Tag: Mediterranean Oil & Gas

It’s been a very busy week in the smallcaps oil and gas underverse. It’s also been a busy week for myself fighting the good fight against the corporate hyenas. Have a good weekend and remember research, research and research some more. Tip of the week do not open a bank account in Cyprus!

Amerisur Resources (LON: AMER)
Updated on its operations in the Platanillo field, Colombia. Platanillo-1 ST1 sidetrack encountered a 22ft net pay interval in the U sand and produced 530 bopd in a controlled production test.. Platanillo-10 encountered 68 ft net pay in U and T sands.. Platanillo Field production currently at 4,700 bopd, constrained by pipeline and export facility availability. Total field production capacity estimated at 6,400 bopd.. Alea-1 ST1 sidetrack to commence shortly. Platanillo-10, the sixth well of the current Platanillo drilling programme and located on platform 5 South (5S) was deviated approximately 1,865ft north east of platform 5S. The well encountered an interval of 80ft Gross, 68ft net indicated pay in the U sand and T sand. As predicted by the geophysical model, the N sand was not well developed at this point. It is expected the well will be completed and placed on production during March. Platanillo-1, drilled in 2007, and not tested by the previous operator, ECOPETROL, was re-entered and was sidetracked to a location approximately 2,485ft to the east. The objective of this sidetrack was to further delineate the oil columns in the Platanillo reservoirs and potentially to provide a water injection facility for the field. This well, named Platanillo-1 ST1, encountered a 22ft net pay interval in the U sands, of which 7ft was perforated, producing 530 BOPD on test. The well has now been placed on commercial production. Platanillo field production continues to be constrained by local conditions. The Company has been active in developing new alternatives for oil delivery, and expects those options to allow a continued growth in production over the coming months. The Serinco D-10 drilling rig is currently being moved from the Platanillo-1 ST1 location to the Alea-1 location. It is planned to re-enter and sidetrack that well to a structurally more favourable position for oil production. Rig Latco-01 continues operations on Platanillo-10, after which it will be skidded to drill well Platanillo-11, the seventh new well of the current drilling programme on the same platform. Well done Amerisur. One to watchlist.

Enegi Oil (LON: ENEG)
Provided the following update on the Phoenix Block, UK North Sea, which contains the Phoenix oil discovery. Under the work programme, the Company is required to obtain 250km2 of 3D data processed to PSTM and PostSTM and Enegi has secured this data over the Block. The Company will now carry out in-house interpretation, subsurface analysis and reservoir modelling to determine the full range of recoverable reserves for the Phoenix discovery. The Phoenix oil discovery was discovered in 2004 by the Shell operated well 22/12a-10. Geologically, the discovery is a low – relief dip closed structure that lies on the Forties-Montrose High, located between the Nelson Field 16km to the northwest and the Montrose Field 12km to the southeast. The Phoenix reservoir is on trend with the Forties, Montrose and Nelson fields and has been proven to contain many similar properties to these fields, as well as the Arbroath and Arkwright fields which have been also identified as analogous to the Phoenix discovery. All of these analogues share the same Palaeocene sandstone formation and have produced light sweet crude with an API range of 38 – 42°. Recovery factors across the fields have ranged from 57% for the Forties field to 34% to the Arkwright field. Permeability and porosity levels across these fields are also considered to be very good leading to significant flow rates being achieved from these fields. The remaining acreage in the Block is also believed to contain a lead and a prospect known as “Lead A” and the “Manx Prospect”, respectively which are in the area covered by the agreement with Azimuth. A review of the Phoenix discovery by the Company prior to securing this data, has produced a preliminary minimum STOIIP estimate of 15MMBBL, based on a defined structural closure and the oil-water-contact (OWC) encountered by well 22/12a-10. The previous operator of the Block, indicated a STOIIP of up to 93.5MMBBL.

Europa Oil & Gas (LON: EOG)
Announced the commencement of 2D seismic acquisition on PEDL 181, East Lincolnshire

Fastnet (LON: FAST)
The listed E&P company focused on near term exploration acreage in the Celtic Sea and Morocco, as well as announcing that it has executed a seismic contract with CGG to acquire, using the SR/V Vantage, 1,710 sq. km. of 3D seismic in the Celtic Sea beginning in mid-April 2013. Invented a new word for inclusion into the Oxford English dictionary. “FARMINEES” The total value of the programme is up to US$18 million. The programme is likely to last for approximately 50 days, depending on weather and standby time. 510 Km2 of 3D seismic will first be acquired over the “Deep Kinsale Prospect” beneath the producing Kinsale Head gas field. Seismic operations will include an undershoot of the Kinsale Alpha and Bravo platforms, which are protected by a 500 meter safety exclusion zone. This will require, under the existing seismic contract, mobilising a second 3D seismic vessel for a short period of time during the acquisition of the data by the SR/V Vantage. The geological target will be the same reservoir section that has been successfully tested at Barryroe by the 48/24-10z appraisal well. 1,200 sq. km. of 3D seismic will then be acquired over Licensing Option 12/3 (“Mizzen”) and adjoining areas. Several large structures have been identified on existing 2D seismic data that are prospective for Triassic, Jurassic and Lower Cretaceous reservoir targets. The 3D seismic surveys are the largest ever to be undertaken in the Celtic Sea. There is flexibility to accommodate up to two additional contingent 3D seismic surveys over other acreage subject to the level of interest from potential farminees. A farm-out process has commenced and initial expressions of interest have already been received from a range of multi-nationals, mid-caps and small-caps. I tried to contact the company for a comment on their new word “FARMINEES” however NOONEEES was available.

Leyshon Resources (LON: LRL)
It’s been a good start to 2013 for Atherley’s LRL. As they announced this week that its wholly owned subsidiary, Pacific Asia Petroleum Limited (PAPL), will commence testing well ZJS6 this week. The flow testing of ZJS6 and immediately followed by the testing of ZJS5 is to determine whether commercial flow rates can be established from selected pay zones as part of the previously announced $20 million accelerated exploration and appraisal programme on the Zijinshan Gas Project, located on the eastern fringe of the prolific Ordos Gas Basin in Central China. Results will be reported as they come to hand with the initial results expected towards the end of the month. Both wells ZJS5 and ZJS6 are part of an initial programme designed to explore and test the potential for commercial gas production in a highly prospective and unexplored 380 km2 central depression area that appears to demonstrate good continuity with the neighbouring Sanjiaobei discovery.

Rita from Magnolia Petroleum (LON: MAGP)
The AIM quoted US onshore oil and gas exploration and production company reported an update on the Company’s commercial activities in proven US onshore formations including the Bakken/Three Forks Sanish, North Dakota and the Mississippi Lime and Woodford/Hunton formations in Oklahoma. Still no definitive bopd figures from Rita. Buyer beware?

Matra Petroleum (LON: MTA)
A piss poor RNS came this week from Maxim Barskiy’s MTA as the company announced the results of the seismic survey conducted on its 100% owned Sokolovskoe oil field in Orenburg, Russia. The survey included 100 kilometres of 2D seismic and 60 square kilometers of 3D seismic. Interpretation phase works enabled Matra to correctly determine the configuration of the target horizons and reduce uncertainty in the range of potential reserves: (All very well and good so far) Seismic results have determined the complexity of the field configuration compared to what was previously mapped as one big structure. The seismic data interpretation identified that the Aphoninsky reservoir of the Sokolovskoye field splits into four separate domes within the boundaries of the license area from south-west to north-east. Yes I like the sound of that but the link to the seismic map revealed what can best be described as a sickly depressing drawing http://www.rns-pdf.londonstockexchange.com/rns/2719A_-2013-3-18.pdf that wasn’t at all helpful.

Mediterranean Oil & Gas (LON: MOG)
Was “pleased” to announce that its subsidiary Medoilgas Italia SpA has signed a gas sales contract with Repower Italia SpA relating to the Company’s entire net gas production from the Guendalina gas field for a period of one year from 1 October 2013 until 30 September 2014. Repower has purchased all of the Company’s production from Guendalina since 1 April 2012 under an existing contract that is valid until 30 September 2013. I’m pleased to say “Yawn”

New World Oil & Gas (LON: NEW)
Said that the Danish Energy Authority, part of the Government of Denmark, has formally approved the assignment to New World’s wholly owned subsidiary, New World Resources ApS, a 25% working interest in Licence 1/08 of the Danica Resources Project in Denmark. Licence 1/08 is located in the productive Western Baltic region of the South Permian Basin in Southern Denmark, totalling 6,420 sq km. The assignment of 25% working interest to New World is in accordance with the Farm-Out Agreement announced on 17 April 2012 and follows the completion of Phase 1 of a 2-D seismic acquisition programme consisting of 166.44 sq km, and an additional 38.5 sq km 2-D seismic acquisition programme on two re-confirmed leads. Results from Phase 1 were incorporated into an updated Competent Person’s Report (released 22 January 2013) which confirmed the prospectivity of the drill-ready Als prospect with an estimated P50 un-risked prospective recoverable resources of 1.4 TCF & 97MMbo & NPV10 of US$2.4billion (unrisked). Additionally, four previously identified Zechstein leads were confirmed on Falster and Lolland Islands from the new seismic data on which a 38.5 km 2-D acquisition programme has recently been completed. “We are delighted to have now earned into a 25% working interest in both of our Danish projects. In tandem with increasing our interests in these three exciting licences, we are delivering on our strategy to systematically identify, delineate and de-risk multiple prospects to the point of drilling” Said New World CEO William Kelleher. Yes of course you are Willy. That’s why the sp is 2.9p down from the highs of 14p. Keep delivering nonsense in your RNS’s & we’ll keep highlighting them.

Northern Petroleum (LON: NOP)
A busy week on the RNS front for NOP with no less than 5 releases. Northern acquired additional leases over 4,000 acres increasing its aggregate holding of petroleum and natural gas mineral rights in Canada to 9,300 acres. These leases are all centred in one basin in Northern Alberta. To date they have produced a combined 11 million barrels of oil from an estimated 56 million barrels of oil originally in place, representing a recovery factor of approximately 20 per cent. The total acreage contains 37 abandoned wells, of which 19 have initially been identified by Northern as being capable of re-entry for further production. This area has multiple redevelopment opportunities for the existing high productivity reefs in the Keg River Formation as well as the Muskwa emerging unconventional shale play. A busy week on the RNS front for NOP with no less than 5 RNS’s released this week. Too much for the round up. You can access them all by clicking this LINK

PetroNeft Resources (LON: PTR)
Released an Operating Update this week. Highlights: Arbuzovskoye well 105 successfully completed.. Initial oil flow rate of 160 bopd, with no water production.. Successful workover restores production at Arbuzovskoye well 102 to 380 bopd.. Recent pressure testing of two Arbuzovskoye wells shows normal pressure decline.. Arbuzovskoye water source well completed, planned pressure maintenance to commence shortly. Timing and location of future Arbuzovskoye wells to be determined by response to pressure maintenance programme.. Total production increased to 2,800 bopd.

San Leon Energy (LON: SLE)
Signed a Memorandum of Understanding with Halliburton Company Germany GmBH Sp. Z.o.o. to develop a strategic relationship to jointly explore and develop the Carboniferous unconventional gas potential in San Leon’s Wschowa, Gora, and Rawicz Concessions (“the Concessions”) in Poland. San Leon will continue to serve as operator and manage the operations on the Concessions. All activities covered under this relationship will be limited to the Carboniferous and deeper sections. For clarity, the shallower Permian Rotliegendes and Main Dolomite sections are excluded from this relationship. Under the MOU, it is anticipated that Halliburton will perform and fund a Diagnostic Fracture Injection Test (“DFIT”) for the Siciny-2 well in Q2 2013. Upon completion of the DFIT, Halliburton will have the option to perform and fund a minimum two-stage vertical hydraulic fracture in the Siciny-2 well with San Leon paying 50% of the wholesale proppant (fracturing fluid) cost to Halliburton. This procedure is also planned for Q2 2013. San Leon will fund other third party costs on the well-site, such as security and waste disposal, in connection with the DFIT and fracture.

Serica Energy (LON: SQZ)
Trustees of the Serica Energy Share Incentive Plan have made purchases of and allocated Serica shares under the terms of the plan on behalf of employees and officers of the Company as a result of which certain directors increased their beneficial shareholdings in the Company by a total of 4,131 shares on 13 March 2013, as follows: Christopher Hearne (Finance Director) acquired 1,377 ordinary shares at an average price of 27.25 pence per share taking his total beneficial shareholding to 798,685 shares representing 0.44% of the voting rights; Peter Sadler (Business Development Director) acquired 1,377 ordinary shares at an average price of 27.25 pence per share taking his total beneficial shareholding to 190,225 shares representing 0.10% of the voting rights. Mitchell Flegg (Chief Operating Officer) acquired 1,377 ordinary shares at an average price of 27.25 pence per share taking his total beneficial shareholding to 106,872 shares representing 0.06% of the voting rights.

Solo Oil (LON: SOLO)
Confirmed that FirstEnergy Capital LLP, on behalf of Aminex plc and the Company, are continuing to hold discussions with a number of parties concerning a farm-out of the Company’s interests in the Ruvuma PSA in Tanzania. Further announcements will be made in due course. Participants in the Ruvuma PSA are: Ndovu Resources Ltd (Aminex) 75% (operator) and Solo Oil Plc 25%.

Sound Oil (LON: SOU)
It’s a great life for these companies that consolidate their shares then start all over again issuing stock. It’s like resetting the clock, I call it “Super Dilution” Sounds Open Offer to raise up to £1 million (before expenses) through the issue of up to 12,386,968 Open Offer Shares at 8.073 pence per New Ordinary Share. The Open Offer was not underwritten. The Company has received valid acceptances in respect of 605,662 Open Offer Shares from Eligible Shareholders. Application has been made to the London Stock Exchange for the Open Offer Shares, which rank pari passu with the Company’s issued Ordinary Shares, to be admitted to trading on AIM. It is expected that Admission will become effective and that dealings will commence at 8.00 a.m. on 25 March 2013. Following the issue of the Open Offer Shares, the Company will have 287,618,544 Ordinary Shares in issue. Let’s take a wild guess. More placing’s and super dilution over the coming 24 months?

Trapoil (LON: TRAP)
Concluded on the Magnolia (Licence P.1610, Block 13/23a) exploration prospect. The exploration well was drilled to its target depth of approximately 5,028 feet Measured Depth Below Rotary Table (“MDRT”) or 4,920 feet True Vertical Depth Sub Sea and as such has fulfilled the licence obligation. The well achieved its primary targets, being the Captain, Coracle and Punt sandstones within the Lower Cretaceous interval, however no significant hydrocarbons were encountered. Accordingly, there are no plans to conduct a drill stem test and the well is to be plugged and abandoned. So this well “achieved it’s primary target?” Really? George Orwell eat your heart out. News-speak is alive & well.

Valiant Petroleum (LON: VPP)
Announces its full year results for 2012. You can view by clicking HERE.

Zoltav Resources (LON: ZOL)
The company controlled by Kid (Arkadiy) Abramovich, the 19-year-old son of the Russian billionaire, has entered into an agreement to acquire the entire issued share capital and shareholder loans of CenGeo which, through its wholly owned subsidiary ZAO Siberian Geologicheskaya Kompanya (“SibGeCo”), holds the Koltogor Licence located in the Khantiy-Mansisk region of western Siberia. The Koltogor Licence contains the undeveloped Koltogor oil field. The Company has commissioned a competent person’s report to assess the volume of contingent resources; the results of which will be included in the Circular. The consideration payable for CenGeo is US$26 million to be satisfied entirely through the issue of 473,157,416 Zoltav shares at 3.5 pence per share. CenGeo is a private company of which Valentin Bukhtoyarov is the beneficial majority-owner. CenGeo recently acquired SibGeCo and successfully obtained a new 25 year exploration and production licence covering the Koltogor oil field. SibGeCo was previously owned by the Gazprom Neft Group. The Koltogor Licence was issued by the Russian Federal Agency for Subsoil Use (Rosnedra) on 15 February 2013. Further details in relation to the acquisition will be set out in the Circular which will be sent to shareholders in due course. Trading in the shares remains suspended. Like father like son. I expect he’ll do on the Chelsea Board soon enough! Got to admire this kid. 19 and running an oil company. Grovel! grovel, grovel…. Interview Arkadiy? You know how to contact me. Dead letter drop under Nelson’s column. Chalk an X.

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Afren (LON: AFR)
Updated on the on-going testing programme on the Hunt Oil Middle East operated Simrit-2 well, yielding incremental flow rates of 5,368 bopd, with a cumulative rate of 18,952 bopd from six of the 12 zones tested. Following the conclusion of drilling operations at the Simrit-2 well, located on the northern part of the Ain Sifni PSC, Kurdistan region of Iraq, the Partners have successfully completed three further DSTs in the Jurassic Mus, Adiayah and Butmah formations yielding incremental flow rates of 5,368 bopd of 21o API oil using the Hitech-3 rig. The Partners have now achieved aggregate flow rates of 18,952 bopd to date. Remaining testing operations will focus on Upper Jurassic and Cretaceous reservoirs.

Bahamas Petroleum (LON: BPC)
Good news came this week for BPC. The announcement made on 10 March by the Minister for Environment & Housing which sets out the decision of the Government of The Bahamas to defer any referendum on the future of oil development in The Bahamas until after the exploration drilling phase, allowing the Bahamian people the data from which to make an informed decision on the framework for energy industry activities. With its decision to proceed with exploratory drilling, the Government has demonstrated a responsible approach both to the industry and to potential future investors. Any subsequent referendum will only be conducted once the presence and scale of petroleum reserves is established. Future activities will take place in full compliance with all the environmental and safety regulations of The Bahamas. The Company supports the Government process to provide a modern framework to govern industry activities with revised and upgraded regulations consistent with international best practices.

Edge Resources (LON: EDG)
Has finished drilling the second well of the Company’s Spring drilling program in Primate, Saskatchewan. The well was successfully drilled and cased without incident and is now being prepared for production.

Bluebird Energy (LON: BBE)
Has placed 470m new ordinary shares with investors at a price of 0.4p per share, raising a total of £1.88m The net proceeds of the Placing will provide additional working capital as the Company proceeds with its strategy of diversifying into other business sectors which are perceived as offering better investor returns on net assets. James Ede-Golightly, Chairman, has invested £25,000 and Gordon Hall, senior non executive director, has invested £10,000 in the Placing. Independent director, Brian Marshall is not participating in the Placing and having consulted WH Ireland, the Company’s nominated adviser, considers that the directors’ participation is fair and reasonable insofar as the interests of shareholders are concerned. As Christine Keeler famously said, “Well they would say that wouldn’t they?” I need to “GoLightly” here!

GeoPark Holdings (LON: GPK)
Successfully drilled, tested and put into production two new wells – Yagan Norte 5 and Sauce 1 – in the Tobifera formation on the Fell Block in Chile. GeoPark operates and has a 100% working interest in the Fell Block. The Yagan Norte 5 well flowed at a rate of approximately 810 barrels of oil per day and 0.5 million standard cubic feet per day of gas through a choke of 10 millimetres, with a well head pressure of 585 pounds per square inch. Further production history will be required to determine stabilized flow rates. The Yagan Norte field was discovered in 2009 and has produced over 320,000 barrels of oil to date. GeoPark also re-entered the previously drilled Sauce 1 well and deepened the well by 65 metres to a new depth of 3,260 metres to test the Tobifera formation. An open-hole production test in the Tobifera formation flowed at a rate of approximately 220 bopd and 0.5 mmcfpd of gas through a choke of 8 mm, with a well head pressure of 780 psi. GeoPark is currently drilling the Yagan 3 well (in a field located south of Yagan Norte). Preliminary information indicates hydrocarbon-bearing zones in both the Springhill and Tobifera formations and testing will begin in March. The company has interests in six blocks in southern Chile where it is the first and only independent oil and gas producer. GeoPark also has interests in ten blocks in Colombia and three blocks in Argentina. During 2013, GeoPark will carry out a 35-45 well drilling program in Chile and Colombia – with a total expected work program investment of US$200-230 million. One to watch!

Ithaca Energy (LON; IAE)
Announced that it had averted open warfare this week. JEC Capital Partners, LLC and JEC II Associates, LLC and another shareholder of Ithaca have withdrawn their requisition to the board of directors calling a meeting of shareholders for the purposes of adding two new directors to the Board and that the pending proxy contest has been terminated. As a result, no special meeting of shareholders will occur on April 8, 2013. In addition, the Requisitioning Shareholders have agreed not to take any steps to oppose the previously announced acquisition of Valiant Petroleum by Ithaca. Ithaca and the Requisitioning Shareholders have entered into agreements with respect to the withdrawal of the requisition.

Leni Gas & Oil (LON: LGO)
Has entered into a non-binding Heads of Agreement with Maxim Resources. ( A TSX Venture Exchange listed company) regarding oilfield development opportunities in Trinidad and Tobago. On signature of the HOA, the Company will make an initial refundable payment of CDN$75,000 to Maxim. Subject to contract and due diligence, the HOA’s contemplate further payments totalling up to an aggregate of a maximum of CDN$2.425 million subject to performance milestones, in return for which LGO will receive approximately 30,000,000 shares in Maxim, representing a maximum of 49.99% of the issued share capital of Maxim. Upon successful negotiation and execution of definitive agreements with respect to the transactions contemplated in the HOA, LGO shall have the right to nominate two directors for election to Maxim’s board of directors at the next annual meeting of Maxim’s shareholders. Maxim is currently in litigation with Jasmin Oil and Gas Limited (“Jasmin”) concerning Maxim’s rights to a working interest and revenue from the South Erin Block in southern Trinidad. The South Erin Block contains the producing Jasmin Oilfield, and various other prospects and leads, under a farm-out agreement from the Petroleum Company of Trinidad and Tobago. Maxim originally invested over US$ 4.2 million in the drilling of additional wells in the Jasmin Field which has been producing for a number of years. Should Maxim gain effective control of the South Erin Block, LGO has agreed to provide CDN$5 million to a work program on the Jasmin Oilfield and shall earn a direct working interest of not less than 50% of the Jasmin Oilfield on terms to be agreed between the parties.

Max Petroleum (LON: MXP)
Reported that it has commenced drilling the ZMA-A22 development well in the Zhana Makat Field on Block E using Zhanros Drilling’s ZJ-20 rig. Total vertical depth of the well will be approximately 1,338 metres targeting Jurassic and Triassic reservoirs.

Nighthawk Energy (LON: HAWK)
Released a grandly titled “Smoky Hill Development Plans and Reserve Report” this week. Yawn!!!! You can read it by clicking Get the bopd numbers up. The company also released their Final Results

Northcote Energy (LON: NTC)
Released an operational update this week. Mucho too long with many points that need to be read in their entirety. You can read the OP by clicking what several “Sefton piss takers” emailed in this week: We Love You Brokerman Dan.  The phrase rather tickled me.

Nostra Terra Oil & Gas (LON; NTOG)
Has as part of its continuing development plan to build a portfolio of working interests in US oil fields, entered into an agreement with Brown and Borelli, an independent oil and gas company, to acquire a 5% WI in the High Plains Program, located in Texas. This agreement signals NTOG’s entry into an exploration program where “proof of concept” could lead to multiple future prospects, each of which in turn, will likely include multiple drilling locations. Yes Matt, all well & good, but what’s the daily Nostra bopd?

Range Resources (LON: RRL)
Released their half-yearly report today. You can read it by clicking Pull your finger out Landau

Salamander Energy (LON: SMDR)
Has reached agreement to farm-out a 30% interest in the Bangkanai Production Sharing Contract, Central Kalimantan, Indonesia to PT. Saka Energi Indonesia. On completion of the transaction, Salamander will have a 70% operated interest in the Bangkanai PSC, which contains the Kerendan field development and surrounding exploration. The company also announced that it has agreed an asset swap that will see the Group acquire the outstanding 15% interest in the Bangkanai PSC, Central Kalimantan taking its interest in the licence to 100%.

Trapoil (LON: TRAP)
Released news that it entered into a definitive sale and purchase agreement on 11 March 2013 in relation to the acquisition of an additional 45 per cent. working interest in Licence P.1556, Block 29/1c containing the Orchid oil discovery from Summit Petroleum Limited for a cash payment of £1.5 million.

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Busy week for the BMD site. Tip! News from Nostra?

 

Bowleven (LON: BLVN)
Following assessment of the IM-5 well data, including logs, fluid samples, revised depth conversion and structure mapping, Bowleven, the Africa focused oil and gas exploration group traded on AIM, is pleased to announce a substantial increase to the Isongo Marine field (IM) in-place hydrocarbon volumes. You can read the full RNS by clicking HERE

Bridge Energy (LON: BRDG)
Said today that, as a 20% licence partner in PL457 containing the Asha discovery, it has signed an agreement regarding the co-ordination and joint development of PL001B and PL457 Asha discovery. The Agreement establishes an approach towards unitisation of the discoveries, with this process expected to be concluded latest mid-2014. On the basis of this Agreement, the Asha discovery will form an integral part of the proposed Ivar Aasen field development going forward. The Agreement has been approved by all relevant licence holders and remains subject to execution by the parties, which is expected to be concluded imminently.

Cadogan Petroleum (LON: CAD)
Cadogan announces that the sum of just over US$21,000,000 (“Judgment Debt”), which was required to be paid by Monday 4 March 2013, has not yet been received. Cadogan is in discussions with Global Process Systems regarding both the Judgment Debt and the potential further damages payable by GPS to Cadogan and a further announcement will be made on this if and when appropriate. In the meantime, interest on the Judgment Debt will accrue at a rate of 8% per annum equivalent to approximately US$4,600 per day.

Edge Resources (LON: EDG)
Has spudded the second well of the Company’s spring drilling programme in Primate, Saskatchewan. This second well is targeting a new oil horizon approximately 50 meters shallower than previously targeted zones in the area. This shallower zone has produced abundantly in both Alberta and Saskatchewan. Edge will be utilising conventional, horizontal drilling techniques to enhance production and ultimate recovery from this new horizon. Because of the very high reservoir permeability, the well will not require any stimulation or fracturing techniques; thereby, minimizing capital requirements. Based on the Company’s extensive base of proprietary 3D seismic, this second well is a test into a proven reservoir that (i) is easily identified on 3D seismic, (ii) has previously produced noteworthy, commercial oil volumes from vertical wells less than one hundred meters away and (iii) has successfully produced more than 100,000 barrels of oil per well, when drilled by a major E&P company nearby utilising the same technique.

Egdon Resources (LON: EDR)
Said this week that it has reached agreement in respect of farm-outs in Petroleum Exploration and Development Licences PEDL253 and PEDL241 to Union Jack Oil plc. Additionally, Egdon and Union Jack have signed a Letter of Intent whereby Union Jack has been granted an option to acquire a 10% interest in the North Somercotes Prospect in PEDL005R and a further 5% interest in PEDL241 from Egdon. The transfer of interests is subject to approval by the Department of Energy and Climate Change.

Magnolia Petroleum (LON: MAGP)
Reports an update on its activities in proven US onshore formations including the Bakken/Three Forks Sanish, North Dakota and the Mississippi Lime in Oklahoma. You can read the report by clicking HERE. Suffice it to say still NO Production figures from Rita.

New World Oil & Gas (LON: NEW)
Said that the Danish Energy Authority, part of the Government of Denmark, has formally approved the assignment to New World’s wholly owned subsidiary, New World Jutland ApS, an additional 12.5% working interest in Licences 1/09 and 2/09 of the Danica Jutland Project. Accordingly, the Company’s working interest in Danica Jutland has increased to 25%.

Nostra Terra (LON: NTOG)
The feisty tiddler updated on the Richfield Oil & Gas Company Note. On 14 April 2011 Richfield (formerly Hewitt Energy Group, Inc.) issued to the Company a US$1.3 million secured loan note which has been accruing interest at 10% per annum from the date of issue and which matured on 31 January 2012. The Note is secured against certain producing leases located in Kansas and certain non-producing leases located in Utah. Nostra Terra has been operating some of the producing leases in Kansas during the foreclosure process. On 1 February 2012, Nostra Terra began foreclosing on the Note and a hearing took place on 1 March 2013 on Nostra Terra’s motion for partial summary judgment. The Motion went unopposed. The court has directed Nostra Terra’s counsel to prepare an order granting the Motion and granting judgment in favour of the Company on its claims, which is expected to be on file later this month. The judgment will award Nostra in excess of US$1,500,000 in principal and interest, plus an additional amount to be determined to cover the costs of collection. Well Done Matt.

President Energy (LON: PPC)
Released an update on its operations in Argentina. The Highlights of which were; Seismic reprocessing and interpretation completed… Significant undrilled highs identified in proven field areas… STOIIP up by 215% in the Pozo Escondido Field from 20MMB to 63 MMB… Validates management views of the material upside for oil recovery… Field operations for fracs due to commence shortly

Range Resources (LON: RRL)
Some much needed financial good news came today from Pete Landaus’ Range Resources. An update with respect to the Company’s Trinidad operations with the following highlights: Morne Diablo and South Quarry licenses extended for an additional ten year period; 3,000 acres added to the east of the existing Morne Diablo…license, extending current Lower Forest development trend while adding potential for other, deeper targets; Enhanced Royalty reduced from previous farm out agreements – net back increased to $40 / bbl based on 1,000 bopd increasing to $50 on 2,000 bopd; and Finalisation of US$35m Debt Financing Facility.

Roxi Petroleum (LON: RXP)
The Central Asian oil and gas company with a focus on Kazakhstan, updated the market with developments at its Galaz asset. Well NK-12 was spudded on 23 November 2012 at Roxi’s NW Konys asset (Galaz), where Roxi has a 34.22% interest. On 2 March 2013, testing commenced on Well NK-12 at an interval in the Cretaceous zone where oil flowed at a rate of 117 bopd using an 8mm choke. Clive Carver, Chairman, commented: “We are pleased to report another successful well at Galaz. Once NK-12 is fully operational we expect gross production from the Galaz Contract Area alone to be more than 1,400 bopd and gross production from all of Roxi’s assets to be 1,800 bopd with 870 bopd net to Roxi”.

Sefton Resources (LON: SER)
More misery came this week for holders of Sefton stock as the company further diluted their investors. Ellerton said “In order to maintain the momentum that has been gained at the Company’s Kansas operations, the Company has today raised a gross amount of £650,000 through a placing of 108,333,333 Common Shares at 0.6 pence per Common Share” Just what “Momentum” Ellertons’ talking about remains a mystery. The share price has cratered by over 99.7% since 2001. This placing brings up a 6000% dilution since the company listed in 2000. Horrific

Serica Energy (LON: SQZ)
Released news this week on the issue of tender documents for development of the North Sea Columbus field. The Field Development Plan provides for the supply of 51.3 million cubic feet of gas per day at peak to the UK gas market and 3,600 barrels per day of condensate and natural gas liquids (NGLs) with the recovery of proven and probable reserves estimated at 78 billion cubic feet of gas and 4.8 million barrels of condensate and NGLs. The company said that the planned development of the Columbus field was a significant step for Serica. Tender documents are being issued to pre-qualified contractors for the fabrication, installation and hook-up of subsea facilities and for the provision of associated subsea equipment and systems. Field development is scheduled to commence in 2H2013 with first production targeted for the summer of 2015.

Silvermere Energy (LON: SLME)
Confirms further progress on production and sales of oil and gas during February 2013 from the I-1 well on its Mustang Island 818-L Field. This is based on information provided by the Operator, Dominion Production Company LLC. Total production and sales of gas recorded during the month were 11,477,000 standard cubic feet, an increase of 32% month to month and total production of oil was 1,845 barrels, an increase of 4% month to month (1,912,068 scf and 308 barrels, respectively, net to Silvermere). The well was flowing for 73% of the time in February, representing a significant improvement on the previous month. Flow rates were restricted at times due to partial obstruction of the choke with drilling mud and debris as the well clean-up continued. When unrestricted by mud and debris, the well flowed at typical values of 700,000 scfpd and 155 bopd with a tubing head pressure of 2700 psi, in line with previous guidance. Oil produced during January and February has not yet reached the shore installation and sales meters due to slow flow rates in the 20″ line at the high pipeline operating pressure. The operator has advised that it intends to reduce pipeline operating pressure to increase flow velocities in the pipeline and thereby to deliver first oil sales. Silvermere owns a 16.66% working interest in the I-1 well and a 33.33% working interest in future wells on the leases.

Solo Oil (LON: SOLO)
Raised £1.0 million gross proceeds through the issue of 200 million new ordinary shares of 0.01p each in the Company at a price of 0.5 pence per share to institutional investors.

Spitfire Oil (LON: SRO)
Publish its unaudited interim results for the six months ended 31st December 2012. Spitfire and its subsidiaries recorded a loss before tax for the six months ended 31st December 2012 of A$182,907 (2011: A$211,889). With cash balances of A$7.2m, the Group has benefited from interest receipts of A$122,584 (2011 A$180,660) in the period. Operating costs have been reduced to A$305,491 (2011 A$392,549) with action taken during the period to further reduce costs, including a reduction in directors’ fees. Nice to see some integrity here.

TomCo Energy PLC (LON: TOM)
The oil shale exploration and development company focused on using innovative technology to unlock unconventional hydrocarbon resources, raised £1.781 million before expenses through a share placing by Fox-Davies Capital Limited, conditional on admission, of 148,406,526 new ordinary shares of 0.5 pence each at a price of 1.2 pence per share. The Placing was supported by a number of new financial institutions as well as other existing shareholders, including Altima Global Special Situations Master Fund Ltd. The proceeds from the Placing are to be used by TomCo for advancing permitting required for commercial production at the Company’s Holliday project, and for general working capital purposes.

Tower Resources (LON: TRP)
Announced that Andrew Matharu is joining the Company as Vice President Corporate Affairs on 11 March 2013. Andrew, 43, joins from Westhouse Securities, where he was Head of Oil & Gas and focussed on the small and mid-cap E&P sector. He has over 17 years’ experience in the oil and gas sector and commenced his career as a Petroleum Engineer with Chevron and Kerr-McGee.

Valiant Petroleum (LON: VPP)
Has signed a farm-out agreement with Maersk Oil North Sea UK Limited with regard to its Isabella prospect located in the UK Central North Sea Blocks 30/6b, 30/11a & 30/12d (P1820). Under the terms of the agreement, Valiant’s well costs will be partially carried by Maersk Oil UK subject to a cap on the promoted costs. Maersk Oil UK will also refund to Valiant certain historic costs associated with the licence at its working interest. Following completion, Valiant’s stake will reduce to 20% from its current 50% interest. The transaction remains subject to DECC consent. Isabella is a gas condensate prospect located on one of the largest undrilled fault blocks in the UK Central North Sea with prospectivity across multiple geological horizons.

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It’s been a fantastic week for the BMD blog with lots of press interest. On the Oil front there’s been a busy week. So read on & enjoy The Famous Smallcap Oil & Gas Round Up!

3Legs Resources (LON: 3LEG)
There’s a revolt on at 3Legs as the company confirmed that it has received a notice from Singer Nominees Limited requisitioning a meeting of the Company’s shareholders. The Requisition proposes a number of ordinary resolutions which include, the removal of the majority of the board of directors (being all of the directors except for Kamlesh Parmar and Richard Hills); the appointment of certain new directors to the board being Brett Lance Miller and Rhys Cathan Davies and the proposal that the company adopt a new investment strategy. On the basis that this Requisition is not withdrawn, the Company intends to post, in due course, a notice to all shareholders convening a general meeting. Shareholders should take no action at this point; rather they should await receipt of the notice from the company convening the general meeting and full details of the resolutions being proposed.

Borders & Southern (LON: BOR),
Provided an update on its activities in the South Falkland Basin. The PGS vessel Ramform Challenger has commenced the Company’s 3D seismic programme, located approximately 140 kilometres south of the Falkland Islands. Covering an area in excess of 1,000 square kilometres, the survey is situated in Quad 61, adjacent to the Company’s 2007/2008 3D survey. It is anticipated that acquisition will take approx’ six weeks to complete. The 3D programme has been designed to evaluate a number of fault/dip closed structures similar to the Darwin discovery, tracking the high quality shallow marine sands that comprise the Darwin reservoir. Additional objectives are to further investigate the Early Cretaceous slope fan system and to identify new prospects in areas where current data coverage is low.

Edge Resources (LON: EDG)
Released its unaudited third quarter results for the three month period ended 31 December 2012 (“Q3 2012”) and for the nine months ended 31 December 2012. You can read it HERE

Faroe Petroleum (LON: FPM)
Has acquired a 25% interest in the Pil prospect in the Norwegian Sea and a 50% interest in the Lowlander discovery in the UK Central North Sea. The Pil prospect is located within tie-back distance to the producing Njord field in which Faroe holds a 7.5% interest and an exploration well is scheduled to be drilled in the first half of 2014. The Lowlander deal involves an agreement with Talisman Sinopec for Faroe to acquire a 50% interest in UK Licence P.324, block 14/20c containing the Lowlander oil discovery. Lowlander has similar characteristics to Faroe’s Perth Field and the planned work programme will include a joint Perth/Lowlander development study.

Gulf Keystone Petroleum (LON: GKP)
It’s fill your boots time yet again at GKP. As the company announced that it had resolved to issue, in aggregate, 7,125,837 new common shares of USD 0.01 to Directors, employees and former employees in respect of awards due pursuant to and in accordance with the terms of the Company’s 2010 and 2011 Executive Bonus Schemes.

New Zealand based oil and gas explorer Kea Petroleum (LON: KEA) reported that drilling work was once again under way at its Mauku 1 well, which was part-drilled and temporarily suspended in January. Half the cost of the well is being funded by Kea’s off-take partner Methanex but the oil junior still holds a 100% interest in the well despite “multiple parties” expressing an interest in participating. On a P50 basis the Mauku prospect addresses a gross mean prospective recoverable resource of 485 BCF of gas and 27 million barrels of associated liquids.

Lochard Energy (LON: LHD)
Released interims this week. In the first half to 31 December 2012, Lochard Energy has paid the final instalment of a $9 million litigation settlement agreement with Senergy, let the Thunderball licence lapse as an industry partner could not be found to participate in a £16 million exploration well, paid off $10.5 million of a $28 million loan from Gemini for the Athena field development and expects to repay a $1.1 million drawdown from the Henderson funding facility by the end of June. The Gemini loan, which is non recourse and tied to Athena production, gets repaid at a rate of 50% of gross production revenues until the first $13.5 million is repaid and then the rate drops down to 20%. Lochard expects this drop to happen in May. Lochard has a 10% interest in the Athena field.

Mediterranean Oil & Gas (LON: MOG)
Said it has successfully completed the sale of 75% of MOG’s shareholding in its wholly owned subsidiary, Phoenicia Energy Company Ltd to Genel Energy plc. PECL owns the rights to exploration activity in Malta Offshore Area 4. Under the terms of the sale agreement Genel has acquired MOG’s 75% interest for the following consideration: An immediate cash payment of US$10 million; 100% carry of the cost for the first exploration well Hagar Qim 1, planned to be drilled to a minimum depth of 2,500 metres; 100% carry of the cost for the second exploration well up to a maximum of US$30 million gross expenditure; At MOG’s option, should the costs of the second well exceed US$30 million, Genel will provide a financing arrangement to fund MOG’s 25% share of any additional expenditure, at an interest rate equivalent to 3 Month Libor plus 400 bps.

New World Oil & Gas (LON: NEW)
Has formally received a 75% working interest in its Blue Creek Project in the producing Petén Basin in Northwest Belize. This follows the Belize Ministry of Natural Resources and the Environment formally approving the assignment of a further 40% working interest in the project to New World. Having drilled two wells to date in Belize, the Blue Creek #2 and #2A ST, under the terms of the company’s farm-out agreement, it is on track to earn-in to a 100% working interest in the project by drilling the West Gallon Jug Crest prospect, which is expected to begin in March 2013.

Sefton Resources (LON: SER)
Can it get any worse at Sefton Resources? In a statement to the London Stock Exchange this week Sefton said it had initiated legal proceedings against Tom Winnifrith and our man Daniel Levi (Broker Man Daniel) for libel in the Queen’s Bench Division of the High Court of Justice. The action from Sefton follows publication of articles by both Tom Winnifrith and Daniel Levi on their websites attacking both the company and its Chairman Jim Ellerton. The chaps have respectively accused the company of Lies and Fraud. The Sefton SP currently stands at 0.9p of a penny. Some weeks ago Winnifrith and Levi upon receipt of “lawyers letters”, published articles inviting Sefton to bring the threatened legal action. Daniel Levi responded by widening his AIM Regulation formal complaint of Fraud by publishing an open letter to the Financial Services Authority. Whilst commenting “I relish the opportunity to finally be in a position to put the whole cast (Past & present) of Sefton and their 13 year claims of bringing value to share-holders before a UK Jury for Fraud. For 13 years Ellerton has reigned supreme banking millions upon millions of dollars in pay, expenses, consultancy fees, share options and pension pot payments. Why has this man who has delivered total abject failure for 13 years been allowed to carry on unchecked fleecing UK Investors? Ellerton has become a multi-millionaire while UK Investors have been taken to the cleaners. This will all be put before A UK Jury of our peers. It is a fight to the death. No quarter will be given. Strong stuff from our man Dan.

Victoria Oil & Gas (LON: VOG)
The AIM quoted emerging markets natural gas utility and production company with assets in Africa and the Former Soviet Union released their unaudited interim results for the six months ended 30 November 2012. Mucho too long for the Smallcap round up. Click the link to read them HERE

Ruspetro (LSE: RPO)
Has encountered further difficulties in its attempts to increase production in Siberia. In early January, Ruspetro, which has assets located in the Khanty-Mansiysk region of the West Siberian basin, said that during the second half of 2012, it re-focused its drilling efforts towards the condensate rich Palyanovo region of its acreage. Despite prolific wells, a sharply higher than expected gas-oil ratio with the associated challenges of temperature management led to technical challenges in stabilising the condensate from the hydrocarbons being produced. Ruspetro said that it planned to bring on-line a heat exchange system during February in the Palyanovo gas & gas-condensate field with the aim of boosting condensate production towards 4,000 bpd. The heat exchange system has now been commissioned and has reduced the temperature of the hydrocarbon stream to a target level of 40 degrees Celsius. The wells that have recently come on line have had lower than expected flow rates and condensate yields and the company no longer expects to achieve the 4,000 barrels per day of condensate production in February. Condensate production actually currently stands at 1,450 bpd, with most of this production continuing to come from established wells.

Sound Oil (LON: SOU)
Releas news of a revised drilling programme for its projects in Italy. The exploration group said it was deferring plans to drill at Strombone in preference for a planned second well on the as yet undrilled Nervesa project and a development well at Laura. Sound Oil said it was also planning to drill the potentially large and 100% held Badille project on its own as well as a second material prospect called Zibido. Sound also announced the signature of an asset swap agreement with Compagnia Generale Idrocarburi SpA. Prior to the transaction CGI and Sound Oil each held a 50% equity position in four assets: two awarded licences (Villa Gigli and Colle Ginestre) and two outstanding applications (Posta del Giudice and Il Convento). The terms of this transaction are that Sound Oil increases its equity position to 100% in Posta del Giudice and Villa Gigli in exchange for eliminating any equity interest in Il Convento and Colle Ginestre. No cash payment is involved in the transaction.

Tethys Petroleum (LON: TPL)
Announced that the Ministry of Oil and Gas of the Republic of Kazakhstan (“MOG”) has agreed to extend the Exploration Period for the Company’s Kul-Bas Exploration and Production Contract by a further two years until November 11, 2015. The Kul-Bas contract area (which currently covers an area of 7,632 km2 (1.9 million acres)) surrounds the Akkulka contract area which contains the Company’s producing oil and gas fields. This extension gives Tethys further time to explore this attractive area which has several prospects and leads and with a proved commercial oil and gas system in the Akkulka block. In addition the Kul-Bas block contains the KBD01 (Kalypso) well which is awaiting testing later this year after having encountered several intervals with hydrocarbon indications.

Wessex Exploration (LON: WSX)
Announced its unaudited interim results for the half year ended 31 December 2012. The highlights? In Guyane, drilling activities continue on GM-ES-3 (Priodontes)…. Extensive 3-D seismic programme to the southeast and northwest of the Cingulata fan system in Guyane is complete and processing/interpretation underway… Regional review of petroleum systems in Juan de Nova has commenced… Cash position at 31 December 2012 was £7.9m… Appointment of Iain Patrick as non-executive director in February 2013. Commenting on the results, Malcolm Butler (Chairman of Wessex) said… I should have took the 10p offer! Ooops my mistake he actually said “There has been substantial activity in Guyane over recent months with the spudding of Priodontes (GM-ES-3) and the completion of the 3-D seismic programme over the remainder of the potential turbidite fan complexes. Over the coming year, we intend to focus our financial resources on the Guyane asset in order to participate fully in the calendar 2013 drilling campaign.”

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Quiet week in the Smallcaps oil underverse.

Bowleven (LON:BLVN)
Are preparing to test the IM-5 well offshore Cameroon after it encountered liquids-rich hydrocarbon-bearing pay in the Middle and the Intra Isongo targets. The well was designed to appraise the reservoir and fluid properties of the Middle Isongo and to explore the additional potential of the Intra Isongo. In the Middle Isongo, the well intersected a log evaluated gross hydrocarbon interval of approx’ 33 metres. The net pay is estimated to be approx’ 25 metres. Log evaluation indicates that a HWC has been encountered at approx’ 3,360 metres MD, extending and deepening the hydrocarbon column encountered at the IM-3 well by 93 metres. A further 20 metres of reservoir quality sands were encountered beneath the HWC and the well was still in sand at TD. The Intra Isongo discovery intersected a log evaluated gross hydrocarbon interval of approximately 80 metres in reservoir sands which correspond to the seismic event identified pre-drill. The net pay is estimated to be approximately 70 metres. Updated volumetrics for the Middle and Intra Isongo will be generated following completion of the well and the integration and evaluation of well and seismic data. Based on preliminary analysis an increase in both the P90 and P50 volumes is anticipated.

Cadogan Petroleum (LON:CAD)
Announced the re-evaluation of its assets should be complete within the next three months. Cadogan said that the deep and challenging exploration targets in the Eastern Lower Carboniferous play were unsuccessful since the discovered reservoirs lacked adequate petrophysical properties for successful production. In Pokrovska, seismic reprocessing has helped to identify three shallow depth prospects, two mid-depth prospects and 3 deep prospects. In West Ukraine, three shallow depth leads have also been identified within the Debeslavetska licence. While it awaits the results of the asset review Cadogan has undertaken marginal, low risk and low capex activities to enhance production and support the incremental provision of information to the Company’s asset review. On the Monastereska licence in Western Ukraine a sucker rod pump was installed in the Blazhiv 1 well, which is showing positive results. The re-entry of another two existing wells is under evaluation. An intervention in the Borynya 3 well (Bitlyanska), in order to perform a long production test on the shallower reservoirs (interval from 2,000 m down to 3,200 m) and eventually start-up early production, is ongoing. This program is due to commence by mid-2013. In Zag 3 an intervention to open the V19 level to production will be concluded by the end of February. An extension of the upper V18 interval was also performed. InSAR technology (radar wave measurements from satellites) may be deployed to monitor shallow gas fields’ depletion through time with the first test likely to be in the Debeslavetska area. The company also expects to apply micro-seismic technology to the Bitlyanska area to further evaluate future gas production and its relative impact in the area.

Chariot Oil & Gas (LON:CHAR)
Disappointed the market with news that there won’t be any drilling until 2014 at the earliest and that the Tapir trend has been dropped from the Namibian prospect inventory. In its interims last September there were indications that the company would have another crack at drilling offshore Namibia this year. However, new CEO Larry Bottomley has insisted that the mass of data derived from a handful of unsuccessful wells last year means the company needs more time to de-risk potential drilling locations. Partner programmes for exploration wells in Namibia are being launched this year while wells on Chariot’s assets in Mauritania and Morocco will wait until 2015 and 2016 respectively.Chariot has $68.3 million cash and said that all contractual licence commitments are fully funded through to the end of 2014.

Circle Oil (LON:COP)
Plans to drill six wells in Morocco, four wells in Egypt and two in Tunisia

Enegi Oil (LON:ENEG)
Has applied to the Irish Government to convert its licensing option in the Clare Basin to a full exploration licence ahead of plans for further work to prove up a resource that it currently estimated to contain 3.62 trillion cubic feet of free gas initially in place.

Fastnet Oil & Gas (LON:FAST)
Has agreed an exclusive option with PSE Kinsale Energy Limited to farm into the ‘Deep Kinsale Prospect’ beneath the producing Kinsale Head gas field. The deal involves acquiring a minimum of 500 sq km 3D seismic in 2013 with the potential to drill in 2014 to earn a 60% working interest subject to back-in rights. Click HERE to view.

Jubilant Energy (LON: JUB)
Announces the spudding of well KPL-3E-7 on 18 February 2013. This is the first of the planned six well Phase-III-Extension development drilling campaign in the oil producing Kharsang Field, Arunachal Pradesh. The Phase-III-Extension campaign was approved by the Management Committee of the Kharsang Field in January, 2013 after the conclusion of a successful seven well Phase-III drilling campaign undertaken between July, 2011 and August, 2012. Six of the seven wells in the Phase-III campaign have been put into production and currently contribute approximately 700 barrels of oil per day. One further well tested positively for gas and has been held for future gas production, as it is commercially viable.

Europa Oil & Gas (LON: EOG)
Released a First Half Production and Revenues rns this week. UK production and revenues generated during the six month period ending 31 January 2013 is in line with expectations. The Company currently has three producing assets in the UK, all located onshore in the East Midlands, with a 100% working interest in the West Firsby and Crosby Warren fields and a 65% working interest in the Whisby 4 well.

Gulf Keystone Petroleum (LON:GKP)
Announced that its Bakrman-1 well on the Akri-Bijeel Block in Kurdistan had made a new Triassic discovery. Bakrman-1 is the company’s first exploration well to target the Bakrman structure and represents the second discovery on the block following the Bijell discovery in 2010. The latest well took nine months to drill, with testing work expected to be completed in April. The company also updated on its ongoing court litigation with Excalibur Ventures which is due to finish later this month or early March. However, because of the size of the case, completion of the judgment may take in excess of three months. In the meantime, Excalibur has been ordered to make additional payments totalling £4.7 million within 21 days as additional security for the costs of Gulf Keystone and two of its subsidiaries of defending the legal action.

Lochard Energy (LON: LHD)
Advises that the letter to all CDI holders regarding the delisting process on ASX has been despatched today.

Max Petroleum (LON:MAX)
Said its ZMA-A20 development well in the Zhana Makat Field had encountered hydrocarbons in Necomian and Jurassic sandstone reservoirs in line with expectations. The company plans to complete the well and put it on production as soon as possible.

Mediterranean Oil & Gas (LON: MOG)
Noted the official website of the Italian Ministry of Environment indicating that the EIA Commission, charged by the Ministry to rule on the Ombrina Mare oil and gas field development EIA, has ruled positively in favour of MOG’s submission. This represents a significant step towards the final approval, by Ministerial Decree, of the Ombrina Mare EIA that was submitted by the Company in support of the application for the award of a Production Concession in 2009. Award of the Production Concession will enable the Company to progress the development of the Ombrina Mare oil and gas field, which will start with the drilling of a pilot development well.

Northcote Energy (LON:NCT)
Has reported that fracking work on its Horizon project is due to start within weeks. It has also elected to participate in the deepening of the Burkhart #1 well on the project acreage, which will give it exposure to additional potential pay zones. Northcote has also acquired a 3.125% working interest in the Bird Creek Prospect in Osage County, where two wells are scheduled to drill in the first half of 2013.

Range Resources (LON:RRL)
Have agreed outline terms on a coalbed methane deal in Georgia. Following a disappointing drilling programme in 2011 and 2012, the partners reviewed the licence interests and opted to explore low cost shallow appraisal drilling of the contingent resources around the Tkibuli-Shaori coal deposit. The latest move will see the partners launch a JV with a new partner called the Georgian Industrial Group. The new venture will start with feasibility and technical studies, followed by an initial three or four well pilot project.

Regal Petroleum (LON: RPT)
Announced the spudding this week, of the SV-59 well at its 100% owned and operated Mekhediviska-Golotvshinska (MEX-GOL) and Svyrydivske (SV) gas and condensate fields in Ukraine. The well has a target depth of 5,470 metres, with drilling operations scheduled to be completed in December 2013 and, subject to successful testing, production hook-up by the end of the first quarter of 2014. The well is targeting the Visean reservoirs (“B-Sands”).

Sound Oil (LON:SOU)
Confirmed this week that a recent farm-in offer for its Badile prospect had come from an Italian oil and gas major. However, the company has rejected the proposed deal because the terms did not reflect its view of the valuation. Instead, Sound Oil said it would press ahead with the permitting process ahead of a planned 2014 well on Badile. It will also be recruiting a technical team with the capabilities to manage the drilling work.

Salamander Energy (LON: SMDR)
Said that the first four wells of the current sixteen well development drilling programme on the Bualuang oil field, Gulf of Thailand are now in production and have been performing ahead of pre-drill expectations. The wells are all being drilled from the Bravo platform using the Atwood Mako rig. Wells completed to date are the BB-01H, BB-04H, BB-06H and BB-10H wells. All the wells have been drilled horizontally into the T4 Miocene sandstone reservoir, encountering between 495 m to 530 m of pay, with excellent reservoir properties of 27% – 33% porosities and 85% – 99% net to gross ratios. The wells have been completed using standalone screens and electric submersible pumps. The average time for drilling, completion and production handover for each well has been 21 days.Year to date production for the Bualuang field has averaged 10,531 barrels of oil per day. Average daily production in 2012 was 7,200 bopd and the full year production rate in 2013 is forecast to be between 11,000 and 14,000 bopd, representing a minimum of a 50% increase in productionyear on year.

Trapoil (LON: TRAP)
Confirmed earlier this week that operations have commenced on the Scotney exploration prospect (“Scotney”). The partners in Licence P.1658 are Suncor Energy UK Limited (28.75%, operator), Norwegian Energy Company UK Limited (43.75%), First Oil and Gas Limited (15%.) and Trap Oil Limited (12.5%. carried interest). Scotney is mapped as a four-way dip closure at the Base Cretaceous Unconformity level with Late Jurassic Tweedsmuir sands as the reservoir objective and best estimate gross prospective resources for the entire prospect of approximately 57 million barrels of oil equivalent (approx’ 7.1 mmboe net to Trapoil, unaudited estimate by Trapoil’s management). The well is being drilled using the Awilco WilHunter rig and well operations are currently anticipated to last approximately 36 days in the dry hole case. The well will be drilled to an estimated target depth of 10,690 feet Measured Depth Below Rotary Table or 10,580 feet True Vertical Depth Sub Sea.

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