Its been yet another terrible week for investors with Global turmoil engulfing the markets. Bad news is magnified a gazillion times! By the market watchers. Of course some of the big boys are now talking of a double-dip but to be realistic we haven’t ever really shook off the first one!
Smallcap Oil & Gas round-up with a sprinkling of Miners
Caza Oil & Gas;
Caza announced second quarter results and provided an operational update on its activities. Copy’s of which can viewed by clicking this link. http://www.cazapetro.com/index.php?id=264
Came out fighting piggy-backing the latest RKH NEWS. The company welcomed the update from Rockhopper, in particular its statement that the SLMC is believed to extend into licence PL004 in which Desire has a 92.5% interest. However, since Desire does not have access to all the data upon which Rockhopper’s evaluation is based, in particular the 14/10-6 well data, Desire is unable to confirm Rockhopper’s interpretation at this stage. Nevertheless the results of this well are encouraging for the Shona lead which was previously identified from the raw stack data.
Announced that Credit Agricole Cheuvreux International had informed the company that on 15th of August their stake in Edenville had dipped below 5%
Released some good news with an extensive Sugarloaf update copy’s of which can be read by clicking this link.
Europa Oil & Gas;
Announced the appointment of Hugh Mackay as a director and Chief Executive Officer with effect from 10 October 2011.
Released some much needed good news. The company said that Texon Petroleum had advised that the latest Leighton Olmos vertical production well, Peeler #3, has begun to flow oil and gas at the combined rate of 370 boepd from the Olmos reservoir (comprising 325 bopd and 268 mcfgpd). This is the ninth well targeting the Olmos reservoir in which Global has a 15% working interest (11.25% net revenue interest). This is a good result as the closest three Olmos production wells, Peelers #1 and #2 and Tyler Ranch #5 tested at initial rates of 170 to 445 boepd. The well will be connected for production to oil tanks and the gas pipeline in the next two weeks.
Gulf Keystone Petroleum;
Announced that it has made a new Triassic discovery with the Shaikan-2 Appraisal Well, drilled approximately nine km to the south-east of the Shaikan-1 discovery well in the Kurdistan Region of Iraq.. The company completed drilling of the Shaikan-2 Appraisal Well to a TD of 3,300 meters in the middle Triassic, following which a flow test has been performed in the newly discovered Kurre Chine C zone over a 80 meter interval (3,195m to 3,275m). This new zone is highly pressured and correlates with the high pressure zone penetrated at the bottom of Shaikan-1. The Kurre Chine C flow test in Shaikan-2 has achieved variable flow rates up to a maximum recorded rate of 4,450 barrels of 36 degree API oil per day with associated gas of 813,000 scf per day through a 36/64″ choke. After success with this first test, the Company plans to continue with its programme of Shaikan-2 testing in the Triassic and Jurassic. The Company has a 75 percent working interest in the Shaikan block and is partnered with the MOL subsidiary, Kalegran Ltd., and Texas Keystone Inc. which have the remaining 20 and 5 percent working interests respectively.
Announces that, following recent exercises of options under the Company’s stock option plan, the Company has applied for a total of 555,000 common shares to be admitted to trading on AIM, representing approximately 0.2% of the issued share capital (post options exercise). Each New Common Share will rank pari passu with the existing common shares. It is expected that dealings in the New Common Shares will commence on August 24, 2011.
Updated the market announcing that Well-12 has suffered from a build-up of wax in the tubing and an increase in water cut to 70% and has ceased to flow and has now been shut-in. Prior to the increase in water cut and shut-in of the well, the Company had sought an independent review of the status of well-12. This review, which was conducted by Gaffney, Cline & Associates (“GCA”), concluded that, although there was insufficient data available to definitively determine the source of the water, the available data was not typical of an aquifer influx and that the water may be flowing behind the production liner from overlying formations. The GCA review recommended acquisition of further data in order to identify the source of the water before attempting a remedial work-over. Following the GCA review, the directors have sourced a work-over rig (expected to be on site on 17 August) that will allow the Company to pull and clean the production tubing and then to artificially place the well into temporary production, using nitrogen. This will also allow production logging over the entire liner interval and into the production casing and will provide the best opportunity to identify the source of the water production. Following production logging, a pressure survey will be conducted before deciding on the viability of further remedial work on the well. Well-13 After establishing water-free oil production, the leased production equipment at the site was demobilised and the well shut-in. Analysis of the production and pressure data shows that the well should be expected to produce at around 100 bopd with the installation of an electrical submersible pump and surface production facilities at the site. A firm decision to install this equipment has not yet been made but the directors expect that its installation will enable well-13 to generate a positive cash flow after the deduction of production taxes and other costs. The directors have taken the decision to await the results of the well-12 work-over before committing to this expenditure.
Max Petroleum Plc, an oil and gas exploration and development company focused on Kazakhstan, is pleased to announce that it has commenced drilling the UTS-3 appraisal well on the Uytas prospect in Block A. The total depth of the well will be approximately 800 metres, targeting potential Cretaceous and Jurassic reservoirs.
Announced that BlackRock Inc had increased their stake in the company to over 10%.
It’s looking positive at TIDDLER Nostra as the company announce the initial well in the Verde Prospect in south-eastern Colorado, has been drilled ahead of schedule to a total vertical depth of 5,300 feet. Indications of productivity in drilling samples and electric logs were positive and the well has been recommended for completion. Production casing will be run to total depth, followed by completion in the most optimal zone(s). NTOG will provide the first 30-day production figures as soon as these are available.
NTOG has a 16.25% working interest (WI) in the Verde prospect. Following evaluation of testing and potential production of the initial well, two or three further development wells (PUDs) could be drilled, in which Nostra Terra also has the right to participate. Matt Lofgran, Chief Executive Officer of Nostra Terra, commented: “We’re pleased with the progress made on this well ahead of schedule and hope to see further positive results on this prospect. As a company, our current prospects are fully-funded, with additional cash on hand for further acquisitions, allowing us to continue to grow, regardless of the state of the global economy or markets.” Furthermore Nostra announced more good news in the Agnello #1 horizontal well within the Vintage Hills prospect unit located in the Giddings Field in Texas, has been completed and the well has been put back into production. Nostra Terra has a 1% working interest in the Vintage Hills Prospect Unit, located within the large Giddings Field in Texas, which is operated by New Century Exploration, Inc. The Company will provide an update on 30-day production figures in the future.The initial well in the Nesbitt prospect is also moving towards completion. Production facilities are currently being built and completion operations being finalized on the prospect. Nostra Terra has a 3% working interest in the Nesbitt Prospect Unit, located in the Woodlawn Field in Texas, which is also operated by New Century Exploration.
Released its Cambay-76H “Tight” Reservoir Well Report No 11 which advised that the well is being prepared for well clean-up flow and production testing. The well is currently being flowed to surface to remove stimulation fluids from the eighth fracture stimulation stage and hydrocarbons are being flowed intermittently to surface along with the stimulation fluids. Milling operations to open up the remaining
seven fracture stimulation stages have started. After the completion of the clean-up operations a flow test will be conducted.
Released their Interim Results and Operational Update Six months ended June 30th, 2011. Copy’s of which can be viewed by clicking this link.
Announced an additional successful re-completion in Louisiana – Well 50 East White Lake Well 50 East White Lake, Louisiana, has now been successfully re-completed and the initial results are considered very good with steady state rates of approximately 100 boepd, of which some 40% is good quality oil. President holds a 21.875% net interest in this production. As with the previously re-completed wells, President enjoys high price realisations, low operating costs and low tax rates, producing net backs significantly higher in proportion than normal for this level of production. Drilling has now commenced on the first of two wells targeting proven undeveloped reserves at East White Lake. Additionally the side track of the McKerall 1 well is still on track to commence in September.
Some good news for holders here as Range announced the Puntland Drilling Contract had been Signed – Drilling Set for Q4, 2011
Following on from last weeks success at Sea-Lion RKH released a “Prospective Resources Update” A presentation showing the Company’s current interpretation of the Sea Lion Main Complex along with the locations of Caspar, Kermit, the Lower Fan, Chatham and potential future drilling locations, is available on the Company website: www.rockhopperexploration.co.uk
Victoria Oil & Gas;
Informed the market that a total of 29,354,285 shares have been allotted in settlement of deferred consideration and deferred bonus obligations contained in agreements previously entered into by the Company’s subsidiary Bramlin Limited. In addition, a total of 1,384,080 shares have been allotted to Directors and employees in lieu of cash salary for the six month period ended 31 July 2011 at a weighted average month-end market price of 4.8 pence per share. The effect of the above allotments on the disclosable interests of directors of the Company is as follows:- Kevin Foo shares alloted 4,758,958, total holding 52,655,599 = 2.41%. Robert Palmer 135 898 total holding 1,130,614= 0.05%. *The shares are held by H J Resources Limited on behalf of a discretionary trust, of which Kevin Foo and his wife are potential beneficiaries.