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Guerilla Investing

Tag: Tower Resources

  • The Smallcap Oil & Gas round up.

    The Smallcap Oil & Gas round up.

    It’s been an exciting week in the Smallcaps Oil & Gas Underverse. With news a plenty.

    Don’t forget to Sign the petition! http://epetitions.direct.gov.uk/petitions/52766

     

    Afren (LON: AFR)
    Released their Half-yearly Results for the six months ended 30 June 2013 with an update on its operations year-to-date 2013. Information contained within this release is unaudited and is subject to further review. You can read it in full HERE

    Faroe Petroleum (LON: FPM)
    The independent oil and gas company focussing principally on exploration, appraisal and production opportunities in the Atlantic margin, the North Sea and Norway, released an Operational Update. Click HERE to read it.

    JKX Oil & Gas (LON: JKX)
    Provided details of Stages 4 to 7 of the well R-103 frac and advise that the number of planned stages has now increased from nine to ten. Each stage covers approximately 100m of the sub-horizontal 1,000m reservoir section. Work has now started on the final Stages 8 to10 of the programme.

    Magnolia Petroleum (LON: MAGP)
    Released an RNS update this week the title of which was; “Increase in Working Interests, Existing Well Updates and Participation in Two New Wells in the Woodford Formation, Oklahoma” Translation? We’ll say anything to raise more cash. Enough said. Click HERE to read it

    Northern Petroleum (LON: NOP)
    Updated on the the production potential of the leases acquired by the Company in northern Alberta, Canada, in the first quarter of 2013. Since acquiring the acreage, the Company has purchased and interpreted 19 square kilometres of 3D seismic data. This analysis has increased the number and type of drilling opportunities available on the land. These opportunities include the identification of undrilled reef structures as well as reefs which may benefit from drilling up-structure from the previous entry point. NOP now say the Company is now sufficiently confident to extend the proof of concept programme to include a possible side track and a new well alongside the re-entries. Rig tenders are currently being evaluated for this programme.

    http://epetitions.direct.gov.uk/petitions/52766

    Range Resources (LON: RRL)
    Updated with respect to its Trinidad operations and new appointments to management and operational team. Much too long winded for the Smallcap round up. Click HERE to view

    Rockhopper Exploration (LON:  RKH)
    The North Falkland Basin oil & gas exploration company, confirms the annual report and accounts for the year ended 31 March 2013 have today been made available on the Company’s website www.rockhopperexploration.co.uk  The accounts and AGM notice will be sent to shareholders, who elected to receive a hard copy, on or around 3 September. The AGM will be held at 11 am on Thursday 26 September 2013 at Plaisterers’ Hall, One London Wall, London, EC2Y 5JU. Shareholders wishing to attend should note that registration will commence at 10am.

    Roxi Petroleum ( LON: RXP)
    The Central Asian oil and gas company with a focus on Kazakhstan, released an operational update on its flagship BNG asset, in which Roxi maintains a 58.41% interest. Well 143 was spudded on 1 April 2013, on the MJ-F structure located towards the North of South Yelemes field at BNG. The total depth of the well was planned to be 2,500 metres.

    This exploration initially targeted Jurassic Callovian sands at a depth of 2,170 metres with a secondary objective in the Cretaceous Valanginian limestone at a depth of 1,935 metres. As the middle Jurassic section is also expected to be within 4-way dip closure in the MJ-F structure as well as the top Jurassic section, Roxi decided to drill continuously to 2,750 metres, 250 metres deeper than the original planned depth. The well reached the total depth of 2,750 metres on 21 June 2013 and at that time wireline logging was completed.

    Interpretation of these results has been encouraging with three main intervals of interest identified, between 2,193, 2,216 and 2,692 metres. Additionally a 4th interval of interest at 2,088 meters has been identified from the core samples and will now be tested. Testing will commence in September by a work-over rig.

    Testing on all four intervals is expected to be completed by October 2013. The rig will be released from Well 143 after running the tubing there and mobilized to Well location 807 where a 2,500 metre well is to be spudded targeting Cretaceous Carbonate and Jurassic sandstone. The Total Depth of 2,500 metres is expected to be reached in November 2013.

    Work is progressing at Well 806 in anticipation of an early commencement of the 90 days testing at the three intervals, which have already displayed encouraging characteristics. Aryshagal 5 is the deep well spudded in July 2013, which is to be drilled to a Total Depth of 4,700 metres targeting the Permian formation at 4,120 metres and the Carboniferous formation at 4,390 metres. The first 800 metres of the well have been drilled and the well has been fitted with casing and cement to that depth without any significant problems. Drilling the remaining 3,900 metres continues, which the Roxi management expect to be at a faster pace, given the reduced dimensions of the well bore. Investors are reminded that BNG has a turn-key contract to drill this well and would therefore not be subject to any cost overruns stemming from drilling delays which can result from difficulties associated with pre salt drilling in the region.

    San Leon Energy (LON: SLE)
    Has signed a binding Letter of Intent with Aspect Energy (through its subsidiary, Horizon General Ltd, “Aspect”) under which Aspect will acquire a 22.5% working interest (half of San Leon’s current interest) in a portion of San Leon’s Cybinka and Torzym Concessions in Poland’s Permian Basin. The Area of Interest is defined based upon the paleogeography of the Main Dolomite formation, to include areas north of the Platform edge, a shallow water depositional area, into the deeper basin deposits. The AOI and current drill ready prospect inventory have all been defined using San Leon’s 220 km2 3D survey acquired in 2010.

    The company also announced that they had completed two additional Diagnostic Fracture Injection Test’s in the Carboniferous tight gas sand in Siciny-2. The DFIT’s were pumped in the upper section of the tight gas sand, and were designed to assess formation pressure, fracture gradient and permeability of the sand and therefore the viability of future hydraulic fracturing and test production.

    San will also assume operatorship of the Jany C1 well on the Nowa Sol licence in the Southern Permian Basin in Poland, approximately 15km north of the Company’s Czaslaw-1 well. Legal transfer of title to the Jany C1 well is subject to execution of a legally binding agreement, certain ministerial approvals and regulatory consents. The Jany C1 well was drilled this month by Zielona Góra Copper Sp. z o.o., an affiliate of Miedzi Copper Corp., as the second well in a multi-well programme to assess the potential for copper in the Upper Permian Kupferschiefer. During drilling, oil was encountered in the above-lying Main Dolomite, which was found to be 43 meters thick. Furthermore, an additional 6-meter layer of oil-bearing dolomite was encountered 10 meters below the Main Dolomite.

    Sefton Resources (LON: SER)
    The shit has been hitting the fan at Sefton Resources. (Nothing knew there campers) The Company’s Executive Chairman, JimmyLiar Ellerton has temporarily stepped down from the Board of Directors of the Company while the Non-Executive members of the Board, in conjunction with the Company’s lawyers and Nominated Adviser, conduct a full and thorough investigation into the alleged matters. Both Mr JimmyLiar and the Non Executives believes this will be in the best interests of the Company. This is in the wake of the “retirement” of the CEO K Arleth the resignation of Pinsent Masons as Company Secretary and, yet to be announced, the dismissal of Alex Walters of Cadogan PR. Of course ‘yours truly’ has been instrumental along with “Another highly respected financial big wheel” (Tom Winnifrith) in exposing Sefton for what they were under Ellerton. Little better than a Ponzi fraud. The change at the top has been roundly welcomed by all Investors, Brokers and City analysts.

    Solo Oil (LON: SOLO)
    Has agreed a 30 day extension to the first right of refusal to participate in any future equity financing of Pan Minerals in the development of its West African oil production opportunities. A Share Purchase Agreement with Swiss based Pan Minerals & Oil AG was announced on 9 May 2013 and 21 May 2013 in which Solo acquired a 15% shareholding in Pan Minerals. The FROR which was a part of the SPA allows Solo, at its sole discretion, to increase its direct equity interest in Pan Minerals from 15% to up to 49.9%. The FROR has now been extended from 90 to 120 days. The purpose of the investment is to assist Pan Minerals to conclude existing production agreements that it has negotiated onshore in West Africa. Pan Minerals is a Special Purpose Vehicle company that focuses on proven reserve situations which have the potential to be brought on production at over 2,000 bopd within a twelve month period. SOLO also updated on its activities in the Ruvuma Basin PSA in onshore Tanzania. Click HERE to view it

    Tangiers Petroleum (LON: TPET)
    Released their Half Year Report for the Period Ending 30 June 2013. You can read it by clicking HERE

    Trinity Exploration & Production (LON: TRIN)
    Have reached a US$25 million financing agreement, which provides the company with financing flexibility if required for development capital expenditure or acquisitions. This brings the total credit facilities currently outstanding and committed by Citi to the Company to US$43 million. Trinity, the leading independent exploration and production company focused on Trinidad and Tobago, will use the loan to continue their growth in the country.

    Xcite Energy (LON: XEL)
    Released their results for the 3 and 6 month periods ended 30 June 2013. Among the “Highlights” Net profit in the current period of £8.3 million arising from the sale of technical well data from the Bentley field to a third party for an initial sum of $15 million, and the disposal of surplus oilfield equipment. As at 30 June 2013, XEL had a cash balance of £24.9 million with no escrow accounts. The Revised Reserves Assessment Report on the Bentley field, with 2P Reserves of 250 million stock tank barrels (increased from 116 MMstb), with a further 46 MMstb of P50 Contingent Resources, confirming Bentley as one of the largest proven, undeveloped oil fields in the UK North Sea.

  • The Smallcap Oil & Gas round up.

    The Smallcap Oil & Gas round up.

     

    A quiet week in the Smallcaps Oil & Gas Underverse.

     

    Cairn Energy (LON: CNE)
    Has entered into a farm down agreement with ConocoPhillips for three contiguous blocks located offshore Senegal, West Africa. Under the terms of the agreement, subject to Government of Senegal approval, ConocoPhillips will acquire a 25% working interest from Cairn in the three contiguous blocks – Rufisque, Sangomar and Sangomar Deep where a 2,050km2 3D seismic survey has been used to identify prospects. The exploration campaign is targeting a block wide potential of more than 1.5 billion barrels of yet to find resource with a proposed two well programme with drilling expected to commence in H1 2014 with the Cairn contracted Cajun Express rig.

    Eland Oil & Gas (LON: ELA)
    Released the results of a reserves and resources evaluation provided by Netherland, Sewell & Associates Inc. as at 30 June 2013. The results of the NSAI Report, details of which can be viewed by clicking HERE

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

    Ithaca Energy Inc. (LON: IAE)
    Announced this week that the appraisal well (7225/3-2) test programme on the Norvarg discovery located in licence PL535 in the Norwegian sector of the Barents Sea has been completed.

    JKX Oil & Gas (LON: JKX)
    Provided details of the first three out of nine stages of the well R-103 frac which were completed successfully. An interim flow back has been performed for preliminary clean-up of the formation, and work has now started on stages four to six of the programme. Each stage covers approximately 100m of the sub-horizontal 1,000m reservoir section. You can read it HERE While also releasing their half yearlies up to 30th June 2013.

    Leni Gas & Oil (LON: LGO)
    Has announced the installation of additional oil sales capacity at the Company operated Goudron Field in Trinidad. LGO sells oil from the Goudron Field through the Petroleum Company of Trinidad and Tobago (“Petrotrin”) owned pipeline direct to the Pointe-a-Pierre refinery. Each sale requires the visit of Petrotrin staff to measure the sales volume. Recently this process has been at full capacity and therefore to accommodate the greater production volumes now available from the field the Company has installed a second sales tank at Goudron which will increase overall capacity by approximately 100%. The new tank will be employed immediately and will increase total sales capacity to approximately 3,750 barrels per week, equivalent to 535 barrels of oil per day. Progress has also been made with plans to re-commission Tank Battery Station #207 where a risk assessment has been submitted for new water treatment pits and upgrading of the station; which includes replacing existing tankage totalling 800 barrels. This work is expected to start in the next month. The Phase 1 reactivation programme of up to 90 wells with additional beam pumps have been ordered and it is now anticipated that a further ten will arrive in Trinidad from their manufacturer in China in the next 2 weeks and an additional ten in September. The Company have been operating at full capacity close to 275 bopd until the new sales tank is installed and certified. Further increased production over the coming weeks is expected. Whiel LGO remain on target to produce at least 400 bopd by November 2013, one year after taking over operatorship of the field. At last good news with some actual positive movement in the bopd!

    Nighthawk Energy (LON: HAWK)
    The new soon to be darling of AIM investors said that its wholly owned subsidiary, Nighthawk Production LLC, has completed the purchase of the remaining 25% working interest in its Smoky Hill and Jolly Ranch projects in Colorado from Running Foxes Petroleum, Inc. The purchase price is US$12 million, paid in cash. Nighthawk now owns a 100% working interest in all its leases and the property, equipment and information associated with the leases including all producing wells and geological and drilling data. Total acreage of the leases is approximately 300,000 gross acres in Lincoln, Washington and Elbert counties, Colorado. Stephen Gutteridge, Chairman of Nighthawk said:- “We are pleased to have finally attained our goal of 100% ownership and control of the Smoky Hill and Jolly Ranch projects and we are grateful to our largest shareholders for providing the financial support to accomplish this. We will now press on with our plans to increase Arikaree Creek production and to establish the commerciality and value in the rest of our extensive acreage position.” Well done. Now here’s Chairman bringing home the bacon. A pay rise or a bonus can be justified

    Ophir Energy (LON: OPHR)
    Successful results of the Mkizi-1 well in Block 1, Tanzania which has resulted in a new gas discovery. Ophir holds 40% of Blocks 1, 3 and 4. BG Group operates with 60%. The Mkizi-1 well was drilled by the Deepsea Metro I drillship and was located in 1,301m water depth, between the Mzia and Jodari discoveries in Block 1. The well encountered gas pay in three reservoir intervals within a Tertiary aged stacked channel complex. Total net pay was 33m and reservoir quality was high with all three intervals exhibiting excellent porosities and permeabilities. Estimates for the mean recoverable resource from the discovery are in-line with Ophir’s pre-drill expectations of 0.6 TCF. The Deepsea Metro I drillship will now move on to drill two appraisal wells, including a drill stem test, on the Pweza discovery in Block 4. This will be the first DST on the series of Block 4 discoveries, following on from the successful tests in Block 1 on Mzia and Jodari. Nick Cooper, CEO, commented: “The successful Mkizi-1 well is our ninth discovery in Tanzania and continues our 100% strike rate in country, adding further resource to our existing discoveries in Block 1. Appraisal of Pweza will look to further underpin volumes in Block 4 which were upgraded with the recent success of the Ngisi drilling programme, whilst the DST is the final stage in firming up the commerciality of the resource across the Chewa-Pweza-Ngisi hub.”

    Range Resources (LON: RRL)
    Released an RNS this week; much too convoluted to put in the Smallcap round up. You can read it HERE

    Rockhopper Exploration (LON: RKH)
    It’s been fairly quiet on the RKH front of late. The company announced this week that ODEY ASSET MANAGEMENT LLP had reached a 12% threshold in the company.

    Salamander Energy (LON: SMDR)
    The spud of the next well in its on-going exploration programme in Block G4/50, Gulf of Thailand. The G4/50-5 exploration well is targeting the Surin prospect, located in the north west of the block in the Western Central sub-basin. G4/50-5 is targeting oil in Miocene sandstones and is estimated to contain mean prospective recoverable resources of 16 MMbo with access to hydrocarbon charge being identified as the key risk. Exploration success at Surin would open the play in the Western Central sub-basin and de-risk the neighbouring Ayutthaya and Buriram prospects. G4/50-5 will be drilled to approx. 2,125 metres total vertical depth sub-sea using the Atwood Mako jack up rig and is expected to take around 10 days to reach target depth. On completion of the G4/50-5 well the rig will return to the Bravo platform to continue the development drilling campaign on the Bualuang field.

    Union Jack Oil PLC (LON: UJO)
    Welcome to AIM. The Company has raised £800,000 before expenses by way of a placing, by Shore Capital Stockbrokers Limited, of 320,000,000 new Ordinary Shares at 0.25 pence per Ordinary Share. The Company will have, on Admission, a market capitalisation of c.£2.1 million at the Placing Price. The net proceeds of the Placing aggregated with the Company’s existing cash resources, as at 1 June 2013, are approximately £1.2 million. The Board intends to use the net proceeds to undertake the drilling of the Wressle-1 (c. £333,000) and the Burton on the Wolds-1 (c. £200,000) exploration wells and to meet the Company’s working capital requirements. The Company’s main objective is the rapid appraisal and exploitation of the assets currently held. Simultaneous with this process, the Company’s management expect to continue to use their expertise to acquire further licence interests over areas where there is a short lead time between the acquisition of the interest and either exploration drilling or initial production from any oil or gas fields that may be discovered.

  • The Smallcap Oil & Gas round up

    The Smallcap Oil & Gas round up

    Another busy week for me personally. Family matters etc

    Good read this week enjoy it. Dan x

    Bankers Petroleum (LON: BNK)
    Reports that the 5350 Block “F” well in Albania reached a total depth of 2,776 meters measured depth on July 17, 2013. Petrophysical and geological information indicates that the well did not encounter any hydrocarbon bearing zones that would merit testing. The well was suspended. This is the second exploration well in Block “F”, completing Bankers two well commitment on the block. Technical evaluation of the block will continue into the fall and Bankers is reviewing several other prospects including a seismic program in the next two years.

    Egdon Resources (LON: EDR)
    Some good news this week for EDR and Europa Oil and Gas (LON: EOG) The successful result of a High Court challenge in relation to the drilling of an exploratory well at the Holmwood prospect in Weald Basin licence PEDL143 located in Surrey, where Egdon holds a 38.4% interest. Europa (operator, 40%), Warwick Energy (20%) and Altwood Petroleum (1.6%). This judgment means that the Inspector’s decision is quashed and the appeal will be remitted to the Planning Inspectorate for redetermination, which may involve a further planning Inquiry, for the exploratory drill site at Holmwood. As announced by Europa on 1 November 2012, the PEDL143 joint venture partners applied for an order to quash the decision of the Secretary of State for Communities and Local Government’s appointed Inspector to dismiss their appeal against Surrey County Council’s refusal to grant planning permission to drill one exploratory borehole and undertake a short term test for hydrocarbons at the Holmwood prospect drill-site. Egdon was also notified by Leicestershire County Council that Planning Consent has been granted for the drilling of an exploratory borehole on the Burton on the Wolds Prospect in UK Onshore Petroleum Exploration and Production Licence PEDL201, located on the southern margin of the Widmerpool Gulf geological basin.

    Enegi Oil (LON: ENEG)
    Updated on North Sea Licence P1974 containing the Malvolio prospect in Block 3/23a. Further to the announcement of 31 January 2013, the Company confirms that, through the activities of Azimuth Limited, the Company has fulfilled the initial licence requirements by acquiring 100km2 of 3D seismic data over the Block and surrounding area. ENEGI also sneaked in a placing admission as it yet again diluted it’s share-holders. They raised £2.018 million (before expenses) through a placing of 24,882,944 new ordinary shares of 1 pence each with new investors at an average price of 8.11 pence per Ordinary Share.

    Forum Energy (LON: FEP)
    Released their interims today. You can read them by clicking HERE

    Gulf Keystone Petroleum (LON: GKP)
    The Board of Gulf Keystone held their annual jamboree in sunny Bermuda thus preventing the ordinary folk from attending. Not to worry fill his pockets with lots of cash Kozel told every one who could afford the flights, hotels and expenses that “all the resolutions proposed at the Company’s Annual General Meeting (“AGM”) held today at 12pm in Bermuda, were duly passed by shareholders.” This was after an embarrassing few months which saw the company climb down in the face of an onslaught from Private and Institutional investors over Kozel and the boards pocket filling. We are now told that “a constructive agreement with M&G Recovery Fund, a 5.1% shareholder in the Company and other major shareholders in the Company, regarding the current and future composition of Gulf Keystone’s Board of Directors” sic Has been reached. The Agreement follows a number of discussions between the Company and its largest shareholders, about the four nominees for Independent Non-Executive Directorships of the Company proposed by M&G, were fully aired and addressed to the satisfaction of the Company’s Chairman, Mr Simon Murray and the Grandly titled “Field Marshal the Lord Guthrie of Craigiebank”, Chairman of the Nominations Committee. Talk about money buying titles!

    Magnolia Petroleum (LON: MAGP)
    Reported an initial production rate of 2,244 boepd for the Statoil operated Jake 2-11 2TFH well in the Three Forks Sanish Formation, North Dakota, in which Magnolia holds a 1.465% net revenue interest. This adds 33 boepd to the Company’s net production and follows the initial production rates for the Jake 2-11 # 1H, announced on 22 July 2013, which added a further 57.5 boepd net to Magnolia. What the rate is now is any ones guess but I bet it’s down on the IPs reported.

    Max Petroleum (LON: MXP)
    And the week wouldn’t be complete without an update from MAX. The UTS-10 appraisal well in the Uytas Field has successfully reached a total depth of 484 metres, with electric logs indicating a total of nine metres of net oil pay in Cretaceous and Jurassic reservoirs. This includes three metres of net oil pay in the Cretaceous Aptian section within a 40 metre interval of shows at depths ranging from 125 to 165 metres. The UTS-10 well was drilled downdip on the flank of the structure and confirms the position of the oil water contact in the Aptian as seen in wells previously drilled in the central part of the structure. The Jurassic section includes six metres of net oil pay in a 48 metre interval with oil shows at depths ranging from 328 to 376 metres. Reservoir quality in both the Cretaceous and Jurassic sections is excellent. The shallow Albian was encountered in this well with visual oil shows noted from 46 to 58 metres. Electric logs through the Albian reservoirs suggest some oil saturation but are inconclusive due to enlargement of the wellbore in this interval. The Company plans to complete the well and then place it on test production as soon as practicable.

    Mediterranean Oil & Gas (LON: MOG)
    Following the grant of approval by the Government of Malta, it has acquired through its wholly owned subsidiary Melita Exploration Company Limited, a 40% working interest in the Exploration Study Agreement relating to offshore Malta Area 3 – Blocks 1, 2 and 3, alongside Capricorn Malta Ltd (W.I. 60%, Operator), a subsidiary of Cairn Energy PLC. In December 2012 Cairn entered into a two-year ESA with the Government of Malta for Blocks 1, 2 and 3 of Area 3, which are located north of Malta in the Sicily Channel covering an area of approximately 6,400 km2 and containing a number of prospective leads.

    Petrel Resources (LON: PET)
    Has said today that negotiations on a potential Iraqi investment are at an advanced stage whereby a private company with extensive hydrocarbon interests in Iraq would inject an asset into Petrel in return for a minority shareholding in Petrel as well as board representation.

    Providence Resources (LON: PVR)
    Updated on the Barryroe oil field in the North Celtic Sea Basin, offshore Ireland. Providence (80%) operates Barryroe on behalf of its partner Lansdowne Oil and Gas (LON: LOGP) (20%). The area which is located in Standard Exploration Licence (SEL) 1/11 and Licensing Option (LO) 12/4, lies in c. 100 metre water depth and is c. 50 kilometres off the south coast of Ireland. In April 2013, Providence published a competent person’s contingent resource audit on the in place hydrocarbon and recoverable resources from the Basal Wealden A oil reservoir, as independently reported by Netherland Sewell & Associates Inc. NSAI have now provided an estimate of the cashflows attributable to Providence from the Basal Wealden A oil reservoir at Barryroe. A summary excerpt from this recently issued report is now available on the Providence website, www.providenceresources.com

    Range Resources (LON: RRL)
    Noted the announcement released by International Petroleum this week, announcing that International Petroleum is in negotiations with a third party relating to the potential sale of its Russian assets for cash consideration, which Range understands is expected to be between US$120 – 150 million. In the course of discussions and due diligence in connection with the proposed merger of the two companies, Range has been informed of the negotiations concerning the potential asset sale and remains committed in principle to pursue a merger transaction pending final confirmation of the sale terms. Range will update shareholders in relation to the asset sale and merger transaction in due course.

    Ruspetro (LON: RPO)
    Announces that a substantial reduction in the Russian Mineral Extraction Tax applicable to tight oil has been passed into law this week and will be applied to production from the Company’s qualifying reserves from 1 September 2013.  RPO estimates that 80% MET relief is applicable for production from approximately 74% of the Company’s Jurassic reserves. The 80% MET relief is estimated to be applicable to approximately 97% of the Company’s current crude oil production. The reduction in the MET rate will increase well head revenue per barrel for Ruspetro’s crude oil production from approximately US$22.40 to approximately US$39.10 at a gross price of US$100 per barrel. For this first half of 2013 production has averaged 5,455 bopd (81% crude oil, 19% condensate), a 38% increase on H1 2012 production of 3,956 bopd. Production for the second quarter of 2013 has averaged 5,002 bopd (85% crude oil, 15% condensate).

    Tower Resources (LON: TRP)
    Said it was “pleased to announce a placing to raise £9.0 million before expenses and an open offer to raise up to £4.1 million (US$6.2 million) before expenses” Of course share-holders weren’t pleased with the result of the Murombe-1 well. Which was plugged and abandoned. It’s yet more dilution upon dilution from the good ship Tower that has failed at every turn. Get out and stay out! That’s 802,343,266 with another 360,811,606 new Ordinary Shares to be dumped onto the market! Sell up!

    Urals Energy (LON: UEN)
    Announces that a two part Passive Seismic survey has been completed for Articneft on the island of Kolguev by GeoDynamics Worldwide srl, and the Company expects to receive the full results in late August / early September. Separately a Passive Micro-Seismic survey was carried out over a selected area in the West block, applying 10 measurement stations for seven days. The field operations were completed in 30 days. The results of the Spectroscopy survey will generate a hydrocarbon distribution map of the two blocks, whereas the micro-seismic will aim at locating the hypocenters of microtremors which will be a complimentary tool for upgrading the structural model of the subsurface of the West block.

    Wessex Exploration (LON: WSX)
    Announces the conclusion of drilling activities on the GM-ES-4 well in French Guiana. The well penetrated the primary and secondary reservoir objectives before drilling operations were concluded at a total depth of 6,292m. The results of the wireline logging programme has confirmed the presence of reservoir, however no evidence of hydrocarbons is seen from the drilling or wireline log data. The well is now being plugged and abandoned.

  • The Smallcap Oil & Gas round up.

     

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

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

     

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  • The Smallcap Oil & Gas round up.

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

    Antrim Energy. (LON: AEY)

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

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

    Falcon Oil & Gas. (LON: FOG)

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

    Gulf Keystone Petroleum (LON: GKP)

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

    Gulfsands Petroleum (LON: GPX)

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

    Lochard Energy Group (LON: LHD)

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

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

    Mediterranean Oil & Gas (LON: MOG)

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

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

    Oilex. (LON: OEX)

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

    Petroceltic (LON: PCI)

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

    Premier Oil (LON: PMO)

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

    Providence Resources (LON: PVR)

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

    Range Resources (LON: RRL)

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

    Rialto Energy (LON: RIA)

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

    President Energy (LON: PPC)

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

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

    Tethys Petroleum (LON: TPL)

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

    Join the Forum discussion on this post

  • The Smallcap Oil & Gas round up.

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

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

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

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

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

    JKX Oil & Gas (LON: JKX)

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

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

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

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

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

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

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

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

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

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

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

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

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

    Dear Sir,

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

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

    Thanking you.

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

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

  • The Smallcap Oil & Gas round Up.

    The Smallcap Oil & Gas round Up.

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

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

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

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

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

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

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

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

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

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

    Lochard Energy (LON: LHD)
    See Trapoil entry

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Join the Forum discussion on this post

  • The Smallcap Oil & Gas round up.

    The Smallcap Oil & Gas round up.

    Busy week for me personally with having to take two days out to attend The Royal Courts of Justice.  All very exciting.

    Not much news other than the usual. Still a good read.

     

    3Legs Resources (LON: 3LEG)
    The struggling independent oil and gas group focusing on the exploration & development of unconventional oil and gas resources, released an operational update. You can read it HERE

    GeoPark Holdings (LON: GPK)
    Two RNS’s from the company this week . 1/ Successful testing of gas production from a previously untested formation in the Yagan Norte 4 well on the Fell Block in Chile. GeoPark operates and has a 100% working interest in the Fell Block. GeoPark carried out a production test in the Springhill formation, behind casing, in the Yagan Norte 4 well, at 3,005 metres for a period of 20 hours, which flowed at a rate of approximately 3.3 million standard cubic feet per day of gas through a choke of 12 millimetres, with a well head pressure of 1,208 pounds per square inch. Further production history will be required to determine a stabilized flow rate for the well. The Yagan Norte 4 well was originally drilled to a total depth of 3,105 metres and tested and produced oil from the Tobifera formation in an open hole section. GeoPark has interests in 27 exploration, development and production blocks in Colombia, Chile, Argentina and Brazil, subject to local regulatory approval. 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.

    2/ Successful drilling, testing and putting into production of the Tarotaro 1 exploration well on the Llanos 34 Block in Colombia. GeoPark operates and has a 45% working interest in the Llanos 34 Block. GeoPark drilled and completed the Tarotaro 1 well to a total depth of 3,175 metres. A test conducted with an electrical submersible pump in the Guadalupe formation, at approximately 2,955 metres, resulted in a production rate of approximately 2,239 barrels of oil per day of 15.5 degrees API oil, with a 0.6% water. Further monitoring of production history will be required to determine stabilized flow rates and the extent of the reservoir.

    Gulf Keystone Petroleum (LON: GKP)
    Released their 2012 Annual Results. Which can be read by clicking HERE Earlier in the week they announced that Shaikan-7, the first deep exploration well on the Shaikan block, targeting the mid to lower Triassic and, potentially, Permian horizons, spudded late on Sunday 16 June 2013. The well is being drilled with the Weatherford Rig 319 (3000HP) close to the crest of the Shaikan structure, approximately 1km east of the Shaikan-1 discovery well. The well is planned to reach a total depth below 4,500m in the Permian and the drilling is expected to take about 9 months.

    Ithaca Energy Inc. (LON: IAE)
    Announces the commencement of development drilling operations on the Stella field, with the first well on the field having been spudded using the Ensco 100 heavy duty jack-up rig. The initial campaign involves the drilling and completion of four production wells on the Stella field prior to start-up. Three horizontal wells are to be drilled into the oil rim of the field, along with one highly deviated gas-condensate well on the crest of the structure. The Company has also executed a farm-out agreement with a subsidiary of Edison International SpA for a 25% interest in the licences containing the Handcross prospect and an agreement with Shell UK Limited concerning a licence awarded in the 27th UK Offshore Licensing Round.

    Leni Gas & Oil (LON: LGO)
    Released news this week on a Letter of Intent with Beach Oilfield Limited, a private Trinidadian registered company, regarding cross-assignment of interests in the Cedros Peninsula of south western Trinidad and Tobago. LGO and BOLT have agreed to work together to explore the deeper horizons below 7,000 feet in their respective acreage located in the south west of Trinidad. BOLT and LGO between them hold rights to over 7,200 gross acres of private petroleum leases which are already productive at shallow horizons; with existing production from the Icacos and Bonasse oilfields. The area is considered to contain a deeper Herrera Sandstone play that has been proven to be productive elsewhere in Trinidad. In the adjacent offshore Soldado area over 750 million barrels of oil have been discovered, however, the equivalent onshore trend is largely unexplored. LGO’s 100% owned private leases covering 1,750 acres in the Cedros, that are included in the arrangements, are currently awaiting the grant of a private petroleum licence by the Trinidad and Tobago Ministry of Energy and Energy Affairs.

    Max Petroleum (LON: MXP)
    Hooray. MXP have released some real news. The SAGW-4 appraisal well in the Sagiz West Field has reached a total vertical depth of 1,558 metres, indicating 20 metres of net hydrocarbon pay over a 62 metre interval from 1,222 to 1,284 metres. Pay intervals include 16 metres of gas condensate and four metres of oil. In addition, there is a further 17 metres of potential oil pay with lower oil saturation than normally seen in productive reservoirs in the basin that is situated above the oil-water contact at 1,284 metres. Reservoir quality is good, with porosities ranging from 15% to 25%. Production casing is being run in the well and testing of all potentially productive intervals will begin as soon as regulatory approvals are received. Results confirm that the Sagiz West Field extends four kilometres to the south of the existing productive well at SAGW-3. The Company has also completed drilling the UTS-8 appraisal well in the Uytas Field on Block A. The well reached a total depth of 875 metres without encountering producible hydrocarbons and will be plugged and abandoned. This well was drilled to test the possibility of a westward extension of the field. The well is located beyond the mapped limits of the Uytas Field, and current estimates of contingent resources will not be affected by the results from this well.The Zhanros ZJ-20 rig will now move on to drill the UTS-7 and UTS-9 appraisal wells in the Uytas Field, before returning to Block E. Of course Max being Max they reverted to type later in the week releasing a “naff” update. The weeks naffness? “It has commenced drilling the UTS-7 appraisal well in the Uytas Field on Block A using Zhanros ZJ-20 rig. The well will be drilled to a total vertical depth of 550 metres targeting Cretaceous and Jurassic reservoirs.” Next week Max will announce? Another drilling update!

    New World Oil & Gas (LON: NEW)
    Has secured a six-month extension in work programme commitment deadlines for Licences 1/09 and 2/09 at its Danica Jutland Project in Western Denmark. This extension was discussed with Danica Jutland ApS and the Danish North Sea Fund, the Company’s 20% full-paying partner, and approved by the Danish Energy Agency, and will allow the results of the recent acquisition of 3-D seismic survey and some soil geochemistry work over the Jensen prospects to be incorporated into a forward work programme on these licences. In addition to allowing New World more time to evaluate the 3-D data interpretation and the prospects defined by the survey, the extra six months will provide New World with more time to continue on-going discussions with potential farm-in partners. New World has completed the Danish licence obligations with regards to seismic acquisition. A total of 191 km of 2-D and 75 km2 of 3-D seismic has been acquired on the 1/09 and 2/09 licences and, as a result, New World currently holds a 25% working interest in these licences. Since acquiring the licences in 2011, the Company has commissioned and released a number of Competent Person’s Reports, identifying four drill-ready prospects in Denmark.

    Nostra Terra Oil & Gas (LON: NTOG)
    Shoots itself in the foot by raising £750,000 before expenses by way of another placing of 187,500,000 new ordinary shares of 0.1p each in the capital of the Company at 0.40 pence per new Ordinary Share. The Placing was undertaken with existing and new investors. The net proceeds of the Placing, arranged at a discount of 10% to the underlying share price at the time will be utilised in the drilling of further wells in the Oklahoma based Chisholm Trail Prospect with a portion going towards leasing in the High Plains Prospect in Texas. Total shares will increase to 2,776,211,610. The share price was down 0ver 8% at time of writing!

    Ophir Energy (LON: OPHR)
    Spud the Starfish-1 well in the Ophir operated Offshore Accra PSC. The Starfish-1 well is Ophir’s first well in Ghana and will be drilled by the Stena DrillMax drillship. The Starfish-1 well is located in water depths of 1,500m and has a target depth of 3,850m. The well is designed as a play-opener to test a stratigraphic onlap trap. Ophir’s Management estimates mean prospective resources of 292 MMBOE with a 20% chance of success for the Starfish prospect. The well is expected to require approximately 40-days to complete. Ophir operates the Offshore Accra PSC with a 20% equity position.

    Rialto Energy ( LON: RIA)
    Yet another company diluting share-holders. No wonder Patrick Garo has resigned from his role as Chief Financial Officer of the Company with immediate effect. When will it ever stop? Today? Tomorrow? Or never? RIA are raising up to £9.7 million by way of a placing of new ordinary shares of the Company to institutional and other investors. The Placing will be conducted by way of an accelerated bookbuild process whereby GMP Securities Europe LLP and Euroz Securities Limited will be acting as joint bookrunners. In addition, the Company intends to undertake a share purchase plan of up to A$5 million, where eligible shareholders resident in Australia and New Zealand will be given the opportunity to (Give us more money to piss away) subscribe for new ordinary shares up to a total investment of A$15,000 per shareholder. The net proceeds of the Placing will be used to further the exploration and development work already underway at the Company’s interests in Cote d’Ivoire.

    Sefton Resources (LON: SER)
    The corporate liars & fraudsters announced that all resolutions at the AGM were duly passed with approval in excess of 98%. Yet more deceit. No mention of how many shares were actually cast! Just how many bothered to vote let alone turn up for what will be their last AGM is known only to the jackals that run the company. As previously announced Arleth retired (cost cutting) from the Board at today’s AGM. Of course his TOP HAT pension will see him “all right jack” Good riddance to the rat leaving the stinking ship.

    Silvermere Energy (LON; SLME)
    Who are in default of significant outstanding financial commitments on its I-1 Well, Silvermere announces that it has received a demand notice from Dominion Production Company LLC, the operator of the I-1 Well, for full payment of amounts outstanding to them totalling $229,445.29 on or before 15 July 2013. The demand notice states that if these payment terms are not met then Silvermere’s interest in the 818-L Field will be sold by way of a public auction to the highest bidder on 6 August 2013. The Company remains in discussions with various parties with respect to refinancing the Company and a further announcement will be made as soon as practicable. Stay well away from this company.

    SOCO International (LON: SIA)
    announces that the exploration well TGT-10X, spudded on 20th June 2013. The well is located approximately six kilometres south of the H4 Well Head Platform, which is in the southern part of Block 16-1’s TGT Field in the Cuu Long Basin off the southern coast of Vietnam. The TGT-10X well is the first in a four well drilling programme to be conducted this year on the TGT field and will be drilled with the jack-up drilling rig Naga-2. The well is expected to take 25 to 30 days, with a planned depth of approximately 4,400 metres below mean sea level. Further updates will follow in due course.

    Wentworth Resources ( LON: WRL)
    Completes a US$10 million long-term debt facility. On 20 June 2013, the Company executed a US$10 million term loan facility that matures on 31 December 2017. The loan bears interest of 6 percent per annum with interest only payments prior to maturity. The lendor is Vitol Energy (Bermuda) Limited , a Vitol Group company. Vitol, a leading physical energy trading house, is also a shareholder of Wentworth. In combination with the loan, Vitol has been issued 5,000,000 share purchase warrants each exercisable into one common share of the Company on or before 31 December 2015 at an exercise price of US$1.24 per share. The proceeds from the loan will be used to repay the Company’s existing long-term loan from Tanzanian Investment Bank (approximately US$5.8 million, the “TIB Loan”) and to fund general working capital requirements. The TIB Loan bore interest of 9.18 percent per annum plus an annual agency fee of 0.5 percent. Geoff Bury, Managing Director, commented “This loan facility strengthens our balance sheet and our overall financial position and provides the resources and time necessary to complete a number of key milestones. We thank Vitol for their financial support and commitment and in the coming months we look forward to updating shareholders on our progress as we move through this important time for the Company. ”
    What Gary isn’t saying is that their debt has now increased!

    Xcite Energy (LON: XEL)
    Awarded an aggregate of 9,850,000 options to purchase ordinary shares of the Company to the Board of Directors, and to certain members of the Xcite Energy Resources Limited Management team and staff. This award is made in recognition of the substantial upgrade in reserves, as announced by the Company in April 2013. All options have an exercise price of £1.01 per ordinary share and carry a term of five years from the date of award. Bit of an anomaly at the moment as at time of writing the XEL SP is 99.75P

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