Tag: Nighthawk Energy

It’s been a tough write up today for myself. Lots of distracting telephone calls from Trinidad and Oklahoma. Not to mention the emails, OH God no the emails! Piling up yet again! Got to go!

 

Dan

 

Amerisur Resources (LON: AMER)
Released results for the year ended 31 December 2012. Copy’s of which can be viewed by clicking HERE . AMER Also announced an agreement with the operator of the Rio Loro oil reception facility, Huila Colombia, to receive a minimum of 3,500BOPD from the Platanillo field. This facility had previously been able to receive an average of 1,783 BOPD from Amerisur during the last 6 months, with the remainder of Platanillo production being exported through the Orito facility.  The Company continues in its efforts to enhance export capacity from the Platanillo field.

Antrim Energy (LON: AEY)
Have farmed out its Licensing Option 11/05 (Antrim 100%) in the Porcupine Basin offshore Ireland’s west coast.  Kosmos Energy will acquire 75% interest and operatorship in the Licensing Option in exchange for carrying the full costs of a planned 3D seismic programme within the licence area and reimbursement to Antrim of a portion of the exploration costs incurred on the blocks to date. Antrim will retain 25% interest. The transaction is subject to approval of the Department of Communications, Energy and Natural Resources of Ireland. Kosmos and Antrim expect to apply to DCENR for conversion of the Licensing Option to a Frontier Exploration Licence and approval for the 3D seismic programme as soon as possible. Under the terms of the Licensing Option, a minimum of 25% of the area must be relinquished when converting to a Frontier Exploration Licence. Dead in the water!

Bahamas petroleum (LON: BPC)
Final results. You can read them HERE

Bowleven (LON: BLVN) 
Results of the second test at the IM-5 appraisal/development well drilling offshore Cameroon came in this week. (Looking good) A drill stem test has now been performed on the Intra Isongo reservoir interval and this following the Middle Isongo DST announced on 2 April 2013 completes the successful drilling and testing programme at IM-5. Condensate-rich gas flowed on test from both Middle and Intra Isongo intervals confirming commercial production rates and the significant liquids content of gas. The Combined maximum flow rates of 60 mmscfd and 7,819 bcpd (total over 17,800 boepd).

Bridge Energy (LON: BRDG)
Has commenced the drilling of exploration well 6406/6-3 has commenced. Which will target the Mjøsa gas prospect, which is located 10 km northeast of the Linnorm discovery within the Haltenbanken Area of the Norwegian Sea. The well is being drilled by the Transocean Arctic semi-submersible rig and is targeting Lower and Middle Jurassic reservoirs. The estimated unrisked mean potential targeted by the well is 14 mmboe net to Bridge. Bridge has a 7.5% interest in the well. Wintershall is the operator with 25%, and the other partners are Maersk25% Petoro20% VNG12.5% and Tullow10%

At long last some good news came this week for beleaguered holders of Cadogan Petroleum (LON: CAD) Who confirmed completion of the sale of two gas plants  to Global Process Systems LLC, following receipt in full of the agreed consideration of $29.5 million. In accordance with the terms of the settlement documentation, the parties are now taking appropriate steps to dismiss the legal proceedings commenced in England against GPS and all other claims and liabilities have been released.

Edge Resources (LON: EDG)
Has increased production at the first well of the Company’s spring drilling program in Asset East. EDG previously reported over 60 barrels of oil per day with production fundamentals indicating further production increases were possible. Production from this well has now increased to over 90 bopd and it is providing further indications that additional production increases are possible. The well encountered eight metres of net pay and is being conservatively production tested using a progressive cavity pump to assist with the production of formation sand alongside the oil. Despite some erratic production that is typical and expected of CHOPS wells, the well achieved an average rate of over 50 bopd during the first month of production testing.

Empyrean Energy (LON: EME) the AIM-listed condensate and gas exploration and production company focused on the Eagle Ford Shale, Texas, USA, provided an update on production and operations at its Sugarloaf Project: Click HERE to read it.

Europa Oil & Gas (LON: EOG)
Also announced a farm-in agreement with a subsidiary of the independent oil and gas exploration and production company Kosmos Energy (NYSE:KOS) for its two Licencing Options LO 11/7 and LO 11/8 in the South Porcupine Basin offshore Ireland. The same Kosmos that has farmed in to Antrim Energy’s licences. Under the terms of the agreement, Kosmos will: acquire an 85% interest and be appointed as operator of both Licences. Fully fund the costs of a 3D seismic programme on each Licence & pay 85% of costs incurred by Europa to date.

Falklands Oil & Gas (LON: FOGL)
The PGS M/V Ramform Sterling has completed a 3D seismic survey over the mid Cretaceous Diomedia fan complex within the southern area licences. A total of 5,235 square kilometres of full fold seismic data have been acquired. The survey was operated by Noble Energy on behalf of the Joint Venture, which includes Edison International Spa and FOGL. More 3D data was acquired in this survey than originally anticipated. The data will now be processed by PGS and a fast track product will be available for interpretation in approximately four months. It is anticipated that the final processed data will be available in the fourth quarter of 2013. The fast track data will be used to commence prospect mapping and well planning. Initial test lines from the survey indicate excellent data quality and imaging of the Cretaceous target interval. A second 3D seismic survey, also using the Ramform Sterling, has just commenced. This survey will cover a minimum area of 1,000 square kilometres and will target a number of prospects and leads in FOGL’s southern licence area, immediately to the west and north-west of Borders and Southern’s Darwin gas-condensate discovery. A further announcement regarding this survey will be made once acquisition is completed. The Joint Venture is also currently reviewing tender offers with respect to a third 3D seismic survey to be acquired in the northern licence area in the fourth quarter of 2013. Lots of seismic being shot here? Think on!

Magnolia Petroleum (LON: MAGP)
Hooray Rita actually released the bopd numbers “Net production as at 31 December 2013 stood at 122.5boepd following significant increase in new wells since Admission to AIM” Boo! Boo! Boo! Says I. Can Rita see into the future? I actually thought we were in APRIL 2013? Maybe it was all the P’s that were being thrown around 3p 2p or not 1p? What is the BOPD? Please clarify & correct! We are watching.

Max Petroleum (LON: MXP)
Yesterday announced that the ZMA-A24 development well in the Zhana Makat Field had successfully reached a total depth of 871 metres, encountering hydrocarbons in Jurassic sandstone reservoirs in line with expectations. The Company plans to complete the well then place it on production as soon as practicable. The Zhanros ZJ-20 rig will now move to drill the ZMA-E5 development well in the Zhana Makat Field.

New World Oil & Gas (LON: NEW)
Drilling is underway in Belize, progress continues to be made across the Atlantic at THE Danish assets. NEW have completed the initial interpretation of the 3-D seismic data on their Jensen prospect on block 1/09, and RPS Energy are now compiling the data into an updated CPR which will be available before the end of Q2 2013. Meanwhile, the recent 2-D programme on block 1/08 has just been completed. NEW are eager to receive the results of this programme as the data will reveal which of several large structures already identified they will further de-risk with a 3-D programme. The CEO William Kelleher piped up, “All of this newly acquired data will be instrumental in our on-going discussions with potential farm-in partners and I look forward to providing further updates on our progress in both Belize and Denmark in due course.”

Nighthawk Energy (LON: HAWK)
The US focused oil development and production company updated on drilling and development at its 100% controlled and operated Smoky Hill and Jolly Ranch projects in the Denver-Julesburg Basin, Colorado. You can read the Jolly Smokey Update HERE

Northern Petroleum (LON: NOP)
Announced the joint venture decision to extend current drilling operations on the Guyane Maritime permit in French Guiana. The GM-ES-3 exploration well is the second well of a four well exploration drilling campaign that commenced in 2012 to follow up the oil discovery at GM-ES-1 in 2011. (Here comes the “Flannel”) The GM-ES-2 well had exploration objectives in the major Cingulata fan system within which the original oil discovery was made in two ages of formation. GM-ES-3 has been planned to deliver exploration information in the subsidiary Priodontes fan system to the north west of the Zaedyus oil discovery. The GM-ES-3 well intersected a 50 metres gross section of oil stained sands in the lower part of the Bradypus fan which was not a target formation at this location although it is also within the main Cingulata fan system. A 325 metres gross interval of sandstones was encountered in the targeted Priodontes fan, (And Here comes what they’re trying to “Flannel”) but these were logged with no significant hydrocarbon shows. That’s all we need to know the rest of the RNS is more “Flannel!”

President Energy (LON: PPC)
Seismic acquisition has commenced at its Concessions in the Chaco region of Paraguay. Approx’ 780 sq kms of 3D seismic and 100 kms of 2D seismic will be acquired over high-graded areas of the Pirity and Demattei Concessions respectively. Approx’ two hundred people are being deployed in the seismic operations by President’s seismic partner, Global Geophysical Inc. of Houston, Texas. Global will provide a full suite of data acquisition, data processing, interpretation and reservoir risk reduction tools, as well as passive micro-seismic monitoring using their proprietary Tomographic Fracture Imaging technology. This is the first 3D survey to be shot in Paraguay and the first comprehensive and concentrated modern seismic survey to be undertaken in the prospective Pirity Basin of the Paraguayan Chaco. In line with original timetable, the seismic survey will be completed by the end of August with initial results being available during the latter part of Q4 2013.

Range Resources (LON: RRL)
Have been placed into a precautionary suspension on the AIM market until
such time as it can issue a clarification announcement in respect of a
potential significant transaction. Range’s shares have also been placed in a
trading halt on the Australian Securities Exchange. What could it be? If you join www.shareprophets.com you’ll find out.

San Leon Energy (LON: SLE)
Said that its planned stimulation and test of the Czasław-1 well on the Company’s Nowa Sol Concession in the Permian Basin of Poland will begin on April 22, 2013 with the mobilisation of coiled tubing, nitrogen lift equipment, and surface test equipment from Vechta, Germany. Recent measurements of the well have shown that the well is building pressure. After taking samples of the fluid in the wellbore the Company has recovered natural gas (including C1-C8) and light oil. Schlumberger has been contracted to complete this phase of the project.

Silvermere Energy (LON: SLME)
Darkening clouds are hovering over SLME. On 11 January 2013, the Company announced a subscription to raise £371,000. An existing shareholder who subscribed for £80,000 worth of shares failed to honour his commitment to pay for them despite repeated verbal and written assurances to both the Company and its advisers that such funds were being or had been remitted directly or indirectly to the Company. That subscriber’s 1,200,001 subscription shares in the capital of the Company have, however, already been admitted to trading on AIM. OH DEAR! Silvermere has accordingly now instructed its lawyers to pursue the defaulting subscriber for the amount owed.( Waste of time and a waste of money on solicitors fees You’re responsible for the present predicament. Not some Private Investor who has already lost money in Silvermere!) The unpaid subscription commitment has a material effect on the Company’s available cash resources such that in the absence of a refinancing it is dependent upon the support of it s directors and creditors. The Company also has an unsecured convertible loan of £750,000, repayment of which is due by the Company on 1 July 2013. (Lesson in economics. If you have £5 pounds Don’t spend £10). It is now in default of significant outstanding financial commitments on its I-1 Well which could prejudice the Company’s interest in the Well, in respect of which it has received a notice of default. The Company is in active discussions with Athol Gold and Value Ltd, which holds 88 per cent. of the Loan.

Tethys Petroleum (LON: TPL)
Announced the appointment of Denise Lay as Deputy Chief Financial Officer (Deputy CFO) with immediate effect.

Wessex Exploration (LON: WSX)
“Flannel” See Northern Petroleum entry.

It’s been a very busy week in the Smallcap Oil & Gas sector. I am at present incognito heading down to the UK Investor show. Any one who spots me there can have a free cup of “None-saleable fluids!” Still giggling on that one.

Have a great weekend.

Dan

 

Following the successful completion of the pre-production well test in September 2012 and a new 3D seismic survey, Xcite Energy (LON: XEL) announced the results from its updated reserves assessment report as prepared by TRACS. Mean PIIP for the Bentley field of 909 MMstb, increased from 550 MMstb as previously reported in February 2012. With oil reserves for the Bentley field of 1P, 198 MMstb, 2P, 250 MMstb and 3P, 312 MMstb, respectively, based on an initial 35 year production period. Xcite have “Projected P50 peak production rate of approximately 45,000 stb/d in the first phase development, increasing to approximately 57,000 stb/d in the second phase development” NPV10 (after tax) value of oil reserves for the Bentley field of approximately $1.5 billion, $2.2 billion and $2.8 billion on a 1P, 2P and 3P basis, respectively. An additional 46 MMstb of P50 Contingent Resources assigned to the Bentley field for recoverable volumes beyond the initial 35 years production period. Aggregate, unrisked mean Prospective Resources assigned of approximately 96 MMstb, relating to prospects adjacent to the Bentley field and prospects as awarded in the recent UK Offshore 27th Licence Round. Rupert (the bear) Cole, Chief Executive Officer of Xcite Energy commented: “I am very pleased to report this significant increase in both reserves and value attributable to our assets, which supports our long-held belief in the potential of the Bentley field. This 2P reserves update, at 250 million barrels, plus considerable upside potential, has exceeded our expectations. We have now moved Bentley from being a significant asset to one of the major strategic assets in the North Sea, which will be an important source of future employment and economic contribution to the UK for many years to come. We shall now continue to move the project forward with on-going studies into the potential for enhanced oil recovery, which has yet to be factored into the reserves assessment. There isalso further scope for field optimisation in order to accelerate delivery of the Contingent Resources, as well as the potential for exploration barrels from our Prospective Resources. Our next goal is to fund the future development of our assets. Having put in place the RBL facility last year, we still see this as an important part of our future funding structure. By increasing our reserves so significantly and developing a more balanced phasing of production volumes, with approximately half of the 2P reserves now expected to be delivered from the first phase development wells, we anticipate being in a position to increase the borrowing capacity of the field considerably and we shall be discussing this with our existing and potential new lenders. Based on this reserves update, it is also the right time to evaluate suitable farm-in partners for Bentley. We have demonstrated the value of the field, materially de-risked it ahead of development and we would expect potential partners to recognise these achievements. Finally, an updated Field Development Plan will be submitted to DECC in the coming months, which will reflect the results of the successful well test last year and the greater capacity of the first phase of development.”

Trinity Exploration (LON: TRIN)
A leading independent E&P company focused on Trinidad and Tobago, updated on its operations. Highlights…. Current net production of 3,911 bopd (4,579 bopd gross)…. Four onshore wells drilled and completed with average initial production rates of 150 bopd per well (versus budget of 50 bopd)…. Deployment of Trinity’s operational management team at Galeota and implementation of new procedures complete; shut-in wells at Trintes coming back online at expected rates… Rig Sharing Agreement executed with three other operators for the Rowan Gorilla III jack-up rig. Trinity is taking the first rig slot and will drill its first exploration well on the Galeota licence in Q3 2013.

Trapoil (LON: TRAP)
More bad news this week for Trap as they had to utter the words those three words ALL oil company’s dread! The Scotney exploration well has been“Plugged & Abandoned”

SEFTON RESOURCES (LON: SER)
Just when you think it can’t get any worse it does. Serial bulls hitters Sefton came out this week with what must be the most laughable RNS so far, after perpetrating yet more fraud on UK Investors. (After the BMD site & the Highly Respected City of London financial Journalist Mr T Winnifrith exposed yet more fraudulent oil production figures released pre Dowgate placing.) This time, like so many others, Jim Ellerton said it was all down to a spreadshit oops “sheet” mistake “apparently” Sefton had added in Januarys’ SLOP figures to Februarys Oil production. All 525 barrels of it. Thus inflating their update & oil data ahead of the Dowgate placing which netted Jim £650k. Yes when calculating February oil production one ALWAYS reaches for the January non-saleable fluids spreadshit, then adds it to the February oil production spread sheet. Who do you think you are kidding Mr Ellerton?

 

Non-Saleable Fluids!

Salamander Energy (LON: SMDR)
Said that the North Kendang-1 exploration well in its operated South East Sangatta PSC has been suspended as a potential gas discovery.  The rig is now being mobilised to the Bontang PSC to drill the Bedug-1 exploration well, the third well in Salamander’s multi-well programme in the North Kutei basin.

Ruspetro (LSE: RPO)
Announced the Board’s decision to convert  part of the Directors’ cash remuneration into shares at the 2012 IPO price of 134 pence per share. This reduction in Directors’ cash remuneration, equivalent to approximately 30% of total executive and non-executive directors’ combined remuneration, will result in a cash cost saving of approximately US$ 1 million at the current share price of 33p. The reduction is effective from 1 April 2013 for a period of one year. April fools day? Is there a hidden message in here for the King of the shorters Mr Simon C?

Nostra Terra (LON: NTOG)
Happy days are here again for Nostra Terra Oil & Gas as yours truly forced the company into revealing their highly secretive “Chisholm Trail” Oklahoma county drill locations. Nostra has elected to participate in a fifth horizontal well in the Chisholm Trail Prospect, in which it will have a 2.2% working interest. The CT5 horizontal well was recently spudded. The four wells drilled so far have exceeded the Board’s expectations by a substantial margin. The acquisition of new leases to consolidate interests and new well permitting has been ongoing in the Chisholm Trail Prospect area for the past six months. Once elections are received and made on further prospect wells, the Company will make relevant announcements. They then went on to admit this. “We note with interest (translation that f***k*r BMD has found our drill locations) the recent acquisition announced on 1 April 2013, by Gastar Exploration Ltd. (NYSE: GST) of 157,000 net acreage, a portion of which is located in Kingfisher County, Oklahoma, close to our Chisholm Trail Prospect area. We believe this acquisition supports our assertion that the area is a prolific new oil play.”

Nighthawk Energy (LON: HAWK)
At last some much needed good news from HAWK. An update on production from its 100% controlled and operated Smoky Hill and Jolly Ranch projects in the Denver-Julesburg Basin, Colorado. Average gross oil production in March 2013 of 372 barrels per day, a record monthly production level for the project. John Craig 6-2 well brought back on-line on 22 March 2013 and currently producing 75-100 bbls/day with minimal water production. Further increases in production are anticipated from the continuing work-over program and new drilling. Production from the Steamboat Hansen 8-10 well has continued to increase to over 270 bbls/day in March 2013 with zero water production and minimal downtime. The Company plans to drill two new wells on the Smoky Hill project in April to further develop this oilfield. The current work-over program has successfully brought four wells back into production. The John Craig 6-2 well, which was shut-in due to high levels of water production, came back into production on 22 March 2013 and has settled down to a steady production rate of 75-100 bbls/day of oil with minimal water production. Three older wells have also been brought back into production over the past three weeks and the Company anticipates further additions to production from the work-over program.

It’s fingers crossed at New World Oil & Gas (LON: NEW) The Rio Bravo #1 Well on the West Gallon Jug Crest prospect in Belize is currently drilling at approximately 7,700 feet. Whilst a number of hydrocarbon shows have been recorded, the commerciality of these shows can only be determined once the well is drilled to total depth (‘TD’), open hole logs are run and interpreted, and well testing results are available. The planned TD of the Well is estimated at 8,800 feet. On-going operations are continuing to proceed without incident, are on schedule and under budget. Rio Bravo, which commenced drilling on 1 March 2013, is targeting a non-fault dependent four way structural closure in the Upper Jurassic Margaret Creek Formation. The Well is currently drilling through the Cretaceous interval, through the anhydrite top seal and dolomite sequences. To date drilling operations at WGJc have been in line with the Company’s geologic expectations. Good Luck to holders.

The Board of Mediterranean Oil & Gas (AIM: MOG) Were ” pleased to announce the following operational update related to the Company’s activities in Q1 2013: Who writes this GUFF? If you want to read it click HERE. Take a tip from Max Petroleum (LON: MXP) On how to word an update just read and weep. Max an oil and gas exploration and production company focused on Kazakhstan, is pleased to announce that it has commenced drilling the ZMA-A24 development well in the Zhana Makat Field on Block E using Zhanros Drilling’s ZJ-20 rig. Total vertical depth of the well will be approximately 860 metres targeting Jurassic reservoirs. Spot the Difference? Neither can we!

Matra Petroleum (LON: MTA)
Announced the appointment of Bill Guest as non-Executive Chairman. Bill succeeds the late Sir Michael Jenkins.

Magnolia Petroleum (LON: MAGP)
Rita!!!!! Has been at it again. She’s only gone and further muddied the bopd waters by acquiring a further 250 net mineral acres in the Mississippi Lime formation, Oklahoma which has existing production and multiple potential drilling locations from Fairmount Ridge Partners.The Company also announces it has agreed to sell an interest in leases it already owns to ISDX listed North American Petroleum plc (`NAP’) as part of its ongoing lease management activity. What about an ongoing “how many Barrels of oil per day production programme?” Or is the truth that Rita just really hasn’t got the numbers?

Leni Gas & Oil (LON: LGO)
Said that a second work-over rig has been mobilised and is now operating at the Goudron Oilfield in Trinidad. Further to the recent announcement concerning the installation of thirty additional beam pumps at the Goudron Field, the Company has now mobilised a second work-over rig, Altech-2, to complement the on-going work of the existing light work-over rig, Altech-1, which has been operating continually at the field since LGO took over operations in October 2012. The Altech-2 is rated at 80,000 lbs and can operate to depth of 6,000 feet.

Kea Petroleum (LON: KEA)
Released successful results from its initial oil production testing at Puka 2. During the initial clean-up flow period of 5 days, the well achieved an initial oil flow rate of 719 barrels of oil per day with an associated gas flow rate 0.419 million cubic feet per day on a 22/64″ choke over the initial 12 hour flow period. No formation water was produced during the flow period. The first shipment of oil from Puka 2 was dispatched to market on 31 March 2013. Well production is now temporarily halted until Sunday 14 April 2013 to establish initial pressure build up. The current test programme calls for a main flow period up to 45 days followed by a build-up period before continuous production can begin.

Gulfsands Petroleum (LON: GPX)
The order of the boot goes to Mr Ric Malcolm who has resigned as Chief Executive. In comes Mr Mahdi Sajjad, currently Executive Director and President. In Out shake it all about!

Fastnet Oil & Gas (LON; FAST)
Said this week that an independent assessment of the Company’s prospective resources on licensing option 12/5 has been completed by SLR Consulting. Fastnet farmed-into the licence on 14 November 2012 and now operates and holds an 82.35% working interest in Shanagarry following ministerial consent received on 8th April 2013. The independent assessment was carried out in accordance with generally accepted international standards. The Geologic Chance of Success ranged from 5% to 14% depending on the formation.

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, provided an update on its activities in western Newfoundland. Much too long for the Smallcap round up. But you can view it HERE

Borders & Southern (LON: BOR)
The London based independent oil and gas exploration company, updated on its activities in the South Falkland Basin. The PGS vessel Ramform Challenger has completed the Company’s 3D seismic programme in the South Falkland Basin offshore the Falkland Islands. It acquired 1,025 square kilometres of full fold seismic data. The data will now be processed by PGS and a fast track product will be available for interpretation in about three months. The final, depth processed data will take approximately nine months to be delivered but work will commence on well planning using the fast track data, with ultimate well locations to be selected using the final product.

Caza Oil & Gas (LON: CAZA)
Provided an operational update on the Company’s Bone Spring drilling activities in Southeast New Mexico. Lennox Property, Lea County, New Mexico. The Lennox State Unit 32 No. 2H horizontal well reached the intended total vertical depth of approximately 11,850 feet subsurface on March 12, 2013, and log data was obtained. There were good mud log shows for oil and natural gas throughout the Bone Spring formation while drilling the vertical section, notably in the 1st, 2nd and 3rd Bone Spring Sand intervals. Based on analysis of the log data, Caza and its partners have drilled the lateral section of the well through the primary objective 3rd Bone Spring Sand to a total measured depth of approximately 15,914 feet. Caza plans to fracture stimulate the lateral section of the well in multiple stages. Once completed, the well will be flowed back to establish initial production rates, and the market will be updated accordingly. Notwithstanding certain operational issues during drilling, including a mechanical failure on the rig requiring a replacement drilling rig to complete the hole, all issues were resolved and the resultant increase in drill time and well cost are not considered material to the economics of the well. Caza has a 40.00% working interest before payout (31.88% net revenue interest) and a 50.00% working interest after payout (39.85% net revenue interest) in the Lennox State Unit 32 No. 2H well. Roja Property, Lea County, New Mexico. Caza has elected to participate in a proposal from Occidental Petroleum, as operator, to drill a horizontal Delaware well on the Roja property. The well is called the Madera 17 Federal #1H and is currently scheduled for June 2013. Caza has a 20% working interest (16% net revenue interest) in the Roja property. Gateway Property, Lea County, New Mexico. The Company completed a trade on March 25, 2013 with The Blanco Company to acquire a 318 acre lease to be called the Gateway Property. Gateway will target the Bone Spring formation and is a nice addition to Caza’s Bone Spring property inventory. Caza has a 100% working interest (77% net revenue interest) in the Gateway property. Quail Ridge Property, Lea County, New Mexico. The Quail “16” State No. 4H horizontal well, operated by Fasken Oil and Ranch, Ltd. reached total measured depth of approximately 15,605 feet on January 26, 2013, and was successfully fracture stimulated and completed in the 3rd Bone Spring Sand on February 15, 2013. The average daily production rate over the first thirty days was approximately 828 bbls/d of oil and 947 Mcf/d of natural gas, which equates to 986 Boe/d. This is the second well completed on this property to date and is another very good result. The Quail Ridge wells offset Caza’s Lynch property and have helped to further de-risk the Company’s acreage position while providing valuable information for future drilling at Lynch. Caza has a 0.25% working interest (0.1875% net revenue interest) in the Quail “16” State No. 4H well. Company Bone Spring Prospects, Lea and Eddy Counties, New Mexico. The Bone Spring play in Lea and Eddy Counties, New Mexico, contains multiple potential pay zones for oil and liquids-rich natural gas, which include but are not limited to: Delaware, Lower Brushy Canyon, Avalon Shale, 1st, 2nd and 3rd Bone Spring Sands and Wolfcamp. Caza’s current prospects and properties in the horizontal Bone Spring play are: Lynch, Forehand Ranch, Forehand Ranch South, Lennox, Copperline, Mad River, Azotea Mesa, Bradley 29, Two Mesas, Quail Ridge, Chaparral 33, Rover, West Rover, West Copperline, Madera, Roja,and Gateway. The Company has acquired approximately 4,100 net acres in the play to date. Leasing and drilling activity continues to be competitive in the play, and initial producing well rates continue to improve with technological advances in drilling and frac designs. The Company is well positioned in the play, and continues to exploit opportunities to build on its current acreage position.

Edge Resources (LON: EDG)
The first well of the Company’s Spring drilling programme in Asset East has been on production for the last thirty days and is producing better than expected. The well has averaged approximately 50 barrels of oil per dayover the majority of the initial production period but has recently increased to over 60 bopd, with production fundamentals indicating further production increases are possible. The well encountered 8 meters of net pay and is being conservatively production tested using a progressive cavity pump to assist with the production of formation sand alongside the oil. Despite erratic production that is typical and expected of CHOPS wells, the well achieved an average rate of over 50bopd during the first month of production testing. The current rate is the maximum production rate allowable with the production pump at its current setting. However, the pump rate can be increased at any time the Company chooses, and both pressures and fluid levels indicate further increases are feasible. In these early stages of production, the Company is choosing not to produce this well at – or near – maximum capacity. The Company is conservatively producing near the low end of the production range, to promote stability and avoid heavy and sudden influxes of sand and/or water.

Egdon Resources (LON: EDR)
Has reached agreement for the sale of a 12.5% interest in Wessex Basin Licences PL090 and PEDL237 to Corfe Energy Limited for a cash consideration of £500,000. The Waddock Cross field development area in PL090 is excluded from the transaction. In addition, under the terms of an Earn-In Agreement, Egdon will be able to earn back a 6.25% interest in both Licences through paying the costs attributable to such interest as well as the costs attributable to the 6.25% interest acquired by Corfe from Egdon up to a combined maximum of £500,000. The net financial effect of the transaction to Egdon is as if it had benefitted from a “two for one” promote on the relevant proportion of the gross £4 million work programme planned on the Licences.

Leni Gas & Oil (LON: LGO)
Said that a further ten new pumps jacks have arrived in Trinidad and are being installed at the Company’s operated Goudron Oilfield. Since the last news release on the 29 January 2013, when the Company announced that it had reached a significant milestone of producing 200 barrels of oil per day in Trinidad, the Company has been preparing additional wells in readiness for the arrival of the new pumping equipment. It’s anticipated that 10 new wells will be put in to production over the coming weeks, increasing the number of wells operating by approximately 50% to over 30 wells. This is expected to result in another significant step up in oil production from the field.
A further ten pump jacks are also on the order and should arrive in Trinidad in late April, with an additional ten pump jacks expected to arriving in June. The Goudron Field has approximately 90 wells suitable for production and this program of well reactivation will continue through 2013. Over the next month LGO also expects to carry out the first of a number of planned well re-completions. The first well is targeting over 65 metres (200 feet) of additional reservoir in a perforation program using modern methods. This will be the first program for 30 years intended to access new reservoir in the field since well GY-658 was drilled in 1981. It is anticipated that this work will both raise overall oil production and provide valuable information to assist in designing the next phase of the work program, which will lead to the drilling of new wells in the second half of 2013.

Rita was at it again this week. Magnolia Petroleum (LON: MAGP) reports initial production rates for three wells across its portfolio of interests, focused on proven and producing US onshore hydrocarbon formations. These include the prolific Bakken / Three Forks Sanish Formations in North Dakota and Mississippi Lime and Hunton / Woodford Formations in Oklahoma. Yes Rita all very good but what is the total daily bopd for all the drills? Initial Production Rates. The Company has been informed by the relevant operators of wells in which it participates in that production has commenced…. Yawn………

Matra Petroleum (LON: MTA)
A sad day for MTA holders this week. Sir Michael Jenkins, Non-executive Chairman passed away on Monday 1st April. Sir Michael had served on the Board of Matra since 2007. The Board will meet this week to appoint a chairman and expects to make a further announcement shortly. Maxim Barskiy, Chief Executive of Matra commented: “On behalf of the Board, I would like to express our heartfelt sadness and regret at Sir Michael’s passing. Sir Michael’s career was one of great distinction, and we were extremely fortunate to receive the benefit of his wisdom, experience and leadership while he served as our Chairman. He will be sorely missed. Our thoughts are with his family at this difficult time.” Later in the week MTA announced the entry of ALLTECH Group, a private equity fund, as one of the cornerstone investors in the Company. Alltech Capital Limited, a subsidiary of the ALLTECH Group, acquires an indirect shareholding in the Company through the purchase of 50 per cent of the entire issued share capital of Winpro Ventures Corp, a British Virgin Island incorporated company. Winpro’s sole asset is the 575,000,000 ordinary shares in Matra representing 29.7 per cent of the issued share capital of Matra. As announced on 28th March 2012, Maxim Barskiy the Company’s CEO, transferred his total interest of 575,000,000 ordinary shares in Matra to Winpro which, at that time, was 100 per cent beneficially owned by Mr Barskiy. As set out above, pursuant to the Transaction, ALLTECH Capital acquires 4,580 shares in Winpro, representing 50 per cent of the issued share capital of Winpro for a consideration of $4,080,000. Mr Barskiy will retain 4,580 shares in Winpro representing 50 per cent of the issued share capital of Winpro. Mr Barskiy does not hold any interest in Alltech Capital or the ALLTECH Group. The ALLTECH Group was established in 1993, as a private equity fund with a portfolio exceeding $2 billion of investments under management. With a strategy focused on investing in early stage assets to identify and support independent company management through to becoming fully fledged companies, ALLTECH has already made visible and successful investments in West Siberian Resources, Siberian Anthracite, Yauza Realty and Pechora LNG. Mr Barskiy also has an indirect minority interest in the Pechora LNG project

Max Petroleum (LON: MXP)
Said this week that the ZMA-A22 development well in the Zhana Makat Field has successfully reached a total depth of 1,363 metres, encountering hydrocarbons in Jurassic and Triassic sandstone reservoirs in line with expectations. The Company plans to complete the well and then place it on production as soon as practicable. The Zhanros ZJ-20 rig will now move to drill the ZMA-A24 development well in the Zhana Makat Field.

Petrel Resources (LON: PET)
Has now completed the initial work on its two highly prospective Licencing Options (1,400km²) in the promising and under-explored Porcupine Basin, offshore west Ireland. It is now moving forward in talks with prospective partners. Option 11/4 in the North of the basin covers Blocks 35/23, 35/24 and the western half of 35/25 and the second option 11/6 in the East of the basin covers Blocks 45/6, 45/11 and 45/16. In addition to the previously identified potential on Quad 35, Quad 45 (Option 11/6) has the capability to hold several hundred million barrels of in-place oil. Interest in the Porcupine Basin continues to rise with the nearby ExxonMobil well about to be spudded on the Dunquin prospect.  The basin contains known working petroleum systems at Jurassic and Cretaceous levels, with oil/gas shows recorded in most of the 29 exploration wells drilled in previous times. Flows of high API, good quality oil have been recorded from three wells, with condensate flows recorded in a fourth well. Mature source rocks are proven in the Jurassic and are also likely in the Lower Cretaceous. Good quality reservoir sands have been recorded at Jurassic, Early Cretaceous and Early Tertiary levels. The company has purchased additional 2D seismic data, 3D seismic data and well logs to supplement its data base and has carried out further regional seismic mapping integrated with well analysis. Since our last update Petrel has completed further detailed technical programmes.

Roxi Petroleum ( LON: RXP)
The Central Asian oil and gas company with a focus on Kazakhstan, is pleased to announce that on 1 April 2013 BNG Well 143 was spudded on the MJ-F structure located towards the North of South Yelemes field. The total depth of the well is planned to be 2500 metres, with drilling expected to take approximately 45 days. This exploration well is targeted to encounter Jurassic Callovian sands at a depth of 2170 metres with a secondary objective in the Cretaceous Valanginian limestone at a depth of 1935 metres.

Sefton Resources (LON: SER)
The fantasy island figures continued to flow from Sefton Resources this week with a thumping $26 million dollar valuation for their Leavenworth assets from what the company euphemistically described as an “Independent Competent Persons Report produced by Dr Nafi Onat” Of the so called $26 million future cash flows value $20,000,333 dollars are UNPROVEN while $4,010,000 million dollars are Proved Undeveloped, of the remaining $1.6 million only $930 thousand dollars are Proved Developed and Producing. Another truly shocking attempt to fool UK Investors.

Tethys Petroleum (LON: TPL)
Announced its Annual Results for the period ended December 31, 2012. The financials are highlighted by a 66% increase in annual oil and gas revenue and the first year in which the Company has generated a cash profit with oil and gas sales of USD38.11 million, an increase of 66% on 2011. Oil production (before the deduction of local governments’ share or taxation) increased from 2,148 bopd (2011) to 3,371 bopd (2012), an     increase of 57% and has increased over the year to reach a rate of 4,381  bopd in Q4. Similarly boe production has increased to 6,313 boepd in  2012 compared to 5,656 boepd in 2011. Copies of the full report can be viewed by clicking HERE

Happy Easter from Dan & Nick. It’s a good read this week

Xcite Energy (LON: XEL)
Hotly watched & hotly tipped for greatness XEL released their results for the year ended 31 December 2012. The Highlights included the, completion of the pre-production extended well test on the Bentley field, producing over 149,000 barrels of Bentley crude. The development of a cost effective full field development solution, which maximises the recovery of crude oil and associated economics. Xcite now believe that the Bentley field has been substantially de-risked and is development-ready. Substantial part of the funding requirement for Phase 1B development of the Bentley field. (US$155 million Reserves Based Lending facility signed). Strengthened balance sheet, with new net equity capital financing of £63.4 million and new debt financing of US$60 million during 2012. Cash balance at year end of £25.6 million.

It was a busy & difficult week for Trap oil (LON: TRAP),
The independent oil and gas exploration, appraisal and production company focused on the UK Continental Shelf region of the North Sea, released 3 RNS’s this week. The first announced that operations on the Scotney (Licence P.1658, Block 20/5b) exploration prospect have experienced certain operational and weather related delays. As a consequence, the well is currently approximately 24 days behind schedule. Trap Oil 12.5% We then were treated to its audited results for the year ended 31 December 2012. Which can be read by clicking HERE Then a Director resignation, out went David Kemp, the Group’s Finance Director & in came John Church. In out shake it all about!

TomCo Energy (LON: TOM)
Announces an update in relation to its Holliday Block, Utah in the United States. TomCo had previously reported that it was working on providing SRK Consulting (UK) Limited with the required technical reports to enable the Company’s JORC compliant Resource to be upgraded to a JORC compliant Ore Reserve by the end of the first quarter of 2013.
The Company continues to wait for Red Leaf Resources Inc to supply its updated capital and operating costs for the EcoShale™ process that incorporates all the improvements made by the Total/Red Leaf joint venture management team. Accordingly, until these updated capital and operating costs are received, the Board cannot provide an accurate estimate on when the JORC compliant Ore Reserve will be published. However, the Board is confident that Red Leaf is close to completing its review of capital and operating costs. CEO Paul Rankine commented “While we remain beholden to receiving updated cost projections from Red Leaf, the process to upgrade to a JORC compliant Ore Reserve is a priority for the management team and we anticipate to updating the market on this again in the short term.” Hmmmm Do I detect another 2013 ‘future’ “Pass the hat around”

Failed…. ssshhh don’t mention “Kurdistan” oil explorers Sterling Energy (LON: SEY), who now announce themselves as an independent oil and gas exploration and production company with interests in Africa, advises that it has published its Report and Financial Statements for the year ended 31 December 2012. Copies of the Annual Report are now available to download from the Company’s website, www.sterlingenergyplc.com

Sound Oil ( LON: SOU)
Updated on the forthcoming drill of the first Nervesa appraisal well. LP Drilling SrL, the owner of the contracted TB2100S drilling rig, has informed the Company that its operations in the Netherlands are currently being finalized with mobilization to Italy expected to commence within the next two weeks. Preparations at the Nervesa site are now materially complete with the final stage being driving the 20 inch conductor to a depth of 30 metres, which will occur shortly. Similar to a Stake through the vampires heart? Let’s hope there’s not an omen in there.

Serica Energy (LON: SQZ)
Bad news for holders of SQZ as the Operator of the Columbus field, BG said that it has decided not to proceed with the construction of a Bridge Linked Platform adjacent to the BG operated Lomond field. The BLP was to be part of the export route for gas and gas condensate from the Columbus field. As a consequence, the Columbus group are reviewing other alternatives for the export of Columbus gas and liquids production. This includes the possibility of the Columbus field being tied directly to the Lomond Platform. Serica believes this to be a viable alternative and will be reviewing this with its partners and with BG to provide, as far as possible, that the impact on the Columbus sub-sea development programme and timetable will be minimal. Rubbish. The delay & cost will be anything other than “minimal”.

Ruspetro (LON: RPO)
A raft of Director buys came in this week as RPO Directors put their money where their mouth is. Donald Wolcott bought 800,147 shares at 17.5p which increased his holding to 23,660,147 SHARES = 7.097%. Then Mr. Alexander Chistyakov, Executive Director, purchased 656,521 at 15.91p per share. Following this transaction, Mr. Chistyakov now holds a total of 43,864,914 = 13.16%. While, slow on the uptake, Mr. Rolf Stomberg, Non-Executive Director, purchased 30,000 shares at 28.47p per share. Mr. Stomberg now holds a total of 100,000 = 0.03%.

Roxi Petroleum (LON: ROXI)
Said that it has agreed to issue 22,654,731 new Roxi shares in satisfaction of a $2.5 million debt. The effective issue price for these new shares is 7.412668p based on a £ / $ exchange rate of $1= £0.671728. The new shares will be issued to Raditie N.V. in return for their previous payments made in respect of Roxi’s Munaily asset. Following the issue of the new shares Raditie N.V will be interested in 59,654,731Roxi shares out of an enlarged total of 716,036,441 representing 8.6%. Smart move?

Rockhopper Exploration (LON: RKH)
The North Falkland Basin oil and gas company, announced that it will post a circular before the end of April 2013 to seek authority from shareholders to cancel the share premium account of the Company so as to create distributable reserves. The cancellation of the Company’s share premium account will be subject to the approval of the High Court who will need to be satisfied that the interests of the Company’s creditors and contingent creditors will not be prejudiced as a result of the cancellation. On successful completion of the cancellation of the share premium account, the distributable reserves created would, subject to any undertakings given to the High Court, then be available for the funding of dividends, to facilitate any buy-back of the Company’s own shares or for any other general corporate purposes which the Directors may consider appropriate at that time. As the Company does not currently have the authority to buy-back its own shares the circular will also seek that authority from shareholders. Any decision by the Directors in relation to the use of the authorities referred to above will be made once the Company has completed an evaluation of its medium term funding requirements. Concept Selection for the Sea Lion development, which is anticipated to be in July of this year, will be a key part of this evaluation, as we expect it to provide greater clarity on the expected cost and schedule of the project. Slowly, slowly catchy Monkey.

President Energy (LON: PPC)
On January 30th, President announced a potential oil pay zone of some 30 feet on Well 54 at East White Lake. The well has now been perforated and is currently producing, ahead of expectations, approx’50 bopd net to President. The well is exhibiting strong down hole pressure and is also producing associated gas. Now here’s a salient point for investors. Taking into account the A54 well, additional production from two plug backs on existing wells and a modest contribution from an overriding royalty associated with a discovery on a recently unitised field adjacent to EWL, production from President’s Louisiana fields is now at a three year high of some 250 boepd of which 85% is oil. Crude prices obtained in Louisiana currently are some US$15-20 per barrel higher than WTI and President continues to benefit from no corporate income tax on its production. New Prospects… Global Geophysical Inc., who are shooting President’s extensive 3D seismic programme in Paraguay, are due in approximately two months to provide President with the results of a 3D reprocessing exercise over an oil prospect at a President operated lease at East Lake Verret. (One for the watchlist?) Remember President is actively evaluating other exploration prospects in its existing acreage, which are possible candidates for drilling at or around the end of the year.

Pantheon Resources (LON: PANR)
Released interim results for the six months ended 31 December 2012. Too long an epistle for the round up. Click HERE to read.

An interesting tid bit of news came this week from Matt Lofgrans’ Nostra Terra Oil & Gas (LON: NTOG) who have joined nine other companies in sponsoring a study of the Woodford Shale under the direction of Dr. Roger Slatt and the University of Oklahoma. The consortium will conduct a regional study of the Woodford Shale in the Anadarko-Arkoma-Ardmore Basins and Central Platform of Oklahoma, a region known for prolific gas production. The primary goal will be to better understand the regional sequence stratigraphy, and from that, characterisation at the wellbore, log and sample scales, including electron microscopy for pore analysis. The project is expected to span approximately 18 months. Still no comprehensive bopd figures from Matt.

New World Oil & Gas (LON: NEW)
Share-holders received a good kick in the teeth this week to go with the recent Blue Creek kick in the balls as they woke up to find that their holdings had been massively diluted by the company who had through the issue of 315,000,000 shares at 2p per share wiped off nearly 30% of the closing price on 27 March 2012. The placing raised £6.3 million pounds. It’s all ok though as the money will be used to keep paying the Board while they limp along with the Rio Bravo#1 well in Belize. If that fails then they intend to keep paying their salaries while they decamp and move to Juntland Denmark all the while stringing us all along for as long as possible until they go tits up. Time for a change at the top. It clearly isn’t working.

More nonsense came from Magnolia Petroleum (LON: MAGP) as Rita reported an update on activities in “proven US onshore formations including the Bakken/Three Forks Sanish, North Dakota and the Mississippi Lime in Oklahoma.” Still no comprehensive bopd figures from MAGP which leaves me to believe that they are not what the company are trying to infer. Remember you heard it all here first. Rita went on to say “The wells included in today’s release are targeting three separate formations, an indication of the multiple payzones that exist across the 5,000 plus net mineral acres we hold in Oklahoma. Combined with the numerous proposals we are receiving to add to the 126 wells at various stages of development in which we have an interest, we remain confident that we will continue to grow Magnolia’s net production and reserves, and in the process, generate significant value for shareholders.” You’ll note the use of words; “multiple payzones, significant value, reserves, net production, 126 wells, 5,000 plus net mineral acres, etc” You may also notice what Rita isn’t telling share-holders such as the daily, monthly or quarterly production figures. No mention of just how much oil they’re producing. You may find that strange. You may also like to know that IP’s almost always decline rapidly. Hence why they don’t release their bopd. Until we get clarity I’d tread very carefully here.

Fastnet (LON: FAST) 
Opened the data room for its Celtic Sea assets on 22 March 2013 and that a range of super majors, mid-caps and small-caps are conducting initial due diligence. The Company also announces that share options over a total of up to 1,500,000 new ordinary shares of 3.8 pence each in the Company have been awarded to Gama Services Limited a company beneficially owned by Paul Griggs, a consultant and advisor to the Company. The Option Shares have an exercise price of 26.0 pence per ordinary share, being the mid-market closing price per share as at 22 March 2013.

Argos Resources (LON: ARG)
The Falkland Islands explorer released financial results for the year ended 31 December 2012. Highlights.   Final processed 3D seismic data was received in January 2012 and proved to be of exceptionally good quality, helping to de-risk the numerous stratigraphic prospects in the licence… Many of the stratigraphic prospects described in the October 2011 Competent Person’s Report (CPR) are larger than originally described… Over 30 new prospects and leads, not reported in the CPR, have been identified… Estimated prospective recoverable resource figures are expected to increase substantially from those reported in the 2011 CPR… New CPR commissioned to independently document the full potential of the licence as now identified. Publication expected in 2Q 2013… Both Premier Oil and Noble Energy, two substantial independent oil companies, have committed to the Falkland Islands through farm-ins… The Falkland Islands Government is investing in new infrastructure projects and updating its legislation and approval procedures in readiness for field development and production.

Antrim Energy (LON: AEY)
Released their Annual Report 2012. Crash, bang, wallop sums up their performance.

Join the Forum discussion on this post

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Join the Forum discussion on this post

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Join the Forum discussion on this post

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

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Join the Forum discussion on this post

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Join the Forum discussion on this post