed to be the first time that ceramic propant has been used in Poland, it is very widely used in the US.
Sterling Energy (LON: SEY)
Still clinging on SEY released its Interim Management Statement for the period beginning 1 July 2013. Click HERE to read it.
Tangiers Petroleum (LON: TPET)
Received a price query today from the Australian Securities Exchange in relation to the rise in the Company’s share price in recent days. In response, the Company noted:
That it is not aware of any additional information which, if known, could be an explanation for recent trading in the Company’s securities; and Interest in offshore Morocco by oil companies and the impending drilling program in the neighbouring blocks to the Company’s Tarfaya Offshore Block in Morocco, which is due to commence shortly, have contributed to the increase in activity and price movement in the Company’s fully paid ordinary shares on AIM and ASX. In addition, the Company’s $0.16 listed options (ASX: TPTOA) ceased trading as at the close of business on 24 October 2013 and this may have also increased trading in the fully paid ordinary shares.
Urals Energy (LON: UEN)
It’s getting dirty over at UEN as the Company came out with a hard hitting RNS titled “Alleged Debt Repayment Agreement” Following receipt by the Company of a requisition notice signed by Alpcot Capital Management Ltd and Fire East Corporation on 25 September 2013, the Company issued a notice convening an EGM to be held on 27 January 2014. Resolutions proposed by the Requisitioners to be considered at the EGM would, if approved by the Company’s shareholders, remove the existing directors, save for Mr. Torbjorn Ranta, and appoint Mr. Maxim Barsky and Mr. Jonathan Kollek to the Company’s board of directors. On 14 October 2013, the Company also announced that a credible third party had approached the Company regarding a potential offer for up to 100% of the issued ordinary share capital of the Company.
The Company has recently received a facsimile copy of a purported ‘Debt Repayment Agreement’, expressed to have been entered into in December 2010 between the Company and a Cyprus company owned by Mr. Vyatcheslav Rovneiko, UEN Cyprus Limited. Under the Alleged Agreement, the Company is expressed to be liable to pay UEN Cyprus Limited the sum of US$41,652,000 on 15 December 2013. The Company has no reason to believe the Alleged Agreement to be a genuine document, and therefore does not accept that the Company could be bound by its terms. Prior to the Alleged Agreement’s production, the Company had no knowledge of its existence whatsoever. The Company has no record of entering into such an agreement and the Alleged Agreement does not carry the Company’s seal. In addition there are other inconsistencies in the Alleged Agreement and this has led the Board of Urals to conclude the Alleged Agreement is a forgery and an attempt by a third party to defraud the Company and, by extension, its shareholders.
The Company has appointed a Committee of the Board to undertake an enquiry and take all available legal steps to establish the origin of the Alleged Agreement and to recommend all appropriate actions necessary to defend the Company, including any possible legal action. The Alleged Agreement was passed to the Company’s Chairman, Mr Andrew Shrager, following a conversation between Mr. Shrager and a Moscow based investment banker who stated that he was acting as an intermediary on behalf of Mr. Maxim Barsky and Mr. Dmitry Bosov (the owner of Alltech and Pechora LNG among other ventures). In this conversation the investment banker stated that Mr. Barsky and Mr. Bosov had acquired the benefit of the Alleged Agreement and that they would publicise the existence of the Alleged Agreement unless the directors of the Company (with the exception of Mr. Ranta) stood down immediately. Similar threats were made to Mr. Leonid Dyachenko and Mr. Alexei Ogarev (both directors of the Company) in a meeting held over the weekend with Mr. Barsky and Mr. Bosov in Moscow. The Board believes that the most logical inference to draw from this sequence of events is that any disclosure of the Alleged Agreement, which, as stated above, the Board believes to be a forgery, would be intended to influence shareholders’ decision making in respect of the resolutions to be proposed at the EGM. The Board intends to investigate fully the Alleged Agreement and will not hesitate to take appropriate legal action against any parties associated with it, including making appropriate reports to the serious fraud authorities in all applicable jurisdictions. The Gloves are off! Ding! Ding!
Victoria Oil & Gas (LON: VOG)
Released a “Chairman’s Statement & Review of Operations” that started with “Dear Shareholders” a favoured opening gambit when things aren’t going well. I wrote to you on 10 October providing an update on many operational matters and whilst I may be repeating myself here, the update included some key messages that I believe are important enough to state again. This year has been a challenging one for Victoria and its shareholders. Like you, I am concerned about the low share price, which I believe grossly undervalues our business and does not reflect the Company’s achievements to date. In less than four years, our Company, backed only by its shareholders, has succeeded in drilling two complex wells, installing gas processing facilities for 20mmscf/d, laying 22km of pipeline and is selling gas and collecting revenue….. Of course there’s a little matter of the massive dilution that has occurred here over the last 4 years. No mention of this years 1,465,329,020 billion placing at 1.6p or the fact that there’s 4,348,552,329 billion shares in issue! Yawnnnnn if you want to read this in full click HERE
Gulf Keystone Petroleum (LON: GKP)
Nighthawk Energy (LON: HAWK)
Sound Oil (LON: SOU)
Victoria Oil & Gas (LON: VOG)
