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


Announced a spate of Director buys this week. Keith Phair Purchased 400,000 taking his holding to 0.26%, while Brian Hall increased his holding to 0.64% with a 325,000 buy and Andrew Hay and partner Virginia bought 200,000 shares. 0.03%

Aurelian Oil & Gas;

The European focussed E&P Company, provided an operational and corporate update. Copys of which can be viewed on the company web-site by clicking this link.

Borders & Southern Petroleum;

Announces that it granted options under the Company’s Discretionary Share Option scheme over ordinary shares in the capital of the Company at an exercise price of 51.25 pence each to the following directors: Howard Obee 1000,000, Peter Fleming 1000. Options granted are not exercisable for a period of three years from date of grant and may then be exercised for a period of seven years thereafter. Following the grant of the above options, the interests of each of the above in the capital of the Company are as follows: Howard Obee 10,000,00, Peter Fleming 2,200,000. The current issued share capital of the Company is 428,578,404.

Chariot Oil & Gas;

Informed Investors that it’s wholly owned subsidiary, Enigma Oil & Gas Exploration, has received formal approval from the Ministry of Mines and Energy in Namibia to enter the First Renewal Phase for its Central Blocks, 2312 A & B and Northern Halves of 2412 A & B, and Southern Block, 2714 A, offshore Namibia.  The First Renewal Phase will take effect from 31 August 2011 until 30 August 2013.

Cove Energy;

Issued an operational update ahead  of yesterdays AGM. Copys can be viewed by clicking this link.

Dominion Petroleum;

Announced the completion of their placing on the 24th of June this year. A total of 35,782,981 Subscription Shares have been placed at a price of 70 pence per Subscription Share.  Based on the Placing Price, the gross proceeds of the Placing of the Subscription Shares will be approximately US$40.0 million (approximately £25.0 million).  Together with the Sale Shares, this represents a total placing of US$49.7 million (approximately £31.1 million).  Although the gross proceeds of the Placing of the Subscription Shares are lower than originally announced, the Company believes the Placing, together with the associated transactions, will improve the Company’s capital structure and fully fund the Company’s near term capital requirements across its recently expanded portfolio.

ECR Minerals;

Released a healthy set of unaudited interim results for the six months to 31 March 2011 along with an update on its activities.Group surplus of £7,635,746 attributable to shareholders, comprising £4,034,199 of realised profit and £3,616,042 of revaluation gains, net of tax. Net assets increased by 442% to £14,395,701 compared with 31 March 2010. Sale of option over Copper Flat copper-molybdenum-gold-silver project in New Mexico, USA to THEMAC Resources Group completed. ECR’s holding of THEMAC shares and warrants valued at £12,376,066 as at 31 March 2011, using a share price of C$0.74; the closing price on 28 June 2011 was C$1.00. High grade results obtained from initial surface geochemical sampling programme at El Abra gold prospect in Argentina. A$650,000 worth of Reed Resources shares due to be received by ECR via Mercator Gold Australia, management control of which is expected to return to the Company in July 2011

Encore Oil;

Stated that they had changed their Nomad and Broker by appointing Cenkos Securities plc as its NOMAD and Joint Broker with immediate effect. Westhouse Securities remains as Joint Broker to the Company. Later on in the week they announced that their P1655 (Block 15/21g) partners, Nautical Petroleum  and Serica Energy  have agreed terms to acquire a 70 per cent. interest in a part of adjoining Licence P218 (Block 15/21a). P218 is currently operated by DEO Petroleum with co-venturers, Faroe Petroleum plc, Maersk Oil UK Ltd and Atlantic Petroleum.

Enegi Oil;

Announced the Completion of  their Fundraising Programme.  £1.35 million of funds raised via “Flow Through” funding and Equity Line Facility.The new funds raised will be used to: complete remaining elements of the PaP#1 Well, Garden Hill South (GHS) work over programme… advance seismic activities over PL2002-01… continue the ongoing due diligence programme in respect of the ABT Option…and general working capital purposes.

Europa Oil & Gas;

Said that it has conditionally raised approx £2.1 million, before expenses, by way of a placing of 16,170,998 new ordinary shares at a price of 13p per share.In addition, the Company intends to enter into a agreements with YA Global Master SPV (“Yorkville”) under which the Company will issue a $1.6 million (approx £1 million) loan note to Yorkville (the “Loan Note”) and under which Yorkville will provide a £5 million Standby Equity Distribution Agreement (“SEDA”).  Yorkville is an investment fund managed by Yorkville Advisors UK LLP.

Gulf Keystone Petroleum;

Issued a “Litigation Update. The English Commercial Court today gave the reasons for its judgment on 8 April 2011 (as announced by the Company on 11 April 2011) in favour of Gulf Keystone and two of its subsidiaries (the “Companies”) that there should be a trial in London of the question whether the Companies are required to take part in the International Chamber of Commerce arbitration in New York. Costs were awarded to the Companies and Excalibur Ventures L is required to make an interim payment of £250,000 within 14 days. The date for the trial in London will be set after the next hearing on 26 July 2011. The Companies continue vigorously to dispute and contest the allegations and claims asserted by Excalibur.The Board of Gulf Keystone will provide further updates in due course.

Ithaca Energy;

Released their Q1 2011 Financial Results, Jacky (J01) Well Update and Production Guidance Q2 2011 and Full Year 2011. Copys of which can be viewed on the company web-site! Click this link.

Kea Petroleum;

Said it was “pleased” to announce that the Hoadleys-1 exploration well in the ATP837P licence area in Australia’s onshore Surat Basin was spudded on 25 June 2011, and has already run and set surface casing to 254m. (The market however completely ignored the news.) It is anticipated that the well will be drilled to a total depth of 2,200m by late July 2011, and will test for oil in the Lower Evergreen and Precipice Sands. Both of these targets are producers in the nearby Moonie oil field. In the event of success Kea’s gross median reserve estimate is approximately one million barrels, with a potential upside of up to several million barrels.

Leed Petroleum;

Came back from suspension and left investors little more than a share certificate to be framed for the lavatory!The suspension was lifted on 27/06/2011 7:30am. The shell company will now be used as an investment vehicle just what the vehicle will resemble in another 12 months is anybodys guess. Delboy Trotters 3 wheeler has now been towed to Rivington Street offices for a makeover!

Leni Gas & Oil;

Released an Operational Update. Copys of which can be viewed on the company web-site!

Mediterranean Oil & Gas;

Announced that at its Annual General Meeting, all resolutions proposed to shareholders were duly passed. A copy of the Company’s up to date presentation is available on its website at

Nautical Petroleum;

Released a rns update on the amalgamation and firm well committment..Perth Licence co-venturers in Block 15/21a, DEO Petroleum UK Limited, Faroe Petroleum UK Limited, Maersk Oil UK Limited and Atlantic Petroleum UK have reached commercial agreement with the Block 15/21g co-venturers, EnCore Oil plc,   Nautical Petroleum plc and Serica Energy (UK) Limited, on the amalgamation of a sub area of 15/21a  with Block 15/21g  to create a single conjoined area. The parties have also confirmed a firm well commitment to DECC on the Spaniards prospect to assess whether it is a continuation of the updip Gamma discovery which flowed at 2,660 bopd from the Upper Jurassic Galley sands. The Spaniards well is expected to be drilled in the  second half of 2012 and will satisfy the licence and fallow commitments.  The Spaniards well is to be funded 100% by the  15/21g Group on a dry hole basis.  It is agreed that the costs of any second well will be borne 42.8% by the Perth Group and 57.2% by the 15/21g Group again on a dry hole basis.

Nighthawk Energy;

Released some news on Director buys. The company announced that Tim Heely,Richard Swindells (Not a surname that evokes confidence!) had bought some stock totalling a meagre 86,661 for Heeley with slightly more encouraging figures for Swindells of 151,120 and 156,517.

Northern Petroleum;

Announced that all resolutions proposed at their AGM had as per usual been passed!

Nostra Terra;

It’s been a very busy week for the tiddler news of a change of the Nomad with the appointment of Shore Capital and Corporate Limited was followed by the company announcing that it has entered into an agreement with Pathfinder Development Capital LLC to acquire a 30% WI in the Bale Creek prospect, located in northern Oklahoma. The highlights of the Bale Creek prospect include:..Shallow oil, with associated liquids-rich natural gas;…Extensive regional structural mapping;…Multi-pay potential from as many as 8 reservoirs, from the Ordovician up through Permian-aged rocks; and 2-D and 3D Seismic to pinpoint locations and steer the horizontal well paths; The Area of Mutual Interest covers a contiguous area of over 3,500 acres. It is located in a very prolific oil system, proven to produce from multiple, stacked-pay reservoirs. The company also announced a placing of 333,333,335 new ordinary shares of 0.1p each in the capital of the Company at 0.6 pence per new Ordinary Share which was thought to be over-subscribed.


Released another Cambay-76H “Tight” Reservoir Well Report. The fourth report on the progress at Cambay can be read by clicking this link

Premier Oil;

Released an exploration and appraisal update.

Grosbeak, Norway (Premier 20%). The Grosbeak well 35/12-4 S, which spudded on 24 April 2011, has completed the drilling and testing of the primary well bore and will now be sidetracked to further delineate the extent of the Jurassic oil accumulation. The sidetrack is expected to be completed by the end of July. Gajah Laut Utara, Indonesia (Premier 65%). In Indonesia on the Tuna block, the Gajah Laut Utara-1 exploration well has reached a total depth of 4,688 metres in pre-Tertiary basement and is being plugged and abandoned with oil and gas shows. Oil shows were reported throughout a 350 metre thick succession of interbedded sandstones and shales in the Oligocene.  However, logs suggest that the majority of these Oligocene sandstones are tight. One zone was sampled and gas was recovered. The well also encountered good quality water wet reservoir rocks within the Miocene sequence and source rocks within the Oligocene.  A working oil and gas petroleum system has therefore been established on the Tuna block. The Ocean General rig will now move to drill the Belut prospect. Belut Laut is located approximately 10 kilometres north-west of Gajah Laut Utara, in a separate sub-basin and is an independent test of the petroleum system on the Tuna acreage. The results of the Belut well are expected in early August. K-27, Pakistan (Premier 15.79%).The K-27 exploration well, which spudded on 4 April 2011 in the Kadanwari block, has been successful, testing gas with a flow rate of 51.3 MMscfd through a 56/64 inch choke. The operator (ENI) plans to tie the well to the production facility by the end of the third quarter, delivering around 30 MMscf. Simon Lockett, Chief Executive Officer, commented, “The Grosbeak appraisal has provided valuable information and we look forward to the results of the sidetrack confirming the size of the oil reserves in the field. The Gajah Laut Utara well is the first exploration well drilled by Premier in the Tuna acreage and established the presence of a working petroleum system. We look forward to the results of drilling the Belut Laut prospect.In Pakistan, the K-27 test results are extremely positive providing additional resources and near term production to the Kadanwari asset.”

Range Resources;

Released a company update; copys of the aforementioned are available on the company web-site.

Rockhopper Exploration;

Released the much awaited results from the 14/10-5 Appraisal well update – flow test result, confirming what every one suspected that the Well flowed at commercially viable rates…Well flowed at stabilised rates of 5508 stb/d …Well achieved a maximum stabilised flow rate of 9036 stb/d. The company today also released results for the twelve months ended 31 March 2011.

Roxi Petroleum;

Released their BNG Operational Update. The results of an independent Estimation of Resources by Gaffney Cline and Associates of the Company’s preliminary interpretation of approximately 1,400 square kilometres of high quality 3D seismic data. The data were previously acquired in the BNG Contract Area in Western Kazakhstan in 2009 and 2010. Roxi has thus far identified 30 prospects and a further 7 leads within the BNG Contract Area. The prospects range in size from 3 to over 80 million barrels of oil with a total aggregate gross resource potential of over 500 mmbo of “Best Estimate Prospective Resources”. The geological Chance of Success, or Risk, assigned by GCA to the majority of these  prospects range from around 20% to over 80% in one or two cases. The less well-defined “leads” vary from 6 to over 130 mmbo in size, have an aggregate potential of a further 400 mmbo, and Chance of Success assigned by GCA of less than 15%. In addition to these prospective resources, a further 13 mmbo estimated for the South Yelemes field are classified by GCA as Contingent Resources (2C, or Best Estimate case). The Yelemes field development is contingent on further testing of the Neocomian dolomite reservoir, extension of the Sub-Surface User Contract and subsequent extension of Pilot Production consents. We have exercised our right to extend the SSUC, which we expect to be issued by the authorities shortly. This will allow these Contingent Resources to be up-graded to Reserves. The total Risked Most Likely Prospective and Contingent Resources on the BNG block are estimated to be 215 mmbo.

Salamander Energy;

It’s been a very busy week here for Salamander Energy with news on their East Terrace Oil Discovery,Kerendan Gas Sales & Purchase Agreement,AGM Statement and of course the perfunctory all resolutions duly passed announcement. Copys of the above can be read on the company web-site.

San Leon Energy;

Released Final audited results for year ended 31 December 2010. Financial highlights included the Raising of US$93 million (GBP £59.6m) via an equity placing…Loss for the year decreased to €3.98m (2009: €5.52m) with a resulting decrease in loss per share to 1.02 cent per share (2009: 1.92 cent per share)…Administrative expenses decreased to €4.21m (2009: €5.08m)…Group net assets increased by  €88.2m to €121.23m (2009: €33.03m)…Cash balances of €67.17m at 31 December 2010 (2009: €1.98m). Operational:..Signed Farm-in Agreement with Talisman across Baltic Basin acreage…Awarded 1,167 km2 Nida Concession, Poland…Awarded 603 km2 Szczawno Concession, Baltic Basin, Poland…Completed 300 km2 3D seismic acquisition programme, offshore Ireland…Awarded expansion to the Gdansk W Concession, Baltic Basin, Poland Acquired Gora, Winsko and Rawicz Concessions totalling 1,314 km2, Southern Permian Basin, Poland…Commenced 480 km2 Baltic Basin 2D seismic acquisition programme…Signed Iraq Joint Venture Agreement with Al Meinaa Oil Services Company. Corporate:…Completed acquisition of Island Oil & Gas Plc…Appointed Macquarie Capital (Europe) Limited as corporate broker. Outlook:…Drilling up to 13 wells in 2011…Three well drilling programme commencing in Q3 2011 on Baltic Basin acerage…First of a three well programme targeting conventional oil in Poland will be drilled in Q3 2011…Drilling of two wells at Tarfaya Oil Shale project began in Q2 2011, a third well is currently being planned…1,200 km 2D seismic survey to be acquired over Tarfaya and Zag licences – expected to be completed by the end of 2011…Acquiring 220 km of 3D seismic over Barryroe licensing option…Seeking Farm-in partners to drill wells / acquire seismic data on Atlantic Margin licences…Established seismic acquisition Company – Novaseis Sp.z o.o…Joint Participation Agreement signed in March 2011 with Governorate Council of Karbala in central Iraq.

Tower Resources;

The oil and gas exploration company with interests in sub-Saharan Africa, principally in Uganda and Namibia, provided details of  the outcome of a second detailed technical and economic evaluation of the 0010 Licence, located offshore Namibia. Tower has a 15% working interest in the Licence and is fully carried financially by Arcadia Expro Namibia (PTY) Ltd (“Arcadia”) through an initial exploration well and a contingent second well. The Tower Board has now received an updated Competent Persons Report, compiled by Oilfield International Limited (OIL), over Licence 0010. The CPR update follows the interpretation of the high quality 3D seismic data acquired in 2010 over the primary drilling target “Delta”. OIL conducted a detailed review of the “Delta” structure and calculated the Expected Monetary Values (EMV’s) of the prospects and leads identified. OIL also updated the EMV of two other structures, “Alpha” and “Gamma” which were the subject of the previously reported June 2010 CPR on Licence 0010.

Wessex Exploration;

Presented the market with their Half Yearly Report in respect of the six months ended 31 December 2010 highlighting continuing progress during the period being reported upon and to the present time. Highlights included, AIM admission achieved in March 2011…£1.875 million raised before expenses via open offer and placing in October 2010…£3.0 million raised before expenses via institutional placing in March 2011…Zaedyus prospect in French Guyane currently being drilled…Competent Person’s Report indicates Wessex Exploration net P50 volumetric potential in Southern England to be approximately 52 million barrels of oil, in 8 exploration leads.

Xcite Energy;

Announces that it has drawn down on its Standby Equity Distribution Agreement (“SEDA”) with YA Global Master SPV Ltd (“Yorkville”) in the amount of £12.5 million (CAD$19.5 million). This draw down has been undertaken at a price of £1.18 (CAD$1.84) per share and will result in the issue of 10,593,220 ordinary shares of no par value in the capital of the Company (the “SEDA Ordinary Shares”) to Yorkville. This funding will be used as future working capital for the Company and to progress towards the first stage production of the Bentley field.  Two of its directors, Rupert E. Cole and Stephen A. Kew intend to purchase, using entities controlled directly by them, through Arbuthnot, respectively, 1,000,000 and 1,000,000 Ordinary Shares of the Company at a purchase price of £1.18 (CAD$1.84) per share from Yorkville on the date of closing of the issuance of the SEDA Ordinary Shares to Yorkville.

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  1. Matt says:

    Dan,Any info on Beowolf mining?

    • Brokerman says:

      Actually I was speaking to a contact at Alexander David several days ago. I’m sure he mentioned them in passing but for the life of me I can’t recall what he was saying as we were discussing Ntog. I’ll get back to you on it.