Smallcap Oil & Gas round-up with a sprinkling of Miners!

24.June.2011

Argos Resources:

Released their 2010 Annual Report which is now available via the Company’s website www.argosresources.com, or available to view at the Company’s registered Office, Argos House, H Jones Road, Stanley copys were be posted to shareholders on 20 May 2011.

Berkeley Minerals;

Further to the announcements made on 28 March 2011 and 10 June 2011, Berkeley Mineral Resources Plc, which is primarily engaged in processing mining tailings, announces that the Company has completed the purchase of the remaining stockpiles of tailings not presently owned by it at the Kabwe mine in Zambia.

Borders & Southern Petroleum;

Announces that at its Annual General Meeting, held on the morning of 21. June 2011 at 11:00am, all resolutions were duly passed.

Cadogan Petroleum;

(Global Process System Inc (“GPS”) Settlement) Stated that information received on 16 June 2011)from GPS has indicated that a payment will not now be voluntarily made by them prior to the sale of the gas plants.  Cadogan continues to retain legal title to the gas plants during the sale process and will obtain a further valuation shortly, so that the Board can accurately assess whether any impairment to their value is necessary in the Half Yearly Report. Although Cadogan may  continue to allow GPS to market the plants as per the settlement agreement, the Company will also commence efforts to market the plants directly to end users and will enforce its rights under the agreement for any shortfall, against the $30 million currently outstanding under the settlement agreement. GPS are currently following up several opportunities for near term requirements for gas processing facilities with similar specifications to Cadogan’s gas plants. The Board remains optimistic that payment in respect of its rights against GPS will be received in 2011.

Caza Oil & Gas;

Provided an operational update on the Company’s San Jacinto property in Midland County, Texas. Caza, as operator,  announced that the Caza Elkins 3401 well in Midland County, Texas, reached a total depth of 11,854 feet on June 21, 2011.  Electric logs indicate multiple potential pay sands for both oil and gas in the Clearfork, Spraberry, Wolfcamp, Strawn, Atoka and Devonian formations.  Caza is currently running production casing and preparing the Caza Elkins 3401 well for further completion operations.  The completion procedure will include a fracture stimulation program. The rig has now been released and will be moved to the Caza Elkins 3402 well location.  The positive results associated with the Caza Elkins 3401 well have caused Caza to revise the target depth on the Caza Elkins 3402 well from 10,500 feet, as previously announced, to approximately 11,800 feet in order to test the Devonian formation.  The well should take approximately 30 days to reach the target depth. The San Jacinto property covers approximately 480 acres with five proven undeveloped locations, including the Caza Elkins 3401 and 3402 locations.  Caza has a 100% working interest before completion and an 85% working interest after completion in the Caza Elkins 3401 well with a 63.75% net revenue interest.  In all subsequent wells on the San Jacinto property, including the Caza Elkins 3402 well, Caza will have a 75% working interest and a 56.25% net revenue interest. W. Michael Ford, Caza’s Chief Executive Officer commented: “We are very pleased with the results of the Caza Elkins 3401 well on the San Jacinto property.  Log data suggests that the potential pay sections are better than anticipated and we look forward to drilling the Caza Elkins 3402 well and developing this project in due course.”

Chariot Oil & Gas;

It’s been a busy week for Africa focused oil and gas exploration company, with four RNS releases 1/Announced that it has posted its Annual Report and Accounts for the year ended 28 February 2011 to shareholders. The Annual General Meeting is to be held at Trafalgar Court, Admiral Park, St Peter Port, Guernsey on Wednesday 20th July 2011 at 13:00. A notice of this meeting has also been posted to shareholders and copies of this and the Annual Report are available on Chariot’s website (www.chariotoilandgas.com). 2/Chariot Oil & Gas notified  that, as of 17 June 2011, Citigroup Global Markets UK Equity Limited has an interest in 11,085,448 ordinary shares in the Company, representing 6.12% of the Company’s issued ordinary share capital. 3/Chariot Oil & Gas announced that it has signed Heads of Terms with two companies for two of its licence areas offshore Namibia. And finally Chariot served notice that, as of 22 June 2011, Citigroup Global Markets UK Equity Limited had decreased its holding to an interest in 10,447,691 ordinary shares in the Company, representing 5.77% of the Company’s issued ordinary share capital.

Circle Oil;

Stuck in the mud Circle oil announced a good set of results for the year ended 31 December 2010. Circle records first full year Operating Profit of US$12.58 million (2009 Operating Loss: US$0.34 million)… Net Profit of US$10.36 million (2009 Loss: US$13.51 million)… Revenue from oil and gas sales of US$44.39 million, an increase of 194% on 2009 (2009: US$15.09 million)..Successful placing to raise US$66.4 million…100% success in five well Egyptian drilling campaign… 100% success rate from tested Moroccan wells in second exploration drilling campaign…Independent Resource Assessment increases Egyptian recoverable resource estimate by 65.10%…  Independent Resource Assessment increases Moroccan recoverable resource estimate by 83.50%… New pipeline infrastructure installation currently underway to increase Moroccan production. Thomas Anderson, Chairman of Circle, said:  “2010 was a milestone year for Circle as we moved into profitability. We have made considerable progress in our licence areas. Our model of moving rapidly from exploration and discovery to early production has proved to be highly successful and is allowing us to work with our partners to develop existing assets and to put in place the funding for future development.” 

Cove Energy;

Released a TR-1: NOTIFICATION informing the market that Blackrock Inc had reduced their holding in the company to below 12%.

Dominion Petroleum;

The independent oil and gas exploration company focusing primarily in East Africa, with a portfolio of assets in Tanzania, Uganda, the Democratic Republic of Congo and Kenya. Announced AUDITED Results for year ended 31 December 2010 stating that it  is seeking new funding which will enable the company to focus on opportunities within its existing acreage in deepwater East Africa, whilst also exploring prospects in newly acquired areas. The new ventures in Kenya and Malta offer additional opportunities for growth. Dominion also announced that, Phoenicia Energy Company Limited a wholly owned subsidiary of Mediterranian Oil & Gas, has entered into an Execution Agreement with Dominion Petroleum Limited to farm-out a 75% operated working interest in the production sharing contract for Blocks 4, 5, 6 and 7 of Area 4 Offshore Malta pursuant to a draft farm-in agreement.  Completion of the Maltese Acquisition is conditional upon (i) receipt of required Maltese government approvals and (ii) completion of the placing of shares by Dominion, announced on 24 June, 2011. Under the Execution Agreement, Dominion will pay a deposit of US$225,000 to PEL, which is non-refundable in the event that the Dominion Placing does not complete, or Dominion is otherwise unable to enter into the farm-in agreement. Should the Maltese government approvals not be received, the deposit is refundable in its entirety.

Encore Oil;

Announced that three Board members had increased their holdings in the company; Alan Booth,Vivien Gibney and Graham Dore.

Global Energy Development;

The Latin America focused petroleum exploration and production company, which operates in Colombia through its wholly-owned subsidiary Colombia Energy and Development Company, announceD continued enhancement in its daily production uplift as a result of the successful workover programme of its Tilodiran 2 and 3 wells within the Colombian Rio Verde contract.  Subsequent to the workover programme results and the increase in gross daily production from 1,100 BOPD to 2,200 BOPD announced on 8 June 2011, and following continued extended testing of these wells and improved surface facilities and capabilities, the Company’s total gross oil production has now reached sustainable levels of approximately 2,520 BOPD. The Company was able to begin increasing production at Tilodiran 2 and Tilodiran 3 following an improvement in surface handling facilities and increased oil transport capacity. The Tilodiran 3 continues to demonstrate high levels of fluid deliverability at very low reservoir drawdown pressures. Average oil gravities are approximately 15 degrees API with produced gas-oil ratios of 400 to 500 cubic feet per barrel. Such gas-oil ratios are unusual for the lower Cretaceous reservoirs in the Colombian Llanos basin and appear to be adding significant reservoir drive energy to the more typical water drive also present in both wells. Accordingly, the Company plans to continue to slowly increase pump speeds in order to determine the upper limits of maximum sustainable production rates.

Hardy Oil and Gas;

Announced its first gas discovery in the exploration well KG-D9-A2 within the D9 licence. The well KGD9-A2 was drilled to a total depth of 4,881 m MDRT with the objective of exploring the play fairway in the Early and Late Miocene Channel Levee Complex in a water depth of approximately 2,700 m. Three sand reservoirs with a gross thickness of approximately 22 m were encountered and evaluated by wireline MDT. This discovery, named ‘Dhirubhai – 54’ has been notified to the Government of India and DGH. The potential commerciality of this discovery is being ascertained through more data gathering and analysis. This play fairway is expected to cover a considerable area within the block. The D9 exploration licence is located in the Krishna Godavari (KG) Basin on the East Coast of India and presently covers an area of approximately 8,695 km2. Hardy holds a 10 percent participating interest in the licence which is operated by Reliance Industries Limited. The licence’s minimum work programme provides for the drilling of four exploration wells.

Mediterranean Oil & Gas;

It’s been a busy week for the company as it announced that its subsidiary Medoilgas Italia SpA has signed a gas sales contract with the Italian utility Elettrogas SpA covering the entirety of the Company’s net gas production from the Guendalina gas field. The term of the contract is one thermal year, commencing from October 1, 2011 and is automatically renewed by a further year unless terminated by either party.  First production from the Company’s Guendalina gas field is expected in late September 2011.  Re, MediterraneanOil&Gas – Malta PSC Farm Out (see Dominion entry)

Nautical Petroleum;

Announced the completion of the acquisition of an additional 15% interest in UKCS Licence P1077 Blocks 9/2b and 9/2c (the “Licence), which includes the Kraken discovery, from Canamens Energy North Sea Limited. The transaction has received approval from the Department of Energy and Climate Change and joint venture partners.  The effective completion date of the transaction is 18 May 2011. Nautical now has a 50% interest in the Licence.

Nostra Terra Oil & Gas;

The AIM oil and gas producer with projects in the USA, announced that it has entered into an agreement with Plainsmen Partners LLC (“Plainsmen Partners”) to acquire a 16.25% working interest in the Verde prospect, located in south-eastern Colorado. The leases cover approximately 636 net acres in which an initial test well will be drilled into the Mississippian formation to a projected total depth of 5300 feet. The total estimated cost of the well is US$ 1,131,691, of which Nostra Terra’s estimated portion is US$ 183,900. The net revenue interest of Nostra Terra’s 16.25% working interest is 13.41%.  Drilling of the well is expected to begin during Q3, 2011.

Oilex;

Released another Cambay-76H “Tight” Reservoir Well Report.( No 3. ) The Company is making progress in unlocking the potential of the Cambay “tight”
Eocene reservoirs that extend across the 161 km2 Cambay Production Sharing Contract (“PSC”) area in onshore Gujarat, India. The Company intends to
evaluate and exploit these reservoirs using horizontal drilling and fracture stimulation technology that has been developed and proven in North America. The Cambay-76H “proof of concept” horizontal well will evaluate the production potential of the Y Zone interval of these “tight” reservoirs. An 8 stage fracture stimulation program will be conducted and after well clean-up, it is anticipated that a long term production test will be performed to determine flow rates, quality of hydrocarbons and commercial viability. The participating interests in the Cambay PSC are: Joint Venture Party Participating Interest; Oilex Ltd (Operator) 30%,Oilex NL Holdings (India) Limited 15%, Gujarat State Petroleum Corporation Ltd 55%.

PetroLatina;

Reported that as on Monday 20 June 2011 issued and allotted (credited as fully paid) to TOGF (i) 943,198 new Ordinary Shares in satisfaction of US$376,366.03, the fourth and final six monthly interest installment to 17 June 2011 due in respect of the second tranche of US$6.29 million convertible loan notes subscribed by TOGF on 17 June 2009, at a conversion price of 24.75 pence per share (being the middle market closing price on 16 June 2011) (the “Interest Shares”), and (ii) a further 15,605,520 new Ordinary Shares in satisfaction of the conversion in full of the second tranche of US$6.29 million convertible loan notes at a conversion price of 25 pence per share (the “Conversion Shares”). The Interest Shares and Conversion Shares will rank pari passu in all respects with the Company’s existing Ordinary Shares and application will be made to the London Stock Exchange for these, in aggregate, 16,548,718 new Ordinary Shares to be admitted to trading on AIM (“Admission”). It is expected that Admission will become effective and that dealings in the Interest Shares and Conversion Shares will commence at 8.00 a.m. on Monday 27 June 2011. The Company’s issued ordinary share capital will consist of 121,623,629 Ordinary Shares with voting rights. PetroLatina does not hold any Ordinary Shares in treasury and accordingly there are no voting rights in respect of any treasury shares. The aforementioned figure of 121,623,629 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, PetroLatina under the FSA’s Disclosure and Transparency Rules. Following the issuance of the abovementioned Interest Shares and Conversion Shares, TOGI and its related companies now hold, in aggregate, 76,122,225 Ordinary Shares, representing approximately 62.59 per cent. of the Company’s enlarged issued share capital and warrants over a further 32,308 Ordinary Shares which are automatically exercisable if, and to the extent that, any exercise of the Company’s other existing outstanding 60,000 warrants occurs. Luc Gerard, Executive Chairman of PetroLatina, commented: “Conversion of this second and final tranche of its loan note into equity reflects Tribeca’s  continued support of the Company and belief in its short, medium and long-term potential, underpinned by its expectations for the planned ongoing and future exploration and development programme.”

PetroNeft Resource;

The price of Petroneft resource tumbled as the owner and operator of Licences 61 and 67, Tomsk Oblast, Russian Federation,  provided an update on its operations. With a revised downgrading of production for Q1 2012. Production currently averaging about 2,500 bopd, primarily from 7 wells Q1 2012 production target has been revised to between 4,000 to 5,000 bopd and Q2 2013 to between 7,000 to 9,000 bopD

Premier Oil;

Announces that it has agreed to acquire an interest of 17.715 per cent in Wytch Farm (the “Wytch Farm Assets”) for an initial cash consideration of $96 million.  This follows a pre-emption notice received from BP on 18 May 2011.  Premier intends to finance the acquisition from available cash resources.

Salamander Energy;

Announces the spud of the South Sebuku-2 appraisal well, Bengara-1 PSC, East Kalimantan. The onshore South Sebuku gas discovery was made in 2009 and is thought to contain gross mean contingent resources of circa 80 Bcf. Salamander has a 41% interest in the Bengara-1 PSC. SS-2 will target gas-bearing sandstones in the Tabul, Meliat and Naintupo formations and be drilled to approximately 1,370 metres total vertical depth sub-sea. It will be drilled using the HPS-1 land rig and is expected to take approximately 30 days to complete on a dry hole basis.

San Leon;

The AIM-traded oil and gas exploration and development company focusing on projects in Poland, Morocco, Albania and the Atlantic Margin,  provided an Operational Update. Copys of which can be viewed by clicking this link…www.sanleonenergy.com/sanleon/communications/Operational_Update.php?ln=en

Sefton Resources;

The independent oil and gas exploitation and production company has posted its audited accounts for the year to 31 December 2010 in accordance with its articles of association and the electronic communication to shareholders provisions of  the AIM Rules.  The audited accounts for the year to 31 December 2010 can be viewed at www.seftonresources.com.

Sound Oil;

Released news that operations on Marciano-1ST well are expected to recommence on 25 June.  Contractors and necessary equipment are currently being mobilised to the well site to undertake testing operations.  The test programme is expected to take a minimum of 4 days.

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3 Responses

  1. James Allen says:

    What would you say about San Leon Dan?

  2. James Allen says:

    What would you say about San Leon Dan???

    • Brokerman says:

      Certainly way under performing at the moment. Have checked and re-checked the company and its Institutional Investor block. I think it’s the general malaise that is currently sweeping the GLOBAL ECONOMY particulary the European theatre big debt problems with a whole host of countrys not just Greece, Portugal, Ireland etc Morocco has problems politically as does the majority of the African continent. It’s a waiting game for me.

      Dan