Here we are once again the famous weekly smallcap Oil & Gas round-up. I think we’ll start the round-up off with some good news.
Investors were smiling as Dominion announced and recommended an offer from Ophir. The Boards of Ophir and Dominion have reached agreement on the terms of a recommended offer to be made by Ophir to acquire the entire issued and to be issued share capital of Dominion. The Recommended offer of 0.0244 New Ophir Shares for each Dominion Share values the entire issued and to be issued share capital of Dominion and the Dominion Convertible Notes at £118.2 million. The Offer values each Dominion Share at 5.9 pence per share based on the closing price of 242.2 pence per Ophir Share on 12 October 2011 (being the last business day prior to the date of the announcement). The Offer represents a premium of approximately 64.2 per cent. to the closing price of 3.6 pence per Dominion Share on 12 October 2011. The shares duly responded and closed up 51%.
Today released an upbeat Competent Persons Report. The new CPR identifies considerable additional prospectivity resulting from the interpretation of the Company’s recently acquired 3D seismic data over its 100% owned licence PL001. Based upon this report the total Best Estimate of unrisked potentially recoverable prospective resource on the Argos licence area amounts to 2,107 million barrels of oil (mmbo), an uplift of 182 per cent. on the previous resource estimate of 747mmbo. The new CPR is available on the Company’s website, www.argosresources.com. In April 2011 the Company announced the completion of the acquisition of 1,415 net square kilometres of 3D seismic data, including coverage over the entire licence area, a halo outside the licence boundaries and tie-ins to key wells. The entire 3D data set was processed on a fast-track basis from which the Company has identified a portfolio of prospects.
Aurelian Oil & Gas;
Today stated that Toscafund Asset Management LLP, on behalf of Tosca Mid Cap, Tosca Opportunity and DB Platinum Tosca Mid Cap Equity Fund, as at 11 October 2011 there had been an acquisition of shares. These transactions took the relevant interests to above the 21% threshold. (As foretold by the Blog)
Informed the market that on 10 October 2011, Dursley Stott, a non executive director of Bahamas Petroleum, acquired 35,000 ordinary shares in the company at a price of 8.24 pence each. Following the Acquisition, Mr. Stott is now interested in 350,000 Ordinary Shares, representing 0.03 per cent. of the Company’s issued share capital. In addition, Mr. Stott is interested in 1,500,000 options over Ordinary Shares, as previously disclosed.
Updated on the ongoing drilling and well testing program on the Pokrovska and Zagoryanska gas fields in eastern Ukraine. The Pokrovska 1 well was deepened to 5,762.5 meters into the Lower Visean V26 interval where logging of the V26 indicated it to be water bearing. As a result the zone was plugged off to enable testing of the overlying V24/V25 interval, which log data indicates is gas bearing. The equipment required to undertake a full well test on Pokrovska 1 will be moved into location during October in order to comprehensively evaluate the V24/V25 interval. The Saipem drilling rig has been moved on to the Pokrovska 2a location, where drilling is planned to commence this month. The primary objective for this well is the Upper Visean section in a different part of the Pokrovska licence. On the Zagoryanska licence, a work over rig has completed the intervention program at the Zagoryanska 1 well and is now being moved to the Zagoryanska 2 well location to carry out further work over operations. At Zagoryanska 1, testing of the secondary target V23/V24 proved to be non-productive. The well was recompleted in the primary V18/V19 target and perforated. A coiled tubing unit is being mobilised to Zagoryanska 1 to continue the testing program on the V18/V19 interval. This interval is currently producing at the Zagoryanska 3 well, located about 800 meters from Zagoryanska 1. An extensive work over and testing program on the other wells on the Zagoryanska license will continue into 2012. In addition, the work program includes a new well, Zagoryanska 9, which is targeted at the upper and lower Visean section.
Released their interim results for the six months ended 30 June 2011. The highlights included, 3D seismic programme completed in Tranches C, D, F and adjacent open areas. Initial interpreted data from the priority areas are encouraging. An updated Competent Persons Report over the priority areas to be published in Q4 2011.Appointment of Graeme Thomson to Board as an Independent Non-Executive Director and Chairman of the Audit Committee. Rockhopper Exploration announced in August that in their high case up to approximately 10% of the Sea Lion field may extend into PL004 (Tranche D) in which Desire has a 92.5% interest. (See Rockhopper re’ the PL004 farm-in.)
Europa Oil & Gas;
Announced the spudding of the second well on the Voitinel Gas Discovery, Horodnic-1, on 11 October. This well, situated in the Brodina Licence in northern Romania, is designed to test the Late Badenian sandstone (`the 1650 sand’) that flowed 3mmscfpd on test in the Voitinel discovery well. The Voitinel-Solca trend on the licence may contain significant gas reserves and this second well is located in order to prove up a minimum volume for development. If successful, the joint venture will drill a further well to test this upside potential, probably on the Solca part of the trend, to the south of Voitinel. The Horodnic-1 well is anticipated to take in the region of 30 days to get to the main target depth.
Currently, a 2D seismic acquisition programme is underway in the thrustbelt oil play of the Brodina Licence immediately west of Voitinel. The results of this programme will drive the exploration work programme for 2012. Europa holds a 28.75% working interest in the Brodina Licence, which is operated by Aurelian Oil & Gas.
Released a 30 day Second Eagle Ford Well result. Texon Petroleum has advised that during its first 30 days of production, the second Eagle Ford well in which Global has an interest, Tyler Ranch EFS #2H, produced 30,400 boe (92% oil). The first Eagle Ford well, Tyler Ranch EFS #1H, produced 19,651 boe in its first 30 days. Global has a 7.939% working interest (5.95% NRI) in approximately 1,651 acres beneath the Olmos formation including the Eagle Ford Shale. Global’s interest in the Leighton prospect also includes a 15% working interest in approx’ 873 acres from the surface down to the stratigraphic equivalent of the Olmos formation.
Released an RNS that the Ber Bahr-1 Exploration Well has spudded on the Ber Bahr block in the Kurdistan Region of Iraq on Monday, 10th October 2011. Ber Bahr-1 is the first exploration well to be drilled on the Ber Bahr block, which covers an area of 208 km² and lies to the north-west and on trend with the Shaikan and Sheikh Adi blocks operated by Gulf Keystone. Ber Bahr-1 will target prospective intervals in the Cretaceous, Jurassic and Triassic with a planned total depth of approximately 2100 meters. The Operator’s resource estimate for the Ber Bahr block is 1.5 billion barrels of oil equivalent-initially-in-place. The adjacent Shaikan is a major discovery with independently audited gross oil-in-place volumes of 4.9 (P90) to 10.8 (P10) billion barrels, while it is estimated that Sheikh Adi holds between 1 (P90) and 3 (P10) billion barrels of gross oil-in-place. Gulf Keystone has a 40 percent working interest in the Ber Bahr block operated by Genel Energy International Limited, which holds a 40 percent working interest in the block. The Kurdistan Regional Government has a 20 percent carried interest in the Ber Bahr Production Sharing Contract.
Released an Athena project update copys of which can be viewed here http://www.ithacaenergy.com/uploads/IthacaPressRelease111011.pdf Earlier in the week the company announced that it had appointed RBC as joint broker. Ithaca also announced Conditional Approval for TSX Listing.
Released two drilling updates the first Informed investors that it has begun drilling the ZMA-E2 appraisal well in the Zhana Makat Field. The total depth of the well will be approx’ 900 metres targeting Jurassic reservoirs.The second stated it has begun drilling the ZLGS-1 exploration well on the Zhalgyz South prospect in Block A, which has estimated unrisked mean resource potential of 18 million barrels of oil in a four-way, Triassic rim structure. Total depth of the well will be approximately 1,500 metres.
Mediterranean Oil & Gas;
Announces that Stephen Matthew Clarke (aged 48) has been appointed to the Board as a Non-Executive Director, effective immediately.
New World Oil & Gas;
A company focused on making investments in the oil and gas sector, announced that it has signed two Farm-Out Agreements to acquire working interest in Licences 1/09 and 2/09, totalling 4,107 sq km, located in the productive Jutland on-shore area in South Western Denmark. New World will be named Operator of the Project by means of addendums to the existing Joint Operating Agreements. The Company has already commissioned a Competent Persons Report on the concessions, the results of which were positive, and were previously announced by the Company on 16 August 2011.
Struggling nighthawk today released a “Strategy Update”. It’s been a tough time for the company over the last 12 months or so the SP having taken a monumental kicking. Chuck Wilson, Chief Operating Officer, has created an operating capability within the Company that the new team intends to utilise to improve production at Jolly Ranch. As a result the Company has recently engaged in discussions with Running Foxes Petroleum the operator and 50% working interest partner of the Jolly Ranch project, in relation to the potential acquisition of both its working interest and the operatorship of the project. In seeking to move ahead with the potential acquisition, the Company has undertaken a significant number of meetings with institutional investors to evaluate the potential funding available for the transaction and for a new work program at Jolly Ranch involving workovers of existing wells and new wells. Investor feedback on the Company’s strategy has been largely positive, but the current overall market conditions have determined that the acquisition cannot be executed. The Company is proposing to push ahead with the first steps in the new work programme undertaking improvements to existing wells and drilling a number of new wells, commencing in early 2012. The Directors plan that this programme will demonstrate the new operational capabilities of the Company, increase production and establish additional value in the Cherokee shales. The Company is in discussions with Running Foxes over this program, which may involve Nighthawk taking on increased responsibility for the work program and providing the funding. In order to execute the proposed work program, as well as support recent and ongoing costs, which have increased as a result of recent recruitment and the potential acquisition, the Directors are planning an equity fund raising, which is expected to comprise a placing and a pre-emptive open offer to qualifying shareholders. The Directors anticipate that the open offer, which will be conducted at the same price as the placing, will comprise a maximum of €5 million and will provide shareholders with the opportunity to apply for shares in excess of their pro rata entitlement.
Advised that Netherland Sewell and Associates Inc. have completed an independent hydrocarbon in-place evaluation and recoverable resources assessment of six potential Eocene reservoirs (X, Y, Z, 180-200, 200-300, 300-400 Zones) in the Cambay Production Sharing Contract (“PSC”). The assessment by NSAI covers three zones on which Oilex had earlier reported (X, Y and Z) and three additional zones that they have defined (180-200, 200-300, 300-400). The full report can be viewed by clicking this linkhttp://www.oilex.com.au/download.cfm?DownloadFile=F0092AF5-1372-5CE6-248CEAAA2C43018C
Announces that fracture stimulation of the AT-8 well on the Ain Tsila discovery in Algeria has further enhanced the substantial pre-facture flow rates announced earlier this month to 38.6 mmscf/d. In addition the well has produced over 1,100 barrels per day of condensate. These results exceed the previous best test results achieved at AT-1 and further confirm the high deliverability achievable in this field.
Hit the buffers as the company released an Operations Update. (Georgia update included) Copys of which can be viewed by clicking the link.http://www.rangeresources.com.au/fileadmin/user_upload/asx/OPERATIONS_UPDATE.pdf
Also hit the buffers as the company advised that the Mukhiani Well has only been drilled to the intermediate depth of 1544 meters with a proposed total depth of 3500 meters. Drilling operations are continuing after a short interruption to undertake a comprehensive data collection program for close analysis. The analysis is deemed prudent to determine if the well has reached the Paleozoic granite basement or is drilling through a sub-volcanic intrusive which is masking the targeted primary reservoir objective at a depth of about 2300m as interpreted from the helium survey and exists with other similar discoveries found under sub-volcanic intrusives. An additional factor for undertaking the analysis is the slow drilling rates that are being achieved through the highly variable intrusive complex.
It’s been a busy week news wise for RKH. The update on the 14/10-8 exploration well confirmed what we here at the Blog posted. The result was a disappointment (Dry Hole) however that didn’t stop the share from surging as RKH announced a farm-in and a placement. The farm-in agreement with Desire is in (subject to the approval of the Falkland Islands Government) a part of the north-western acreage of licence PL004 known as Area 1, which the Company believes contains the extension to the Sea Lion field and the western part of the “Beverley” prospect, and into the north-eastern part of licence PL004 known as Area 2 which the Company believes contains the “Jayne” prospect and the eastern part of the “Beverley” prospect. The Company has guaranteed Rockhopper Oil’s obligations pursuant to the Farm-In Agreement.
Announces that further to the announcement of 2 September 2011, it today completed the disposal of Salamander Energy (Java & Sumatra) B.V., through which the Group held five per cent interests in the Offshore Northwest Java and Southeast Sumatra PSC’s. The transaction has an effective date of 30 June 2011.
Stated it was “pleased to report that the Belvedere-1 exploration well has spudded”. (Not as pleased as investors were who have witnessed the stock value halve over recent months). This is the second well in the Company’s two-well drilling programme in the Nida Concession (San Leon 100%) in southern Poland. The well is planned to reach a total depth of 1,000 meters and will test multiple targets on trend with the Plowowice and Grobla oil fields.
Went around the houses. The company “refers” shareholders to the following extract from an announcement released on 11 October 2011 by Pan Orient Energy Corp., the operator of the Citarum PSC located on Java, Indonesia in which Sound Oil has a 20% interest: “Site construction has been completed for the Jatayu-1 well, is currently underway for the Cataka-1 well, and will be followed thereafter for the third well location. All drilling services contracts have been awarded. The drilling rig is currently stacked in close proximity to the Cataka-1 well location and will be moved onto the Cataka-1 well site and commence drilling upon the completion of the drill pad construction which is anticipated in mid-November 2011. The Cataka-1 well will be the first of a three well back to back exploration program that is anticipated to continue into the first two months of 2012.” But they got there in the end!
Announced that Northland Capital Partners Limited has raised US$4m (£2.59m) before expenses through a placing with institutional and other investors (the ‘Placing’) of 103,700,000 new ordinary shares (the ‘Placing Shares’) at a price of 2.5p per Placing Share. The Placing is consistent with the Interim Results released on 30 September 2011 in which it was stated that the Company’s intention was to issue only the smallest amount of equity for the time being, consistent with working capital requirements, while the Uganda farm-out process continues. In total, the Directors of the Company have subscribed £782,500 in the Placing, of which £770,000 represents the conversion of US$1.2m of director loans as detailed in the Interim Results. It is intended that the proceeds of the Placing will be used to finance the Company’s working capital requirements until September 2012.
Finally released what those in the know already knew.The company announced that it has increased its Standby Equity Distribution Agreement with YA Global Master SPV Ltd by £50 million to £150 million. This is subject to TSX Venture Exchange approval. Funding under the SEDA will be used as future working capital for the Company and to fund the work required to achieve first oil from the Bentley field. Prior to this SEDA increase, £32.65 million was available for draw down, such that a total of £82.65 million is now available. Under the terms of the SEDA increase, the Company will pay Yorkville a fee of £250,000, of which £125,000 will be payable when the increased facility is accessed by the Company and £125,000 will be paid on 01 October 2012. Xcite are engaged in discussions with potential lending banks in connection with the first stage production programme on the Bentley field. In addition, the Company is in discussions for the provision of additional borrowing facilities to supplement its existing financial resources.