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Guerilla Investing

Tag: Solo Oil

  • 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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  • The Smallcap Oil & Gas round up.

    The Smallcap Oil & Gas round up.

    Antrim Energy (LON: AEY)
    Received consent from the Irish Government for the transfer of interest and operatorship for its Licensing Option 11/5 (Antrim 100%) in the Porcupine Basin offshore Ireland’s west coast. Kosmos Energy Ltd. acquires 75% interest and operatorship in the Licensing Option in exchange for carrying the full costs of a planned 3D seismic programme within the licence area and re-imbursement to Antrim of a portion of the exploration costs incurred on the blocks to date. Antrim retains 25% interest.

    Chariot Oil & Gas (LON: CHAR)
    Has, subject to final contract, been successful in its bids for a 100% interest and operatorship in four shallow-water exploration licences, BAR-M292, BAR-M-293, BAR-M-313 and BAR-M-314, in the Barreirinhas basin, offshore Brazil. The acreage position of the combined licences totals 768km2 and the blocks are located 70km offshore in water depths ranging from 85m to 1,700m. The award of these licences is subject to the signature of a concession agreement between Chariot and the Brazilian National Agency of Petroleum, Natural Gas and Biofuel (ANP).

    Enegi Oil (LON: ENEG)
    Dominic Minty has purchased 3,000,000 ordinary shares in the Company from RMRI Plc, which is part of the RMRI group of companies controlled by Alan Minty, Chairman and Chief Executive Officer of Enegi. The purchase has been made at average price of £0.10p and has been undertaken in an Over the Counter Transaction. Alan Minty has not changed any of his own shareholding and his interest in the Company in his own right and through related parties following this transaction is 12,370,288 shares, representing 9.37 per cent of the Company’s issued share capital.

    Europa Oil & Gas (LON: EUR)
    Announces that Irish Government consent has been received for the transfer of interest and operatorship for its two Licensing Options LO 11/7 and LO 11/8, which cover approximately 2,000 sq km in the highly prospective South Porcupine Basin in the Irish Atlantic Margin, to a subsidiary of the independent oil and gas exploration and production company Kosmos Energy. Kosmos now holds an 85% interest in, and has assumed operatorship of, both Licences with Europa holding the remaining 15%. As announced on 18 April 2013, under the terms of the farm-in Kosmos will fully fund the costs of a 3-D seismic programme on each Licence and pay 85% of costs incurred by Europa to
    date.

    Fortune Oil (LON: FTO)
    Released an interim management statement today. If you want to read it click HERE FTO focus primarily on Chinese oil, natural gas and resource supply operations and investments. Fortune Oil is listed on the London Stock Exchange.

    Ithaca Energy. (LON: IAE)
    Announces the execution of a farm-out transaction with Shell UK in respect of the UK exploration assets acquired pursuant to the acquisition of Valiant Petroleum , completed on 19 April 2013. The Company has now substantially reduced its exposure to all remaining firm UK exploration well expenditure commitments transferred as part of the Acquisition. The Company also confirms the commencement of the Norvarg appraisal well, operated by TOTAL E&P Norge, in PL535 located in the Barents Sea. Since the announcement of the Acquisition, the Company has reduced its net exploration expenditure commitments by over $45 million. This leaves approximately $30 million of remaining committed UK exploration expenditure, mainly consisting of the Handcross well. The costs of the committed exploration & appraisal wells transferred to Ithaca as a result of the Acquisition were accounted for in the price paid for Valiant, with no exploration success assumed from those wells. Ithaca will continue to pursue farm-outs and divestments of the existing UK exploration license interests to further minimise exploration expenditure, whilst continuing to be exposed to the potential upside associated with several high impact wells.

    Madagascar Oil & Gas (LON: MOIL)
    Released their full year results and an Operational update. Much too long for inclusion in the Smallcap Oil & Gas round up. Click HERE to read them.

    Magnolia Petroleum (LON: MAGP)
    Good old Rita announced that MAGP has raised £1.5 million via the issue of 58,800,000 new ordinary shares in the Company at a price of 2.5 pence per share. Now call me a cynic but could this placing be the reason why Rita has been firing off ebullient RNS’s over the last month or so? Rita, Rita I see you.

    Matra Petroleum (LON: MTA)
    Released the management’s internal Resource estimate for the 100% owned Sokolovskoe oil field in Orenburg, Russia, based on the results of the recently competed seismic surveys. 3D seismic data interpretation identified that the Aphoninsky reservoir of the Sokolovskoye field splits into four separate domes within the boundaries of the license area from south-west to north-east. The integration of well data (A-12, A-13) with the recently interpreted 3D seismic data has resulted in an internal reclassification of Resources of the field. Management’s Resources estimates are 1P 28.255 Million barrels. 2P 50.152 Million barrels. 3P 90.856 Million barrels. Commenting on the announcement, Chief Executive of Matra Maxim Barskiy said: “Today’s announcement is an important step towards further demonstrating the significant potential of the Sokolovskoye field. We are now assessing the best way of realizing the value of the field for all shareholders and will give our recommendation in due course.” Members of the BMD site already know that we suspect funding/placing is being sought.

    Max Petroleum (LON: MXP)
    Yet another drilling up. We get one almost every week from MXP! This week MXP announces that the ZMA-E6 development well in the Zhana Makat Field has successfully reached a total depth of 897 metres, encountering hydrocarbons in Jurassic sandstone reservoirs in line with expectations. The Company plans to complete the well and then place it on production as soon as practicable. The Zhanros ZJ-20 rig will now move to drill the UTS-5 exploration well in the Uytas North Prospect on Block A, targeting resource potential of 11 million barrels of oil with a current geological chance of success of 24%.

    Petroceltic International (LON: PCI)
    Updated on its farm-out of an equity interest in the Isarene permit, Algeria, and the proposed share consolidation and introduction to the Official Lists of the UK Listing Authority and Irish Stock Exchange. The Company is close to reaching a binding agreement with a second farm in partner for the divestment of a further 18.375% interest. The process is substantially complete, but still subject to partner and regulatory approvals which could take several months. During these discussions, it has become evident that the Algerian regulatory approvals process and completion of the farm-out could be impacted by the additional documentation and shareholder approval requirements for Petroceltic which would be required following Listing. The Company has decided that it is in shareholders’ interests to seek to complete the farm-out prior to the Listing. Accordingly, the Company intends to postpone the Listing to allow the regulatory process in Algeria to proceed. Further details on the farm-out will be provided in due course as appropriate upon the regulatory and farm out processes being completed. In the meantime, the Company intends to proceed with its proposed share consolidation as announced although it will no longer proceed with the restructuring through the Scheme of Arrangement at this time. All other resolutions at the Company’s forthcoming Annual General Meeting on 30 May 2013 remain unaffected.

    Range Resources (LON: RRL)
    Released a short Guatemala Update this week. Attention to the announcement released by Citation Resources Limited (ASX: CTR) on the current flow testing program on the Atzam #4 well (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 C14 carbonate sections of the well is expected to commence within 2 weeks. Hooray! Range also released a Trinidad update; much to long for the Smallcap round up but you can read it by clicking HERE

    San Leon (LON: SLE)
    The specialist oil and gas company with an extensive portfolio of assets across Europe and North Africa, noted the Interim Management Statement announced by Cairn Energy (LON: CNE), particularly in relation to the Foum Draa block, offshore Morocco. As announced on 31 January 2013, San Leon now holds a net operated interest of 14.17% and the gross mean prospective resource of the targeted prospect in the Foum Draa blocks is 142 mmbbls with a potential follow-up prospect of 126 mmbbls. Preparations are underway to drill the first well, which is expected to commence later this year subject to necessary approvals.

    Solo Oil (LON: SOLO)
    Raised £1.5 million gross proceeds through the issue of 375 million new ordinary shares of 0.01p each in the Company at a price of 0.4 pence per share to one institutional investor together with one warrant for every allocated Placing Share subscribed, each warrant entitling the holder to subscribe for one ordinary share in the Company at 0.4 pence per ordinary share with an exercise period of six months from Admission.

    Sound Oil (LON: SOU)
    First gas came this week as the Italian focused upstream oil and gas company, announces gas being delivered from the onshore Rapagnano field to the local gas distributor on 15 May 2013. The initial production rate was 14,600 Scmd (0.50 MMscfd).

    Xcite Energy (LON: XEL)
    Posted their “Results of Annual and Special Meeting and Chairman’s Opening Remarks” The statement was long winded but deserves your attention.

    “2012 saw the safe and successful conclusion of the pre-production well test on the Bentley Field, which concluded in mid-September. This was a very significant achievement, for a company of our size, to manage a $250 million offshore work programme safely, on budget and on time, over a 10 month period. We produced 150,000 barrels of Bentley crude, blended it offshore and successfully sold it through our marketing partner, BP. We also captured significant quantities of data over the course of the test, which has provided the evidence to update our reserves report so comprehensively and given us a high degree of confidence in the new Field Development Plan for Bentley. From any perspective, this is something of which we can be very proud.

    The real impact of the 2012 well test is an increase in confidence in how the field might be developed. The test encompassed all aspects from drilling, through processing and flow assurance, to blending and offtake to market. We have been able to implement all the lessons learnt into a more robust and efficient Field Development Plan. The months of analysis and modelling following the well test, together with the interpretation of our new 3D seismic over Bentley, have resulted in far greater certainty in the field and its development plan, as evidenced by the recent and substantial increase in recoverable reserves and asset value. Our 2P Reserves for Bentley now stand at 250 million barrels, with a discounted net present value after tax of approximately $2.2 billion. This represents an increase of over 116% against the previously reported 2P Reserves of 116 million barrels).

    Heavy oil fields generally have long production lives, and Bentley is no exception with a 35 year Reserves profile out to the year 2050, reflecting the current design life of facilities used in the North Sea. TRACS, our independent reserves auditor, recognises that there is additional economic production from Bentley of a further 20 years beyond this initial period (out to the year 2070) and has assigned a further 46 million barrels of Contingent Resources to this 20-year period. We believe that by more detailed work on areas such as optimising the field and extending field life, there is the potential to access these Resources and deliver further low-risk upside. We also have other areas of potential future growth through the implementation of enhanced oil recovery techniques on the field, as well as exploration on adjacent assets, including those awarded in the recent 27th Licensing Round. These are at an early stage and we would expect to progress them systematically, as we have always done.

    Not surprisingly, we are greatly disappointed by the share price performance, especially following the great result we have delivered, but we will continue to move forward and focus on what we can control, which is the development of Bentley. Securing funding is a critical element of this and we have recently begun a farm-out process to find a suitable partner. We believe it should be possible to materially increase our RBL facility as a result of the Reserves upgrade and will be engaging with our existing and new banks to progress this. We will also be re-submitting an updated FDP in the coming months. We believe heavy oil’s time has come in the North Sea, as evidenced by the very significant investments currently being made by Statoil (and partners) into the Bressay field just to the North of Bentley, the Mariner field to the south of Bentley, and EnQuest (and Partners) expected commitment to develop the Kraken field to the west of Bentley. Together, these fields represent very substantial sources of future long-term oil production from the North Sea, which as currently forecast, would make substantial long-term contributions to the UK economy”.

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  • The Smallcap Oil & Gas round Up

    Ascent Resources (LON: AST)
    Continued its descent. They have agreed to flogged their 48.66% interest in PetroHungaria Kft, which held its interest in the Penészlek field, to their joint venture partners, DualEx Energy International, Swede Resources and Geomega for a cash consideration of €450,000. The sale is a way to realise the full value of the remaining production in an up-front cash payment that we can redeploy to advance our core Slovenia project. The company said. Why not just hold a big wake for share holders with the money? Len Reece, Chief Executive Officer, commented: “Given the relatively short life expectancy of?” At this juncture I leave you to ponder, Life, the Universe and Companys’ in financial difficulty.

    Bridge Energy ( LON: BRDG)
    The Annual Report and Accounts for the financial year ended 31 December 2012 is now available on the Company’s website at www.bridge-energy.com and has been posted to shareholders. Bridge also confirmed that its Annual General Meeting is to be held at 11am CET/10am BST on 22 May 2013 at the Company’s office in Lensmannslia 4, 1386 Asker, Norway. A copy of the Notice of AGM, together with relevant appendices will be posted to shareholders shortly and will also be available on the website thereafter. I don’t think there’ll be many, if any, attending from the UK.

    Cadogan Petroleum (LON: CAD)
    Released their Annual Financials for the year ended 2012. Key developments during 2012 being the completion of a major transaction between Eni S.p.A, NAK Nadra and Cadogan resulting in establishment of LLC Westgasinvest, which holds a portfolio of 10 licences for unconventional gas covering a total area of 3,795square kilometres, and subsequent farm-out to Eni of 50.01%. Cadogan retains 15% interest in WGI. The flogging off of two gas plants for $29.5 million and settlement of all associated litigation with Global Process Systems completed in April 2013. Just what is this information doing in their 2012 reports.  As it’s from 2013! Hey ho there you go. Lets pad out the financials! Total impairment of $86.3 million mainly related to the Zagoryanska license… Total capital expenditure of $22.3 million (2011: $21.3 million) during the year of which $4.1 million was funded by the deferred consideration from the disposal of 30% of Cadogan’s interest in the Pokrovskoe licence to Eni in 2011… Net cash and cash equivalents at year-end of $42.4 million (2011: $65.0 million). Cash and cash equivalents at 24 April of $67.2 million.

    Europa Oil & Gas (LON: EOG)
    Released their Interim Results (today) for the six month period ended 31 January 2013. You can view them by clicking HERE

    Global Petroleum (LON: GBP)
    Presented its Quarterly Report for the period ending 31 March 2013 this week which wasn’t enough to halt the continued slide back to 2009 share price levels. In Summary Global said that efforts to engage potential partners with the aim of broadening Global’s African portfolio were still ongoing. RFC Ambrian appointed as Nominated Adviser and Joint Broker on 7 February 2013. 2D seismic data purchased or acquired by Global on the two Namibian blocks covered by the licence published. A data room was opened. Total production from the two Eagle Ford horizontal wells (Tyler Ranch EFS #1H and #2H) in which Global has an interest was 14,317 boe (11,340 bo and 17,863 mcfg) or 159 boepd. Global has a 7.939% working interest (5.95% NRI) in approximately 1,368 acres beneath the Olmos formation including the Eagle Ford Shale. Dallas based Moyes and Co were appointed to flog Global’s Eagle Ford Shale interests in Texas.

    Gulf Keystone (LON: GKP)
    Hit the buffers again this week as they said that Todd F Kozel Executive Chairman and Chief Executive Officer had on 19 April 2013 transferred ten million (10,000,000) common shares to a third party, in respect of a repayment in full under a financing arrangement, at a price of £1.6875 per share. Mr Kozel no longer has any interest in the common shares transferred. And don’t forget we are due the litigation outcome which is obviously a coincidence that Kozel transferred his stock to pay off a debt. No smoking gun here.

    Jubilant Energy (LON: JUB)
    Announces that KPL-3E-6, the third well of the six wells Phase-III-Extension development drilling campaign in the oil producing Kharsang Field, Arunachal Pradesh, was spud on 20 April 2013. KPL-3E-6 is located in the central part of the field and is planned to exploit the untapped hydrocarbons in the infill area between wells KSG#11 and KSG#25, with the H-00 layer as the primary objective and the G-00 and I-00 layers as secondary objectives. The well is planned to be deviated by approximately 140 metres towards the southeast from the existing drilling pad of KSG#11 and will be drilled to a target depth of approx’ 1,021 metres Measured Depth and 1,000 metres True Vertical Depth . The well is expected to take approximately three weeks to drill. The second development well of the current campaign, KSG#66 (previously referred to as KPL-3E-4), which was spudded on 23 March 2013, was successfully drilled to a revised target depth of 1,128 meters MD and 1,047 metres TVD on 8 April 2013. Based on the results of wire-line log interpretation, drill cuttings and formation pressure data from the Reservoir Dynamic Tester, twelve potentially hydrocarbon bearing sands have been encountered in the well with a total net pay of 50.31 metres, out of which seven appear to be oil bearing with a total net pay of 30.33 metres. The company will be testing the sands and, assuming positive test results, expects to put the deepest oil-bearing sand on production within two weeks. A further release will follow regarding the actual tested rates. The KSG#66 well will be tested with the smaller capacity work-over rig, which is currently being mobilized to the site.

    Leyshon Resources (LON:LRL)
    Updated on the progress made during the first quarter of 2013. The Company has commenced an accelerated exploration and appraisal programme for its Zijinshan Gas Project on the eastern fringe of the prolific Ordos Gas Basin in Central China. The main objective of the 2013 work programme, with a total estimated cost of up to US$20 million, is to define a resource sufficient to delineate a third party independent resource by the end of 2013 and to submit a Chinese Reserve Report (CRR) by mid 2014.The Company is well placed to carry out its 2013 exploration and appraisal programme with a strong cash position of U$45 million (unaudited). With 249 million ordinary shares on issue this represents approximately 12 pence per share. One to watch. Flow testing still ongoing.

    Magnolia Petroleum (LON: MAGP)
    Rita was at it again this week reporting an update on activities in proven US onshore formations including the Mississippi Lime and Woodford in Oklahoma. {What are the Mississippi lime decline curves like these days?} Production has commenced at the following Peck 1-5H Mississippi Range 630.76 boepd with 1.46% MAGP interst which equates to 9.2 boepd.

    Max Petroleum (LON: MXP)
    Has commenced drilling the ZMA-E5 development well in the Zhana Makat Field on Block E using Zhanros Drilling’s ZJ-20 rig. Total vertical depth of the well will be approximately 885 metres targeting Jurassic reservoirs.

    New World Oil & Gas (LON: NEW)
    Has deemed the Rio Bravo well non-commercial and decided to plug and abandon. Exactly when they “Deemed” this would be nice to know. Was it before or after the recent £6.3 million pound placing?

    Northern Petroleum (LON: NOP)
    Spot the difference. NOP announces “Completion of GM-ES-3 Exploration Well” Wessex Exploration (LON: WSX) announce it as a “Drilling Report” You can’t sugar coat failure. Just report it as it is. Plugged & Abandoned. Private Investors don’t like being treated as idiots! Upset them at your own peril

    It’s not been a good week for Peter Landaus’ Range Resources (LON: RRL) who announced this week a proposed merger with International Petroleum on a ratio of three Range ordinary shares for every two International Petroleum (NSX : IOP) ordinary shares (3:2 basis) subject to various conditions, including final due diligence. The less said about this merger the better. It is not welcomed by Private Investors. It’s now up to Landau to deliver the goods.

    Roxi Petroleum (LON: ROXI)
    Updates the market with interim results from the testing of Well 806, at its flagship BNG asset. Roxi has three wells at South Yelemes. 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. Following the $40 million equity commitment secured in January 2013 Roxi decided to test these wells. 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. Well 806 is being tested at three different intervals and is therefore significantly more complex and has taken longer than initially expected. The Board is pleased however to report that oil has been indicated in the first interval being tested between 2022 and 2032 metres. A reliable figure for anticipated daily production from this interval should be known in the next few weeks. Once testing of the first interval has been completed the second interval between 1998 and 2015 metres will be tested. Following the completion of that test the interval between 1985 and 1994 metres will be tested. The sequential nature of these tests may mean that the full test results for the three intervals at Well 806 is not likely to be known before the end of May 2013. Roxi will update the market accordingly in due course. Clive Carver, Chairman commented: “We are pleased to have commenced testing at Well 806 and early oil indications from the first interval is positive for the Company.” Good news indeed.

    Ruspetro (LON: RPO)
    Informed on 23 April 2013 that Mr. Alexander Chistyakov, Executive Director, has purchased 30,000 ordinary shares of 10p each in the Company at a price of 33p per share Following this transaction, Mr. Chistyakov will hold a total of 57,281,475 shares in Ruspetro representing 17.18% of the Company’s issued share capital.

    Sound Oil (LON: SOU)
    The Italian focused upstream oil and gas company updated investors on its Badile project, located onshore in the Po Valley in Northern Italy. Badile is an exploration prospect some 45 km south-west from the geologically analogous Malossa gas field. The prospect has independently assessed Low-Best-High prospective resources of 47-175-938 Bscf respectively in Upper Triassic reservoirs. Following the decision to retain Sound Oil’s 100% operated position, the Company has completed the technical work required for the drilling application and Environmental Impact Assessment. As a result of this technical work the Company has made the following enhancements to the detailed Badile drilling programme: Reduction in target depth from 5,300 metres to 4,200 metres targeting only the Upper Triassic “Dolomia Conchodon” reservoir without significantly reducing the likelihood of encountering hydrocarbons. Shorter period required for drilling (down from an estimated 164 days to 143 days) resulting in significantly lower costs (from €20 million to €18 million). Associated reduction in drilling complexity due to lower expected pressures and temperatures. Increased likelihood of gas-condensate occurrence in the target section. The Company confirms that a dedicated team of highly qualified and experienced professionals has been secured for the Badile project including the appointment of a high profile ex ENI industry professional as Badile Project Director. This Milan based role will commence in September 2013 and will form part of Sound Oil’s Executive Team. James Parsons, Sound Oil’s Chief Executive Officer, commented: I’ll say anything to get another placing off! That’s a joke! He actually said;“This positive re-framing of the Badile drilling programme is an important step forward for the Company which will lower the technical complexity of the well, shorten its drilling time, lower costs and increase well deliverability in the case of success. In addition, we expect that the revised programme objectives will accelerate the approval of the well by the various permitting authorities without compromising on the economic proposition for shareholders. The drilling request and EIA will be submitted shortly in anticipation of spud in 2014. The Company will also sign a Letter of Intent on a suitable rig in the near future.”

    Wessex Exploration (LON: WSX)
    Herr Direktors were out in force zess week splashing zee cash trying to instill confidence on 23 April 2013 the Directors purchased shares in the Company as follows: Malcolm Butler 1,000,000 at 1.42p total holding 1,400,000. Andy Yeo 3,099,334 at 1.4p total holding 5,500,000. Iain Patrick 930,000 at 1.5p total holding 930,000. 10p takeover what a missed opportunity!

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  • The Smallcap Oil & Gas round up.

    The Smallcap Oil & Gas round up.

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

     

    Dan

     

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  • The Smallcap Oil & Gas round up.

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

    Have a great weekend.

    Dan

     

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

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

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

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

     

    Non-Saleable Fluids!

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

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

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

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

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

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

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

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

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

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

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

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

    Enegi Oil (LON:ENEG)
    The independent Oil and Gas Company with a portfolio of assets located in the UK North Sea, Newfoundland Canada, Ireland, and Jordan, provided an update on its activities in western Newfoundland. Much too long for the Smallcap round up. But you can view it HERE

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

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