Smallcapnews. Oil & Gas weekly round-up with a sprinkling of Miners!

Provided by the BMD NEWS SERVICE!

Valiant Petroleum;

Is set to acquire a 30% stake in UK North Sea Block 29/1c, containing the Orchid prospect, from Summit Petroleum in return for carrying a share of the cost of the initial exploration well. The Orchid prospect is a four-way dip closure in the Tertiary and Chalk horizons and is surrounded by the producing Banff, Kyle, Bittern and Gannet group of fields.

Rockhopper Exploration;

Released a short technical update on its Sea Lion discovery after further interpretation of the results of well 14/10-4. The management believe that wells 14/10-4 and the discovery well 14/10-2 are in communication and expects that the new low case area, of 22 square kilometres, holds stock tank oil initially in place of 516 mmbbls giving 155 mmbbls recoverable at 30% recovery factor.

Petroceltic International plc;

The independent oil & gas exploration company focussed on the Middle East-North Africa (“MENA”) and Mediterranean region  announces its results for the year ended 31 December 2010. Copies of which can be found on their web-site.

Premier Oil;

Said it was “pleased to announce that it has exercised its option, as announced on 7 October 2010, to drill the East Fyne appraisal well in the UK Central North Sea under the Joint Venture and Earn-In Agreement with Antrim Energy Inc.” (“Antrim”). Under the terms of the agreement, Premier will have a 39.9 per cent operated interest in Block 21/28a containing the Fyne field in return for carry of up to US$50 million towards the development costs, including the East Fyne appraisal well. The licence assignment and transfer of operatorship under the Agreement is subject to partner approval and to the usual UK government approvals. Antrim retains 35.1 per cent interest in the block and a 100 per cent working interest in the adjacent Blocks 21/28b, 21/29c, 21/24b and 21/29d (Greater Fyne Area). First Oil Expro Limited retains an interest of 25 per cent in Block 21/28a. The agreement also provides Premier with the option to participate at a working interest of up to 50 per cent alongside Antrim in a planned drilling programme scheduled to start as early as the second quarter of 2011 in the Greater Fyne Area. The East Fyne appraisal well is designed to de-risk the eastern extent of the Fyne Field in Block 21/28a and is expected to be drilled in the second half of 2011.

Pan African Resources;

The African focused precious metals producer, has been awarded a mining licence on its Manica exploration project (“Manica Project”) by the Mozambican government. The licence, which was converted from a prospecting licence, grants Pan African the opportunity to move the Manica
Project to development stage.


Informed the market that Rig Mobilising for Cambay “Tight Reservoir” Well, India had at last started…. Eyes On Here!

Nostra Terra Oil and Gas;

Announced that the Agnello #1 horizontal well within the Vintage Hills prospect unit in Brazos County, Texas, has been brought into continuous production. This follows the successful initial testing of the oil and gas well, detailed in the Company’s announcement dated 4 March 2011. Nostra Terra has a 1.0% interest in Vintage Hills. New Century Exploration, Inc., operator of the Agnello #1 horizontal well, is assessing its  production performance and the Company will update shareholders on production rates from the  well following receipt of relevant data.

Northern Petroleum;

Announces that Northern Petroleum (UK) Limited (“NPUK”) has applied to the Italian authorities for the transfer to Shell Italia E&P S.p.A (“Shell”) the role of Rappresentante Unico (“Operator”) for six permits offshore west of Sicily; G.R17.NP, G.R18.NP, G.R19.NP, G.R20.NP, G.R21.NP and G.R22.NP, located in the thrust and fold belt to the west of Sicily. The transfer would enableShell to progress work required to apply for drilling approvals in  advance of the final decision as to whether an exploration well is to be drilled in the permits. The joint venture is currently finalising the subsurface evaluation. Northern has acted as Operator of the permits during the 2D and 3D seismic phases of the exploration programme, the costs of which were met by Shell. Under the terms of the farm-in agreement Shell holds 55% in G.R17.NP, G.R18.NP,G.R19.NP and 70% in G.R20.NP, G.R21.NP and G.R22.NP, with NPUK holding the remaining equity interest in the permits.

Nautical Petroleum;

The punters favourite excited the market by announcing that JPMorgan Asset Management (UK) Limited had upped their stake to 5%.

Matra Petroleum;

Under-whelmed private investors with an announcement that production has commenced from both existing wells in the Sokolovskoe Field, Russia. Neither well has yet stabilised and as expected both will require acid stimulation and/or pump installation to maximise production rates. Well -13 is currently producing approximately 65 bopd and well-12 approximately 100-150bopd, although both well rates are fluctuating significantly and have not yet unloaded residual mud and completion fluids from the wellbore. In total over 2,000 bbls of oil have been produced from the wells and oil sales are being made on a regular basis. Attempts to stabilise flow rates are being made before conducting the pressure surveys which will enable us to estimate the capability of the wells after acidisation and/or pump installation. It is notable that neither well has yet produced any formation water. Pressure surveys and analysis will occur during the next two weeks and a plan to maximise production rates will follow. The weather in Orenburg has been a little unusual this year with some late heavy snowfalls ( we got this same old guff last year) which have delayed demobilisation of the side-track rig. The main thaw has now begun and heavy load transportation will be limited during April whilst the snow melts and clears.


Announced potential short-term impacts following the recent announcements by Leed Petroleum plc (“Leed”). The Company continues to monitor the situation closely and has notified Leed and UniCredit of its wish to see production operations restored without delay.

Leed Petroleum;

The oil and gas exploration and production company focused on the Gulf of Mexico,  announced that it has shut in all wells and production facilities that it operates on the Outer Continental Shelf, Gulf of Mexico Region.  This follows the decision of the Board to cease business operations at the end of March.

Hardy Oil & Gas;

The recent surge in the sp of Hardy continued as they released their; Annual Report and Accounts for the year ended 31 December 2010 and Notice of Annual General Meeting to be held on 11 May 2011. Copies of these documents may be obtained from the head office of the Company at Lincoln House, 137-143 Hammersmith Road, London, W14 0QL and is available for viewing on the Company’s website shortly.

Global Petroleum;

Said that the Leighton Olmos Well Flowed Oil and Gas at 252 BOEPD. Texon Petroleum Ltd  has advised that that the eighth Leighton Olmos well in which Global has an interest, Peeler #2, has begun to flow oil and gas at the gross rate of 252 boepd from the Olmos reservoir (comprising 192 bopd and 360 mcf of gas per day).

Texon advise that Peeler #2 will be connected to oil tanks and a gas sales pipeline in the next two weeks.

Global has a 15% working interest (11.25% net revenue interest) in the well.


Announced that the company has just been granted a 1 year extension to the Initial Exploration Period for its deepwater Block 7 by the United Republic of Tanzania’s Ministry of Energy and Minerals. The extension to the current period removes any obligation for the company to relinquish any portion of Block 7 until May of next year, providing Dominion with much more time to more fully evaluate the acreage before a mandatory 50% relinquishment at the close of the Initial Period.

Desire Petroleum;

Announced its Preliminary Results for the year ended 31 December 2010. Operational Highlights included, five exploration wells in the North Falkland Basin/Majority of efforts have been concentrated on the East Flank Play Fairway where a significant discovery (Sea Lion) has been made by Rockhopper Exploration/Commissioned  the Polarcus Nadia to shoot 3D seismic over previously uncovered acreage in the North Falklands Basin, particularly on the East Flank Play Fairway/Eddie Wisniewski appointed as Finance Director (formerly a Non-Executive Director)/Ken Black (formerly Exploration Manager) appointed Exploration Director since the year end.  Stephen Phipps, Chairman of Desire Petroleum made no mention of  Desire’s recent and past failures, he commented; “The past twelve months have been extremely energetic for Desire Petroleum. We have drilled five wells on prospects and have commissioned 3D seismic over previously uncovered acreage. The geological information gathered from these wells combined with the new seismic data  is expected to have a significant impact on the prospect portfolio. It is our belief that the East Flank Play Fairway has a great deal of potential, and it is with this in mind that we are currently drilling the Ninky exploration well.”

Clontarf Energy;

Has been readmitted to the AIM market of the London Stock Exchange following its reverse takeover of Hydrocarbon Exploration plc. Clontarf expects to be formally awarded assets in Ghana and Peru and is acquiring a 10% interest in the El Dorado gas project in Bolivia.

Cluff Gold plc;

The dual AIM/TSX listed West African focused gold mining company,  announced that it has been awarded a new gold exploration licence in Western Mali. The Licence is located 300km west of Bamako, the capital city of Mali, in the highly prospective Mali Birrimian Kenieba Inlier Belt, which hosts several world class gold deposits including Randgold’s Loulo Mine (M&Iresources of 8.8Moz(1)) and Gounkoto Project (M&I resources of 3.6Moz(2)) together with AngloGold Ashanti’s Sadiola Mine (M&I resources of 3.5Moz(3)).

Chariot Oil & Gas;

Announced that “Further to the recent Placing and the subsequent Admission of 35,958,376 new ordinary shares to AIM, Chariot Oil & Gas Limited was notified today that, as of 05 April 2011, Citigroup Global Markets UK Equity Limited has an interest in 21,453,662 ordinary shares in the Company, representing 11.85% of the Company’s issued ordinary share capital.”

Cadogan Petroleum;

Shares in CAD’ spiked on news that Kellet Overseas Inc.Cynderella Foundation had increased its Threshold in the company to 8.12%. Market watchers are expecting further increases by Kellet.

Bahamas Petroleum;

The Company has been informed that Alan Burns, Non-Executive Chairman of the Company, disposed of 5,000,000 ordinary shares of 0.002 pence each in the Company (“Ordinary Shares”) (the “Disposal”), at a weighted average price of 21.36 pence per Ordinary Share on 1 April 2011. The disposal is in order to satisfy ongoing medical expenses. Following the Disposal, Mr Burns is now interested in 15,164,989 Ordinary Shares, representing 1.38 per cent. of the Company’s issued share capital.

Berkeley Mineral Resources;

The Company was notified on 7th April 2011 that Mr Masoud Alikhani, a Director of the Company, purchased 150,000 ordinary shares of 1p each in the Company (“Ordinary Shares”) at a price of 6.52p per share. It was also notified on the same date that Mr Mark Wainwright, a Director of the Company, purchased 50,000 ordinary shares of 1p each in the Company at a price of 6.52p per share. Following these transactions, Mr Alikhani has a beneficial interest in 14,995,958 Ordinary Shares representing 1.74 per cent. of the Company’s issued share capital and Mr Wainwright has a beneficial interest in 150,000 Ordinary Shares representing 0.017% of the Company’s issued share capital.

Beacon Hill Resources,;

The AIM listed resource company, announces that it has entered into a Memorandum of Understanding (‘MoU’) relating to the potential acquisition by Beacon Hill of a 100 per cent interest in coal licence area 1165L in the Moatize Coal Basin in Northern Mozambique (‘Licence 1165L’).  Completion of this acquisition would provide a significant expansion to the Group’s existing coal resources and represents a first step in building upon its existing operating coking coal mine at Minas Moati.

Antrim Energy;

Announced that it had received confirmation from the operator of the Causeway Licences, Valiant Petroleum that a “Heads of Terms” agreement has been signed for the export of Causeway crude via the Cormorant North production platform in the UK North Sea. A Field Development Plan is expected to be submitted this year with first production from Causeway mid-2012.

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