Afren Energy (LON: AFR)
More bad news from Afren this week. The Board has temporarily suspended Iain Wright and Galib Virani, both Associate Directors of the Company. This is in addition to the 31 July 2014 suspension of the CEO, Osman Shahenshah, and the COO, Shahid Ullah, pending investigation in relation to the receipt of unauthorised payments potentially for the benefit of the CEO and COO. No conclusive findings have yet been reached and the investigation is ongoing. The investigation has not found any evidence that any Board members, other than Osman Shahenshah and Shahid Ullah, were involved.
Amerisur Resources (LON: AMER)
Updated on Platanillo-18 in the Platanillo Field, Colombia, the 14th new well of the current drilling campaign, in addition to three successful sidetracks.
The well has been successfully drilled to a total depth of 9,511ft MD. The reservoir section was logged and log analysis indicated the presence of 20ft gross, 7ft net oil column in the U sand formation and the presence of 13ft gross, 12ft net oil column in the N sand formation. AMER tested the N sand. A total of 5ft of the 12ft net oil pay was perforated and flowed 340 BOPD of 18.0 API oil on test.The Company subsequently completed the well for commercial production from the U sand. A total of 5ft of the 7ft net oil pay was perforated and flowed 530 BOPD of 29.7 API oil on test. The well has now been placed on commercial production at approximately 360 BOPD. Current field production remains constrained in the range 7,000 to 7,500 BOPD. The Colombia and Ecuador bi-national agreement has been ratified and provides for the movement of oil and gas between those countries under favourable terms. Ecuadorian documentation has been submitted and formal approval is expected soon. In the meantime the Colombian environmental license process is underway. All indications are that the transfer line will be in operation by the end of the year.
Bowleven (LON: BLVN)
Said that all parties to the LUKOIL/NewAge Etinde farm-out agreement announced on 24 June 2014 have agreed to an extension to the longstop date. With the majority of conditions to transaction completion now satisfied, the longstop date has been extended by two months, to 31 October 2014, to enable satisfaction of the few remaining conditions. The principal condition still to be met is approval by the Cameroon government of the transfer of the equity interest and operatorship. The approval process by the Cameroon authorities has commenced and the longstop extension provides additional time to enable logistical arrangements to be made for this requisite step in the process.
Cadogan Petroleum (LON CAD)
Released their Half Yearly Report for the Six Months ended 30 June 2014. You can read t by clicking HERE
Caza Oil & Gas (LON: CAZA)
Announce THE result at Gramma Ridge and provided a drilling update at Lennox. Both properties are operated by the Company. Click here to read it.
Chariot Oil & Gas (LON: CHAR)
Update on its Namibian portfolio, its repositioning in the region and forward work programmes across these licences. Click HERE to read it. Also announced today that all conditions of the Placing Agreement relating to the GBP8.8 million Placing of 58,596,038 new ordinary shares in Chariot have been fulfilled and the Placing Shares will be admitted to trading today at 8am.
Circle Oil (LON: COP)
Some good news from COP re’ the El Mediouni-1 well. EMD-1 was spudded on 8 June 2014 and drilled to a TD of 1,200 metres MD in the Upper Ketatna carbonates. The stratigraphy encountered in the well was exactly as prognosed and very good light oil shows were encountered both in the Lower Birsa carbonate primary target and the Upper Ketatna carbonates secondary target over a combined interval of 133 metres. Strong hydrocarbon indications encountered in the Birsa and Ketatna carbonates confirm the existence of a working petroleum system in the Mahdia Permit for this and other prospects. The robustness of the El Mediouni trap has also been proven. The losses incurred within the target formations, as described below, give further confirmation of high quality permeability. The gross oil zone interval in the Lower Birsa is 77 metres and the Upper Ketatna has a minimum interval of 48 metres, subject to confirmation by logs. Using known reservoir and fluid parameters from equivalent formations in the Gulf of Hammamet, the internally estimated most likely recoverable prospective resources discovered by the EMD-1 well are approximately 100 MMBO. The hole conditions in the well deteriorated rapidly and multiple attempts at open hole logging by wireline and tough logging conditions equipment failed. Ultimately the decision was taken to terminate further efforts and suspend the well.
Falcon Oil & Gas (LON: FOG)
Announces that it has filed its results for the three and six months ended 30 June 2014. To read them CLICK HERE
Gulf Keystone petroleum (LON: GKP)
Issued its results for the six months ended 30 June 2014. Click HERE to rad it.
Mosman Oil & Gas (LON: MSMN)
The Australia and New Zealand focussed oil exploration and development company, advises that it has entered into an agreement to acquire the entire issued share capital of OilCo Pty a wholly owned subsidiary of High Peak Royalties Limited (formally Torrens Energy Limited).
Northcote Energy (LON: NCT)
Has completed the acquisition of its interest in the 1,670 gross acre producing Shoats Creek Project in Beauregard Parish, Louisiana, US. Northcote is now the operator of this project, which further strengthens the Company’s portfolio beyond its operations in Oklahoma, where the Company has work ongoing across its properties, with the main focus being on the non-operated Zink Ranch Project.
Ophir Energy (LON: OPHR)
Announced a successful Mzia-3 flow-testin Block1 Tanzania which was completed in November 2013 having successfully encountered gas in the main Lower and Middle sand targets. A Drill Stem Test has now been successfully completed. The well flowed slightly ahead of expectations at an average controlled rate of 90mmcfd for 6 days with peak flow of 101mmcfd, constrained by equipment limits. The Deepsea Metro I drillship will now move to Block 4 to drill the Kamba-1 exploration well which will also target the shallower Pweza North structure. The Tonel North-1 appraisal well has been completed on Block R, Equatorial Guinea. The Tonel North-1 well was drilled approximately 5km north-east of the original Tonel-1 discovery well. The well encountered gas pay combined in the lower target sands but the upper sands appear to be low gas-saturation. Analysis of the well data is ongoing. The result is expected to marginally reduce the discovered volumes in the Tonel field but will not impact the commerciality of the base case 2.5mmtpa FLNG project. The Vantage Titanium Explorer drillship has now moved to complete the Silenus East-1 exploration well which is targeting ca.420bcf of low-risk mean prospective gas resource as a primary target and will be deepened to test a secondary, high-impact but high-risk oil target that on current mapping could be a potentially extensive play across the Block.
Salamander Energy (LON: SMDR)
Announces its half year results for the six months ended 30 June 2014. Click HERE to read them.
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.
A busy, busy week in the Smallcap Oil world. Plenty to bemoan about. Enjoy it!
Antrim Energy (LON: AEY)
Released a tome! Their Interim financial report – first quarter 2014 Click HERE to view.
Azonto Petroleum (LON: AZO)
Announced the completion of an updated Resources Report (also known as a Competent Persons Report or “CPR”) for Block CI-202 offshore Cote d’Ivoire prepared by RPS Energy Services on behalf of Vioco Petroleum, Azonto’s 35% owned affiliate, as operator of the block. A copy of the CPR has been uploaded to the Azonto website www.azpetro.com
Bahamas Petroleum (LON: BPC)
Final results for the year ended 31 December 2013. Click HERE
Borders & Southern Petroleum (LON: BOR)
Released preliminary unaudited results for the year to 31 December 2013. Highlights included were; Acquired 1,025 sq.km. of 3D data to the north of the Darwin gas condensate discovery…. Evaluation of the fast-track processed data confirms that the Lower Cretaceous play extends to the north of Darwin. Fully processed data, received at the end of April 2014, will enable detailed prospect mapping…. Completed conceptual well design for Darwin appraisal wells and near field exploration wells….ompleted a preliminary reservoir engineering and facilities studies for a Darwin gas condensate development project…. Initiated farm-out of acreage – currently in progress…. Post year end activities – final processed 3D data from the 2013 acquisition programme and the reprocessed 3D data from the 2008 3D survey have been received and are being interpreted to produce an enhanced model of the Darwin area and a revised prospect inventory…. Cash balance as at 31 December 2013: $23.2 million – sufficient to cover forward overhead costs and all necessary short-term technical studies. What about the long term company expenditure?
Falcon Oil & Gas (LON: FOG)
Heralded the spudding of the second well in Hungary & an Operational Update. Click HERE
Faroe Petroleum (LON: FPM) How to write an RNS eithout all the puffery.
The Butch East exploration well 8/10-5S and a subsequent up-dip appraisal well 8/10-5A, the first of two back-to back-wells in Licence PL405. The Butch East exploration well encountered no oil. Well 8/10-5S will now be plugged & abandoned. How to write an RNS with the puffery. Click HERE
Fastnet Oil & Gas (LON: FAST)
Will Holland has been appointed to the Board of Directors as Chief Financial Officer, with immediate effect. Big deal!
Frontier Resources (LON: FRI)
An Oiler with assets in Oman, Zambia and Namibia updated on its activities in the Sultanate of Oman. Frontier’s 100% owned Block 38 located in the Rub Al Khali Basin in southwest Oman covers a surface area of approx. 17,425 square kilometres. An Exploration and Production Sharing Agreement was signed on 25 November 2012. Frontier is the operator. The Company has now completed the initial interpretation of available legacy 2D seismic data, both original and data re-processed during 2013 by BGP in Houston. These reprocessed data have enabled Frontier to identify geologic horizons previously unseen on the original seismic. Frontier has identified a number of potentially attractive exploration targets. These targets, or their stratigraphic equivalents, include formations within Precambrian – Cambrian units, many of which contain hydrocarbons at the analog Khazzan – Makarem Field in central Oman currently under development by BP as presented at the Gas Arabia Summit, December 2011. In addition to the above formations there is also the potential presence of an Ara formation intra- salt play on the Block as seen after recent reprocessing of a test line. Based on this encouraging information, Frontier has decided to reprocess up to an additional 400 kilometres of legacy 2D seismic data over the area where this lead was identified. There is a plan to acquire new seismic data to mature the identified leads to prospect level and accordingly the company is hi-grading the portfolio to determine the optimal location for a 3D seismic survey.
JKX Oil & Gas (LON: JKX)
Said this week that that the Court of Appeal ruled that the restriction notices served by JKX on Eclairs Group & Glengary Overseas & their nominees on 31 May 2013 were valid. The Court dismissed the cross-appeals brought by Eclairs. The High Court held that the Board had reasonable cause to believe that information provided by Eclairs & Glengary in response to requests from JKX was false or materially inaccurate and that the Board acted in good faith with the intention of protecting JKX & its shareholders as a whole. The Court of Appeal did not disturb these parts of the judgment. In consequence, the restrictions imposed by the Board on Eclairs & Glengary are wholly valid. Eclairs & Glengary have been given permission to appeal to the Supreme Court limited to the issue of the Board’s purpose. Pending the hearing of that appeal, the current arrangements concerning the counting of Éclairs’ & Glengarry’s votes remain in place. The company also released their Interims up to March 31 2014. Click HERE to read it.
Leni Gas & Oil (LON: LGO) Lot of RNS news this week from Neil & Dave at LGO. LGO Sold over 100,000 barrels of Goudron oil since taking over operations in October 2012. Furthermore the development well GY-664 has now intersected over 1,000 feet of gross oil bearing sands having drilled a further estimated 720 feet of oil sands in the Gros Morne formation, the first of the primary targets of the well. GY-664 earlier drilled over 350 feet of oil bearing sands in the Goudron formation. Drilling is continuing in the Lower Cruse, which is the third reservoir target of the well. In October 2012, when LGO took control of the Goudron Field under an IPSC with the Petroleum Company of Trinidad and Tobago. Field production was less than 40bopd. Since that time LGO’s wholly owned subsidiary Goudron E&P has reactivated over 70 pre-existing wells and has begun a major new 30 well development programme to access the estimated 122 million barrels of proven and probable oil in place independently verified as remaining in the Field.
Magnolia Petroleum (LON: MAGP)
Final results to the year end 31 December 2013. To read Ckick HERE Yawn!
Mediterranean Oil & Gas (LON: MOG)
2 RNS’s this week. 1/Production has been increased on the Guendalina Field well GUE 3ss. After a period of monitoring production, post the well intervention conducted in January 2014, production has been increased to an average of 31,350 scm per day (6,270 scm per day net MOG), which is an increase of 25% over the last reported stabilised production. The Operator has a stated goal of increasing production to 40,000 scm per day (8,000 scm per day net MOG) by the end of May at GUE 3ss. MOG expects that the production will be further increased in June, as the well continues to improve performance. The Guendalina Field is currently producing approximately 35,650 scm per day net to MOG, which is an increase of 23% above average net production for December 2013, when production was it its lowest level. 2/Energean Oil & Gas SA & MOG have jointly submitted a bid for the exploration and production of hydrocarbons in offshore areas 4118/05, 4218/30 and 4118/10 in Montenegro. If successful, Energean will act as the Operator with 60% working interest, while MOG would have a 40% working interest. Energean currently holds 4 exploration and 2 development licences and is the only Operator of hydrocarbon fields in Greece. It has produced over 115 million barrels of oil and 850 million cubic metres of natural gas from the Prinos and South Kavala offshore fields.
Mosman Oil & Gas (LON: MSMN)
New Kid on the block MSMN said that its wholly owned New Zealand subsidiary, Petroleum Creek, has issued the mobilisation notice and made the initial payment to Drillforce (NZ), the drilling contractor. Drillforce (NZ) has advised that the drill rig and equipment mobilisation will commence this weekend and all equipment is expected on site before the end of May. Drilling is anticipated to commence in the first week of June.
New World Oil & Gas (LON: NEW)
Confirm that it has signed a Sale Purchase Agreement with the shareholders of Al-Maraam Al-Ahliya Company for General Trading and Contracting Osma Khalid Al Masoud Al Fuhaid, Fahad Osama Khalid Al Masoud Al Fuhaid and Dr Muaaz KH M Alfahaid (the ‘Sellers’). The SPA provides the mechanism for New World to become a 49% shareholder & hold a 60% economic interest in Al-Maraam with a view to fully developing Al Maram’s opportunities in the oil and gas sector in Kuwait. An initial consideration in the amount of EUR1 million shall, subject to a number of material pre-conditions including due diligence on Al-Maraam, be payable to the Sellers upon the transfer of the Target Shares to New World; provided, however, that it shall be subject to a put option whereby if Dr. Muaaz KH M Alfahaid does not complete the previously announced subscription of 20% of the equity of Niel Petroleum for an amount of US$20 million BY 30 July 2014, New World will have the option to “put” the Target Shares to Dr. Muaaz KH M Alfahaid in exchange for EUR1 million plus related expenses. A balance of the consideration for the Target Shares in the amount of EUR4 million shall be payable to the Seller upon and subject to the completion of the Subscription.
Northern Petroleum (LON: NOP)
Released a production update on 3 wells in north west Alberta, Canada. The wells were successfully drilled & completed as planned. Operations then moved to a production testing phase. Highlights; Production results support the development of the Keg River play as part of the low risk production led growth strategy… Wells 13-33 & 14-22 both currently producing at a combined test rate of 280 bbls/d…. Well 16-19 initially produced as expected; a cemented liner now needs to be run to replace the inflatable packer and isolate the water aquifer below the oil column… Production being trucked and sold locally at a sales price of approximately Cdn$96 per barrel…. Short and medium term development of the play underway with three new wells planned in the summer.
Ophir Energy (LON: OPHR)
Released an Interim Management Statement and Operational Update for the period 1 January 2014 to 15 May 2014. Click HERE to read it.
Petroceltic (LON: PCI)
Has completed another equity placing. (Yes more dilution on top of the recent share CONsolidation! A 21.58% DILUTION! ) A total of 37,940,000 new Ordinary Shares of the Company have been conditionally placed at a price of 157 pence each, to raise approximately US$100 million (£59.7 million) before commissions and expenses.
Range Resources (LON: RRL) Rory’s Stories began in earnest this week as RRL entered into a Subscription Agreement with Abraham Ltd, Surely you mean a dilution agreement Dan? No it’s a Rory Story! A Hong Kong based private institutional investor will subscribe US$12 million in cash and will be issued with Ordinary Fully Paid Shares of the Company at a price of £0.01 per Share, representing a premium of approx. 49% to the mid market share price at the close of business on AIM on 14 May 2014. So that’s a further 712,000,000 shares to add to the story! The funds will be used to repay existing debt, (racked up by who? The previous CEO who is currently keeping a low profile) Commenting on the piss poor announcement, Rory Scott Russell, CEO, said “I am delighted” sic The US$12 million Subscription will allow us to refinance the expensive and dilutionary corporate debt and provide working capital as we now move forward with Range’s operational and long term financing objectives, particularly in Trinidad.” (What ever happened to Somalia/Puntland, Georgia, Columbia, and the good old USA? to name but five!) PS Don’t mention International Petroleum.
Ruspetro (LON: RPO)
Released an interim management statement for the period from 1 January 2014 to 14 May 2014:The Highlights of which were, (Was there any Highlights?) Drilling commenced in April 2014 on the Company’s first multi-stage fractured horizontal appraisal well. The pilot vertical well for this has now been successfully completed and the horizontal drilling phase of the well has commenced…. April 2014 average production of 3,277 bopd, 1Q 2014 average production of 3,496 bopd (4Q 2013 average production of 4,010 bopd). Cash balance of US$8 million as at 30 April 2014. Sberbank Capital put option exercise period deferred by one year to the period of 30 April 2015 to 29 April 2016. Prepayment facility with Glencore Energy UK renewed in March 2014. John Conlin, Chief Executive Officer, commented: “While 2013 was a year of reassessment for Ruspetro, (What an understatement!) 2014 should be a year of progress. (What an overstatement!) That’s enough of that!!!
Solo Oil (LON: SOLO)
Opined that Angus Energy, operator of the Horse (Shit) Hill Prospect in the Weald Basin, has advised that the proposed Horse Hill-1 well is on schedule for a spud date in July 2014.
Tethys Petroleum (LON: TPL) Pulled another placing fast one this week! Conditionally raising USD 15,000,000 through the issue of 36,894,923 new ordinary shares to new and existing investors at GBP 0.24 per share. Here’s why! In November 2013, Tethys announced that it had entered into a definitive agreement for the sale of 50% (plus one share) of its Kazakh oil & gas assets to SinoHan Oil & Gas Investment B.V. part of HanHong, a Beijing, PRC based private equity fund for an initial payment of USD 75,000,000 plus potential bonuses. The sale is subject to Kazakh State approvals, including the waiver on pre-emption (Article 36). The Company is confident that these approvals will be given at some point this year, but does not know the precise date. As such it was necessary to carry out this equity placing to provide the funds to ensure that the increased gas production rates can be achieved as planned. It should be noted that if the Kazakh State elects to pre-empt, an event that the Company considers extremely unlikely, then the State should fulfill the terms of the definitive agreement with SinoHan including paying the initial USD 75 million to Tethys to become a 50% shareholder in the project. So basically they need some cash to tidy them over? Will they give this back in a special dividend. No chance! Any excuse for a dilution! Also released was the 1st Q 2014 Financials. Click HERE to read it!
Sterling Energy (LON: SEY)
Has completed the Farmout Agreement with Jacka Resources Somaliland for the acquisition of an additional 15% interest in the Production Sharing Contract for the Odewayne Block, located onshore in the Republic of Somaliland. Genel Energy Somaliland 50%. Sterling Energy 40%. Petrosoma 10%. Sterling will be carried by Genel for the costs of all exploration activities during the Third Period and the Fourth Period of the PSC. The PSC covers block SL6 and part of blocks SL7 and SL10, onshore. In 2013 an aero-magnetic and gravity survey confirmed the geometry of a broad basin over the Odewayne block believed to be of Jurassic to Cretaceous origin, analogous to productive basins in Yemen. Fieldwork in the block has highlighted the presence of numerous seeps giving encouragement that a working hydrocarbon system is present in this undrilled basin. The forward work program includes acquisition of an extensive 2D seismic programme to define drillable targets. Operations in Somaliland have been delayed by security concerns and the operator, on behalf of the joint venture partners, is working with the Ministry of Energy and Minerals to resume operations as soon as practicable. As previously announced future conditional payments by Sterling of $8m are to be paid to Petrosoma upon various operational milestones being met.
Tangiers Petroleum (LON: TPET)
Placed A$5 million worth of shares, before costs, through the private placement of 31.25 million shares to specified wholesale, institutional and sophisticated investors at A$0.16 per share in Australia, the United Kingdom and Hong Kong. The Placement will be completed in two tranches consisting of: Approx. 23.6 million shares issued in the first tranche & THE balance of approx. 7.5 million shares issued in the second tranche. Subject to shareholder approval at the Annual General Meeting of shareholders. The proceeds of the raising will be applied to the 33% share of any costs in excess of the US$33m free carry provided by the Tarfaya Farm-Out Agreement for the drilling of the TAO-1 well, due to be spudded next month and for general working capital expenditure.
Wessex Exploration (LON: WSX)
The WSX red faces sighed ‘relief’ this week as they scrapped through the Milroy Capital EGM REQUISITION. All the resolutions proposed by the Requisitionists were defeated. Still no figures! Boo!
Amerisur Resources (LON: AMER)
Reported an update on the Platanillo Exploration and Production contract in Colombia. Amerisur has been notified that the Agencia Nacional de Hidrocarburos, the governing body of hydrocarbon exploration and production in Colombia, has approved a request by the Company to increase the commercial area of the Platanillo field. This further extension of the southern part of the field will extend the current contract essentially to the national frontier with the Republic of Ecuador and is made without associated drilling obligations or payments. AMER expects to sign the required annexe to the Platanillo E&P contract within the next weeks, and is currently designing the wells which will be drilled to drain the additional field area awarded.
Bankers Petroleum (LON: BNK)
Announces 2014 First Quarter Financial and Operational Results. Which can be viewed by clicking HERE
Circle Oil (LON: COP)
Updated on their Egyptian operations this week. The AASE-21 well was spud on 9 March 2014 and is located about 1,100 metres south-east of the AASE-4 well and 750 metres north-west of the AASE-1X well to appraise both the Shagar and Rahmi sands for production. The well encountered the Kareem sands with 19 feet of net oil pay in the Shagar and 4 feet of net oil pay in the Rahmi, both zones of good reservoir quality. The well has been completed as a Shagar producer & initial short term testing has yielded flow rates, on a 48/64″ choke, of 3,005 bopd and 3.228 MMscf/d of gas (587 boepd) for a total of 3,592 boepd. Current gross daily production rate over the last month from the AASE and Geyad fields continues at approx. 11,000 bopd & 11 MMscf/d. Total gross production from the NW Gemsa fields has now exceeded 15.3 MMbo of 42 degree API crude oil with a water injection total of 19.9 MMbw. After drilling the AASE-21 well the rig was moved to drill AASE-22, planned as an infill support injector well, 500 metres north and up dip of the AASE-8 injector in the western central part of the field. Following completion of AASE-22 the rig will be released on sub contract for the rest of 2014. A dynamic reservoir model to assess reservoir behaviour for the future is in construction to provide input for the effective and efficient management of the AASE field. This reservoir management study will also permit the planning for any future infill drilling both for producers and injectors to maximise reserve recovery for the medium and long term. The Al Amir and Geyad Development Leases cover an area of 82 square kilometres, and lie about 300 kilometres south-east of Cairo in a partially unexplored area of the Gulf of Suez Basin. The concession agreement included the right of conversion to a production licence of 20 years, plus extensions, in the event of commercial discoveries. The NW Gemsa Concession partners include: Vegas Oil and Gas 50% operator; Circle Oil 40%; and Sea Dragon Energy 10%.
Edge Resources (LON: EDG)
Said it was “very pleased” to have finalised its Competent Person’s Report, which has resulted in a large increase to its year-end reserves. The Company also issued an operational update. Which can be viewed HERE
Falcon Oil & Gas (LON: FOG)
He who has kissed the Blarney stone, Phillip O’Quigley, take a bow. Falcon released an RNS titled; Transformational Farm-Out of Beetaloo Unconventional Acreage, Northern Territory, Australia. Click HERE
Fastnet Oil & Gas (LON: FAST)
Tanked this week as the company had to utter those immortal words that send investors running for cover. Plugged & Abandoned. In Morocco, the FA-1 well in the Foum Assaka Offshore block will be plugged and abandoned after failing to encounter commercial hydrocarbons.
Global Energy Development (LON: GED)
Has signed a farm-out agreement with respect to its Bocachico Association Contract area, in the Middle Magdalena Basin, with Everest. Under the terms of the Agreement, Everest will acquire a 50% interest in the Contract Area, including any and all rights, obligations and duties in respect of the Contract Area in exchange for payment of the work commitments stipulated in the Agreement and the cash payment of $1 million. The Agreement is subject to certain conditions, including Ecopetrol approval. Under the Agreement, Everest commits to undertake the funding of a work program with respect to the Contract Area, including an obligation to pay all future costs and expenses incurred with respect to the proposed operations:
Ithaca Energy (LON: IAE)
Updated on their Greater Stella Area operations & overall development schedule. Continued progress has been made on execution of the main GSA development work programmes since the start of 2014. Construction activities on the main deck of the FPF-1 have been advancing and are currently centred on fit-out of the main pre-assembled units that were lifted on to the vessel in the first quarter of the year along with preparation for the installation of additional equipment packages. While progress has been made on the FPF-1 modification works over recent months, the topsides construction programme has advanced more slowly than planned. As a consequence, Petrofac is now forecasting that the vessel will be ready for sail-away from the Remontowa yard in Poland to the Stella field in spring 2015. This schedule is anticipated to result in first hydrocarbons from the GSA hub in mid-2015.Ithaca is working with Petrofac to expedite the remaining construction and commissioning works on the FPF-1. Updates on the progress of the modification works will continue to be provided at regular intervals over the coming months. The delayed start-up is estimated to be between $5-10 million, relating primarily to project management costs.
Leni Gas & Oil (LON: LGO)
It’s been a fantastic month or so for David Lenigas, Neil Ritson & LGO share-holders. The SP has started on a trajectory that DL thinks will break 2p. Leni announced that the first new development well in the Goudron Field, GY-664, successfully reached a depth of 1,680 feet at 7 am (Trinidad) on 3 May 2014, after logging and casing was reported to be drilling ahead midnight on 5 May 2014. A full suite of conventional electric logs have been run to 1,680 feet and initial analysis of those logs confirms the presence of over 350 feet of hydrocarbon bearing Goudron Sands. The first casing point was deepened from an anticipated depth of 1,540 feet to 1,680 feet due to the well encountering a thicker than expected section of oil bearing Goudron Sands. The first 1,680 feet of well has now been successful cased and cemented with 9 5/8 inch steel casing. Drilling is now continuing with an 8 1/2 inch hole section to a planned total depth of approximately 4,000 feet in order to test the primary objectives in the Gros Morne and the Lower Cruse Sands at depths below 2,800 feet. Lenigas is now in Trinidad tweeting some (amateurish) photographs directly from the field! But we here at the BMD blog admire a tryer. Stick to oil David!
Madagascar Oil (LON: MOIL)
Released a Declaration of Commerciality and Field Development Planning statement this week. The Tsimiroro Oil Field, the Group’s flagship asset, is a giant heavy oil field in western Madagascar with independently audited contingent oil in place of 1.7 billion barrels (P50) Stock Tank Oil Originally In Place. Madagascar Oil S.A. has been operating the SFP since April 2013 and the data from the SFP, together with field development, technical and marketing studies have been used to support this weeks declaration of a Commercial Discovery under the terms of the PSC. The Group plans to continue to operate the SFP throughout 2014 and into 2015 to provide additional data on how the Tsimiroro Amboloando reservoir responds to both Cyclic Steam Stimulation and steam-flood thermal recovery methods to inform the future development plans for the Licence. MOIL proposes to commence development of the well-defined high quality reservoir areas close to the existing SFP area, while also addressing the geological uncertainties in other areas of the Tsimiroro Main Field. Appraisal programmes including drilling, seismic acquisition & the newly tested land magnetometer techniques are being prepared for implementation in 2014 and 2015.
Magnolia Petroleum (LON: MAGP
Poor Rita. You were all warned about this company many times. Click HERE to read the latest fantastic news. (Not)
Max Petroleum (LON: MXP)
Announced further successful drilling results in the East Kyzylzhar I Field. The KZIE-4 appraisal well has reached a vertical depth of 1,318 metres with electric logs indicating 15 metres of net oil pay in two Jurassic reservoirs, including ten metres of net pay in an interval at vertical depths between 837 and 861 metres and five metres of net pay in an interval at vertical depths between 1,155 and 1,171 metres. Reservoir quality is excellent with porosities ranging from 30% to 36%. The Company is setting production casing in the well and will begin testing KZIE-4 as soon as practicable. The Zhanros ZJ-30 rig will next move to drill the KZIE-3 appraisal well before moving onto the Zhana Makat field.
New World Oil & Gas (LON: NEW)
Has signed a Binding Framework Agreement for oil production in Kuwait and updated on a Subscription to raise US$25 million. The company has continued to work with the Subscriber, Niel Petroleum SA to complete the subscription on the agreed terms. In line with this, New World has been informed that Dr. Muaaz KH M Alfahaid, a Kuwaiti national representing Al Maram Trading & Contracting LTD, will be acquiring a 20% ownership stake in Niel for a consideration of US$20 million, and in turn Niel will be using this consideration to complete the Subscription with New World.
Nighthawk Energy (LON: HAWK)
Released a drilling and production communique at its 100% controlled and operated Smoky Hill and Jolly Ranch projects in the Denver-Julesburg Basin, Colorado. The Snow King 13-33 well commenced production on 12 April 2014. Average gross oil production from all wells in the 24 day period since Snow King 13-33 commenced production was 2,153 bbls/day. Over this period the Snow King 13-33 well performed strongly with the average gross production rate at the upper end of the 300-400 bbls/day range. Applications for permits to drill three additional Snow King wells have been submitted to the State of Colorado and these wells will be scheduled into our drilling program this summer. Average gross oil production in April 2014 was 1,998 bbls/day, a monthly record production level. Production in April benefitted from the commencement of production at Snow King 13-33 and a steady 100 bbls/day contribution from the Pennsylvanian formation in the John Craig 1-2 well. The drilling rig has completed the drilling of the John Craig 2-2 well and is expected to spud the John Craig 10-10 well within the next few days. Based on the recent success with Pennsylvanian production at the John Craig 1-2 well, the primary targets for additional production in these wells are the Pennsylvanian Morrow, Cherokee and Marmaton formations. Both wells will collect further valuable data on the Mississippian formations in this area which is some 25 miles south of Arikaree Creek. Completion of the John Craig 2-2 well will commence next week and a number of potential oil bearing zones will be evaluated and tested. Financing Arrangements As previously disclosed discussions are currently underway with a number of potential providers of finance with the objective of re-financing all existing short-term, non-convertible loans with new longer term borrowing facilities. The Board is confident that these discussions will be successfully completed within the next two months.
Northcote Energy (LON: NCT)
Has entered into a heads of terms agreement to acquire a 35% interest in and become operator of the producing wells at the 1,670 gross acre Shoats Creek Oil Field in Beauregard Parish, Louisiana. Northcote will initially acquire a 70% interest in the Shoats Creek Field from Springer Oil & Gas and will simultaneously farm-down 50.0% of this interest (35%) to North American Petroleum plc (‘NAP’) on the same terms. The acquisition of the 70% interest is to be satisfied via issue of Northcote ordinary shares valued at US$350,000 (valued at the date of closing); and a production payment of $10.00 per barrel up to a maximum of US$3.15 million. On completion of the farm-down to NAP, NAP will make a payment to Northcote of US$175,000 in cash and will assume 50% of Northcote’s production payment (US$1.575million). In parallel Springer has agreed to acquire 100% of the ordinary share capital of Aminex USA Inc for total consideration of $5,000,000. Click HERE to read the May 2 2014 Operations Update
Nostra Terra Oil & Gas (LON: NTOG)
Announce that, in line with its increase in production, there has been a 120% increase in the borrowing base on its US$25m Credit Facility to US$1,100,000. In addition, the Company also announces the collection of US$231,000 from Richfield Oil and Gas. The redetermination has been approved by Texas Capital Bank and the borrowing base has been immediately increased from US$500,000 to US$1,100,000. Nostra Terra will use the increased funds available to expand its portfolio further. CEO Matt Lofgran, said: “The increase in the Facility and the collection from Richfield gives us an additional US$831,000 to be used in the field to continue growing our portfolio. I’d like to add that the increase in the Facility’s borrowing base doesn’t take into account the newest wells in our portfolio where Nostra Terra has an 11% and 20% working interest. Once those wells have stabilised production we anticipate a significant increase in production and subsequently a further increase in the borrowing base. This should help demonstrate the ability for the Company to grow its production and cash flow without the need for dilution to shareholders.”
Petro Matad (LON: MATD)
Provided a rather long winded update on its operations, results of the interpretation of the 220 kms of seismic acquired over Blocks IV and V in November 2013 and the continuing farmout process RNS. You can read it by clicking HERE
Range Resources (LON: RRL)
More bad news from Range as the company once again tried to pull the wool over their share-holders. Cash strapped Range, announces that, given its focus on Trinidad, it has made a “strategic decision” for a partial withdrawal from Colombia and has relinquished its investment obligations on PUT-7 block in the Putumayo Basin in Colombia. In relation to PUT-6 block or to the $3.48 million performance bond that it holds over PUT-6. The Company is currently reviewing its options with regards to PUT-6 and will update the market accordingly in due course. Or to put it plainly. They’re looking to flip-on the PUT-6 option so they can get their hands on the $3.48 million bond. Range then went on to announce yet another debt for equity share issue of 25,000,000. Rotten to the core.
Salamander Energy (LON: SMDR)
Issued an Interim Management Statement for the period from 1 January 2014 to 6 May 2014. Click HERE
Sterling Energy (LON: SEY)
Has signed a second Farmout Agreement with Jacka Resources Somaliland to acquire an additional 15% interest in the Production Sharing Contract for the Odewayne Block, located onshore in the Republic of Somaliland. Click HERE
Wessex Exploration (LON: WSX)
What in the name of Jumping Jehovah is going on at Wessex? This weeks sharp rise in the share price looks like a manipulation caused by the on-going battle for control of the company. Wessex came out and said that it remains in advanced negotiations regarding a potential acquisition which, on completion, would result in the addition of a prospective offshore asset in the Far East. The acquisition which only came to light AFTER Milroy Capital requisitioned a General Meeting (to kick out the failed board) scheduled for 15 May 2014. The unknown mysterious Far East Acquisition will only proceed if the resolutions proposed by Milroy Capital are defeated. Does Wessex think that we were all born yesterday? The fact that this rotten failing BOD have the audacity to attempt such a schoolboy trick on UK Share-holders is proof positive that share-holders should vote them OUT!
Xcite Energy (LON XEL)
Said that its 100% owned subsidiary, Xcite Energy Resources (“XER”), has entered into a Collaboration Agreement with Statoil (U.K.) and Shell U.K, which allows all the Parties to make available and share field-specific technical and operational information for the evaluation of potential synergies and collaboration between the Bentley and Bressay Fields. A joint XER, Statoil and Shell team will work together to analyse the current available information and develop a number of proposals for assessment, including the potential utilisation of common infrastructure, assets and operational solutions during the phased development of the Bentley Field and the future development of the Bressay Field. XER believes that collaboration in a number of key areas, along with a coordinated approach to an area development, will realise a number of mutual opportunities which have the potential to benefit all stakeholders.
Several of our researched success’s are mentioned this week. Urals Energy researched at 5p hit 12p now trading at 10.6p. Nighthawk researched at 6p hit 12.25p now trading at 10.25p and Exillon Energy tipped at 98p hit 274p now trading at 259p!
A bit of a free one here for the chaps. Positions are being taken in the fight for the Urals Energy Crown. It’s going to get very dirty. One Russian wag thinks they’ll have to up the anti (Offer) if they want Urals!
Caza Oil & Gas (LON: CAZA)
The West Copperline 29 Fed #1H horizontal Bone Spring test well reached its intended total measured depth of approximately 15,035 feet in the 2nd Bone Spring Sand interval on October 11, 2013, and was subsequently fracture stimulated beginning on November 1, 2013. Under controlled flowback the producing rates have remained steady, and the well produced at a peak 24 hour gross rate of 800 barrels of oil and 1.21 million cubic feet of natural gas, which equates to 1,002 bbls of oil equivalent on November 15, 2013. The well continues to clean up and is producing on a 22/64ths adjustable choke at 1,835 pounds per square inch flowing tubing pressure. Caza currently has a 62.5% working interest (approx. 47.25% net revenue interest) in the West Copperline 29 Fed #1H well.
Chariot Oil & Gas (LON: CHAR)
Confirms that the Special Resolution proposed to shareholders at the EGM held on 21 November 2013 was duly passed. The Company’s Articles of Incorporation will now be amended and Chariot will no longer be prohibited from holding Board Meetings and General meetings of shareholders in the United Kingdom.
Exillon Energy (LON: EXI)
Notes the announcement by Flowdale Investments Limited, the ultimate beneficial owner of which is Mikhail Gutseriev, that states Flowdale holds 24,065,588 shares in Exillon, which represents approximately 14.9% of the Company’s issued share capital. The formal sale process that was described in the Company’s announcement dated 18 September 2013 is proceeding as planned. The acquisition of this 14.9% stake by Flowdale was undertaken without the knowledge or consent of the Board of Exillon.
Fastnet Oil & Gas (LON: FAST)
Notes that its partner in the Foum Assaka license, offshore Morocco, Kosmos Energy provided a Technical Update on its exploration assets on 14 November 2013. In its presentation to analysts and investors, Kosmos covered the Foum Assaka permit, offshore Morocco following its farm-out agreement with BP plc (LSE: BP) Kosmos indicated that well planning is underway at the Eagle-1 Well in the Foum Assaka Block, which is estimated to contain 360 mmboe of Pmean resources. The well is scheduled for drilling in Q1 2014 and will target lower Cretaceous reservoirs and multiple deepwater reservoir objectives with a planned target depth of 4,500 metres in water depth of 600 metres.
Forum Energy (LON: FEP)
Said yesterday that an agreement had been reached with the Philex group of companies to increase and extend the repayment date of the current loan facility which was provided to the Company’s wholly-owned subsidiary, Forum Philippines Holdings Limited in 2010. The US$15 million Facility, which was US$10 million when first announced on 24 November 2010, and has been fully drawn down, has now been increased to US$18 million. In addition, the repayment date for all amounts drawn under the Facility has been extended for three years to 24 November 2016. Terms of the Facility remain otherwise unchanged, with funds continuing to be borrowed at an interest rate of LIBOR + 4.5% and with Forum Energy remaining as the guarantor under the Facility.
Parkmead Group (LON: PMG)
Announces that a new gas field has been discovered in the UK Southern North Sea by the Pharos exploration well. Parkmead holds a 20% working interest in the new discovery at Pharos. The other joint venture partners are Dana Petroleum (operator), Dyas Exploration UK Limited, MPX North Sea Limited and Hansa Hydrocarbons Limited.
Petro Matad (LON: MATD)
Mongolian geophysical contracting company Khet Co., completed acquisition of 200 km of 2D seismic on Blocks IV and V on 19 November, 2013. Preliminary analysis indicates that initial brute stacks of seismic across the prospect area in Block V confirm the previous interpretation and subject to further processing are expected to result in the delineation of at least two prospective drilling locations for 2014. The initial brute stacks across the prospect area in Block IV shows the presence of a cross fault that indicates an additional trap closure in this area. In light of the encouraging result from the seismic acquisition, Petro Matad has contracted with Khet to acquire a further 30 kms of seismic to confirm this closure as a potential drilling prospect for 2014. his seismic will commence immediately and is anticipated to be completed within one to two weeks.
Range Resources (LON: RRL)
Peter Landau came out fighting this week shouting that he would like to? A/ Silence his detractors. b/Resign for failure? C/ Release a Guatemala Update and draw attention to the announcement released by Citation Resources Limited (ASX:CTR) with respect to the Company’s interest in Guatemala?
Solo Oil (LON: SOLO)
Starts the infill seismic survey planned to assist in the appraisal of the Ntorya discovery and to finalise locations for future exploration drilling in the Ruvuma onshore Petroleum Sharing Agreement in Tanzania. The operator, Ndovu Resources Limited, a subsidiary of Aminex plc has indicated that a contract has been signed with AGS and that the survey will shortly commence with 2D seismic data intended to be collected at Ntorya and to support future exploration drilling.
Sound Oil (LON: SOU)
Updated on the Casa Tiberi onshore gas discovery in the Marche region, Central Italy. Following Board approval to develop the Casa Tiberi gas field, an Engineering, Procurement, Construction and Lease contract has been awarded to TESI Srl, a local company with proven experience in onshore processing plants in Italy. The contract is for a total of Euro 300,000 and involves the three month construction and subsequent lease of a production skid in anticipation of first gas from the field in early 2014. The plant will be based on modular skids with nitrogen used for both gas dehydration and as “service gas” providing an effective and extremely environmental friendly solution to deliver the gas to the local low pressure network.
Tullow Oil (LON: TLW)
Good news came today from TLW as the company announced that the Agete-1 exploration well in Block 13T, onshore Northern Kenya, has discovered and sampled moveable oil with an estimated 100 metres of net oil pay in good quality sandstone reservoirs. The Agete-1 wildcat well is part of a major exploration campaign and has made the fifth consecutive oil discovery in the first of a chain of multiple rift basins across Tullow’s acreage in the region. This discovery de-risks several follow-on prospects located to the north and is on trend with the Twiga South, Ekales, and Ngamia oil discoveries and adds to the significant resource base already discovered. The Sakson PR5 rig drilled Agete-1 to a total depth of 1,930 metres. Following completion of logging operations the well will be suspended for future flow testing which will confirm the net pay count. The rig will then move to drill the Ewoi-1 wildcat in the east of this basin, targeting a rift flank prospect similar to the recent Etuko oil discovery. Tullow operates the Agete-1 well with a 50% interest and Africa Oil (50%) has a non-operated interest.
Urals Energy (LON: UEN)
The independent exploration and production company with operations in Russia, released an Operational update, tanker loading and alleged debt repayment agreement update/RNS. You can read it by CLICKING HERE.
Wentworth Resources (LON: WRL)
Yet more dilution at Wentworth for private share-holders. This is after the company got off a Private Placement of 61,696,024 new Shares to raise USD 40.0 million in October last month. Now we get the euphemistically titled “Over Subscribed Offering” RNS which effectively dilutes by another 9,000,000 million shares on top of the 61 million already soaked up by PI’s. Yes a thumping 70% dilution. What’s the betting that there’s another dilution within the next 12 months?
Egdon Resources (LON: EDR)
Announced the commencement of production from the Waddock Cross oil field in UK Onshore Production Licence PL090, located in Dorset around 10 kilometres to the east of Dorchester. Waddock Cross is mapped by Egdon as containing mean in-place volumes of over 30 million barrels of oil in the Lower Jurassic Bridport Sandstone reservoir. Initial production will be from the Waddock Cross-2 well which has had larger production tubing and a higher capacity pump installed and is expected to produce at gross rates of around 30 barrels of oil per day. The plan for the first phase of the development thereafter is to restore production from the Waddock Cross-3 horizontal well and to drill two further horizontal producer wells by 2015. Egdon estimate gross Proven and Probable Reserves for the field for this initial phase to be about 300,000 barrels of oil. The interest in the Waddock Cross oil field is Egdon Resources 45% (Operator)
Europa Oil & Gas (LON: EOG)
Reported the renewal of its 100% owned Béarn des Gaves permit in the proven Aquitaine Basin, onshore France. The Permit includes Berenx Deep, the large gas appraisal prospect, and the recently identified Berenx Shallow prospect. The permit is located 20km to the southeast of the producing 9 trillion cubic feet Lacq gas field.
Falkland Oil & Gas (LON: FOGL)
The boards of FOGL and Desire Petroleum (LON: DES) announced that they have reached agreement on the terms of a recommended combination of FOGL with Desire, pursuant to which FOGL will acquire the entire issued and to be issued share capital of Desire in exchange for FOGL Consideration Shares. The Combination is to be effected by way of a Scheme of Arrangement of Desire under Part 26 of the Companies Act. The boards of FOGL and Desire believe that the Combination will diversify the activities of the two companies, resulting in a balanced portfolio with enhanced long-term prospects, a strong balance sheet and improved financing options. FOGL has also signed heads of agreement with Premier Oil (LON: PMO) and Rockhopper Exploration (LON: RKH) with respect to a farm-out of licences PL004a and PL004c. Premier & Rockhopper will farm-in to the Licences and, in exchange, will fund the Combined Group’s share of the cost of two exploration wells, one on each of the Licences. Completion of the Farm-Out is subject to, inter alia, the Scheme becoming effective, any required approvals from the Falkland Islands Government and completion of definitive documents in respect of the Farm-Out. The Combination and the Farm-Out together will enable the execution of an enhanced drilling programme of five wells in the next drilling campaign, including: two wells in the South Falkland Basin, partnered with Noble Energy and Edison International; and three wells in the North Falkland Basin, one of which will target the Zebedee prospect. The next drilling campaign is expected to be fully funded from existing cash, the Farm-Out and other previously completed farm-out agreements.
Magnolia Petroleum (LON: MAGP)
Issued a Quarterly Operations Update for the Period Ended 30 September 2013. You can read it HERE.
Matra Petroleum (LON: MTA)
Which now starts its epistles with this “the oil and gas investing company” provided the following strategy update on progress towards implementing its investment policy and making a value accretive acquisition. The Company has appraised and evaluated a number of opportunities in Russia and the CIS and has concluded that the valuations expected by vendors are currently proving unattractive. Therefore, the Board of Matra has decided to currently focus its efforts on pursuing opportunities in the United States of America. A favourable tax regime, extensive established infrastructure and a large number of independent players makes the USA a very attractive place for the Company to pursue the implementation of its investment policy. The Board remains committed to the declared investment policy, and believe that such a shift in our geographic preferences will work in favour of our Shareholders. The Company will focus on acquiring assets with conventional oil reserves and depleted fields, where our Executive team has extensive experience and expertise. The Management has already identified a number of investment opportunities and the Company is in the process of conducting extensive technical and legal due diligence on several of these opportunities. Maxim Barskiy, CEO, commented: “We have been working hard to identify opportunities that will provide value for Matra’s shareholders. We have therefore taken the strategic decision to focus on the US, where favourable market conditions mean that attractive targets are more readily available to the Company.”
Max Petroleum (LON: MXP)
Two RNS’s this week from Max. First one. SAGW-6 appraisal well in the Sagiz West Field electric logs indicating 30 metres of net oil pay over a 93 metre interval at depths ranging from 1,194 to 1,287 metres. Reservoir quality appears good with porosities ranging from 15% to 23%. The Company is running production casing in the well, which will be completed and placed on test production after obtaining the requisite governmental approvals. The ZJ-30 drilling rig will next move to drill the SAGW-14 appraisal well near the southern end of the Sagiz West Field. Second one. Successful drilling results with appraisal wells in the Eskene North and Uytas fields. The ESKN-2 appraisal well in the Eskene North field has reached a depth of 1,523 metres with electric logs indicating 29 metres of net pay over a 173 metre gross interval in the Triassic Formation. The Company is setting production casing in the well and will begin testing ESKN-2 as soon as practicable. In the Uytas field, the UTS-12 appraisal well successfully reached a total depth of 450 metres, with electric logs indicating seven metres of net oil pay in Cretaceous and Jurassic reservoirs, including two metres of net oil pay over a four metre interval ranging in depths from 119 to 123 metres in the Cretaceous Aptian formation, two metres of net oil pay ranging in depths from 245 to 247 metres in the Lower Cretaceous formation and three metres of net oil pay over a seven metre interval ranging in depths from 311 to 318 metres in the Jurassic section. Reservoir quality is excellent. The Company plans to complete the well and place it on test production as soon as practicable. The Company will now drill the UTS-9 well targeting Jurassic reservoirs with a total vertical depth of approximately 550 metres. After UTS-9, an additional five wells remain to be drilled as part of the initial appraisal programme in the Uytas field.
New World Oil & Gas (LON: NEW)
Has secured an eight-month extension (Breathing space) in work programme commitment deadlines for Licence 1/08 at its Danica Resources Project in Southern Denmark. This extension was discussed with Danica Resources ApS and the Danish North Sea Fund, the Company’s 20% full-paying partner, and approved by the Danish Energy Agency. In order to secure the extension, New World has committed to a geochemical survey to high grade its existing prospect inventory in an effort to determine the best possible candidate for a 3-D seismic survey prior to making a commitment to drill. While more problems continue with the transfer of funds required to complete the subscription for new shares in the Company by Niel Petroleum S.A. which has not yet occurred. Notwithstanding the continuing delay in the receipt of funds, the Board believes that the Subscriber fully intends to complete the investment in the Company and consequently is continuing to work with Niel to finalise the necessary steps to resolve matters. Hope springs eternal.
Nighthawk Energy (LON: HAWK)
Has posted an explanatory circular to shareholders containing details of a proposed reduction of the Company’s share capital and a request for shareholder authority for the purchase by the Company of its own Ordinary Shares, together with formal notice of the requisite general meeting to be held at 11.00 a.m. on 18 October 2013. The Circular also contains the Company’s unaudited interim results for the six month period ended 30 June 2013. The Circular (containing the Notice and the Interim Results) will shortly be made available on the Company’s website at www.nighthawkenergy.com
Northcote Energy (LON: NCT)
An onshore US oil and gas exploration and production company, is pleased to announce plans to drill its first horizontal well targeting the Mississippi Lime formation on its 100% owned Mathis lease prior to end of December 2013. In addition as part of the well planning process, the first two undeveloped locations on Mathis have been designated P1 PV-10% reserves of US$14.8million, which combined with the previously announced reserves brings the value of the Northcote’s P1 reserves to US$76.7 million.
Nostra Terra Oil & Gas (LON: NTOG)
Finally get their hands on the Richfield Note cash. On 2 October 2013 it was determined by the Court that US$1.15 million of the $1.3 million deposited with the Court be released to Nostra Terra. Following this successful outcome for the Company a further hearing will now take place later this year to determine any additional sums owed to Nostra Terra, including attorneys’ fees, costs of collection, and reimbursement for operating expenses. Nostra Terra’s liens will remain in place until final settlement is determined. Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:”It’s great to be receiving this cash as it will fund additional scheduled drilling. Plans are already in place for additional drilling at Chisholm Trail throughout the remainder of the year, along with further development of the High Plains Prospect and additional prospects we will operate. The funds allow us to expand our drill programme at no cost to shareholders.”
Ophir Energy (LON: OPHR)
Reported the successful completion of the Pweza-3 appraisal well and flow test in Block 4, Tanzania. Ophir holds 40% of Blocks 1, 3 and 4.BG Group operates with 60%. The Pweza-3 appraisal well was drilled approx. 2km north of the original Pweza discovery well and encountered 61m of gross pay on prognosis. A Drill Stem Test was performed which achieved an equipment constrained flow-rate of 57mmscfd with minimal drawdown and no observable depletion after 5 days of flow. The implied unconstrained flow-rate is expected to be in excess of 150mmscfd. The DST has confirmed that the Tertiary reservoirs in Block 4 have similar excellent characteristics to those in Block 1. This result is expected to dramatically reduce the number of development wells required in Block 4, thereby simplifying the development plan and having a positive impact on the project’s economics.
The Parkmead Group (LON: PMG)
The Pharos exploration well has commenced drilling in the UK Southern North Sea. The Pharos gas prospect has the potential to contain up to 500 billion cubic feet of gas-in-place (86 million barrels on an oil equivalent basis) and is located in Blocks 47/4d, 47/5d and 47/10c. The Pharos structure is located only 14km south west of Parkmead’s Platypus gas field, which was discovered in 2010 and successfully appraised with a horizontal well in 2012. Pharos is mapped as a much larger structure than Platypus and has the potential to contain almost three times more gas-in-place than the targeted amount at the successful Platypus discovery.
Urals Energy (LON: UEN)
Released an update in relation to its current operations as well as in relation to the requisitioned EGM. The directors of Urals Energy believe that the preliminary review of the results (Passive Seismic Spectroscopy and a separate Micro-Seismic survey) show the possibility of significantly increasing production at Arcticneft from the current horizons with limited capital and operational expenditure. This is based on five main trends of hydrocarbon potential as revealed by the results of the Surveys and is consistent with the Company’s existing exploration strategy. The Company continues to review the results of the Surveys in more depth, including encouraging data on possible future deeper drilling sites at Arcticneft. Urals Energy expects to conclude the drilling of Well #53 during the next two weeks and will make further announcements at the appropriate time. The EGM. Pursuant to Cypriot law, a notice convening the requisitioned extraordinary general meeting must be posted by the Company to the shareholders of Urals Energy on or before 15 October 2013 and the requisitioned extraordinary general meeting will be held within the requisite period following the date of the Notice.
It’s been a quiet week in the Smallcaps Underverse. Today was piss poor for news!
Bankers Petroleum (LON: BNK)
Said this week that a claim has been filed in the Commercial Court of England and Wales against the Company’s subsidiary Bankers Petroleum Albania Ltd. (“BPAL”) by BP Oil International: BPO in connection with a dispute between BPAL and BPO over the termination by BPAL of a crude oil sales contract between BPAL
and BPO. BPO has alleged that BPAL wrongfully terminated the Contract and is seeking damages of approximately US$ 54 million. The Company and BPAL believe that BPAL was fully within its legal rights to terminate the Contract, that BPO’s claim is without merit and that, in any event, BPO’s estimate of damages is exaggerated. The Company intends that BPAL will vigorously defend the claim.
Bridge Energy (LON: BRDG)
Takeover! Spike Exploration Holding AS, announces a recommended voluntary cash tender offer to acquire the entire issued share capital of Bridge Energy ASA at £1.62pence per BRDG share. Take the money & run!
Desire Petroleum (LON: DES)
Released their interim results for the six months ended 30 June 2013. Click HERE to view them
Enegi Oil (LON: ENEG)
The independent Oil and Gas Company with a portfolio of assets located in the UK North Sea, Newfoundland Canada, Ireland, and Jordan released an update on the Company’s strategy. Much too long winded for the smallcap round up. Click HERE to read it.
Faroe Petroleum (LON: FDP)
Announced the spudding of the Statoil-operated Snilehorn exploration well 6407/8-6 (Faroe 7.5%). The Snilehorn prospect is located four kilometres from the Hyme producing oil field (Faroe 7.5%) in the Norwegian Sea. Hyme produces into the Njord field facilities (Faroe also 7.5%). The well and a planned side-track will target oil and gas in the Jurassic Ile, Tilje and Åre Formations (analogous to the Hyme reservoir) and, if successful, the plan is to fast-track a development along similar lines to the Hyme development. The water depth is 282 metres and the well is planned to be drilled to a total depth of approximately 3,205 metres. The drilling operations are being undertaken by Statoil (50%) utilising the Songa Trym rig.
Falcon Oil & Gas (LON: FOG)
Has completed the purchase of 2,462,686 shares from certain of the remaining shareholders in Falcon Oil & Gas Australia Ltd. As previously announced, the consideration was 2.25 common shares in Falcon for every one FOGA ordinary share held. The valuation used in this offer was the same used in the recently completed acquisition of Sweetpea Petroleum Pty Ltd’s 24.2% holding in FOGA. As a result of this transaction, 5,541,044 new Falcon common shares have been issued. Application has been made to the London Stock Exchange for the new shares to be admitted to trading on the AIM Market of the London Stock Exchange. FOGA is a subsidiary of Falcon and is the registered holder of four exploration permits in the Beetaloo Basin, Northern Territory, Australia. Following the completion Falcon holds 202,462,686 shares in FOGA, representing 98.1% of the issued share capital of FOGA. The transaction is subject to final approval from TSXV.
Frontier Resources (LON: FRI)
Updated on its activities in the Sultanate of Oman. Frontier’s 100%-owned Block 38, located in the Dhofar Region of southwest Oman, covers an area of approximately 17,425 square kilometres. A 6 year Exploration & Production Sharing Agreement was signed on 25 November 2012. Frontier is the operator. From the declaration of commerciality, which under the Oman EPSA means the date on which the Government of Oman approves a field development plan for the commercial discovery of crude oil or natural gas and as appropriate a gas sales agreement becomes effective, an Oman Government company will be entitled to a 25% participating interest in the Oman EPSA. Having received bids from several data processing companies, the Company has selected BGP Inc., the U.S. subsidiary of the China National Petroleum Corporation, as the contractor to utilise its proprietary software package to provide high quality data processing services by re-processing selected 2-D seismic data from the vintage seismic data sets on the concession. These data sets were originally acquired by previous operators on the Block that included Phillips Petroleum, BP, Petroleum Development Oman and Sinopec. Frontier also expects to benefit from any new developments that result from work done at BGP’s recently established state-of-the art research and development centre in Houston, Texas. Data reprocessing uses the latest in signal processing technology to enhance the interpretability of the seismic data by extracting information from the older data that would not have been possible at the time of the original acquisition and processing. This is achieved mainly by suppressing noise and enhancing the signal reflected from the subsurface. Re-processed data quality will be strongly affected by the acquisition parameters used during the initial data recording. The results of the re-processing will be integrated into the overall seismic dataset on Block 38 to come up with an interpretation that will help guide Frontier to optimise the location of a planned 3-D seismic survey.
Genel Energy (LON: GENL)
Along with DNO International ASA, has signed a Gas Sales and Purchase Agreement with the Kurdistan Regional Government to supply gas from the Summail field in the Dohuk licence in the Kurdistan Region of Iraq. Earlier this week Gene “Noted” that DNO International ASA as operator of the Tawke Field in the Kurdistan Region of Iraq, issued the following statement on the field: “DNO International ASA, the Norwegian oil and gas company, announced that it has commenced extensive testing of the Tawke-23 exploration well in the Kurdistan region of Iraq. The well is the second horizontal well drilled by the Company in the Tawke field and has encountered continuous oil shows within a 930 metre horizontal section in the main Cretaceous reservoir. The test program, expected to last up to three weeks, will focus on ten fracture zones with production potential. The Company’s first horizontal well in the field, Tawke-20, tested 8,000 barrels per day from each of ten producing intervals in the Cretaceous reservoir and is currently on stream at an average rate of 25,000 barrels per day. Also currently drilling in Kurdistan are two other Tawke horizontal development wells, Tawke-21 and Tawke-22.”
Leni Gas & Oil (LON: LGO)
Said this week that their had been a positive impact of recent revisions to capital allowances and tax credits to be applied to the oil and gas sector in Trinidad. You can read the full RNS HERE
Max Petroleum (LON: MXP)
Not a good week for MXP! The BCHW-3 appraisal well in the eastern portion of the Baichonas West Field on Block E to a total vertical depth of 1,525 metres was plugged and abandoned. In the Uytas field, the UTS-16 appraisal well successfully reached a total depth of 200 metres, with electric logs indicating three metres of net oil pay in the Cretaceous Aptian reservoir over a 33 metre interval ranging in depths from 111 to 144 metres. Reservoir quality is excellent. Hydrocarbon shows were not encountered in the Albian section. The Company plans to complete the well and place it on test production as soon as practicable. The Zhanros mobile truck mounted rig is now moving to the UTS-15 appraisal well, which will be drilled to a total depth of approximately 200 metres targeting Cretaceous reservoirs. After UTS-15, an additional six wells remain to be drilled as part of the initial appraisal programme in the field.
Nostra Terra Oil & Gas (LON: NTOG)
Updated on the Verde Prospect, located in Colorado. The third well has reached total depth, drilling has ended and completion operations are now underway. Drilling in the primary pay zone was interrupted to perform two Drilling Stem Tests (DST). The second test resulted in free gas nearly reaching the surface and recovery of several hundred feet of liquids, a mixture of gas and oil, plus oil and gas cut drilling muds, the majority of which was oil. No free water was reported. Nostra Terra owns a 16.25% working interest in this program of development wells, but has recently increased its working interest in this well to 17.54%. The prospect is operated by Plainsmen Partners, LLC and is located in south-eastern Colorado.
Petroceltic International (LON: PCI)
Announced this week the successful tie-back of a new production well on the Kaliakra gas field, offshore Bulgaria. The well was completed with a subsea wellhead and connected to the existing Kaliakra pipeline for export via the Galata platform. The well and flow line works were performed by the GSP Prometeu jack-up drilling rig and Big Foot 1 lay barge and concluded on 10 September. The new well has been flow tested at rates in excess of 12 MMcfpd and is currently being produced through the Galata facilities, which are shared with the Galata and Kavarna fields. Once the production from the three fields has been rebalanced, the combined rate is expected to stabilise at around 30 MMcfpd. Petroceltic holds a 100% working interest in the fields and associated infrastructure.
Range Resources (LON: RRL)
Released a Texas & Trinidad update. You can read it HERE
Salamander Energy (LON: SMDR)
Has spud an exploration well in Block G4/50, Gulf of Thailand targeting the Ayutthaya prospect. Ayutthaya is located in the Western Central sub-basin, some 7 km northeast of the recent Surin oil discovery. The well will target oil in Miocene sandstones and is estimated to contain mean prospective recoverable resources of 30 MMbo. The well will be drilled to approximately 2,350 metres total vertical depth sub-sea using the Atwood Mako jack up rig.
San Leon (LON: SLE)
Two RNS’s this week from San. Preliminary results for the hydraulic fracture treatment performed on the Rogity-1 well on the Braniewo S Concession in Poland’s northern Baltic Basin. This was the first frac of a three-stage programme at Rogity-1 as part of the recently signed farm-out agreement with Wisent Oil & Gas, under which Wisent will fully design, perform, and fund the costs of the programme as well as any subsequent testing in the well. The objective of this first fracture was to understand the frackability and production potential of the tight Cambrian sandstones. It is anticipated that any future development would be with multi-staged fracced long offset horizontals. San Leon has mapped a large Cambrian structure at the Rogity-1 well, which the Company is analysing as a sweet spot for oil production via fractures. The frac was performed according to plan. Following a period of frac fluid clean up, oil accumulated and has been sampled at surface. This is seen as a highly encouraging result, and further clean up and testing of the Cambrian will be performed following fraccing of the upper two zones, scheduled for late September 2013.
San have also Completed the flow back, testing and initial analysis of its first vertical hydraulic fracture stimulation of the Lewino-1G2 well on its 221,000 acre Gdansk W Concession in Poland’s northern Baltic Basin. This initial vertical frac was performed to test frackability and the flow potential of the lower Ordovician shale and to gather critical data necessary for future horizontal drilling and multi-staged hydraulic fracture stimulation, targeted on obtaining commercial flow rates from the Ordovician and Lower Silurian shales. The frac was performed through a 4.5-meter perforated interval, at a depth of 3,545.5 to 3,550 meters, in the highly prospective Ordovician Caradocian shale. The frac pumped over 11,000 barrels of fluid and 95 tons of sand propant at an average of 120 barrels per minute with a maximum pressure of 12,200 psi. This is the highest frac pump rate at pressure ever performed outside the US. Approx. 25% of the frac fluid was recovered along with a small, consistent flow of burnable gas. The well flared gas on several occasions including initial opening of the well after the frac and following a shut-in period after approx. 20% of the frac fluid was recovered.
Trapoil (LON: TRAP)
The independent oil and gas exploration, appraisal and production company focused on the UK Continental Shelregion of the North Sea, announced that it had been notified by the Athena field operator (Ithaca Energy LON: IAE) that further to its recent diagnostic testing, including an investigation of the ESP installed in the “P4” well in the Athena Field, the fault has yet to be rectified. The pump failure in the P4 well has reduced the gross field production by approximately 1,400 barrels of oil per day (210 bopd net to Trapoil). Current production from the field is therefore running at approximately 7,500 bopd (1,125 bopd net to Trapoil). The field’s partners are currently assessing the most appropriate remedial actions, which may include repairing or a work over of the existing well or the potential drilling of a new well. The Company considers that it is currently unlikely that production will be restored to its optimum level prior to Q2 2014. A further update will be provided in due course. In addition, Trapoil said that its unaudited interim results for the six months ended 30 June 2013 will be released on 27 September 2013.
Not much happening in the Smallcaps Oil & Gas sector this week. Don’t forget to sign the e-petition demanding an investigation into Sefton Resources. Ellerton the fraud and perjurer has now been SACKED. Demand an investigation. Click the link
Bridge Energy (LON: BRDG)
Updates on the current exploration drilling campaign, targeting the Amol and Asha East prospects within the PL457 licence. Further to the announcement on 14 August 2013, we can now advise that the operator has changed the order of drilling, with results from the Amol well now expected first. Bridge has a 20% interest in the PL457 licence. Wintershall is the operator with 40%, with the other partners VNG (20%) and E.ON (20%)
Chariot Oil & Gas (LON: CHAR)
The Brazilian National Agency of Petroleum, Natural Gas and Biofuel has approved and signed the concession agreement for Chariot’s 100% interest and operatorship in licences BAR-M-292, BAR-M-293, BAR-M-313 and BAR-M-314 in the Barreirinhas basin, offshore Brazil. Chariot’s successful bids for these blocks were detailed in the announcement of 15 May 2013. CHAR will now look to carry out an Environmental Impact Assessment with the aim of planning and implementing a 3D seismic programme across these blocks in 2014.
Falcon Oil & Gas (LON: FOG)
Released an operational update this week. Much too convoluted for the Smallcap round up. You can read it HERE
Forum Energy (LON: FEP)
The Directors of Forum Energy were forced to release a statement on the recent movement in the Company’s share price, (jumped by more than 53%) confirming that they are not aware of any reason for such a movement.
GeoPark (LON: GPK)
The Latin American oil and gas explorer, operator and consolidator with operations and production in Chile, Colombia, Brazil and Argentina announce its first half financial results ended 30 June 2013. Click HERE to read them
Kea Petroleum (LON: KEA)
Hit the skids this week. The the oil and gas company focused on New Zealand, announced further results of testing and flow rates at Puka, the decision not to renew the PEP51155 permit and the commencement of a strategic review process. Combined total flow rates at Puka 1 and Puka 2 have stabilised at approximately (a piss poor) 200 barrels of oil per day.
Madagascar Oil (LON: MOIL)
Released their half year results for the six month period ended 30 June 2013. Click HERE to read
Magnolia Petroleum (LON: MAGP)
Updated on its activities in proven US onshore formations, including its participation in four new wells in Oklahoma alongside established operators such as Devon Energy. This update is in line with the Company’s strategy to rapidly build production and reserves on its leases in oil rich formations including the Bakken in North Dakota and Mississippi Lime in Oklahoma. If you want to read Ritas’ guff click HERE
And the week wouldn’t be complete without an update of some sort from Max Petroleum (LON: MXP)Who have commenced drilling the BCHW-3 appraisal well in the Baichonas West Field on Block E using the Zhanros ZJ-20 rig. The well will be drilled to a total vertical depth of approximately 1,460 metres targeting Jurassic and Triassic reservoirs. The Company has also successfully reached the target depth at the UTS-13 appraisal well in the Uytas Field which is currently being logged. The logging results will be announced as part of the next drilling update.
Nostra Terra Oil & Gas (LON: NTOG)
Holds a judgment against Richfield for in excess of US$1,500,000, plus on-going interest, attorney’s fees, and costs of collection. Six Russell County, Kansas leases belonging to Richfield will be sold at a public auction conducted by the Russell County Sheriff on 12 September 2013. The net proceeds from the sale will be applied to the balance of the judgment. Three of the leases, which were the subject of the 1 July announcement, including two producing wells and one saltwater disposal well, were originally auctioned at a Sheriff’s sale on 27 June 2013. Subsequent to that auction, Nostra Terra voluntarily made the decision to set aside the sales in order for these leases to be auctioned together with three additional leases, with producing and non-producing wells that share the same saltwater disposal well. Nostra Terra also has a lien on all of Richfield’s real property assets in the State of Utah. On 18 July, 2013 Richfield announced they have increased their lease position from 10,562 acres to 15,375 acres in Central Utah. All of these leases are included in the assets liened by Nostra Terra. Auctions for these assets will be scheduled in order to satisfy the Judgment awarded to Nostra Terra. Further efforts to collect on the judgment, including garnishments, have been undertaken and will continue until the judgment is satisfied in full. Matt Lofgran, Chief Executive Officer of Nostra Terra, commented: “While Richfield has stated that they will ‘vigorously defend against this foreclosure action,’ the reality is that the foreclosure action has already progressed to judgment in favor of Nostra Terra. Nostra Terra will continue its vigorous effort to collect its judgment in full either through cash or assets.”
Petroceltic (LON: PCI)Has spudded two wells: Shakrok-1, the first well in its drilling campaign in the Kurdistan Region of Iraq and Cobalcescu South, part of its planned multi-well drilling campaign, offshore Romania.
Range Resources (LON: RRL)
Two bits of news this week. Range would like to draw attention to the announcement released by Citation Resources Limited (ASX:CTR) with respect to the Company’s interest in Guatemala. If you want to waste your time reading this then click HERE The other can be read HERE
Sefton Resources (LON: SER) Trading in its shares had to be suspended on AIM due to the unauthorised publishing of confidential internal information on a website. What a pity. Here’s hoping they never come back. Good riddance to this POS.
Sound Oil (LON: SOU)
Announced a positive well test at the onshore Nervesa discovery in Northern Italy. Hooray! The well test achieved a stabilised total gas flow rate of 2.7 MMscfd from multiple sandstone intervals in the Upper Miocene San Dona Formation using a dual string completion. Sound also confirms that, following a revision of its reservoir model for the full field, the P50 estimate of recoverable gas resources at Nervesa has increased from 21 Bcf (with an estimated NPV10 of US$58m) to 24 Bcf (with an estimated NPV10 of circa US$66m). Following these successful results, the Company will continue with its plans to: (i) apply for a Production Concession with a view to achieving first gas sales at Nervesa in 2015; (ii) drill a second well at Nervesa, addressing the Southern part of the structure; and (iii) secure a Reserve Based Lending (“facility to provide funding for the next stage of Sound Oil’s development;
In anticipation of securing an RBL facility, the Company has entered into an asset backed bridge loan facility for some £2.5 million with a syndicate of private investors. The Bridge Loan matures in February 2015, carries a coupon of 10% per annum and an average annual fee of 9%. It is the Company’s intention to repay the Bridge Loan with a portion of the proceeds from the RBL facility. The Company has also renewed its existing Standby Equity Distribution Agreement with Yorkville Advisors LLP for a period of three years on the pre-existing terms and without an upfront fee. Beyond Nervesa, the Company will continue with the second phase of its strategy, which includes preparing for 2014 drilling at Laura and Badile. The Company is pleased to invite investors to a conference call on 6th September 2013 at 1100. Details can be obtained from Annabelle Griffiths at [email protected]. James Parsons, Sound Oil’s Chief Executive Officer, commented: “This is a significant milestone for the Company”
Tower Resources (LON: TRP)
Provided an update on the acquisition of Wilton Petroleum. On 3 July 2013, Tower Resources announced the conditional acquisition of Wilton Petroleum, which owns a 20% carried interest in the Marovoay Block-2102, onshore Madagascar. The Block is operated by Ophir Madagascar Limited (80% interest). The Operator has indicated to Wilton that they do not now intend to drill the commitment well due to be drilled by 19 April 2014 and to which Wilton’s carry of $4million by Ophir related. Discussions between the parties are in progress and accordingly Tower has agreed with the Wilton Petroleum vendors to extend the completion date of the acquisition to 30 September 2013.
Union Jack Oil (LON: UJO)
Released unaudited results for the half year ended 30 June 2013. Highlights included The Acquisition of interests in four onshore Petroleum Exploration and Development Licences all containing drill ready prospects… Progress made towards delivering on strategy to rapidly appraise and exploit the acquired assets… Planning consent received in respect of the Burton on the Wolds-1 and Wressle-1 Prospects… A two well drilling programme covering Burton on the Wolds-1 and Wressle-1 scheduled for later this year. Gross proceeds of £800,000 in connection with Admission… Cash position in excess of £1.0 million as at 5 September 2013.
David Bramhill, Executive Chairman, commented: “In the space of just over one year Union Jack has obtained interests in four onshore UK drill ready prospects and will be involved in the drilling of the Burton on the Wolds-1 and Wressle-1 exploration wells during the next few months. Your Company has made significant progress during the first half of 2013 and I look forward to reporting on drill results and other matters in respect of the remaining period of the year in due course.”
