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  • The Smallcap Oil & Gas round up.

     

    It’s been a some what quiet week in the Smallcap oil & gas underverse. Not much happening. I’ve decided to stop including company’s that are basically ripping Investors off.

    Hence why Sefton’s woeful cock up RNS of today isn’t included in the round up. I am cutting off the oxygen of publicity. I will obviously write excoriating articles continuing to expose the blighters as and when appropriate.

     

    Amerisur Resources (LON: AMER)
    The oil and gas producer and explorer focused on South America, updated on its operations in the Platanillo field, Colombia. Platanillo-12 produced 2,371BOPD of 31.8° API on test from U sands…. Platanillo-2 ST1 sidetrack progressing well…. Total field controlled production estimated at 8,500 bopd with the contribution of Platanillo-12.

    Baron Oil (LON: BOIL)
    Farm-Out Agreement with S&J Full Services Ltd. in the Nancy- Burdine – Maxime field, located in the Putumayo Basin, Colombia. Under the terms of the agreement, BOIL will farm-out 50% of its interest in NBM to S&J Full Services Ltd. and, in return, will receive US $1 million upon signing the Farm Out Agreement plus another US $1 million in ten monthly consecutive installments, starting 30th August 2013. Commenting on the update, Chief Executive Officer Rudolph Berends said, “This is an important step for our company in Colombia. Having a local partner with the expertise and track record of S&J Full Services in the Putumayo Basin should add significant value through the optimizing of NBM operations.”

    Egdon Resources (LON: EDR)
    Lincolnshire County Council has granted Planning Consent for the drilling of an exploratory borehole on the Laughton Prospect in UK Onshore Petroleum Exploration and Production Licence PEDL209, located between the towns of Gainsborough and Scunthorpe in the East Midlands Petroleum Province. The Laughton-1 well will target a structural trap defined on 2D seismic data. The prospect has multiple conventional Carboniferous sandstone reservoir targets with the primary objective being the Silkstone Rock, an approximately 15 metres thick sandstone interval which is productive in the Corringham oil field 5 kilometres to the South East. Egdon currently estimate gross Best Estimate Prospective Resources of around 1 million barrels of oil for the Silkstone Rock in the Laughton Prospect. Under the terms of a Farm-in Agreement Egdon will earn a 60% interest in the Licence in return for paying 100% of the cost of the Laughton-1 exploration well which is estimated at around £1.3 million.

    Enegi Oil (LON: ENEG)
    Provides the following update on its partnership in Newfoundland with Black Spruce Exploration. As announced on 12 June 2013, Phase 1 includes the drilling of three appraisal and development wells in PL2002-01(A), consisting of two new wells and a rework of the existing Garden Hill Field PaP#1-ST-#3 well. The Company is pleased to announce that BSE have now concluded its technical due diligence review. Based on the results, the Company and BSE plan to drill at least one of the two new wells on PL2002-01(A) in 2013, after the arrival of BSE’s drilling rig in western Newfoundland. This is anticipated to be in the Autumn of 2013. The Company and BSE continue to work towards completing a definitive Farm-in Agreement. As such the Letter of Intent, which initially provided for completion no later than 12 July 2013, has been extended. This will allow the parties to incorporate additional collaboration procedures to accelerate the planning and execution of a multi-well program over the Company’s acreage in Newfoundland. The Company and BSE expect to conclude the Farm-In Agreement imminently and will advise when appropriate.

    Europa Oil & Gas (LON: EOG)
    Announces the commencement of a 3D seismic acquisition programme in the South Porcupine Basin, offshore Ireland, following the award by the Irish Government of Frontier Exploration Licences 2/13 and 3/13 to Kosmos Energy Ireland Ltd and Europa.

    Exillon Energy (LON: EXI)
    The independent oil producer with assets in two oil-rich regions of Russia, Timan-Pechora (“Exillon TP”) and West Siberia (“Exillon WS”), today issued a drilling update.
    Production Expectations. “We intend to give an update on our production expectations for 2013 along with our H1 reviewed financial results. These are expected to be released in late August.” If you want to read the full update click HERE

    JKX Oil & Gas (LON: JKX”)
    Well NN-71 in the NovoNikolaevskoye field has been successfully recompleted to the Visean V-15 sandstone reservoir. Following a three stage test, the well is producing at a stabilised rate of 4.3 MMcfd of gas and 342 bpd of condensate through a 93/64″ choke with a flowing wellhead pressure of 625 psi. Well NN-71 was first drilled in 2009 as a Visean V-25 reservoir well and subsequently recompleted to the V-16 as part of the early development of the NovoNikolaevskoye production licence at Poltava, Ukraine. Both of these deeper reservoirs are no longer producing at this well location. JKX Oil & Gas plc is an exploration and production company listed on the London Stock Exchange. The Company has licence interests in Ukraine, Russia, Hungary and Slovakia.

    Lekoil (LON: LEK)
    Recently listed LEK pulled a fast one this week after announcing an oil discovery on the OPL310 licence offshore Nigeria, on 26 June 2013, They have diluted their share-holders through the placing of, in aggregate, 33,850,000 new Ordinary Shares at a placing price of 39 pence per Ordinary Share.

    Magnolia Petroleum (LON: MAGP)
    Rita seems to be moving the focus some what. Maybe she’s reading the Smallcap Oil & Gas round ups? I do detect a shift of emphasis. The quarterly update on its operations has highlighted “Reported initial production rates (IPRs) for 15 wells totalling 110 boepd net to Magnolia (note existing production from these wells will be lower due to decline rates).” Now the very fact that Rita is beginning to talk about “decline rates” should be seen as a cautionary tale. The bopd here isn’t what people have been lead to believe. Decline rates rarely make it into an RNS, for obvious reasons. It is welcomed that at long last Metermaid Rita is coughing up slowly but surely.

    Max Petroleum (LON: MXP)
    4 RNS’s this week. So I’ve included 2 of them. The Government of the Republic of Kazakhstan has granted regulatory approval to convert the Borkyldakty Field to full field development status effective immediately. FFD approval will allow Max Petroleum to fully develop and produce the Borkyldakty Field and sell 80% of crude oil production from Borkyldakty on the export market under the terms of its Blocks A&E exploration and production contract. Borkyldakty is currently capable of producing approximately 200 barrels of oil per day from its two productive wells and a third development well, BOR-4, is planned to be drilled in the field in August 2013. Max has also commenced drilling the UTS-10 appraisal well in the Uytas Field on Block A using the Zhanros ZJ-20 rig.

    Mediterranean Oil & Gas (lon: MOG)
    Released an operational update related to the Company’s activities. Click HERE to read it.

    New World Oil & Gas (LON: NEW)
    Released what can be described as a desperate attempt to keep the wheels rolling. The only point worth remembering for potential investors is this; THE GEOLOGIC CHANCE OF SUCCESS. Upgrade in Probability of Geologic Success to 1 in 9 for Z2, 1 in 10 for Pre-Zechstein and 1 in 13 for Z1 – RPS previously assigned a geological risk of between 1 in 12 and 1 in 16 for the Zechstein. Keep your money under the bed.

    Nighthawk Energy (LON: HAWK)
    The US focused oil development and production company announces an update on the drilling and development of the Arikaree Creek oilfield at its 100% controlled and operated Smoky Hill project in the Denver-Julesburg Basin, Colorado. Click HERE to read it

    Nostra Terra Oil & Gas (LON: NTOG)
    Yet more good news came from NTOG as the fifth horizontal well in the Chisholm Trail Prospect (CT5), located in Oklahoma, exceeded the Board’s expectations by a substantial margin, with the most recent ten days of production having averaged 448 barrels of oil equivalent per day (BOEPD). Nostra Terra owns a 2.2% working interest in this well.
    New well permitting continues in the Chisholm Trail Prospect area. Once elections are received and made on further wells, the Company will make relevant announcements. Alden McCall, Chief Operating Officer of Nostra Terra commented “The Horizontal Hunton Play is continuing, in our view, to fulfill the definition of a Resource Play. According to the Society of Petroleum Evaluation Engineers, a Resource Play is an “accumulation of hydrocarbons known to exist over a large areal expanse and believed to have a lower geological and/or commercial development risk. We are delighted to report that the most recent 10-day average at CT5 exceeds our expectations. Numerous new wells are in the planning stages with Ward Petroleum and other operators and we look forward to updating shareholders as they progress”. That’s another 10 barrels a day to the ever increasing bopd!

    Roxi Petroleum (LON: RXP)
    The BNG licence has been successfully renewed for a further period of two years ending on June 6, 2015 during which significant exploration activity is planned that is not expected to require additional shareholder funding.

    Sound Oil (LON: SOU)
    Confirms that mud log gas shows (Nervesa Gas Discovery) were recorded while drilling across multiple sandstone intervals in the target reservoir zone within the Miocene San Dona Formation. The Company has now completed logging operations and is pleased to confirm the identification of 476 metres of gross pay and 239 metres of gross reservoir with 46 metres of net gas pay in 13 separate zones. A further announcement confirming the estimated quantity of commercial gas and expected cash flows will follow once the Company has fully reviewed the well test results and revised the subsurface model for the field. Following completion of testing, it is the Company’s intention to apply for a Production Concession – with a view to achieving first gas sales in 2015. Also reported. Stuart Joyner has been appointed as Chief Financial Officer of the Company effective Monday 22nd July. Stuart Joyner, aged 41, joins from Investec Bank where he had been Head of Oil & Gas from 2010. Stuart has 19 years’ experience in investment banking for the oil and gas sector having previously worked for Credit Suisse, Morgan Stanley, Dresdner Kleinwort and NatWest Securities.

  • The Smallcap Oil & Gas round up.

    Busy week in the Smallcap Oil & Gas Sector. I’m toying with the idea of listing a company myself. Pennine Oil & Gas (LON: PIG) I did find traces of oil on Kinder Scout last week. I’m contacting a Competent Person from Denver Colorado who will release his findings via a report blah, blah, blah,

    Antrim Energy. (LON: AEY)

    Released a bizarrely titled “Miscellaneous medium priority announcements” RNS. The sale of its option to acquire up to a 30% interest in the production sharing agreement for the Pemba-Zanzibar exploration licence offshore and onshore Tanzania. Cash consideration paid to Antrim was US $7.5 million and the effective date of the sale was 9 July 2013. There are no wells, production, reserves or resources associated with the transaction.
    Proceeds from the sale will improve the Company’s future capital expenditure reserves.

    What’s in a name? Baron Oil (LON: BOIL) The AIM-listed BOIL on the arse of the AIM #Cesspit announces that further to its name change from Gold Oil Plc to Baron Oil Plc the Company’s website can now be found at www.baronoilplc.com

    Falcon Oil & Gas. (LON: FOG)

    Received approval from the shareholders of Falcon Oil & Gas Australia Limited for the acquisition of Sweetpea Petroleum Pty 50 million shares or 24.22% interest in FOGA. Closing of the acquisition is anticipated to occur within the next 5 business days and is subject to TSX Venture Exchange final approval. FOGA is a subsidiary of Falcon and is the registered holder of four exploration permits in the Beetaloo Basin, Northern Territory, Australia. Following the completion of the Share Purchase Falcon will own 200 million shares in FOGA representing 96.90% of the issued share capital of FOGA. The terms of the Agreement, as announced on the 24th May, 2013, included a cash consideration of US$3 million together with the issue of 97.86 million Falcon shares  to Sweetpea. Based on Falcon’s share price, at the time the Share Purchase was agreed between the parties of CAD 0.20, the total value of the consideration is CAD 22.6 million. Sweetpea, a wholly-owned subsidiary of PetroHunter Energy Corporation will own 10.7% of the issued share capital of Falcon.

    Gulf Keystone Petroleum (LON: GKP)

    The mired in CorpoRATe Greed controversy Kurdistan oiler released a plethora of RNS’s this week. So many that I have now unsubscribed from them. Further to the approval of the Field Development Plan for the Shaikan field discovery, announced on 26 June 2013, the Company has commenced its development drilling programme with the spudding of Shaikan-10. In parallel, production operations from the newly commissioned Shaikan production facility are scheduled to commence shortly. If you want to read all the dross released this week you’ll need a gas -mask to waft through the smoke screen. Click HERE

    Gulfsands Petroleum (LON: GPX)

    The oil and gas production, exploration and development company with activities in Syria, Morocco, Tunisia, Colombia and the U.S.A. released an update on activities underway in Morocco. You can read it by Clicking HERE

    Lochard Energy Group (LON: LHD)

    Announces that the Scheme relating to the acquisition of Lochard by the Parkmead Group (LON: PMG) was approved yesterday at the Court Meeting and the special resolution was approved at the General Meeting.

    The Smallcap Oil & Gas round up wouldn’t be complete without a Max Petroleum (LON: MAX) RNS or two. 1/ commenced drilling the UTS-11 appraisal well in the Uytas Field on Block A using the Zhanros ZJ-20 rig. This well is the second in a 13 well appraisal programme at Uytas. The well will be drilled to a total vertical depth of 450 metres targeting Cretaceous and Jurassic reservoirs in the central portion of the field.   2/commenced drilling the ZMA-A21 development well in the Zhana Makat Field on Block E using the Zhanros ZJ-30 rig. Total vertical depth of the well will be approximately 860 metres targeting Jurassic reservoirs.

    Mediterranean Oil & Gas (LON: MOG)

    Said that on 1 July 2013, in response to the lengthy and continuing delays to the Environmental Impact Assessment approval process for the Ombrina Mare Project, it wrote to the Italian Ministry of Environment and of Protection of Land and Sea giving the Ministry 10 days’ notice to complete the issuance of the EIA Decree, in accordance with applicable regulations. Following completion of this 10 day notice period, MEPLS yesterday sent a letter requesting the Company to complete an ‘Autorizzazione Integrata Ambientale’ (an Integrated Environmental Authorisation) for Ombrina Mare as a precursor to the Ministry considering the approval of the EIA. This is contrary to MEPLS previously notifying the Company in October 2012 that, consistent with the conditions required by law, the EIA procedure could be completed without performing the AIA at this time.  It also follows the ruling in favour of MOG’s EIA submission from the EIA Technical Committee on the 25 January 2013, and the EIA Director General of MEPLS sending the draft EIA decree with a positive recommendation to the office of the Minister on 17 April 2013.  It’s Italy chaps. You need to give out “Backhanders” to progress!

    It’s yet another good day for Nighthawk Energy (LON: HAWK) as the company updated today on production at its 100% controlled and operated Smoky Hill and Jolly Ranch projects in the Denver-Julesburg Basin, Colorado. Average gross production levels have continued to increase month-on-month driven by the successful drilling program on the Arikaree Creek oil-field.  Total production from all producing wells is currently running at over 1,400 bbls/day. One of our “stocks to watchlist” coming good.

    Oilex. (LON: OEX)

    (What a pisser) In its capacity as Operator, on behalf of the Joint Venture Participants to the Joint Petroleum Development Area 06-103 Production Sharing Contract , has today submitted to the Autoridade Nacional do Petróleo  a request to terminate the PSC by mutual agreement in accordance with its terms and without penalty or claim. The Request to Terminate will require the consent of the Timor Sea Designated Authority. Managing Director of Oilex, Ron Miller, said “In a situation where sovereign nations seek to resolve issues related to international boundaries, it is in the best interests of all parties to allow such matters to run their course.  The PSC is the last offshore asset in Oilex’s portfolio and the company, on behalf of the JPDA06-103 joint venture, will continue to collaborate closely with the regulator throughout this process.”

    Petroceltic (LON: PCI)

    A consortium comprising Petroceltic, Hellenic Petroleum S.A.(Operator) and Edison International SpA  has submitted a successful bid for the Patraikos block, offshore western Greece.  Each of the three companies in the joint venture will hold a one third working interest in the concession.  The Patraikos block is located in the Gulf of Patra and covers an area of 1,892 square kilometres with water depths principally in the range of 100 to 300 metres.  The concession is potentially oil prospective in the Jurassic, Cretaceous and Eocene formations with a working hydrocarbon system proven by the Katakolon oil discovery wells drilled in 1982 approximately 35 kilometres south of the block.

    Premier Oil (LON: PMO)

    Provided an Operations Update summarising key activities since the Interim Management Statement on 16 May 2013 and a Trading Statement in respect of its half year financials to 30 June 2013. This is in advance of the Group’s 2013 Interim Results which will be announced on Thursday 22 August 2013. Click HERE to read Premier also said, later in the day via another RNS reach, that in conjunction with KUFPEC Norway AS, it has agreed to acquire an aggregate 40% interest in PL407 from BG Norge AS.  PL407 contains the Bream field and is on the Norwegian Continental Shelf. KUFPEC will acquire a 30% interest while Premier will increase its existing 40% to 50% and assume operatorship of PL407 and the Bream project.  The aggregate consideration payable by Premier and KUFPEC will be $22.2 million prior to interim period adjustments.  Under a separate agreement, KUFPEC will acquire a 30% interest in the adjacent PL406 licence from Premier for a contingent consideration of $5 million.  PL406 contains the Mackerel discovery and the Herring exploration prospect. Sounds fishy to me!

    Providence Resources (LON: PVR)

    Confirms that the Minister of State at the Department of Communications, Energy and Natural Resources has approved Cairn’s farm-in as Operator to two licences and one licensing option offshore West of Ireland.  Following this transaction, Cairn has a 38% working interest with co-venturers Providence (32% WI) Chrysaor (26% WI), and Sosina Exploration Ltd (4% WI). Cairn Energy (LON: CNE) has also announced that it has, on behalf of the co-venturers, entered in to a contract to secure a drilling rig for the planned Spanish Point appraisal well located in FEL 2/04, in the Porcupine Basin, Quad 35 area offshore West of Ireland. Cairn, and its co-venturers, Providence, Chrysoar and Sosina, will use the “Blackford Dolphin”, an enhanced Aker H3 deep-water semi-submersible rig, which underwent a $400 million upgrade in 2006. Subject to obtaining the necessary approvals, the rig will be mobilised to begin operations on this well in Q2 2014 on licence FEL 2/04.

    Range Resources (LON: RRL)

    Drew attention to the announcement released by Citation Resources Limited (ASX:CTR) on the Atzam #4 Well in Guatemala with the following highlights: Production underway from the perforated section in the Upper C17 carbonates (2,846-2,853ft); Strong initial production performance – flow rate restricted to 100 bopd on a small 8/64ths choke, well head pressure of 400 psi, production of 100% oil cut at 36 – 38° API and no water; Operator estimates a flow rate of 1,000 bopd on an open choke based on flow rates achieved from various choke sizes up to 32/64ths – optimal flow rate to be established in coming weeks;

    Rialto Energy (LON: RIA)

    Bad news came this week from RIA. The Starfish-1 well preliminary analysis’s initial interpretation of the wireline logs and MDT data is that no movable hydrocarbons have been encountered in the well, based on the current data. Plugged & abandoned.

    President Energy (LON: PPC)

    Updated on its operations. Which we are told “continue to go extremely well across the portfolio.” In Paraguay the seismic acquisition operation has been successfully completed one month ahead of schedule (780 square kilometres of 3D seismic and 100 kilometres of 2D seismic). Initial results appear most encouraging, already showing very prospective drilling targets. The Louisiana assets are currently producing approximately 300 boepd, a record level of production that is generating circa $600,000 per month of net operating cash flow after US tax.  In Argentina the first stimulated well continues to perform with good levels of production and work on the clean up on the next two stimulated wells is on-going. We look forward to updating the market on the flow rates of each of the remaining two wells in due course.

    ‘Gas! Gas! Gas!’ Was the cry this week from Salamander Energy (LON: SMDR) The Tayum-1 exploration well has encountered 15 metres of net gas pay. Having found gas in the Tayum-1 well, the operator, KrisEnergy, is now evaluating the data and integrating the analysis with data from the nearby Dambus and Mangkok discoveries, before determining a forward plan.

    Tethys Petroleum (LON: TPL)

    Announced the conditional acquisition of interests in a number of production sharing contracts in Georgia. Tethys, through its subsidiary companies, will acquire a 56% interest in PSC’s covering Blocks XIA, XIM and XIN in eastern Georgia close to the capital city Tbilisi, and in a separate transaction will acquire a 100% interest in PSC’s covering Block VIII and Block XIG located near Tbilisi and in the Kartli area further west. In total, these blocks cover an area of over 6,400 square kilometres. Tethys will be the Operator of all these PSC’s and the transactions are subject to the approval of the appropriate Georgian authorities as well as other conditions precedent including rescheduling of the work programmes on Blocks VIII and XIG.

    Join the Forum discussion on this post

  • The Smallcap Oil & Gas round up.

    Afren (LON: AFR)
    Said today that following the recent shareholder approval on the recommended acquisition of a 10.4 per cent. interest in First Hydrocarbon Nigeria (“FHN”), it is pleased to confirm the acquisition of an additional 23.3 per cent. beneficial interest in FHN.

    Caza Oil & Gas (LON: CAZA)
    Updates for the Company’s initial horizontal Bone Spring well on its Lennox Prospect and an operational update on the Caza Ridge development well on its Copperline Prospect. Both properties are located in Lea County, New Mexico. The fracture stimulation on the Lennox State Unit 32 #2H horizontal Bone Spring well was successful. The well was placed on artificial lift and has been producing to recover frac fluids and establish stabilized flow rates for oil and natural gas. During controlled flowback the oil and natural gas rates have continued to increase and have now stabilized at daily rates of 334 barrels of oil and 337 thousand cubic feet of natural gas, which equates to 390 bbls of oil equivalent per day. Caza 40.00% working interest before payout (31.08% nri) and a 50.00% working interest after payout (38.85% net revenue interest) in the Lennox State Unit 32 #2H well and will participate with a 50.00% working interest in all subsequent wells drilled by Caza on the Lennox property. The Company’s Caza Ridge 14 State #4H well has reached its kick-off point above the 3rd Bone Spring sand interval in the vertical portion of the wellbore. Log data and core samples have been obtained across the Brushy Canyon, Avalon and 2nd Bone Spring sand intervals and have indicated the presence of oil and natural gas across each of these intervals. The Company will now proceed to set the curve and drill the lateral section of the well in the 3rd Bone Spring sand interval, which is producing oil and natural gas in the offset Caza Ridge 14 State #3H well. Caza has a 58.75% working interest in the Caza Ridge 14 State #4H well.

    Enegi (LON: ENEG)
    Announces that along with its Joint Venture partner ABTechnology, it has signed Heads of Agreement with Antrim Resources that governs UK Central North Sea Licence P077 which contains the Fyne Field. Antrim currently holds a 100% interest in and is Operator of the Licence. Under the HOA, Enegi and ABT will be responsible for the costs associated with preparing an amended Field Development Plan for Fyne, based on using ABT’s buoy technology, for submission to the UK Department of Energy and Climate Change. Upon approval of the FDP by DECC, the JV will earn a 50% interest in the development of Fyne. A FDP has been previously prepared for Fyne and much of this work can be integrated into the new FDP. Fyne has been subject to considerable investment to date. Five successful wells have already been drilled, producing oil at 25o API and achieving free flow test rates of up to 4,000 bopd. Fyne has 2P reserves of 9.9 million barrels and, being well appraised, it is now ready to be developed and ABT’s buoy technology has been identified as the most suitable development solution.

    Falcon Oil & Gas (LON: FOG)
    Talk about putting the best possible spin on the worst possible news. I take my hat off to FOG! Hess Australia did not elect to commit to drilling the five wells required to earn their interest in the Beetaloo permits by the agreed deadline of 10pm Friday the 28th June. In accordance with the Participation Agreement dated 28th April 2011, as amended on the 2nd August 2012, which granted Hess the first extension, failure to elect on time means that Hess forfeits their right to earn 62.5% in three of the Beetaloo permits. A late request by Hess to defer the election date again was unanimously rejected by Falcon’s Board.

    Gulf Keystone Petroleum (LON: GKP)
    Appointment of Simon Murray C.B.E., aged 73, to the Board of Gulf Keystone. Chairman Murray has now got his snout firmly up Kozels arse!

    JKX Oil & Gas (LON: JKX)

    The multi-stage frac operation on well R-103 has commenced in its Rudenkovskoye licence in Poltava, Ukraine. Well R-103 was drilled to a total depth of 4,641 metres into the Rudenkovskoye Devonian sandstone reservoir with a horizontal section of just over 1,000 metres at a true vertical depth of 3,650 metres.

    Magnolia Petroleum (LON: MAGP)
    Rita was at it again today screaming from the rooftops that an initial production rate of 1,401 boepd for the Marathon Oil operated Helgeson 41-30H well in the Bakken Formation, North Dakota in which Magnolia holds a 4.071% net revenue interest. (57boepd) In addition, the Company announces its participation in seven new wells in producing US formations in Oklahoma, in line with its strategy to rapidly build production and reserves. Question. Rita how long was this IP Test?

    Matra Petroleum (LON: MTA)
    Following completion of the Disposal and the approval of the Investing Policy by Shareholders at the Company’s General Meeting held on 28 June 2013, the Company is now considered an Investing Company. Accordingly, the Company will be required to make an acquisition or acquisitions which constitute a reverse takeover under the AIM Rules or otherwise implement its Investing Policy within 12 months, failing which, the Company’s Ordinary Shares will be suspended from trading on AIM. If the Company’s Investing Policy has not been implemented within 18 months the admission to trading on AIM of the Company’s Ordinary Shares will be cancelled and the Directors will convene a general meeting of the Shareholders to consider whether to continue seeking investment opportunities or wind up the Company and distribute any surplus cash back to Shareholders. Completion of the Disposal is a significant milestone for Matra. The initial payment of US$25 million, which has been received today, means that the Company will have considerably more resources and financial flexibility to pursue attractive value enhancing opportunities than it has previously enjoyed. The Company intends to use the proceeds of the Disposal to acquire alternative oil and gas assets with material production potential and exploration upside. The initial focus will remain on Russia and CIS but the Company may consider projects elsewhere should attractive opportunities arise. A full version of the Company’s Investing Policy can be seen at www.matrapetroleum.com

    Nostra Terra (LON: NTOG)
    I expect the company are scratching their head this week. Just what does NTOG have to do to get their message across. Debt Free, Cash positive, Asset rich, Increasing Bopd with a $1.5 million dollar Richfield Judgement now actually being recovered. One of the best little oilers on AIM.  The oil and gas producer with a growing portfolio of horizontal and vertical drilling projects in the USA, updated on progress on the collection of the Richfield Judgment. On 27 June, 2013 certain of the assets securing the Note Richfield defaulted upon, resulting in a Judgment in favour of Nostra Terra, were sold at a Sheriff’s foreclosure sale in Russell County, Kansas. Nostra Terra submitted the winning bids for the cumulative amount of US$165,000. The assets are known locally as the Furthmyer #1 well (West), the Neidenthal #1 well (South), two producing oil wells, their associated production equipment, facilities and leases, along with a common Salt Water Disposal well, the Furthmyer #11. Current production on these leases averages approximately 6 barrels of production per day (gross).Once the sale is confirmed by the Court the US$165,000 bid will be applied to reduce the balance of the outstanding Judgment granted in favor of Nostra Terra, which is currently in excess of US$1.5 million. Nostra Terra will continue to aggressively pursue collection of the remainder of the Richfield judgment. Further updates will be made in due course. The penny will drop eventually here methinks! Well done Lofgran/McCall for never giving up the Richfield fight. That’s the kind of management we want. Matt Lofgran, Chief Executive Officer of Nostra Terra, commented: “We’re delighted with this outcome. We’ve acquired producing assets, which we already operate, to add to our growing portfolio, increasing both cash flow and reserves.”

    Petroceltic International (LON: PCI)
    Advised that Eni Spa, as operator of the Carisio permit (Eni 47.5% Operator, Petroceltic 47.5%, Condotte 5%) in the Western Po Valley, has lodged an application with the Ministry of Economic Development requesting a further suspension of the permit. This suspension will enable Eni to incorporate all latest technologies in order to identify a new well location and drilling plan which enables all well objectives to be achieved, whilst also meeting local stakeholder concerns with respect to distance of the wellsite from the village of Carpignano Sesia

    Roxi Petroleum (LON: ROXI)
    Released an operational update on its flagship BNG asset. Well 143 was spudded on 1 April 2013, on the MJ-F structure located towards the North of South Yelemes field at BNG. The total depth of the well was planned to be 2,500 metres. This exploration initially targeted Jurassic Callovian sands at a depth of 2,170 metres with a secondary objective in the Cretaceous Valanginian limestone at a depth of 1,935 metres. The well has reached the total depth of 2,750 meters and wireline logging has been run. Interpretation of these results has been encouraging with three intervals of interest identified at 2193, 2216 and 2692 metres. One of these intervals at 2692 metres will be perforated before the rig is mobilized to spud Well 807, which is to be drilled to a depth of 2,500 meters targeting Jurassic Callovian sands and Cretaceous Valanginian limestone. The remaining two intervals at Well 143 will be perforated and tested using a work-over rig. Subject to the outcome of these tests, 90 days testing is planned to commence later in the current year. Roxi also announce that a further $5.0 million has been called and received under the previously announced $40 million equity commitment with Mr. Satylganov, a Director of the Company. This brings the total called and received to date to $17.5 million. The proceeds will be used to continue the exciting drilling campaign at BNG. Roxi will accordingly issue a further 41,895,714 shares to Mr. Satylganov, so that the total number of shares issued to Mr Satylganov are 146,635,001, representing 18.8 per cent of the enlarged total shares in issue.

    Rialto Energy Limited (LON: RIA)
    Updated on the Starfish-1 oil exploration well in the Offshore Accra Contract Area, Ghana. The well is target a large stratigraphic trap in the deep water of eastern Ghana, interpreted to be potentially comparable to the Jubilee oil field in western Ghana. During the period from 1400 hours (AWST) on 25 June 2013 to 1400 hours (AWST) on 2 July 2013 the 17½” (444.5mm) hole section was drilled to final total depth. The 13⅜” (340mm) casing was run and set at 3,035 metres and the well drilled ahead in the 12¼” (311mm) hole section to 3,695 metres. The forward plan is to drill ahead in 12¼” (311mm) hole to final total depth.

    San Leon (LON: SLE)
    Has signed a binding letter of intent with Wisent, under which Wisent shall carry out a three stage vertical fracture of San Leon’s Rogity-1 well on the Braniewo S Concession in the Baltic Basin, Poland. Subject to the execution of a comprehensive farm-out agreement, Wisent will fully fund the costs of the Fracture and any subsequent testing. One fracture stage will be executed in the Cambrian Piasnica Formation targeting conventional oil and two fracture stages will be executed in the Lower Silurian section targeting shale oil. Upon obtaining regulatory consent, operations are expected to commence on 31 July 2013. SLE also announced that they had successfully completed the hydraulic fracture of Lewino-1G2 well in Gdansk W Concession in the Baltic Basin. United Oilfield Services carried out the operation yesterday and attained an average main treatment pump rate of 120 barrels per minute at pressure, which is the highest achieved outside North America. The pumping lasted less than three hours. The fracture was completed on schedule and the well will now have tubing installed, in preparation for clean-up and testing. San Leon will update the market with test results as soon as they are available.

    Sefton Resources (LON: SER)
    The bullshit continues apace. As Ellerton released results of a “Mississippian Limestone Study” in North East Kansas Concocted by Ibrahin Nafi Onat (Where have we heard that name before) Of course there’s no actual MLP going on in Eastern Kansas but what the hell if it can get the BB Loons to spout it out long enough and loud enough….. Yawn… That’s enough of that… See you in court Ellerton. You are a Liar and a Fraud. Add that to your case.

    Sirius Petroleum ( LON: SRSP)
    Has commissioned Professor Nicos Christofides and sw7reseαrch to complete a Real Options Valuation on two oil assets over which the Company has confidential pre-farm-in agreements, the Oil Block and the Second Oil Block, in order to assist in determining whether to proceed with entering into a binding farm-in agreement on both assets, a decision which is at the Company’s sole discretion. Professor Nicos Christofides and sw7reseαrch are in aggregate due a fee of £150,000 for these services. {Nice work nice fee!} Professor Nicos Christofides and sw7reseαrch have completed a number of Real Options Valuation for FTSE100 and other listed and private oil & gas companies.
    These fees, together with other fees amounting to £25,000 due to unconnected third parties, are to be satisfied through the issue, in aggregate, of 4,375,000 new Ordinary Shares. Application for the admission of the new Ordinary Shares to trading on AIM has been made and is expected to occur on 10 July 2013. The Shares will represent 0.53 per cent. of the Enlarged Share Capital and will rank equally in all respects with the existing Ordinary Shares. Following this issue the total number of shares in issue will be 822,137,044. This number may be used by shareholders as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the company.

    Range Resources (LON: RRL)
    Range increases its footprint in Trinidad by over 280,000 acres. If you want to read it then click HERE.

    Sound Oil (LON: SOU)
    Updated on the Nervesa appraisal well. The well has been successfully drilled (through the Upper Miocene conglomerates and into the top of the underlying marls) to the next casing point at 1389 metres. Operations are now in progress to install the 9 5/8″ casing. The well is therefore now approximately 210 metres above the first reservoir objective.

    The Oil & Gas Development Company (LON: OGDC)
    I love this release. Its ain’t half hot mum language had me in fits of giggles!

    Dear Sir,

    For partial resolution of Circular Debt issue prevailing in energy sector, the Government of Pakistan has approved the arrangement for issuance of Pakistan Investment Bonds (PIBs) having face value of Rs 50,772.70 million, maturing on July 19, 2017 (issued date: July 19, 2012) with coupon rate of 11.50% payable on six monthly basis. These PIBs have been subscribed by Oil and Gas Development Company Limited (OGDCL) in order to settle its overdue receivables amounting to Rs 55,728.93 million from gas distribution companies, oil refineries and Independent Power Producers (IPPs). The valuation date for this transaction was June 28, 2013.

    This is being provided to you in compliance with the requirements of Clause No.(xx) of the Code of Corporate Governance.

    Thanking you.

    Tower Resources (LON: TRP)
    Busy week for Tower. RNS’s galore. An Namibian Update. Much too long for the Smallcap so click HERE to read it. TRP also announced it is entering into a long term strategic partnership agreement with P.D.F. Limited, an international oil and gas exploration advisory group, to provide the Outsourced Exploration Department tailored to the expanding exploration and new ventures needs of the Company. Under this innovative OExD™ strategic partnership agreement Tower will secure access to an excellent integrated exploration team including long-term safeguards for corporate memory and data management. PDF will earn a portion of its fees in TRP shares, thereby gaining a stake in Tower and linking the success of the OExD™ to the overall performance of the Company. And the acquisition of a 20% carried interest in Marovoay Block-2102, onshore Madagascar. The acquisition is through the acquisition of Wilton Petroleum, a private UK registered exploration company. Wilton Petroleum’s sole asset is a 20% carried interest in Marovoay Block-2102, onshore Madagascar, in the Majunga Basin, which is operated by Ophir Energy plc through its subsidiary Ophir Madagascar Limited (“Ophir Energy”, 80%). Block-2102 covers an area of 8,444 km2 and possesses prospectivity across multiple play types within the Jurassic and Cretaceous age sequences. The first exploration well in Block-2102 is due to be drilled by mid-2014. It will target the Anjohibe prospect with mean prospective resources of c. 90mmbbls* of what is expected to be light volatile oil in Jurassic and Cretaceous plays. These are the onshore equivalent of the deep-water plays being explored by ExxonMobil in the Ampasindava Block to the north. This is one of over 20 prospects identified on the block. And finally a CPR Update which can be read HERE

    Xcite Energy (LON: XEL)
    Submitted its Environmental Statement for the Bentley Field Development to the Department of Environment and Climate Change for review. This will be subject to public consultation as soon as practicable, and is available through the Company’s website, www.xcite-energy.com

  • The Smallcap Oil & Gas round Up.

    The Smallcap Oil & Gas round Up.

    It’s been a busy week in the Smallcap Oil & Gas Underverse.  Upset the BBLoons! Feel free to post some links of the round up on the various financial sites.

    Caza Oil & Gas (LON: CAZA)
    Their Operational Update can be read HERE

    Egdon Resources (LON:EDR)
    Dorset County Council has granted planning permission for the development of the Waddock Cross oil field in onshore Production Licence PL090, located around 10 kilometres to the east of the town of Dorchester.

    Falkland Oil & Gas (LON: FOGL)
    “We have an ambitious and fully funded work programme and the first six months of this year have been hugely productive, with the successful acquisition of two very important 3D seismic surveys. This investment will allow us to take our sub-surface understanding to the next level, and will provide well locations for the forthcoming drilling campaign. The 3D seismic will reduce exploration risk, help us focus on the oil potential within our licences and maximise the chances of delivering value through the drill-bit.” Says Tim Bushell, Chief Executive.

    Faroe Petroleum (LON: FPM)
    Focused principally on exploration, appraisal and production opportunities in the Atlantic margin, the North Sea and Norway, released an operational update. The Company has a material and active investment programme which is fully funded from existing cash flow, cash reserves and debt facilities. Click HERE to read

    GeoPark Holdings (LON: GPK)
    Announced the discovery of a new oil and gas field on the Flamenco Block in Chile following the successful testing of the Chercán 1 well – the first well drilled by GeoPark in Tierra del Fuego. GeoPark operates and has a 50% interest in the Flamenco Block in its partnership with Empresa Nacional de Petroleo de Chile, the Chilean state-owned company. A production test in the Tobifera formation, following stimulation, at approximately 1,920 metres, flowed at a rate of approximately 4.0 million standard cubic feet per day of gas and 35 barrels of oil per day through a choke of 8 millimetres, with a well head pressure of 1,800 pounds per square inch. Further production history will be required to determine stabilized flow rates and the well is continuing to clean up.

    Gulf Keystone Petroleum (LON: GKP)
    The darling of the Bulletin Boards, announced that the Field Development Plan for the Shaikan field, a world class commercial discovery, is now approved. Kozel, Chairman and CEO of Gulf Keystone, commented: This is an historic moment in the evolution of the Company. Gulf Keystone is now fully permitted to commence production from the Shaikan field and this represents a key milestone in the Company’s growth. We have been a pioneer in the region from the outset and this milestone reconfirms our pioneering spirit and our desire to lead the upstream oil industry in Kurdistan. The initial production capacity will start in the coming weeks, steadily increasing to 20,000 barrels oil per day and then quickly progressing to 40,000 bopd on the completion of the second production facility. This will increase to 150,000 bopd within 3 years and 250,000 bopd by 2018.This is an enormous achievement by the GKP team who have worked so long and hard to achieve this goal and have forged such strong links within the Kurdistan Region, at all levels”

    Jubilant Energy (LON: JUB)
    Were “pleased” to announce that KPL-3E-1, the fifth well of the six well Phase-III-Extension development drilling campaign in the oil producing Kharsang Field, was spudded on 23 June 2013. KPL-3E-1, located in the southern part of the field, is being drilled as an infill development well between KSG#55 and KSG#53 with the S-00 reservoir sand layer as primary objective and Q-00 and T-00 sand layers as secondary objectives. The well is planned to be deviated by approximately 766 metres to the south-west from the existing plinth of the well KSG#34 and will be drilled to a target depth of approximately 1,666 metres Measured Depth and 1,450 metres True Vertical Depth.

    Lekoil (LON: LEK)
    Struck oil this week at the high impact Ogo-1 well located on the OPL 310 licence offshore Nigeria. They “discovered a significant light oil accumulation, based on the results of drilling and wireline logs.” The Ogo-1 well is being drilled by Afren (LON: AFR), as technical partner, under a farmout to Lekoil of OPL310, offshore Nigeria, as announced on 14 May 2013. The well has been drilled to a total measured depth of 10,518ft (10,402ft true vertical depth subsea, and has encountered a gross hydrocarbon section of 524ft, with 216ft of apparent stacked, net pay. Further wireline log evaluation is currently underway prior to extending the well to target deeper prospectivity above basement, to a total measured depth of 11,800ft (11,684ft TVDSS). The expected timetable for completion of this further drilling together with additional testing is four to six weeks (inclusive of drilling a planned Ogo-1 side-track well). The Ogo-1 discovery, testing a four-way dip-closed structure in the Turonian, Cenomanian, and Albian sandstone reservoirs, confirms the extension of the same Cretaceous play that has yielded other significant discoveries along the West African Transform Margin. The results also indicate a working hydrocarbon system that is weighted more towards liquids than gas. This has been confirmed by MDT samples; light oil samples in the Turonian and Cenomanian sands and condensate samples in the Albian sands.

    Leni Gas & Oil (LON: LGO)
    Hit the buffers this week as they announced a placing raising £1.3 million gross proceeds through the issue of 162.5 million and a secured 3 year US$10 million debt facility with YA Global Master SPV, one of the potential debt providers currently working with LGO. The first US$2 million has been successfully drawn down. The first draw down carries a twelve month repayment schedule and a fixed coupon of 9%. Global Master has also agreed to increase the debt facility to US$15 million after 60 days, should the Company elect to do so, dependent on certain conditions being met. The initial US$2m debt draw down, in conjunction with the £1.3 million placing announced earlier this week, will be used towards increasing the Company’s oil production operations, predominantly at the Goudron field in Trinidad.

    Lochard Energy (LON: LHD)
    See Trapoil entry

    Magnolia Petroleum (LON: MAGP)
    Rita was at it again this week releasing two RNS’s no point reporting the first but we will report on the second. “We are delighted with the initial production rate for the Gustafson well which demonstrates the prolific nature of the Bakken formation in North Dakota. Combined with a 4% NRI in the well, net production attributable to Magnolia from Gustafson is currently 50 boepd. As a result, this well alone represents a 40% increase on the 122.5 boepd reported in the Competent Person’s Report as at 31 December 2012. Since then, in addition to Gustafson, a number of new wells have come on stream and we therefore expect our next CPR to report a significant increase in production as at 31 December 2013. Yes that’s all very well & good Rita but what is the bopd as of today? Are you saying that the 122 bopd from 6 months ago has risen or declined? We all know Rita’s IP rates are not worth shit They decline rapidly. Buyer beware

    Max Petroleum (LON: MXP)
    The week wouldn’t be a week in the oil & gas underverse without drilling updates from Max! This week we are told the UTS-7 appraisal well in the Uytas Field on Block A. Was plugged and abandoned. Max also said that it has commenced drilling the ZMA-E3 development well in the Zhana Makat Field on Block E using the Zhanros ZJ-30 rig. Total vertical depth of the well will be approximately 860 metres targeting Jurassic reservoirs. Yawn

    Petrel Resources (LON: PET)
    Will farm-out 85% of its Atlantic Porcupine Basin holding to Woodside, Australia’s largest independent oil and gas company. The agreement covers all of Petrel’s participating interest in Licensing Option 11/6 (comprising offshore blocks 45/6, 45/11 and 45/16) and Licensing Option 11/4 (comprising offshore blocks 35/23, 35/24 and the western half of 35/25). The Agreement is subject to the execution of fully-termed agreements, completion of due diligence and other necessary government approvals. It includes any subsequent frontier exploration licences that are granted in respect of the licensing options. Woodside will be operator of the licensing options.

    Nighthawk Energy (LON: HAWK)
    More good news came this week from HAWK a drilling report. You can read it in full HERE

    Petro Matad (LON: MATD)
    Final Results can be viewed HERE

    Petroneft (LON: PETN)
    Final Results can be viewed HERE

    President Energy (LON: PPC)
    Preliminary results from the first of the three hydraulically stimulated wells at the Puesto Guardian concession (President 50%) are performing ahead of expectation.
    Well DP1001 at the Dos Puntitas Field is currently free flowing (without pump) into the facility at a gross flow rate of liquids (oil and injection water) of 490bpd. The oil cut is presently 70% and continues, as expected, to increase steadily as the injection water continues to be cleaned up. This gross flow rate represents a five-fold increase in production pre-stimulation, with oil coming from both the carbonates and A6 sand sections. The reservoir pressure is estimated at 4130 psi which is within 10% of the original field pressure recorded in 1983. Whilst it would be premature to draw too many conclusions at this stage of the clean-up and initial production of these three wells, the magnitude of flow-rate increase on this first single stage oil well stimulation is an extremely encouraging response. The work-over rig is now moving to well PE-8 at the Pozo Escondido Field to commence the clean-up operation on the second stimulated well, where after it will move to PE-7.

    Rialto Energy (LON:RIA)
    Diluted share-holders with 471,555,109 million ordinary shares this week trousering approximately £8.5 million. Then updated on the Starfish-1 oil exploration well in the Offshore Accra Contract Area, Ghana. The well will target a large stratigraphic trap in the deep water of eastern Ghana, interpreted to be potentially comparable to the Jubilee oil field in western Ghana. The operator, Ophir Energy (LON: OPHR)), estimates mean prospective resources of 292 MMBOE with a 20% chance of success. The Starfish prospect was matured following reprocessing of the original 3D seismic data and the acquisition of the new 3D survey in 2011 over the outboard deep water area. The Contract Area is now covered by quality 3D seismic data. In the event of a discovery at Starfish-1 confirming a significant petroleum system, there are a number of other leads and prospects identified on the block that would be of interest. Ophir continues to work on the existing lead and prospect inventory. The well was spud on 19 June and will be drilled as a vertical well in a water depth of 1,500 metres and is expected to take 40 days to drill to a proposed total depth of 4,560 metres. During the period from 1400 hours on 19 June 2013 to 1400 hours on 25 June 2013 the well was drilled to a depth of 2,627 metres. The 20″ (508mm) casing was run and set at 2,218 metres and the BOPs were installed, prior to drilling ahead in the 17½” hole section. The forward plan is to drill ahead in 17½” hole to the next casing point planned at 2,889 m metres.

    San Leon (LON: SLE)
    Updated on Lewino-1G2 well in the Gdansk W concession in the Baltic Basin, Poland. Mobilisation of hydraulic fracturing equipment from United Oilfield Services is underway, and the wellbore has been prepared using coiled tubing. Expected timings for the remainder of the work are subject to operational change. 29 June 2013: Pressure test and perforate the well. 02 July 2013: Perform a hydraulic fracture treatment through the 5-1/2″ liner. As part of the evaluation process, UOS will provide microseismic monitoring to generate an image of the hydraulic fracture produced. The pumping itself is expected to last less than three hours, and will be followed by a flow back of fracture fluid for a number of hours. Sustained flow will require a completion tubing to be installed. 04 July 2013: Rig up workover unit and installation of 2-3/8″ completion tubing. 14 July 2013: Commence cleaning the well of fracture fluids in order to achieve sustained flow. Coiled tubing and nitrogen will be used as required to lift fracture fluid returns. Up to 30 days of clean up and flow may be performed, for data acquisition. SLE also released their final results which can be read HERE

    Salamander Energy (LON: SMDR)
    Has started its multi-well exploration programme in Block G4/50, Gulf of Thailand. Salamander has a 100% operated interest in Block G4/50 which surrounds the B8/38 Production Licence (that contains the Bualuang oil field).

    Serica Energy (LON: SQZ)
    Has reached agreement with Centrica through its subsidiary Hydrocarbon Resources Limited for the farm-out of UK East Irish Sea Blocks 113/26b and 27c (Licence P.1482), in which Serica presently holds a 65% interest. Under the agreement, HRL will acquire an operated 45% interest in the licence, with Serica retaining 20%, in consideration for HRL bearing Serica’s share of costs associated with the drilling of an exploration well up to a cap of $17 million.

    Sound Oil (LON: SOU)
    Updates on the Nervesa appraisal well. Drilling on the well experienced a stuck drill pipe incident at 1087 metres while drilling in the Upper Miocene conglomerate formation. Following unsuccessful attempts to free the pipe, corrective action has been taken to cut the drill string at 884.5 metres, plug back with cement and drill a sidetrack. The planned sidetrack is still expected to reach the planned bottom hole location within two weeks. As a consequence of this operation the total well cost will increase by approximately £1 million.

    Trapoil (LON: TRAP)
    the independent oil and gas exploration, appraisal and production company focused on the UK Continental Shelf region of the North Sea, noted the announcement made by Ithaca Energ. (LON: IAE). As part of this announcement Ithaca provided the following operational update with regard to the performance of Athena where it’s UK subsidiary is the operator and in which Trapoil’s subsidiary holds a 15%. working interest. “During the quarter the Athena field completed its first full year of operations, with gross production of approximately 3.6 million barrels having been produced to date. Gross daily production from the field is currently at a reduced level, primarily as a function of one of the four producing wells, the “P2″ well, being temporarily shut-in awaiting a repair to the electrical cable serving that particular well. A diving support vessel has been contracted to perform the necessary operations to fix the electrical fault and reinstatement of production from the well is anticipated within the next few weeks. During the quarter, the Athena field commenced the production of water with oil. This is significantly later than originally anticipated. As previously noted, the evolution of the water production profile will now provide important information for forecasting the ultimate field production profile and the scope for future potential upside investment opportunities” Subsequent to the shut-in of the “P2” well Athena is currently producing just under 9,000 barrels of oil per day.

    Woburn Energy (LON: WBN)
    Serial failure this one. They used to be called Black Rock oil & Gas cost investors a fortune. Reinvented themselves came back as Woburn Energy. Now suspended. Stay well away. You have been warned.

    Join the Forum discussion on this post

  • The Smallcap Oil & Gas round up.

    BG GROUP (LON: BG)
    The BG Group has completed the sale of the Group’s 65.12% holding in India’s largest private natural gas distributor Gujarat Gas Company Limited for INR 24.6 billion or approximately $422 million at current exchange rates.

    Chariot Oil & Gas (LON: CHAR)
    The Atlantic margins focused oil and gas exploration company, today announces that its wholly owned subsidiary, Chariot Oil & Gas Investments (Morocco) Limited, has agreed with the Office National des Hydrocarbures et des Mines a six month extension for the first phase of exploration on its Loukos, Casablanca and Safi licences, offshore Morocco, which will be valid until 11 January, 2014. The award of this extension remains subject to the final approval of the Moroccan Ministry of Mines and Energy and the Ministry of Finance.

    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 said that it has signed a Letter of Intent with Black Spruce Exploration Corp. for the development of Enegi’s lease and licence portfolio in Western Newfoundland.

    Exillon Energy (LON: EXI)
    Released a drilling update yesterday. EWS I – 70. The well flowed oil naturally to the surface with a flow rate of 499 bbl/day on an 8 mm choke & is now connected to existing production facilities. EWS I – 64. Upon perforation the well flowed 220 bbl/day, of which 44 bbl/day was oil. Due to the fact that the well is located lower than any other well on the structure it has been converted to water injection for the purposes of maintaining reservoir pressure. EWS I – 65. Currently operated with a submersible pump flowing at 156 bbl/day, of which 85 bbl/day is oil. Exillion will seek to minimize water cut in the production from this well. Now connected to existing production facilities. EWS I – 66. The well is currently operated with a submersible pump flowing at 574 bbl/day, of which 551 bbl/day is oil. Now connected to existing production. Well 6 is the last planned well from Pad 6.Appraisal well EWS I – 90Appraisal well EWS I – 90 was designed to test the north-east extension of the EWS I field. The structure was previously tested with well EWS I – 61, but due to a long deviation of well EWS I – 61, the structure was not tested for flow rates. The well was spudded on the 13th April 2013 and drilled and cemented in 34 days. 18.4 metres of core was collected, which is represented by mudstones, gravel conglomerates, and sandstones. The core exhibits signs of hydrocarbon saturation. During a test the well has produced only a film of oil due to low permeability of the producing horizon. Exillion will assess the core data for methods of producing from this reservoir. Two additional wells have been previously planned for drilling in this part of the field in 2013. No further drilling will be completed in this area of the field prior to the completion of petro physical studies. The well was drilled 0.7 km to the south-east of Pad 9, and has been converted to a water source well. EWS I – 201. Currently operated with a submersible pump flowing oil at 146 bbl/day. The well was drilled 1.7 km north of Pad 7, and is now connected to our existing production facilities.

    Genel Energy (LON: GENL)
    Some mouth-watering bopd figures came this week from Genel. The company noted that DNO International ASA, as operator of the Tawke Field in the Kurdistan Region of Iraq, issued the following press release: “[The] deep Tawke-17 well tested 1,500 barrels a day of 26-28 degree API crude oil from an Upper Jurassic reservoir underlying the Tawke field in the Kurdistan Region of Iraq. Separately, the Tawke-20 well, the Company’s first horizontal well in the Tawke field, has flowed an average of 8,000 barrels a day from each of the first four of ten fractured corridors penetrated by the well. Testing continues on both wells. “We are very pleased that initial Tawke-17 results are in line with the Company’s pre-drill estimates,” said Bijan Mossavar-Rahmani, DNO International’s Executive Chairman. “This discovery in the Sargelu formation, over 200 meters below the main field Cretaceous reservoir, likely bumps recoverable reserves on the Tawke license to the one billion barrel mark,” he added. Drilling of a second Tawke horizontal well continues on schedule. “If this second well, Tawke-23, demonstrates the significant deliverability uptick we are now seeing in Tawke-20, we will go back to the drawing board and consider further enhancements to our current target of 200,000 barrels a day of production capacity by 2015,” Mr. Mossavar-Rahmani said. Last month the Company announced that it had met its previous goal of delivering 100,000 barrels a day from the Tawke field following 72 hours of well and facility tests. The Tawke-17 well, the deepest drilled by the Company in the Tawke field, encountered several Triassic zones that proved either tight or water bearing. Two additional identified reservoir intervals in the Upper Jurassic remain to be perforated and tested.” Tony Hayward, Chief Executive of Genel Energy, said: “Today’s news reinforces the extremely positive first half of 2013 that Genel has had with the drill bit, with the company having three new discoveries in the Kurdistan Region of Iraq in the space of three months. We look forward to working with DNO to determine the full extent of the new discovery.”

    GeoPark (LON: GPK)
    Good news from GPK. The company drilled and completed the Tua 4 well to a total depth of 3,432 metres. A test conducted with an electric submersible pump (“ESP”) in the Gacheta formation, at approximately 3,290 metres, resulted in a production rate of approximately 526 barrels of oil per day of 11 degrees API oil, with 3% water cut, through a choke of 51mm and well head pressure of 125 pounds per square inch (“psi”). A second test conducted with an ESP in the Guadalupe formation, at approximately 3,260 metres, resulted in a production rate of approximately 857 bopd of 16.1 degrees API oil, with a 1.3% water cut, through a choke of 19millimetres and well head pressure of 59 psi. Further production history will be required to determine stabilized flow rates and the extent of the reservoir. Surface facilities are already in place and the produced crude oil from the Guadalupe formation is now being marketed and sold. The Tua oil field was discovered in July 2012 with the Tua 1 well. Current gross production of the Tua oil field is approximately 4,800 bopd. GeoPark has announced the discovery of three oil fields (Max, Tua and Potrillo) since moving into Colombia in early 2012 and Colombia oil production net to GeoPark grew to 4,932 bopd in 1Q 2013 – representing a 66% increase vs. proforma 1Q 2012. During 2013, GeoPark plans to carry out a 15-20 well exploration & development drilling program in Colombia and is currently testing a new prospect on the Llanos 34 Block. GeoPark has interests in 27 exploration, development and production blocks in Colombia, Chile, Brazil and Argentina. During 2013, GeoPark plans to carry out a total 35-45 well drilling program with an expected work program investment of US$200-230 million.

    Gold Oil (LON: GOO)
    Released their final results for the year ended 31 December 2012 and confirms that the Annual Report and Financial Statements have been posted to shareholders.
    A full version of the Annual Report and Accounts is available for download from the Company’s website at www.goldoilplc.com

    Kea Petroleum (LON: KEA)
    Released results of testing Puka wells 1 and 2, some views on the potential size of the Puka fields, possible future production levels and plans to drill Puka 3. Preliminary analysis of the recent 3D seismic over Puka as well as testing results to date indicate that both Puka discoveries are at the edge of a substantial channel. Puka 2 is only a 3.6 metre net sand and whilst initial flow tests achieved rates of over 700 barrels of oil per day, flows from such thin pay could not be expected to be sustained at particularly high levels. The sustained rates totalling over 300 BOPD detailed below are certainly commercial but the opportunity to achieve total daily production rates of over 2,000 BOPD, which remains the Group’s objective, rests on more holes being drilled into thicker sands. The Group intend to proceed as quickly as possible to the drilling of Puka 3. The Group has adequate cash resources to drill this hole as well as complete the on-going capital production works at the Puka site. Sales of oil to date from Puka have raised NZ$1.45M (£730,000).

    Leni Gas & Oil (LON: LGO)
    More good news. Group-wide oil production from its operations in Trinidad and Spain now exceed 400 bopd and on the 10th June 2013 total production was over 450 bopd, a new Group record. In Trinidad, where the Company produces from the Goudron and Icacos fields, LGO’s net oil production has increased to 315 bopd on the 10th June 2013.
    Oil production has increased consistently since the acquisition of the Goudron field in October 2012 (LGO; 100% operator) and Goudron now contributes two-thirds of the Group total. Production growth is expected to continue through 2013 as additional wells are reactivated and placed on pump. Neil Ritson, LGO Chief Executive, commented: “We continue to be ahead of our planned progress towards the 400 bopd target set by the Company for Trinidad by end year. We are continuing at an aggressive pace in Trinidad and we remain confident of the development potential in the country.”

    Petro Matad (LON: MATD)
    is pleased to announce that it has raised $5 million before expenses through the issue of 90,612,540 ordinary shares of US$0.01 each to its largest shareholder Petrovis Matad Inc. The New Shares have been issued to Petrovis at an issue price of 3.56 pence per ordinary share. Following the issue of the New Shares, Petro Matad will have 277,288,541 ordinary shares in issue.

    Matra Petroleum (LON: MTA)
    Has signed an agreement to dispose of its 100% interest in the Arkhangelovskoe Licence which includes the Sokolovskoe Field, to a third party, consisting of an initial payment of US$25 million with a further payment of US$10 million payable within nine months, conditional on drilling results. Having commissioned a seismic survey on the Sokolovskoe Field, leading to the revised management estimate of 2P Recoverable Reserves of 13.5 mmbbls, the Board conducted an extensive review of the conceptual Field Development Plan and associated economic forecasts, as well as investigating other options for maximising the value of the Sokolovskoe Field for shareholders. The Board believes that the disposal of the licence for a consideration of up to $35 million represents compelling value when compared to the capital costs required to develop the asset and the technical risks associated with the field. The proposed monetisation of the Arkhangelovskoe Licence is consistent with the Company’s growth strategy and will provide the Company with increased flexibility to pursue new upstream investment opportunities, with the potential to create significant value for Shareholders.

    President Energy (LON: PPC)
    Annual General Meeting of shareholders at 11 am today. Paraguay. President is acquiring 100 km of 2D data in the Demattei Concession, and 780 km2 of 3D in the Pirity Concession. The 2D was acquired in April and the results are very encouraging and confirm the presence of a prospective structural trend. The 3D seismic acquisition began in May in the Jurumi prospect area of the Pirity Concession, and is now completed. The initial results are equally encouraging. Data quality is excellent and the presence of a prospective structural trend has been confirmed. Detailed prospect mapping will proceed over the next few months. 3D acquisition over the Los Naranjos prospect area of the Pirity Concession will commence this month, and is expected to be completed by early August. We look forward to announcing the final prospect evaluation, including the selection of initial drilling locations by the end of November. An updated CPR will also be published. Planning continues to be made with a view to commencing the drilling campaign at the end of the rainy season in Q2 2014. Argentina. Good progress has been made on President’s work over and well stimulation campaign. Two out of the three stimulations, on wells PE7 and PE8, have been successfully completed and are awaiting clean up prior to being brought on production. The third, on well DP1001, is due within the next few days. President will announce the stabilised production rates of all three wells shortly. Louisiana. Production remains at solid levels well above 200 boepd, and oil prices remain at over US$100 per barrel.

    Range Resources (LON: RRL)
    Said it was “pleased to provide the following update” on its Trinidad operations, with the following highlights: Too long for the Smallcap round up. You can read it HERE

    Rialto Energy (LON: RIA)
    It’s good riddance to Charles Nieto and Vance Querio they resigned from the Board of the Company with immediate effect. In addition, Matthew Worner has resigned his position as Company Secretary and Chief Legal Officer. You will not be missed. Nieto, who was an Executive Director of the Company, remains employed as Chief Operating Officer pending a review of the Company’s operating needs at the conclusion of the previously announced proposed transaction with Vitol. In addition, the Company is pleased to advise that Miss Sandra Rosignoli, an experienced oil and gas lawyer, will be joining Rialto as General Counsel in London in a part-time capacity. You mean going through the books!

    San Leon Energy (LON: SLE)
    Updated on the Czaslaw-1 well and the Siciny-2 well. Czaslaw-1; Based upon the encouraging data obtained during the acid wash performed in May on Czaslaw-1, stimulation modelling has been performed by Denver-based engineers. Their recommendation, which the Company will now implement, involves undertaking one or more additional acid fracture treatments on the well. A liner will first be run and cemented to facilitate targeting of the stimulation to specific depths. This is expected to take place in late summer, following necessary permissions and equipment sourcing. Siciny-2; Pressure fall-off data has been acquired from the first Diagnostic Fracture Injection Test on Siciny-2, on what was expected to be a relatively low-permeability section. This was performed first for operational reasons, as it is the deepest interval of potential interest. The results show a permeability which is below the range which would be considered for full fracturing. A second DFIT further up in the same reservoir section will now be performed in the coming weeks, with the aim of determining a possible suitable depth for hydraulic fracturing.

    Sefton Resources (LON: SER)
    More piss & wind came from Sefton yesterday. Apparently the company are kyboshing monthly production reports in favour of quarterly. That will save a few quid in RNS fees! Cash is critical. Expect yet another dilution. No more bottom tank sediments or non-saleable fluids or even pre-shrinkage provisional bopd announcements. All gone from RNS announcements just like the fantastical PV10 bullshit cash flows. (Tools of manipulation). Looks like some one or some organisation has read them the riot act. We now just get actual production figures as reported to the DOGGR. Which is what we should have got ALL along. Invest in this POS? You’d have to be utterly stupid!

    Sound Oil (LON: SOU)
    Released what can best be described as a very short update on a section of drilling. (Waste of an RNS fee!) The Nervesa appraisal well has successfully completed drilling of the 16″ hole section through the Plio-Pleistocene gravel formations to a depth of 322m. Operations are in progress to install the 13 3/8″ casing. That’s it folks!

    Urals Energy (LON: UEN)
    Has entered into a short-term loan agreement with Petraco under which Petraco will advance the sum up to US$7.0 million to the Company. Repayable immediately following the loading of the next tanker shipment, scheduled for Autumn 2013 or 30 November 2013 (whichever is earlier); interest rate of 5% over LIBOR until the date of the bill of lading of the tanker at which point it reduces to 2% over LIBOR; and it is included in Petraco’s existing security over CJSC Arcticneft, further details of which appear in the Company’s announcement dated 12 April 2010. The proceeds of the Loan will be used by the Company to both progress its 2013 drilling plan and working capital financing. In view of the fact that Ingeborg Srenger is a director of both Urals and Petraco and the control she exercises over Petraco, the Loan is considered to be a related party transaction pursuant to Rule 13 of the AIM Rules for Companies. The Company’s directors (with the exception of Ingeborg Srenger), having consulted with the Company’s nominated adviser, Allenby Capital Limited, consider that the terms of the transaction are fair and reasonable insofar as the Company’s shareholders are concerned.

    Xcite Energy (LON: XEL)
    Another yawn. Xcite Energy Resources Limited (XEL 100% owned Subsidiary) has entered into a Memorandum of Understanding with AMEC Group Limited (“AMEC”) setting out commercial principles for future cooperation to support the development of the Bentley Field.

  • The Smallcap Oil & Gas round up.

    The Smallcap Oil & Gas round up.

    Amerisur Resources (LON: AMER)
    Good news came from the company this week. The Platanillo-11 well has been completed in the U sand and produced at a controlled rate of 1,500 BOPD with trace water in natural flow. The well has now been placed on production at approximately 1,100 BOPD. While the Latco-01 rig was skidded onto the next slot within the 5S location and spudded well Platanillo-12. The well is currently at 2,662ft. Alea-1R ST1 has been placed on production, producing 700 BOPD at a controlled rate with 20% water cut, in line with expectations from the log interpretation.

    The Serinco D-10 drilling rig has been moved over the Platanillo-2 well in the same location in order to side track it. Platanillo-2 will be sidetracked to a new position to the south of Pad A, a distance of approximately 3,400ft. The well is expected to take approximately 40 days to drill and log. (So far so good).

    Logistical issues continue to constrain field production in Platanillo. However the Company’s efforts to develop alternative options are proving successful and the net impact of the constraint has been significantly reduced. Current field production is approximately 7,100 BOPD against a calculated production potential of 8,500 BOPD. Amerisur continues to develop further export routes, at attractive pricing, to further support the development of the field. Colombia – Interpretation of the newly acquired 2D seismic data continues. The Company expects to drill a further exploration well in Fenix this year. Paraguay A gravity survey has been initiated in the western blocks in Paraguay. This survey, of 500 high precision stations is being acquired in the prospection blocks in the Piriti-Pilar complex basin.

    Dr. John Wardle, Chief Executive then went on to tell us all how super this was while all the while he and Nick were flogging stock at 48p per share and buying stock options at 7 pish and 0.1 pish! “We continue to be encouraged by successful results from the Platanillo field. We have now drilled 7 new wells and performed 2 sidetracks of legacy wells with a 100% success rate. This is a very strong endorsement of the geological model and bodes well for the wells to the north. With civil works on the northern road to Platform 3N commencing shortly I look forward to seeing further significant growth as we extend our reserves base beyond the strong results of Platanillo-1 side track. As we have already demonstrated, logistical issues can and will be addressed gradually to develop Platanillo to its full scale.”

    On 6 June 2013 it issued a total of 19,250,000 new ordinary shares of 0.1p each pursuant to the exercise of options by Directors as follows: 5,500,000 2008 options at 7.525p each to fill your pockets Nick Harrison; and 10,000,000 2008 options at 7.525p each by Tracarta Limited, in which, Grab the cash, John Wardle has a beneficial interest; and 3,750,000 LTIP shares at 0.1p each by Tracarta Limited, in which, Grab some more cash, John Wardle has a beneficial interest. The number of shares in issue is now 1,056,518,831. On 6 June 2013, principally to cover the exercise costs and tax due on the options, in the Company’s shares: If you swallow that you’d swallow pig shit pie, Nick Harrison flogged 3,778,645 shares at 48p each trousering £181,000 pound while Tracarta Limited sold 5,221,355 shares on 6 June 2013 at 48p each trousering just over £250,000 pounds. Free money! And these people wonder why the markets are viewed as a cess-pit!

    Chariot Oil & Gas (LON: CHAR)Confirms that the Ministry of Mines and Energy, Namibia has approved a one year extension to the First Renewal Period for Block 2714A, held in partnership with Petrobras Oil & Gas B.V.(30%) (Operator), BP (45%) and Chariot’s wholly owned subsidiary Enigma Oil and Gas (PTY) Ltd. (25%). The extension period will commence on 31 August 2013.

    The extension of this First Renewal Phase will allow the partnership to complete its analysis of the drilling results of the Kabeljou-1 exploration well in order to progress the description of the rest of the prospectivity in the licence, allowing the partnership to take an informed decision on its forward plan for the block and its commitments for the next phase of development. The extension will also enable Chariot to evaluate and incorporate results from a third party well that is anticipated to take place in close proximity in Q3 2013.

    Enegi Oil (LON: ENEG)
    An independent oil and gas Company with a portfolio of assets located in the UK North Sea, Newfoundland Canada, Ireland, and Jordan, updates on its operations in western Newfoundland and, in particular, the GHF. A sustained production process has been established on the Well in GHF. As part of the process, which is still on-going and has been designed and implemented to gather additional performance data, the Well has been flowed at varying rates and intervals as per the testing programme.

    In total, the Well has been flowed for a total of 214 hours since the sustained production process commenced in mid-March up until 17 May 2013. During this time, 3,099 barrels of fluid was produced with an average water cut of 44%, yielding 1,731 barrels of oil. As the Well continues to be flowed, and to clean up from the previous workover, there is potential that the water cut may reduce. Enegi also announced that another sales route has been secured for its produced oil, which is currently being sold at a premium to WTI. In addition, the Company has engaged an independent specialist production enhancement consultancy to advise on how the full potential of the Well can be unlocked.

    The Company is pleased to announce that, after a detailed review and visit to the GHF site by the consultants, it has been advised by the consultants that sustained flow is possible with the installation of the correct artificial lift solution, and that, in the short-term, the best AFL solution is the installation of a jet pump. The reservoir inflow, water cut, and gas to liquid ratio will ultimately determine how much continuous production is achievable, however these parameters are currently uncertain and will only be ascertained through continuous production. The Company reports that the same production enhancement consultancy has offered to farm-in to GHF and EL1116. The Company is currently assessing the proposal; however, this reinforces the Company’s view of the potential of both GHF and EL1116.

    The production data gathered to date continues to suggest there has been no reservoir pressure depletion and, in view of the result from the sustained production process, the Company believes it may be possible to book reserves on GHF. Based on results from the Well to date, the Company is pleased to report that it is working to finalise a suitable drilling programme for another well in GHF and may, if appropriate and subject to securing regulatory approval, accelerate development of GHF by proceeding straight to a drilling programme. The Company would look to bring in an appropriate partner in due course with a view to implementing this programme. The original horizontal well report from Petra Physics Ltd. in May 2007 indicated that a suitably targeted well can produce at a range of 474 bopd to 5,523 bopd

    Falkland Oil & Gas (LON: FOGL)
    The PGS M/V Ramform Sterling has completed a 3D seismic survey over the Cretaceous Fault Blocks within FOGL’s Southern Area Licences. A total of 1,018 square kilometres of full fold seismic data have been acquired. This survey was designed totarget a number of prospects and leads immediately to the west and north-west of the Darwin gas-condensate discovery. The survey was operated by Noble Energy on behalf of the Joint Venture, which also includes Edison International Spa. The survey was completed within budget. The data will now be processed by PGS and a fast track product will be available for interpretation in approximately two 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 the selection of well locations. Third 3D survey. The Joint Venture expects to award a contract in the near future for a third 3D seismic survey that will be acquired in the northern licence area in the fourth quarter of 2013.

    Frontera Resources (LON: FRR)
    The independent oil and gas exploration and production company released an operations update for its holdings in the country of Georgia as well as its Greater Black Sea strategic initiative prior to the Company’s Annual General Meeting which was held yesterday at 10:00 AM Central Daylight Time at 3050 Post Oak Boulevard, 2nd Floor Conference Room, Houston, Texas 77056. You can view the OP by clicking HERE

    GeoPark Holdings (LON: GPK)
    Hit oil this week announcing the successful drilling, testing and putting into production of the new Potrillo 1 exploration well in the Yamu Block in the central Llanos basin in Colombia. GeoPark operates the Yamú Block. GeoPark drilled and completed the Potrillo 1 well to a total depth of 3,560 metres. A production test conducted with a jet pump in the Carbonera C7 formation, at approximately 3,014 metres, resulted in a production rate of approximately 650 barrels of oil per day of 33.0 API oil with an approximately 50% water cut. Further production history will be required to determine stabilized flow rates and the extent of the reservoir. Surface facilities are already in place and the produced crude oil is now being marketed and sold.

    Jubilant Energy (LON: JUB)
    Said this week that subsequent to the successful conventional testing in the Middle Bhuban formation in the North Atharamura-1 well in Tripura Block AA-ONN-2002/1, a Notice of Discovery has been submitted to the Management Committee of the Block and Government of India, as required by the Production Sharing Contract. North Atharamura-1 is the second exploratory well of the two well Phase-II minimum work programme for the Block. The well was spud on 12 February 2013 and reached a MD of 3,400 metres on 17 May 2013.

    Based on the available information from drilling, two Objects were selected for conventional testing to establish the presence of producible Non-Associated Natural Gas. The gross Middle Bhuban sand package in the 610-635 metres MD interval (Object-II: perforated zone – 610-625 metres) appeared promising on the logging-while-drilling logs and the presence of hydrocarbons was further validated by wire-line logs. The testing operation for Object-II commenced on 29 May 2013 and the same was perforated on 31 May 2013. Object-II flowed gas at a measured rate of 1.7 million standard cubic feet per day at 24/64″ choke size. The multi-bean Study for flow rate and the Reservoir Limit Tests are currently being conducted. Jubilant holds a 20% participating interest in this block through its subsidiary Jubilant Oil & Gas Private Limited, India which is also the Operator for the block. GAIL India Limited holds the remaining 80% participating interest.

    Lochard Energy (LON: LHD)
    Released an Operational update and updated on the offer by The Parkmead Group (LON: PMG) Copies of the release can be viewed on the London Stock Exchange by clicking HERE

    Magnolia Petroleum (LON: MAGP)
    Yawnnnnnnnnnnnn! Read it HERE

    Mediterranean Oil & Gas (LON: MOG)
    Further to its announcement on the 6th September 2012, MOG advises that the Company’s subsidiary, Medoilgas Italia SpA has completed the transfer of its working interest in the 13 non-core exploration and production gas assets onshore Italy to Canoel International Energy Limited (TSXV:CIL) and that the sale is now unconditional. The transaction will be deemed complete once the decreed from the Ministry of Economical Development is recorded in the Italian Official Gazette.

    Nighthawk Energy (LON: HAWK)
    Now here’s a company that’s bringing home some bacon. US focused Nighthawk announced an update on the drilling and development of the Arikaree Creek oilfield at its 100% controlled and operated Smoky Hill project in the Denver-Julesburg Basin, Colorado. Highlights are; Logging and coring of the Taos 1-10 well has identified an oil column in the Mississippian Spergen formation consistent with discoveries at Steamboat Hansen 8-10 and Big Sky 4-11 wells… Testing and completion of the Taos 1-10 well is underway… The drilling rig has been retained to immediately drill two further Arikaree Creek appraisal wells, the Silverton 16-10 and the Snowbird 9-15 wells… Convertible loan notes to the value of £3.8 million (US$5.8 million) have been issued to fund additional drilling and development costs. Keep up the good work.

    Nostra Terra Oil & Gas (LON: NTOG)
    Released their 2012 annuals today reporting a pretax loss of 840 thousand pounds for the year ended 31 December 2012, compared to a loss of 996 thousand pounds last year. Loss per share was 0.039 pence, compared to a loss of 0.056 pence prior year. Revenue increased to 352 thousand pounds from 244 thousand pounds last year. The company said it kept a tight control on administrative expenses, which decreased by 6% to 876 thousand pounds. This contributed to a reduced loss before tax. Looking forward, the company said it will continue to minimise overheads and remain focused on growing production throughout the year. The NTOG AGM is 11.00am on 28 June 2013 at The Library, Travellers Club, 106 Pall Mall, London SW1Y 5EP.

    Petroceltic (LON: PCI)
    Mr Con Casey, a non-executive director, has informed the Company of his decision to retire from the board with immediate effect. Mr Casey had served as a director of Petroceltic since October 2000.

    Sefton Resources (LON: SE)
    More Kansas piss came this week. Any one interested? Click HERE 

  • The Smallcap Oil & Gas round up

    The Smallcap Oil & Gas round up

    A very busy week in the Smallcap Oil & Gas Underverse. Good news came from a variety of companies and as per usual dear Max Petroleum treated us all to yet another “Drilling Update”Pete Landau continued to fight the wrong fights pinging off letters to various bloggers threatening legal action. GKP came out with the same old horse-shit about a main market listing which reminds me. Sefton Resources. Hasn’t it gone all quiet? Stay tuned for breaking news on the Sefton Fraud! While our beloved Nostra announced it was looking at saddling the company with an RBL facility (Debt doesn’t do it for me Matt!) A basic lesson in economics. If you have £5 you can’t spend £10. SacOil Directors spat their dummy out and walked. No loss to share-holders there. All in all an eventful week.

    Afren (LON: AFR))
    Have completed the acquisition of 10.4% of First Hydrocarbon Nigeria Company. Further to the approval by the shareholders of Afren of the acquisition of the beneficial interest in 10.4% of the shares in FHN on 20 May 2013, Afren is pleased to announce that it has now completed the acquisition.

    Egdon Resources (LON:EDR)
    Has agreed terms with Blackland Park Exploration Limited (“Blackland Park”) and Stelinmatvic Industries Limited (“Stelinmatvic”) for a farm-in to UK Onshore Petroleum Exploration and Development Licence PEDL209  located in Lincolnshire. Under the terms of the Farm-in Agreement Egdon will earn a 60% interest in the Licence in return for paying 100% of the cost of the planned Laughton-1 exploration well to the point of completion of the well for testing or, in the case that the well is a dry hole, abandonment and restoration of the site. Egdon will also assume operatorship of PEDL209. The Licence Interests in PEDL209 at completion will be; Egdon Resources U.K. Limited (Operator) 60%. Blackland Park Exploration Limited 28%. Stelinmatvic Industries Limited 12%. The transfer of interests and operatorship is subject to approval by the Department of Energy and Climate Change.

    Empyrean Energy (LON: EME)
    The onshore US condensate and gas exploration & production company, is pleased to report that early results from the re-completion of the Cartwright-1H well in the Wilcox interval have been successful and in line with or better than expectations. The well has been turned to sales and is producing gas and oil (condensate). Empyrean holds a 10% Working Interest in the Riverbend Project and Cartwright-1H well. The well produced an average of 745,000 cubic feet of gas per day (“cfgpd”) with 40 barrels of oil per day  for the first 7 days production post testing and an average of 755,000 cfgpd with 37 bopd for the first 14 days of production post testing. Early oil production is in line with expectations (30-40 bopd) and the early gas production is above expectations (200,000 -250,000 cfgpd).

    Falcon Oil & Gas. (LON: FOG)
    Announced its interim financial statements for the three month period ended 31 March 2013 and the accompanying management’s discussion and analysis. These filings are available at www.sedar.com and on Falcon’s website at www.falconoilandgas.com

    Fastnet (LON: FAST)
    Said that its wholly owned subsidiary Pathfinder Hydrocarbon Ventures has executed an exclusive option agreement with Oil and Gas Investments Funds to farm into eight Exploration Blocks comprising the Tendrara Lakbir Petroleum Agreement (the “Tendrara Lakbir Licence” or the “Licence Area”) onshore Morocco (see map of the area on the Company’s website: http://www.fastnetoilandgas.com/operations/morocco.aspx).

    Gulf Keystone Petroleum (LON: GKP)
    Noted the Genel Energy (LON: GENL) RNS regarding a commercial oil discovery at the Ber Bahr-1 exploration well on the Ber Bahr block in the Kurdistan Region of Iraq. Genel Energy, as operator, made the following statement: “The Ber Bahr 1 well original TD was 3933m in the upper Permian Chia Zairi formation. It encountered good oil shows over a c.300m interval in the Jurassic. Two drill stem tests over this interval failed to flow. The original well has now been successfully side tracked and in several tests, conducted over a period of days, achieved a sustainable flow rate of 2100 STB/day of 15 API oil from the Middle Jurassic age Sargelu Formation.” The operator has also stated their intention to begin a phased development of the field in the second half of this year.

    Jubilant Energy (LON: JUB)
    On 28 May, 2013 entered into a funding agreement with two Jubilant Bhartia Group companies*. The agreement allows for borrowing of up to USD 20 million in aggregate, for a period of three years and will be structured as unsecured loans. KSG#67 the third of the six development wells of the Phase-III-Extension drilling campaign in the Kharsang Field, Arunachal Pradesh, has successfully tested for oil and has been put into production at an initial gross rate of 75 barrels of oil per day.

    JKX Oil & Gas plc (LON: JKX)
    Has successfully completed a second sidetrack of well M-166X well in the productive Devonian sandstone reservoir in the Molchanovskoye North field. The initial 12 hour flow rate stabilised at an average of 1,710 bopd with 2.13 MMcfd gas through a 1 1/8″ choke, with a flowing well head pressure of 600 psi. After further testing, a lower choke size will be chosen to optimise flow conditions and manage the reservoir.

    Max Petroleum (LON: MXP)
    For the love of God can some one tell this company that the cost of constantly releasing “Updates” far out weighs their significance. Yet another “Nothing” drilling Update. Max has commenced drilling the SAGW-4 appraisal well in the Sagiz West Field on Block E using Zhanros Drilling’s ZJ-30 rig. The well will be drilled to a vertical depth of approximately 1,500 metres and is located approximately four kilometres south of the SAGW-3 well, the nearest producing well in the field. The results of the SAGW-4 well, combined with newly acquired 3D seismic data, will help further evaluate the current estimate of approximately 79.8 million barrels of in-place contingent resources in the field, as well as assist in the design of an extended appraisal drilling programme over the Sagiz West structure expected to commence in the next several months. That’s another £250 quid up the swannee!

    Nighthawk Energy (LON: HAWK)
    More good news from Steve Gutteridge a man who has quietly gone about transforming the erstwhile “Shitehawk” into a decent little oiler. An update on production from its 100% controlled and operated Smoky Hill and Jolly Ranch projects in the Denver-Julesburg Basin, Colorado. The Big Sky 4-11 well, located on the Arikaree Creek oil-field, commenced production on 24 May 2013. Initial production rates since coming on-stream are ahead of the Company’s expectations and have been in the range of 300-400 barrels of oil/day with no water production. While production from the Steamboat Hansen 8-10 well, also located on the Arikaree Creek oil-field, continues at a steady rate of 280-300 bbls/d with no water production. Additional producing wells located on the Jolly Ranch project are currently contributing a further 80-100 bbls/d in total. With further increases in production anticipated from the current drilling and work-over programs. Hooray!

    Northern Petroleum (LON: NOP)
    A wholly owned subsidiary of NOP are the successful bidder for 100% of Petroleum Exploration Licence (PEL) 629 covering an area of 5,800km2 with shale oil
    prospectivity in a so far lightly explored but producing portion of the onshore Otway Basin with five gas fields having significant amounts of condensate. Only five strati-graphically deep exploration wells have been drilled within the licence and some 4,468 line kilometres of 2-D seismic data recorded. The award is for an initial period of five years

    Nostra Terra Oil & Gas (LON: NTOG)
    More news from ML this week. Nostra has elected to participate in its sixth well in the Chisholm Trail Prospect (CT6). NTOG also announced that it has exercised an opportunity to increase its Working Interest (“WI”) to 20% in the High Plains Prospect, located in Texas. This has quadrupled the company’s original holding. Work to define prospects is moving forward. The company also stated that they are seeking a reserves report with a view to funding future operations through a “Reserve Based Loan”.   The word you’re omitting Matt is DEBT. Warning. Never a good idea to go from the Black into the Red.

    Struggling to keep their focus Range Resources (LON: RRL) released a “draw your attention” to the announcement released by Citation Resources Limited (ASX: CTR) on the current flow testing program on the Atzam #4 well in Guatemala (in which Range has an indirect attributable interest of 24%).Citation Resources has announced that following a technical review program on the Atzam#4 well undertaken with Schlumberger, flow testing of the C13 and C14carbonate sections of the well has commenced with the perforation of these zones currently underway with flow testing of the target zones expected to commence shortly. The C13 and C14 carbonate sections in the well are considered the most prospective oil bearing reservoir units in the well based on theelectric log data, and independently confirmed following review of all the well data by industry experts including Schlumberger. Here’s a tip for embattled CEO Peter Landau. Stop wasting share-holder money chasing bloggers and financial journalists with legal threats. You run the company and it is YOU who are failing it! Concentrate on the company.

    SacOil Holdings (LON: SAC)
    The shit has hit the fan at SacOil as the company announces that, following the shareholder vote yesterday against Special Resolution Number 1, Messrs John Bentley and Bill Guest have resigned as non-executive directors and Mr Robin Vela has resigned as Executive Director and Chief Executive Officer of the Company with immediate effect. The three directors, representing a majority of the board, believed that the conversion of the Gairloch Limited loans to equity was in the best interests of the Company and its shareholders and had recommended that shareholders vote in favour of the resolution approving such conversion. Following these resignations application has been made for the trading of the Company’s shares on AIM and the JSE to be suspended pending further appointments to the board. Shareholders will be kept appraised of matters in this regard.

    San Leon Energy (LON: SLE)
    Completed a successful stimulation test on the Czaslaw-1 well in the Nowa Sol licence, Poland. The results of the test indicate system permeability in line with that in the Bakken Formation in North America. During the four-day flow period, small amounts of hydrocarbon gas were produced and flared (~10 cubic meters per hour) along with burnt acid and small amounts of oil. Pressure gauges were deployed downhole during the seven-day build-up test. Upon completion of the test, analysis of the downhole pressure measurements showed satisfactory reservoir pressure of 129 Bar. Pressure transient analysis indicates encouraging system permeability of 0.01-0.1 MD, which is in line with that of the Bakken Formation in North America. The analysis also indicates high skin factor (5-9), suggesting significant flow improvement potential relative to the untargeted limited-size stimulation performed for data gathering. The Company’s staff are currently working with Denver-based stimulation experts to finalise a forward plan for the Czaslaw-1 well, such as running casing in the current 60-degree wellbore in preparation for a larger targeted acid frack. Any such further operations on Czaslaw-1 would be expected to occur this summer, subject to permissions and equipment availability. The Company will provide a further update once the next steps in the forward plan has been finalised.

    Xcite Energy (LON: XEL)
    Xcite Energy Resources, {XEL Subsidiary} has cancelled its option for a jack-up drilling unit from British American Offshore Limited, a subsidiary of Rowan Companies, Inc. The rig contract was initially entered into in February 2011 and subsequently amended in February 2012 ahead of the pre-production extended well test on the Bentley field, which was completed in September 2012. Following the extended well test, which has led to the significant increase in reserves and updated field development plan, the Company no longer believes the terms and structure of the rig option to be appropriate for its commercial objectives.

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  • The Smallcap Oil & Gas round up

    The Smallcap Oil & Gas round up

    Here we go yet again. It’s the famous smallcap Oil & Gas round up.

    Bowleven (LON: BLVN)
    Updated on operations on the Etinde Permit in Cameroon. Following the successful testing of the Middle Isongo and Intra Isongo reservoirs, the IM-5 well has been suspended as a future development/producing well and the Atwood Aurora jack-up rig has been released from contract. Stage I of the Etinde development project is based on supplying 70 mmscfd of dry gas to a proposed fertiliser plant in Cameroon. As announced on 20 March 2013, a detailed term sheet for the proposed sale of EurOil’s gas production from Etinde has been agreed among Ferrostaal, SNH and EurOil. The term sheet includes an agreement on the applicable pricing mechanism. A formal signing ceremony, attended by senior officials from all parties and the German Chancellor’s G8 Personal Representative for Africa in the Federal Ministry for Economic Cooperation and Development was held yesterday at the SNH headquarters in Yaoundé, Cameroon. The focus will now move to preparing and agreeing the detailed Gas Sales Agreement prior to FID. The Group is targeting FID by the end of 2013. The EEAA was initially submitted to the Cameroon authorities in late November 2012. As planned, an update to integrate the IM-5 well results is underway with formal submission to the Cameroon authorities anticipated during June 2013.

    Europa Oil & Gas (LON: EOG)
    Has relinquished all interests in the EPI-3 Brates Licence in Romania and the Bir Lahlou and Hagunia Licence Areas in the Saharawi Arab Democratic Republi. This is in line with the Company’s strategy to focus on offshore West Ireland where it has a joint venture with leading independent oil and gas company Kosmos Energy to explore two Licensing Options in the South Porcupine Basin; a 100% interest in a deep gas appraisal project onshore France; and a combination of production and exploration assets in
    onshore UK.

    Falcon Oil & Gas (LON: FOG)
    One to watchlist. I meet their CEO this week. Announced that it has executed a conditional agreement with Sweetpea Petroleum Pty Ltd, a wholly-owned subsidiary of PetroHunter Energy Corporation to acquire its 50 million shares or 24.22% interest in Falcon Oil & Gas Australia Limited. FOGA is a subsidiary of Falcon and is the registered holder of four exploration permits in the Beetaloo Basin, Northern Territory, Australia. Falcon currently owns 150 million shares in FOGA representing 72.68% of the issued share capital of FOGA. Upon completion of the Agreement, Falcon’s shareholding in FOGA will increase to 200 million shares representing 96.90% of the issued share capital of FOGA. Terms of the Agreement include a cash consideration of US$3 million together with the issue of 97.86 million Falcon shares to Sweetpea. Based on Falcon’s share price, at the time the Share Purchase was agreed between the parties of CAD 0.20, the total value of the consideration is CAD 22.6 million. Upon completion of the Agreement, Sweetpea’s shareholding in the enlarged share capital of Falcon will be 10.7%.

    Jubilant Energy (LON: JUB)
    Announced that KPL-3E-2, the fourth well of the six well Phase-III-Extension development drilling campaign in the oil producing Kharsang Field, was spudded on 17 May 2013. Jubilant also said this week that KSG#66 (previously referred to as KPL-3E-4), the second of the six development wells of the Phase-III-Extension drilling campaign in the Kharsang Field, Arunachal Pradesh, has successfully tested for oil and has been put into production at an initial gross rate of 81 barrels of oil per day (“bopd”).

    Leni Gas & Oil (LON: LGO)
    Further to its announcement on 14 March 2013 concerning a non-binding Heads of Agreement with Maxim Resources Inc. who are listed on the TSX Venture Exchange in Toronto, the TSX-V has now released the hold on Maxim shares and Maxim have issued a further press release. The terms of the HOA have not been amended in any way and this represents additional clarification of the terms that have already been agreed between the Company and Maxim.

    Max Petroleum (LON; MXP)
    Yet more drilling updates rom MXP. Drilling has commenced at the UTS-5 exploration well in the Uytas North prospect on Block A using Zhanros Drilling’s ZJ-20 rig. The Uytas North prospect is a four-way anticline, targeting Triassic resource potential of 11 million barrels of oil with a geological chance of success of 24%. Total vertical depth of the well will be approximately 840 metres. After completing the UTS-5 well it is planned that the ZJ-20 rig will proceed to drill the UTS-8 well in the Uytas Field, which, if successful, will extend the Western limits of the Uytas Field. Earlier this week MXP also announced the BCHW-2 appraisal well in the Baichonas West field has reached a total vertical depth of 1,487 metres, with electric logs indicating a total of seven metres of net pay in Jurassic reservoirs and five metres of net pay in Triassic reservoirs, as well as 93 metres of lower quality Triassic reservoirs that could be potentially productive with hydraulic fracturing over a 170 metre gross interval.

    Nighthawk Energy (LON: HAWK)
    Updated on drilling at its 100% controlled and operated Smoky Hill project in the Denver-Julesburg Basin, Colorado. Nighthawk reported that the Big Sky 4-11 well had discovered a substantial oil column, 32 feet of gross pay, in Mississippian Spergen formation. The discovery confirms north-east extension of the Arikaree Creek oilfield discovered by Nighthawk’s Steamboat Hansen 8-10 well in October 2012. Test results from Big Sky 4-11 indicate production potential of 200 – 300 barrels/day (bbls/day) of high quality oil with minimal water production. The Well has been logged and cased and is expected to commence production by the end of May 2013. The Taos 1-10 well, which is located on the Arikaree Creek structure midway between the Steamboat Hansen 8-10 and Big Sky 4-11 wells, spudded on 17 May 2013. Cumulative production from the Steamboat Hansen 8-10 well, which commenced production on 28 November 2012, has exceeded 46000 bbls of oil, with no water production.

    Nostra Terra (LON: NTOG)
    Updated on the Richfield Oil & Gas Note today. Good news. On 14 April 2011 Richfield (formerly Hewitt Energy Group, Inc.) issued to the Company a US$1.3 million secured loan note (the “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. Last month a judgment was entered in favour of Nostra on its claims against Richfield for approximately $1,500,000, plus attorneys’ fees and collection costs, for an amount still to be determined by the court. In addition to the judgment against Richfield awarding Nostra Terra over $1.5m plus costs, the court has ordered that certain production proceeds owed to Richfield by National Cooperative Refinery Association totalling approximately $215,000 be paid to Nostra, as part of the funds due to Nostra Terra under the judgment. A portion of the funds will be applied against operating expenses already incurred by Nostra Terra for operating the leases. Those proceeds have now been received. Nostra Terra will continue collection of the Richfield judgment. Further updates will be made in due course. Matt Lofgran, CEO of Nostra Terra, commented: “These funds collected from Richfield will go towards our drilling program where we anticipate increasing our production levels significantly this year.”

    Petroceltic International (LON: PCI)
    Updated today on its western Black Sea drilling operations where the GSP Prometeu jack-up drilling rig has completed the first of four wells planned for this year. The Kamchia-1 exploration well offshore Bulgaria was designed to test a prospect located in the central area of the Galata exploration concession. The well was drilled to a total depth of 2,887 feet and encountered 56 feet of carbonate sands with sub-commercial gas saturations. The well has consequently been plugged and abandoned. The Company is currently analysing the well data with a view to updating the regional geologic model and deciding whether to enter into the final two year extension of the exploration licence later this year. The drilling rig will now relocate to complete the suspended Kaliakra discovery well for gas production. This well will be used to supplement production from the existing single Kaliakra field development well and is expected to be brought on stream in August when the subsea tieback operations have been completed. Subsequently, the GSP Prometeu rig will move to Romania to drill two exploration wells on the Petroceltic’s Est Cobalcescu (Block 28) and Muridava (Block 27) offshore concessions. The first well will be Cobalcescu South-1 which will target two intervals in the Miocene with a chance of success of 23 percent and 36 percent, respectively, and combined unrisked prospective resources of 404 Bcf. The planned total well depth is around 3,100 metres and the well is expected to take approximately two months to complete. The second well is Muridava-1, which is on trend with the existing Olimpiskaya and Eugenia discoveries, and has multiple targets in the Eocene, Palaeocene and Cretaceous formations with combined unrisked prospective resources of 169 Bcf and a range of chances of success between 29 percent and 43 percent. The well is expected to be drilled to a total depth of around 3,300 metres and should take approximately two months to complete. Petroceltic has a 40% operated interest in each of the Est Cobalcescu and Muridava concessions.

    Roxi Petroleum (LON: ROXI)
    Released an operational update on its flagship BNG asset. Roxi has a 58.41 per cent interest in the BNG Contract Area, which already has three wells at South Yelemes part of the Contract Area. Well 54 is a Soviet era well that was re-entered in 2010 and Wells 805 and 806 were drilled in 2010. Testing of these wells was delayed pending changing farm-in partners. On 18 February 2013, Well 54 produced at a daily rate of 219 bopd with a 2mm choke. On 14 February 2013, Well 805 produced at a daily rate of 120 bopd using a sucker rod pump. As announced on 9 May 2013, the first level between 2,022 and 2,032 metres was tested for a period of 6 days during which the natural flow rate averaged some 90 bopd. The second interval between 1,998 and 2,015 metres has been tested for a period of 2 days during which the natural flow averaged some 130 bopd. Testing is now to be carried out on the third interval between 1,985 and 1,994 metres. As the test results are interpreted, Roxi will update the market accordingly in due course.

    Salamander Energy (LON: SMDR)
    The Bedug-1 exploration well in the Bontang PSC has been concluded as a gas discovery. Bedug-1 was drilled using the Ocean General semi-submersible rig, the well reaching a total depth of 1,693 m true vertical depth sub-sea. The well encountered a gas-bearing sandstone interval of 5m thickness in the Lower Pliocene BT40 primary target as confirmed by log data. Within the BT45 primary target, the interval of well-developed sandstones from which oil was tested at South Kecapi were found to have thinned out on the crest of the Bedug structure. However, with these thinner sandstones containing strong oil shows, the potential for a commercial oil discovery remains and further investigation of the up-dip extent of the South Kecapi oil discovery is warranted.

    Sefton Resources (LON: SER)
    A shocking attempt by this disgraceful company to deceive the market and investors this week. You can read all about it HERE 

    Solo Oil (LON: SOLO)
    Following the press statement by Aminex (LON: AMI) yesterday, Solo wishes to clarify that FirstEnergy Capital LLP, who are acting for both Solo and Aminex, continue actively to discuss a farm-out of the Ruvuma PSA and currently there are on-going discussions with over five interested parties. The farm-in discussions are expected to be concluded once the revised PSA terms associated with a variation of the current term of the licence are received. These revisions have been agreed in principle by the Tanzanian Government and formal approval is now awaited. The Ruvuma PSA contains the 1.1 tcf Ntorya-1 gas condensate discovery made onshore in the Ruvuma Basin by Solo and Aminex in 2012. Participants in the PSA are; Ndovu Resources Ltd (Aminex) 75% (operator) and Solo Oil Plc 25%.

    Tangiers Petroleum (LON: TPET)
    Executes farm-out agreement on Australian exploration acreage The deal gives Tangiers ongoing exposure to the exploration upside while enabling it to focus its resources on acquiring interests in African oil and gas assets. The Farm-Out Agreement with CWH Resources (ASX: CWH) and Ansbachall Pty Limited covers two of Tangiers’ Australian exploration permits. Permits WA-442-P and NT/P81, which are located in the southern Bonaparte Basin, about 250km south-west of Darwin (see RNS dated December 3, 2012 and May 10, 2013). The participating interests of the parties from the date of execution are: Tangiers 27%… Ansbachall 3%… CWH 70%. Under the Farm-out Agreement, CWH will fund all costs and expenses associated with seismic work, drill planning and exploration drilling within the permit areas up to a cap of A$35 million. Once CWH has spent that amount, Tangiers will be required to pay 27% of the ongoing costs relating to exploration and operations.

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