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Guerilla Investing

Tag: Mediterranean Oil & Gas

  • The Smallcap Oil & Gas Round up.

    The Smallcap Oil & Gas round up!Lot of angst among UK Retail Investors this week over placings.

    When will these CEO’s learn to manage these highly dilutive events with integrity? Sneaking around the City of London with their finger against their lips saying sssshhh! Isn’t the way to behave. Take note David Lenigas!

    UKOG shot themselves in the foot this week!

     

     

    Caza Oil & Gas (LON: CAZA)
    Talk about over egging the pudding! Caza is pleased to announce another excellent result for the second 3rd Bone Spring well drilled on its West Copperline Property, and to provide an update on drilling activities at Gramma Ridge and Broadcaster properties, all of which are located in Lea County, New Mexico. Click here to read the full RNS

    Chariot Oil & Gas (LON: CHAR)
    The Atlantic margins focused oil and gas exploration company, is pleased to announce that, following the launch of a proposed placing on 21 July 2014, it has successfully placed 58,596,038 new Ordinary Shares at a price of 15 pence per share to raise gross proceeds of US$15 million (approx. £8.8 million). The Placing Proceeds will be (Pissed away again!) used to further the Company’s 2014/15 portfolio development activities, facilitate the acceleration and completion of its 3D seismic work commitment in Brazil and add an additional new venture opportunity in a current country of operation to increase option value and sustain the growth potential of its portfolio.

    Egdon Resources (LON: EDR)
    Has commenced drilling operations at the Wressle-1 conventional oil exploration well in Lincolnshire Licence PEDL180 located to the East of Scunthorpe. Drilling operations are expected to take around 38 days. The planned well will be drilled as a deviated well to a total depth of about 2,300 metres (ca. 1,850 metres TVDSS). It has been designed to intersect a number of prospective Upper Carboniferous age sandstone reservoirs in a structurally favourable position near the crest of the Wressle structure. The Prospect is located on trend with the producing Crosby Warren oil field and the Broughton-B1 oil discovery, both to the immediate northwest, and the Brigg-1 oil discovery to the immediate southeast. All contain oil in various different sandstone reservoirs within the Upper Carboniferous succession. The gross mean Prospective Resources at Wressle, as calculated by Egdon, are estimated to be 2.1 million barrels of oil. The interests in PEDL180 and the Wressle-1 well are: Egdon Resources 25.00% (Operator). Celtique Energie Petroleum 33.33% Europa Oil & Gas (LON: EOG)33.34%. Union Jack Oil (LON: UJO) 8.33%

    Empyrean Energy PLC  Empryrean Energy (LON: EME)
    If any one ever wanted to learn about some of the various ways underhanded Boards grant themselves massive options that make them millionaires then you only have to CLICK HERE!

    Faroe Petroleum (LON: FPM)
    Announces that production has recommenced at the Njord and Hyme fields (Faroe 7.5%) in the Norwegian Sea.

    Frontier Resources (LON: FRI)
    Released an operational update on its activities in Namibia, this week. Frontier’s Blocks 1717 and 1817, located in the Owambo Basin in northern Namibia, cover an area of approx. 18,933 square kilometres. Frontier are operator with a 90% working interest while NAMCOR, the Namibian National Oil Company, has a 10% carried interest in the licence. The Company recently retained the services of Earthfield Technology of Houston, Texas to undertake a study to evaluate the depth to magnetic basement of aeromagnetic data purchased from the Geological Survey of Namibia. As part of the study Werner Deconvolution depth profiles were generated every 2 kilometres across the Blocks. Werner Deconvolution is an automated function for determining the depth to magnetic rocks in the subsurface, including the basement, from carefully processed magnetic data.Mapping of the depth to basement solutions shows a deep basin with sediment thickness up to 10 kilometres (~33,000 feet) in the central and northern part of the licence area, and shallow basement overprinted with near surface volcanic intrusives in the southern part of the license area. Interpretation of the data has revealed several deep seated basement structures. The mapped positions of these structures will serve as a guide to optimally locate the focus areas of the continuing exploration program which will include an additional geochemical soil gas survey to be integrated with the encouraging results of the 2013 survey, followed by the acquisition of 2D seismic data.

    Ithaca Energy (LON: IAE)
    The Tullow Oil Norge AS Tullow operated exploration well 31/10-1 on the “Lupus” prospect in licence PL507 in the Norwegian North Sea did not encounter hydrocarbons. Just say it! ‘Plugged & Abandoned’ drillingoil

    Jubilant Energy (LON: JUB)
    Announced an upward revision in its Reserves, Contingent Resources and Prospective Resources for the Kharsang Field in Arunachal Pradesh. The Reserves and Resources Estimation for the Kharsang Field, prepared by Gaffney Cline & Associates (“GCA”) in June 2014, gives the update as of 30 September 2013. Click here to read it.

    Kea Petroleum (LON: KEA)
    Commenced drilling of the Puka-3 well using the Drill Force Rig 6. Puka-3 is targeting Mt Messenger formation sands at about 1,580m True Vertical Depth which have been interpreted from the recent 50 square km 3D seismic reflection survey carried out in the south western part of PEP 51153. The drilling of Puka-3, from the same well pad as the producing Puka-1 and Puka-2 wells, is the major component of Phase 1 of the farm-out agreement with MEO New Zealand Pty Limited.

    Leni Gas & Oil (LON: LGO)
    Well GY-667, the 4TH of its planned 30 new development wells at the Goudron Field in Trinidad, and the third well from this drill pad, has intersected 187 feet of net oil pay in the Goudron sandstones based on analysis of the electric logging. The well has now been cased to a depth 1,905 feet in order to isolate the Goudron Sandstone and the high pressure Upper Gros Morne gas intervals and is now drilling ahead to the primary Gros Morne Sandstone oil target which is expected at approximately 2,180 feet true-vertical depth. Well GY-667 has a planned total depth of 3,600 feet TVD which is equivalent to 3,840 feet measured depth at a bottom-hole location that is approximately 590 feet south east of the surface location. The well will also investigate the presence of reservoir potential of the Lower Cruse at this location. Once TD is reached the well will be logged and cased ready for completion as a production well. The fourth well from the current pad, GY-668, will be drilled immediately following the end of drilling operations on GY-667. Further information will be provided once the well has reached TD. Looking very good for a massive spike on production data from not 1 but 4 wells!

    Maple Energy plcMaple Energy (LON: MPLE)
    Has received an approach which may or may not lead to a cash offer to acquire the entire issued and to be issued share capital of the Company. Shareholders should note that the approach is highly conditional and preliminary in nature. Accordingly, no assurances can be given that a formal offer will be forthcoming or that any transaction will occur. Further announcements will be made as appropriate.

    Max Petroleum PLC Max Petroleum (LON: MXP)
    Announces that it is launching a review of strategic options open to the Company with the intention of maximising value for shareholders. (It’s firesale! Max are in debt up to their eyeballs and are more than likely to go bust!) The review of strategic options may include a corporate transaction such as a merger with, acquisition of or subscription for the Company’s securities by a third party, a sale of the business or a farm down or disposal of assets. Discussions in relation to a merger with a third party or a sale of the Company will take place within the context of a “formal sale process” in accordance with Note 2 on Rule 2.6 of the City Code on Takeovers and Mergers, such that the Board of Max Petroleum is able to have discussions with third parties interested in such a transaction on a confidential basis.

    Northern Petroleum (LON: NOP)
    The firesale has started at cash strapped NOP. They’ve signed a sale and purchase agreements to sell the Company’s interests in all of its UK licences and assets for £1.5 million to UK Oil & Gas (LON: UKOG). Completion of the sale is subject to the approval of UKOG becoming an operator for certain licences by the DECC and the completion of an intra group transfer of certain asset interests within Northern Petroleum on or before 31st October 2014. The UK assets and licences comprise the 10 & 5 five per cent minority interests in the Horndean and Avington producing fields respectively, 50% interests in the Markwells Wood and Baxters Copse discoveries, and a 65% interest in a licence offshore the Isle of Wight. Net production to the Company during 2013 averaged approximately 20 barrels of oil per day and contributed €591,000 of revenue and €345,000 of gross profit to the Company for the 12 months ended 31 December 2013. The book value of the UK assets in the consolidated accounts for the Group as at 31 December 2013 was €300,000 and stated proven and probable reserves were 60,000 barrels of oil. The consideration from the sale will be reinvested in Northern Petroleum’s production and redevelopment project in north west Alberta, Canada.

    Oilex (LON: OEX)
    Announced that following successful mill-out operations the Cambay-77H well has commenced controlled flow-back of frac fluids with light oil/condensate being recovered to surface and separated for sale along with associated reservoir gas. Gas associated with the well flow-back is currently being flared to ensure safety of all well-site personnel. After carefully monitoring well flow-back operations under controlled conditions Cambay-77H continues to exhibit characteristics of a high performance multistage frac’d horizontal well. The well is currently cleaning up and Oilex will advise the market of a stabilized flow rate via a production test once frac fluid return and clean-up operations have been completed. The recovery of ~API 50 light crude during flow-back operations has been particularly encouraging indicating higher than expected liquid hydrocarbon production. Measuring these liquids will provide valuable information regarding the quality of the 8 fracture stimulations and the deliverability of the reservoir.

    Rose Petroleum PLC Rose Petroleum (LON: ROSE)
    Director Richard Needham sold (flogged) 1,900,000 ordinary shares of 0.1 pence each in the Company at a price of 3.92 pence per Ordinary Share as part of restructuring his SIPP to allow a drawdown. (Pull the other one it’s got bells on!) Following this transaction, Richard Needham holds 2,096,666 Ordinary Shares in the Company representing 0.16% of the current issued share capital of the Company.

    Sirius Petroleum (LON: SRSP)
    Has conditionally raised gross proceeds of up to US$20,000,000 by way of a placing and a subscription. Conditional Placing of 63,530,215 Ordinary Shares and Subscription of up to 326,333,333 new Ordinary Shares, being an aggregate of up to 389,863,548 new Ordinary Shares at 3 pence per share to raise up to £11,695,906 (approx. US$20,000,000) before expenses.

    Sound Oil PLCSound Oil (LON: SOU)
    The Mediterranean focused upstream oil and gas company, announces the issue of shares in respect of the final equity tranche of the £14 million institutional funding first announced by the Company on 25 April 2014. The Company has issued a total of 64,287,500 new ordinary shares in the Company to Metano Capital S.A. The issue of the New Ordinary Shares represents the final of two tranches of the £7 million equity issue associated with the institutional funding. The remaining debt tranche, totaling a further £5.5 million, is expected to complete shortly. Application has been made for the 64,287,500 New Ordinary Shares to be admitted to trading on AIM and it is expected that dealings will commence on 28 July 2014. Following the issue of the New Ordinary Shares, the Company will have 415,300,815 ordinary shares in issue. As a result of the issue of the New Ordinary Shares, Metano Capital S.A., a wholly-owned subsidiary of Continental Investment Partners S.A., is now interested in 64,287,500 share or 15.48%. of the Company’s issued share capital. Marco Fumagalli, a director of the Company, is Managing Partner of, and a 25% shareholder in, Continental Investment Partners S.A. (Looking good here for some form of M+A in the not too distant future)

    United Kingdom Oil & Gas (LON: UKOG)
    Raised GBP2,000,000 before expenses by way of a Company arranged placing of 200,000,000 new ordinary shares of 0.01p each in the Company at a placing price of 1 pence per Placing Share to institutional and other investors. The proceeds of the Placing will be used to make further investments in accordance with the Company’s investing policy and provide further working capital. As announced yesterday, UKOG has conditionally agreed to acquire Northern Petroleum’s UK production and exploration oil and gas interests for a total consideration of GBP1.5 million. Following completion of the Placing the Company will no longer elect to issue the Consideration Shares but will satisfy the consideration wholly in cash. The Company will therefore have 1,293,230,175 Ordinary Shares in issue with voting rights and admitted to trading on AIM. This figure may be used by shareholders in the Company as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Service Authority’s Disclosure and Transparency Rules. David Lenigas, the Company’s Chairman commented: “The Placing significantly enhances the Company’s balance sheet and enables the Company to continue to pursue further investments in the conventional onshore and offshore oil and gas in the UK.”

    Urals Energy (LON: UEN)
    On 21 July 2014 the Moscow arbitration court dismissed the claim of UEN Cyprus Limited in respect of a case to recover the sum of US$41,652,000 from Urals Energy on jurisdictional grounds. The Claim was dismissed on jurisdictional grounds, it being between two Cypriot companies, the Board anticipates that it is likely that an appeal will be made and also that a new claim will be launched in Cyprus. Urals Energy reiterates that it does not believe that the copy of a purported debt repayment agreement received by the Company to be a genuine document, and therefore does not accept that the Company could be bound by its terms. The Board will continue to pursue all appropriate actions necessary to defend the Company, including possible legal action in all applicable jurisdictions. Further announcements on this on-going process will be made when appropriate.

  • The Smallcap Oil & Gas Round Up.

    The smallcap round up!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 Ltd. 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 plcNighthawk 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 PLC 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 PLCVictoria 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 Smallcap Oil & Gas round up.

    The Smallcap Oil & Gas round up.

    The famous, witty BMD smallcap oil & gas round up!
    The famous, BMD smallcap oil & gas round up!

    Amerisur Resources (LON: AMER)
    The oil and gas producer and explorer focused on South America, is pleased to announce an update on operations in Colombia and Paraguay. CLICK HERE

    Aminex (LON: AEX)
    Has signed a sale and purchase agreement for the sale of Aminex USA Inc. to Northcote Energy an AIM listed oil and gas company, and Springer Oil and Gas, a private company, for a total consideration of USD$5,000,000. Consideration from the sale of Aminex’s US portfolio of assets, which mainly comprise the Shoats Creek field in Louisiana and the Alta Loma field in Texas, will allow the Company to pay down part of its loan facility and provides further flexibility for working capital.

    Borders & Southern (LON: BOR)
    In April 2012 Borders & Southern made a significant gas condensate discovery with its first exploration well in the Falkland Islands. The discovery had a high condensate yield and a good quality reservoir. An initial scoping facilities study proposed an FPSO development, stripping out the liquids and re-injecting the gas back into the reservoir. Our phase 1 reservoir engineering study indicated that a mid case of 200 million barrels of liquids could be recovered from the discovery. Subsequent to this work, the Company has enhanced the seismic data with rock physics information derived from the Darwin East well and undertaken a more detailed phase 2 reservoir engineering study. Additionally, the 2008 seismic data has been reprocessed and merged with the new 2013 3D survey. Reprocessing of the 3D seismic has greatly improved the quality of the data. Resolution has been enhanced, amplitude mapping is sharper and fault definition has improved. This new data has confirmed our previous interpretation of the potential distribution of hydrocarbons over Darwin East and West. The phase 2 reservoir engineering study used a more detailed geological and petrophysical description of the reservoir, creating a 3D model in Petrel (The phase 1 study had used a simple layer cake model) and incorporated results from a laboratory revaporisation study and analysis from side wall cores. Our new base case model estimates a wet gas in place of 2.6 tcf and the recovered condensate of 263 million barrels. The increase in recovered condensate from our phase 1 model to the phase 2 model is attributed to improved net pore volume and an improvement in fluid recovery. New base case estimate of recoverable condensate of 263 million barrels is of course dependent on successful appraisal wells. However, this resource assessment only includes the reservoir interval encountered in the discovery well on Darwin East. Our seismic interpretation indicates that Darwin West is structurally higher than Darwin East and that two additional potential reservoir intervals below the main reservoir, each displaying amplitude conformance to structure, may be encountered. These additional potential reservoirs do not extend over the whole structure, but nevertheless could add further to the total recoverable resource depending on their thickness and quality.

    Doriemos (LON: DOR) United Kingdom Oil & Gas (LON: UKOG) Solo Oil (LON: SOLO)
    All three updated on the highly prospective Horse Hill prospect. Horse Hill Development Ltd, the operators of the Horse Hill Prospect in the Weald Basin near Gatwick Airport, have advised that site construction has now commenced for the proposed 8,512 feet Horse Hill-1 well. The well is expected to spud in July 2014 and is targeting a number of conventional stacked oil targets in Jurassic aged reservoirs and possible gas in the Triassic. After evaluating the Jurassic targets in the Portland sandstone, Corallian sandstone and Great Oolite limestone, the well is planned to be drilled to Triassic age formations in order to evaluate the potential, so far unexplored, for conventional gas within the Horse Hill structure.

    Falcon Oil & Gas (LON: FOG)
    Announces the appointment of Mr. Michael Gallagher as Chief Financial Officer (“CFO”) with immediate effect.

    Global Petroleum (LON: GBP)
    Tried to distance themselves from the Tower Resources (LON: TRP) duster this week. GBP noted the recent announcement by the partners in the Welwitschia-1A well of their decision to plug and abandon the well. The Welwitschia-1A well was drilled to a depth of 2,454m in Block 2011A, adjacent to Global’s Block 2010A in the Walvis Basin offshore northern Namibia. The Global technical management team wishes to make it clear that the geological setting of Global’s blocks 2010A and 1910B is distinct from that targeted by the partners in the Welwitschia-1A well. The great majority of the prospectivity in Global’s acreage is mapped in older sediments. These deeper structures were not reached by the Welwitschia-1A well. Therefore, the significant potential of these deeper traps and reservoirs remains to be tested. Don’t waste share-holder money. It’s a duster above and it’ will be a duster below.

    Gulfsands Petroleum (LON: GPX)
    Drilling operations within the Rharb Centre Permit in Northern Morocco using the COFOR SAS Cabot 750 rig have now recommenced with the drilling of the Lalla Yetou Updip-1 gas exploration well (“LTU-1”). The LTU-1 well location has been selected based upon interpretation of the Rharb 3D seismic survey data acquired by the Company during 2013. LTU-1 is designed to be drilled to a total vertical depth of approximately 1180 metres, and will evaluate predicted Miocene aged sandstone reservoirs contained within a fault bound structural closure that have been identified from 3D seismic data as having the potential to be gas bearing. LTU-1 is located up dip structurally from a previous well Lalla Yetou-3 that found gas bearing sands. The Company expects that drilling operations at LTU-1 will be completed within 28 days.

    Independent Resources (LON: IRG)
    Results for the fifteen months ended 31 December 2013. Click HERE to read.

    Leni Gas & Oil (LON: LGO)
    The third of its Goudron development wells, GY-666, was successfully spudded this week and is now drilling ahead. As with the previous two wells the third well in the planned 30 well redevelopment program is intended to test the Goudron, Gros Morne and Lower Cruse sandstones, all of which are known to be productive for oil in offset wells. The well is being drilled as a deviated hole with a maximum angle of 16 degrees from the same well pad as used for the recently drilled well GY-665. Well GY-665 will be completed as a Gros Morne producer once the Well Services Rig 20 is demobilized from the well pad. The reservoir pressure recorded at the Gros Morne in GY-665 is higher than that observed in the recently completed well GY-664 and this is likely to lead to improved production potential. Well GY-666 has a planned total depth of 3,700 feet true-vertical depth (“TVD”) (equivalent to 3,820 feet measured depth) to a bottom-hole location that is approximately 900 feet south-west of the surface location. The primary target of this well is the Gros Morne sandstones, the top of which are anticipated at a depth of approximately 2,100 feet TVD. Further announcements will be made once the main reservoir targets have been drilled.

    Mosman Oil & Gas (LON: MSMN)
    As predicted by YOURS TRULY! Wouldn’t you just know it? The third placing in a matter of months. MSMN raised circa £3,000,000 by way of the placing of 13,043,474 new ordinary shares in the capital of the Company at 23p per share.

    Nostra Terra Oil & Gas (LON: NTOG)
    The AIM quoted oil and gas producer with a growing portfolio of producing assets in the USA, announced results from two additional horizontal wells in the Chisholm Trail Prospect, located in Oklahoma. Click HERE TO READ IT. Click HERE to read todays RNS

    President Energy (LON: PPC)
    Has spud the Jacaranda 1 well, the first deep exploration well drilled in Paraguayan Chaco for almost 30 years. The Jacaranda prospect will test the potential double play system (Cretaceous and Palaeozoic) in the North West Flank of the Pirity Concession, Paraguay. The well is designed to drill multiple independent reservoir targets. Total gross mean prospective resources of 624 mmboe are being targeted. The well is anticipated to be drilled to a depth of 4200 metres and is expected to take approximately 70 days to drill. A further update will be given after reaching the targeted depth.

    Range Resources (LON: RRL)
    Rorys stories continued this week. A Trinidad Operations Update and Increase in Reserves. Click HERE

    Tethys Petroleum (LON: TPL)
    Following on from the recently announced Kazakh State Reserves Committee approval, today confirmed that it has received approval from the Ministry of Oil & Gas of the Republic of Kazakhstan for the extension its Kyzyloi Production Contract for a further 15 years to June 2029.

    Wentworth Resources (LON: WRL)
    Drilling operations have commenced on the Tembo-1 well in the Rovuma Onshore Concession in northern Mozambique. Wentworth has an 11.59% net interest in this well which is being operated by Anadarko and drilled with the Helmerich & Payne rig #243. The Tembo-1 well is targeting mid-Cretaceous sands with secondary targets in the upper Jurassic. Tembo-1 has a planned total depth of 4,250 meters True Vertical Depth Sub Sea and is expected to take between 60 and 90 days to complete. An update on drilling operations will be provided after drilling operations have been fully completed. To date there have been two wells drilled in the Rovuma Onshore Concession including the Mocimboa-1 well, which encountered oil and natural gas shows in the Cretaceous and is located approximately 17 kilometres to the northeast of the Tembo-1 well.

  • The Smallcap Oil & Gas Round Up.

    The Smallcap Oil & Gas Round Up.

    The famous, witty BMD smallcap oil & gas round up!
    The famous, witty BMD smallcap oil & gas round up!

    Another week has passed in the Smallcaps underverse. What a cracking week it’s been. Dominated by LGO, SOU, CAZA & NTOG. Oilers that have been highlighted over the last year or so as ones to watch. I’ve taken a shine to http://www.malcysblog.com/ good information/opinion  coming through. I interviewed David Lenigas this week Read it HERE.  What a funny guy! Told him to pack those fags in! Not sure he understood that one. Started rambling on about Hampstead Heath. I thought he was talking slang for “Teeth” told him to get his cavity drilled and filled. Double-entendres galore. Right that’s enough of that! Great write up this week. Enjoy it.

    Bowleven (LON: BLVN)
    Said this week that a significant milestone has been achieved in the development of the Etinde Permit. Following a Special Operating Committee Meeting, held between the Cameroon State and the Contractor (EurOil and its partner CAMOP) on 21 May 2014, a formal resolution confirming the State’s support and approval of the Etinde Exploitation Authorisation Application (EEAA) has been signed. The formal decree is expected to follow in due course.

    Caza Oil & Gas (LON: CAZA)
    Has drawn an advance of US$10,000,000 pursuant to its Note Purchase Agreement with Apollo Investment Corporation, an investment fund managed by Apollo Investment Management. With this advance, the Company has drawn an aggregate of US$45,000,000 from the facility, which contemplates Apollo purchasing up to US$50,000,000 of senior secured notes, subject to specified performance and financial requirements. The Company plans to use proceeds from this advance to fund development drilling at West Copperline, Gramma Ridge, Forehand Ranch, Marathon Road and Jazzmaster properties. Forehand Ranch development drilling will concentrate on the Cherry Canyon formation, while development drilling on the other properties will focus on the Bone Spring formation. Heavily tipped at 8p by one of my twitter followers @ABMckinley who just happens to be an offshore oilman. Knows his stuff does @ABMckinley.

    Faroe Petroleum (LON: FPM)
    Announced the spudding of the Centrica-operated Butch South West exploration well 8/10-6S (Faroe 15%). Butch South West, which is adjacent to the Company’s 2011 Butch discovery, is situated in approx. 65 metres water depth in the Norwegian North Sea, close to significant existing infrastructure with the giant Ula field approximately seven kilometres to the north-west, Tambar approximately ten kilometres to the south west and Gyda approximately 20 kilometres to the south. The significant Butch Main oil discovery (Faroe 15%) was made in late 2011 and contains a light crude oil in a high quality reservoir, the Upper Jurassic reservoir of the Ula formation. The Butch South West exploration well is located in a separate segment from both the Butch East well, the results of which were announced on 12 May 2014, and the Butch Main well. How many times do they need to keep using the word “Butch?”

    Independent Reources (LON: IRG)
    Are proposing to raise funds of up to £2.76 million (before expenses) by way of an equity fundraising of up to 91,903,213 New Ordinary Shares at an issue price of 3 pence per share, through the Placing and Open Offer.

    Leni Gas & Oil (LON: LGO)
    The champagne corks have been popping this week. What a week it’s been for LGO share-holders. Goudron oil production has kicked in at 240 bopd on a restricted choke. The well is flowing under its own pressure through a 7/32-inch choke at a wellhead pressure of 660 psi, without any water or sand production. While the 2nd development well, GY-665, in the 30 well drilling campaign, has already intersected approx. 310 feet of gross oil sand in the Goudron sandstones. Neil Ritson, LGO’s Chief Executive, commented: “This is a very significant outcome and I am sure it will be completely transformational for the field and the Company. As the first new production well on the field for over 30 years, GY-664 was drilled with an on-balance mud system and completed with modern tubing conveyed guns. The initial flow rate demonstrates the value of this approach; exceeding the historic averages four-fold. We fully expect many more similar results as the drilling campaign progresses and indeed well GY-665 is already showing consider able potential.” LGO also announced that it has completed the full Equity Swap Agreement with YA Global Master SPV, which has now agreed to provide a total of £1,407,404 in cash funding under the Placing and Equity Swap Arrangements of 23 December 2013. The swap has been terminated. Hooray!

    Mosman Oil & Gas (LON MSMN)
    Drilling has started (spudded) today, on the first of its three planned wells in the 2014 drilling programme, at its Petroleum Creek Project in New Zealand. On the first well, Cross Roads-1, Mosman plans to test Eight Mile and Cobden Limestone formations known to contain oil in offset wells. The well is being drilled vertically from a newly constructed well pad to an expected total depth of 400 m.

    Nostra Terra Oil & Gas (LON: NTOG)
    Released their Final Results for the year ended 31 December 2013. You can read them by clicking HERE

    Ophir Energy (LON: OPHR)
    Said the successful results of the Taachui-1 & subsequent Taachui-1 ST1 well in Block 1, Tanzania has resulted in a new gas discovery. Ophir holds 20% of Blocks 1, 3 and 4. BG Group operates with 60%. The Taachui-1 well was drilled by the Deepsea Metro I drillship close to the western boundary of Block 1. The well was sidetracked for operational reasons to complete as the Taachui-1 ST1 well and was drilled to a Total Depth of 4215mMD. The well encountered gas in a single gross column of 289m within the targeted Cretaceous reservoir interval. Net pay totalled 155m. Observed reservoir properties are in-line with those encountered at Mzia, the other Cretaceous-aged discovery on Block 1. Estimates for the mean recoverable resource from the discovery are c.1.0 TCF. The size of the gas column is such that the discovery could extend into a second compartment to the west which has the potential to be of a similar size. An appraisal well will be required to confirm this upside and is under consideration by the JV partners. A Drill Stem Test will now be performed on the Taachui discovery with results expected before the end of June.

    Petroceltic International (LON: PCI)
    More debt & dilution came this week from the Serial debtors/diluters as they yet again passed the hat around to the tune of $100,000,000 million dollars! Using the very same cock reasons as the last time and the time before that and… The bullshitters also released an operations update this week. Click HERE to read it.

    Petrel Resources (LON: PET)
    The board of the Company announces that the legal proceedings being pursued in the High Court in Accra, Ghana in relation to the Tano 2A exploration licence have been temporarily adjourned while discussions take place. Settlement?

    Providence Resources (LON: PVR)
    Presented 2 papers at an industry conference in Dublin this week. The company provided a general overview of its Irish portfolio as well as a technical paper on the Drombeg oil prospect. Copies of these presentations are now available for download from the company’s website, www.providenceresources.com

    Range Resources (LON: RRL)
    Released a Company update with the following highlights: As a result of the recent debt repayment, the total outstanding debt of the Company is forecast to reduce from $US10.5 million (as reported on 30 April 2014) to approximately GBP 75,000 by the end of June 2014. The Company’s equity interest in Citation Resources Limited (ASX: CTR) has reduced to 6.67%. Following this change, Range will have a direct and indirect interest of approximately 24% in the Guatemalan Project (previously 32%).

    Rockhopper Exploration (LON: RKH)
    Announced that a drilling unit has been contracted by Premier Oil to drill a minimum of four firm wells in the North Falkland Basin. RKH also released their finals today. Which can be read by clicking HERE

    Roxi Petroleum (LON: RXP)
    Updates the market with operational progress at its Galaz and BNG assets and released their final results which can be read by clicking HERE

    Tethys Petroleum (LON: TPL)
    Has completed drilling and logging of the AKK20 exploration well, the fourth well in its 2014 shallow gas drilling programme in Kazakhstan. The well was drilled to a depth of 681 metres with hydrocarbon shows and electric logs indicating the presence of hydrocarbons within the target Tasaran sand, although testing will be required on this well to confirm commerciality.

    Tower Resources (LON: TRP)
    The AIM-listed Africa-focussed oil and gas exploration company, announces the completion of its farm-in to Block 2B, onshore Kenya. Click HERE to read it!

    Union Jack Oil (LON: UJO)
    Announced a potential material unconventional shale oil and gas in place within the northern section of PEDL201, in which Union Jack holds a 10% interest. An independent technical review has been undertaken by Molten Limited. The results of this work indicate that the mean gross unrisked deterministic in place volumetric estimates approximate to 5.4 billion barrels of oil and over 2.7 trillion standard cubic feet (scf) of gas. The technical report, prepared by Molten, examines the shale resource potential of part of PEDL201 within the Widmerpool Gulf

  • The Smallcap Oil & Gas Round Up.

    Yep! It's a good one this week!
    Yep! It’s a good one this week!

    It’s been a very busy week in the Smallcaps Oil & Gas underverse. Lot of activity going on behind the scenes from ‘yours truly’ trying to source information. Had a great sauce in Italy that has now gone quiet. Suspect that they’ve been rumbled.

    Right let’s crack on.
    Argos Resources (LON: ARG) Released their financial results for the year ended 31 December 2013. Highlights included; $0.7 million invested in further exploration and evaluation activities $1.8 million loss from expensed overhead… $2.9 million cash reserves at 31 December 2013… New Competent Person’s Report published in July 2013 identifies significant increase in number of prospects and prospective resources… 52 prospects mapped with a Best Estimate of unrisked recoverable resource of 3.1 billion barrels of oil and an upside of 10.4 billion barrels… Several prospects similar to the adjacent Sea Lion oil discovery… 40 further leads identified… Independent basin modelling work confirms the presence of two source rocks mature for oil generation within the licence area… Progressing farmout discussions with interested parties… Preparing for shared drilling activity in 2015.

    Andes Energia (LON: AEN)
    Notes with interest the drilling activities of ExxonMobil in its Bajo del Choique area, which is in close proximity to the Company’s Corralera block. The Bajo del Choique x-2 well is reported to have been drilled to a total depth of about 4,570 metres, including 3,570 metres vertical with a 1000-metre lateral and to have flowed at an average rate of 770 barrels per day on a 4.7 millimetre choke. The Board also notes the recent Crown Point announcement that “it has drilled, logged, cased and rig released the La Hoyada x-1 exploration well as a potential Vaca Muerta oil discovery on the Cerro de los Leones Concession in the Neuquén Basin, Province of Mendoza, Argentina. The La Hoyada x-1 well was drilled to a total depth of 1,953 metres and encountered persistent oil and gas shows while drilling through the Vaca Muerta formation, which consisted of 125 metres of shale and 84 metres of imbedded fractured igneous intrusives.” This block lies close to the east border of Andes’s Malargue block and 40 km to the east of Andes’s La Brea block. The Board continues to see substantial prospectivity in the Company’s Vaca Muerta acreage, which is on trend with the reported flow rates from Exxon.

    Cadogan Petroleum (LON: CAD)
    Following the Company’s announcement dated 15 May 2014 stating that 3 new drillable prospects had been identified in Debeslavetska, the Company is pleased to report that a fourth drillable prospect, comprising 3 different levels down to a depth of approximately 350m, has since been identified. This fourth prospect has now been selected for drilling to commence at the end of September. Drilling is expected to take up to 10 days followed by testing and eventual completion approximately 3 weeks thereafter. Expected producible resources for this new prospect are in the range of 4 billion cubic feet.

    Caza Oil & Gas (LON: CAZA)
    It’s been a fantastic month for Caza share-holders. Well done.
    Another excellent result for the Company’s Bone Spring program with the initial test well on its Gramma Ridge Property in Lea County, New Mexico. read the full RNS HERE The Gramma Ridge 27 State #1H horizontal Bone Spring test well reached the intended total measured depth of approx. 15,496 feet in the 3rd Bone Spring Sand interval and was subsequently fracture stimulated beginning on May 13, 2014. Under controlled flowback the producing rates have steadily increased, and the well produced at a peak 24 hour gross rate of 830 barrels of oil & 4.63 million cubic feet of natural gas, which equates to 1,602 bbls of oil equivalent, on May 27, 2014. The well was producing on a 24/64ths adjustable choke at 2,390 pounds per square inch flowing casing pressure. Oil is already being sold, & the Company expects to have natural gas flowing to sales in the near future.

    Europa Oil & Gas (LON: EOG)
    Has been notified by Egdon Resources, the operator of Licence PEDL 180 in Lincolnshire that the Wressle-1 conventional exploration well on the Licence is expected to spud in July 2014, once construction of the drill site and rig mobilisation has been completed.

    Faroe Petroleum (LON: FPM)
    Announced completion of a successful initial side-track appraisal well on the Pil oil and gas discovery (Faroe 25%) in the Norwegian Sea. The Pil side-track well (6406/12-3 B), to appraise for additional hydrocarbons along the Pil structure and down-dip from the initial discovery well, has reached a total depth of 3,996 metres below sea level. The well has encountered oil in reservoir sands with a very high net to gross ratio. Preliminary data indicate a gross hydrocarbon-bearing reservoir section with approximately 80 metres of oil in the Upper Jurassic reservoir of the Rogn Formation. The oil-bearing interval in the side-track well was found to be at a similar pressure level to the oil bearing interval in the initial discovery well. As announced on 6 March 2014, the Pil discovery well (6406/12‐3S) encountered a gross hydrocarbon-bearing reservoir section with approximately 135 metres of oil and 91 metres of gas in the Upper Jurassic reservoir of the of the Rogn Formation. A subsequent drill stem test generated a stable flow rate of 6,710 bopd of 37° API oil from a 56/64″ choke, providing clear evidence of a prolific reservoir. A second side-track well is planned to commence in the coming days to test the separate Bue prospect, which has the potential to add further volumes to the Pil discovery. The Pil discovery is located within tie-back distance some 33 kilometres to the south east of the Njord platform in which the Company holds a 7.5% working interest.

    Leni Gas & Oil (LON: LGO)
    It’s all hands on deck for the man David Lenigas. Lot of back-ground noises. The Well Services Rig 20 has now been moved from the well GY-664 drill site and the Company’s application has been approved by Petrotrin for the completion and production of well GY-664. It’s anticipated that the well will be put on production by the end of this week. A total of 278 feet of oil pay has been selected in the Gros Morne formation for completion and production. The work-over rig Altech-2 is being moved into position to carry out the completion operations. The well will be perforated using tubing conveyed perforating guns at a shot density of six shots per foot. Completion is being performed with 11.2 pounds per gallon brine and will be at an underbalance at the formation of approximately 500 psi. LGO also announces that the second of its Goudron development wells, GY-665, was successfully spudded and is now drilling ahead. Good Luck LGO!

    Magnolia Petroleum (LON: MAGP)
    These RNS epistles must be costing a fortune. Rita maid meter updated us all on “its portfolio of interests in proven US onshore formations including the Bakken, North Dakota and Woodford and Mississippi Lime, Oklahoma. This update is in line with the Company’s strategy to rapidly build production through drilling and prove up the reserves on its leases.” If you want to read this guff Click HERE

    Mosman Oil & Gas (LON: MSMN)
    Confirmed the third well in its drilling programme, which will be named Crestal-2, located approximately 800 m south of Crestal-1. Mosman proposes to drill to basement estimated to be c 300m. It is located to the east of and close to several old wells drilled with oil shows and flows. The intention is to drill this well after Cross Roads-1 and Crestal-1 in June 2014. At Petroleum Creek, Drill Force equipment has now arrived on site and drill preparation continues for the commencement of drilling in the next 10 days. As part of its strategic planning, PCL has contracted to lease a 10 acre property adjacent to Crestal-2 location (with an option to purchase). The infrastructure located on the site will initially be used as office accommodation and the location used for storage. In addition, management are also in discussions regarding land access in relation to a contingent fourth well location. John W Barr, Executive Chairman of Mosman commented: “As we continue to build out the drilling programme at Petroleum Creek, we are delighted to confirm Crestal-2 as the third planned well and are working to firm up on a contingent fourth well as part of the broader development of this asset.”

    Ophir Energy (LON: OPHR)
    The Affanga Deep-1 well in the Gnondo Block offshore Gabon. Ophir has a 100%* operated interest in the Block. The well encountered thinner than expected sandstone sections with poor reservoir characteristics. Gas and indications of liquids were encountered during drilling but significant hydrocarbon shows were not encountered in the target formations. Say it! Say it! Duster!

    Max Petroleum (LON: MXP)
    The corporate option troughers have completed drilling the KZIE-3 appraisal well in the East Kyzylzhar I Field to a vertical depth of 1,315 metres without encountering sufficient hydrocarbons to be commercial and it will be plugged and abandoned. The Zhanros ZJ-30 rig will next move to the Zhana Makat Field to drill the ZMA-E7 development well.

    Petroceltic International (LON: PCI)
    Update on its operations in the Kurdistan Region of Iraq, Romania and Egypt. Click HERE

    President Energy (LON: PPC)
    Updated on the Pirity Concession and its drilling operations in Paraguay. Pirity Concession Farm-in. President has now achieved its full Participating Interest in the Pirity Concession pursuant to its farm-in, resulting in the Company now having a 59% beneficial Participating Interest. All 3 wells in the 2014 drilling programme are targeting prospects located within the Pirity Concession. Operational Progress. The drilling rig has now arrived at the Jacaranda well site, being the location for the first exploration well of the 2014 programme. Rigging up is in process with over 70% complete and, weather willing, it is anticipated that President will be able to announce spudding of the well within the next 14 days.

    Range announces (LON: RRL)
    Rories’ stories continued this week. The boy has issued yet more stock  (some for  debt) 67,666,667 and further to the previously announced (some for cash) US$12 million financing with Abraham Ltd the full Subscription proceeds of US$12 million have been received by the Company. Based on the applicable exchange rate for the first tranche of US$6 million, the Investor will subscribe for 356,188,780 Shares which will be issued on or around 28 May 2014 and admission to trading on AIM is expected on or around 6 June 2014. SHARE CONSOLIDATION ON THE WAY!

    San Leon (LON: SLE)
    Confirms that it is currently in discussions with a further two potential partners in relation to a possible farm-in for the Permian/SW Carboniferous Basin of Poland and expects to make further announcements once these discussions have been finalised.

    Sound Oil (LON: SOU)
    The Italian focused upstream oil and gas company, announced that civil works at the Casa Tiberi gas field are now complete, the production skid has arrived on site and the Company has secured all necessary permissions to install the skid and commence commissioning. James Parsons, Sound Oil’s Chief Executive Officer, commented: That freaking BMD has got spies every where! oops he actually said; “We are pleased to report continued operational progress in Italy and expect first gas from Casa Tiberi by the end of June.” Hooray!

    Tangiers Petroleum (LON: TPET)
    Has raised $4 million, before costs, through the placement of 25 million shares at 16c each to specified wholesale, institutional and sophisticated investors in Australia. (Not that sophisticated if they fell for the recent lies punted out via marketing) The raising is in addition to an initial $5 million share placement, also at 16c a share, announced by Tangiers earlier this month. At the time of the initial placement the Company had planned to raise up to $10 million. Cautious investor demand following Tangiers’ prolonged period of suspension from share market trading resulted in the Company raising only $5 million.

    TomCo Energy (LON: TOM)
    Released their interim results for the six months ended 31 March 2014. To read them. Click HERE

    Trapoil (LON: TRAP)
    The independent oil and gas exploration, appraisal and production company focused on the UK Continental Shelf (“UKCS”) region of the North Sea, is pleased to provide a corporate and operational update. Trap oil’s management is in the process of determining how best to create value from the group’s existing cash reserves and assets while minimising risk for shareholders. Following extensive discussions both with existing and potential new partners, the Company announces certain initiatives which it believes will significantly strengthen Trap oil’s position in the North Sea. Click HERE to read it.

  • The Smallcap Oil & Gas Round Up.

    The Smallcap Oil & Gas Round Up.

    The famous, witty BMD smallcap oil & gas round up!
    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.

  • The Smallcap Oil & Gas Round Up.

    The Smallcap Oil & Gas Round Up.

    Yep! It's a good one this week!
    Yep! It’s a good one this week!

    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!

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    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.

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