Smallcap Oil & Gas Round-up!

Simple diagram of a drilling rig and its basic...

*It’s becoming quite a regular feature and as ever by popular demand here’s the BMD smallcap oil & gas wrap!*

Aurelian Oil & Gas; Announced that Toscafund Asset Management LLP, had once again increased their holding in the company the relevant interest is now above the 22% threshold. Aurelian also announced that it has discovered gas at the Krzesinki-1 exploration well in Block 207 (Poznan East), Poland.

Antrim Energy;Is to commence drilling on the Erne exploration prospect in the Greater Fyne Area, North Sea, once the WilPhoenix rig has completed its current operations with another exploration company on a well West of Shetland. Following the completion of the Erne well, the rig will move to Antrim’s Carra prospect. The East Fyne appraisal well is expected to commence drilling in the fourth quarter of 2011.

Bowleven; Struck oil this week. The West African focused exploration group, has discovered oil at the Sapele-3 exploration well that is currently drilling in the Douala Basin, offshore Cameroon

Cadogan; Finally announced that it has entered into a settlement agreement with its former Chief Operating Officer, Vasyl Vivcharyk and one other party associated with him.  Under the terms of the settlement the dispute between the parties announced on 26 June 2009 has been concluded for a payment to Cadogan by the other party, satisfactory to all parties.  This payment will be made imminently.  As a result, Cadogan will withdraw its action against Mr Vivcharyk and the other party and Mr Vivcharyk and another party will also withdraw their counterclaim.  No party has admitted any liability or any wrongdoing.

Desire Petroleum; The exploration company wholly focused on the North Falkland basin, noted the announcement made by Rockhopper Exploration that it has entered into a further assignment to secure an additional well slot using the Ocean Guardian Drilling rig. Rockhopper intend to utilise the additional slot to drill a well on the north-western acreage of license PL004, which Rockhopper believes contains the extension to the Sea Lion Field. Rockhopper has farmed in with operatorship subject to all regulatory consents, to earn an aggregate 60% interest. Desire retains a 40% interest. The well will be located in Area 1 of the proposed farm-in area, which will become known as license PL004b once all regulatory consents are obtained.

Enegi Oil; Stated that on 19th May 2011 it had secured an exclusive option to acquire the entire share capital of Advanced Buoy Technology Ltd . This option expired on 19th September 2011 and the opportunity to renew the Option for a further 4-month period at a cost of £250,000 has not been exercised.

Europa Oil & Gas; Confirmed the award of two exploration Licensing Options in the Irish Atlantic Margin Licensing Round. The awards cover two four-block parcels in the Porcupine Basin, with a total area of approximately 2,000km2. Europa submitted bids in the recent licensing round following a review of the Porcupine Basin, situated off the west coast of Ireland.Previous drilling in the basin led to the discovery of Connemara, Spanish Pointand Burren, thus proving a viable petroleum system. The focus is now on the potential for large stratigraphic traps in Cretaceous and younger submarine fan systems similar to those that have been highly successful elsewhere along the Atlantic Margins.

Ithaca Energy; Released a plethora of news this week. The company acquiring Challenger Minerals for up to US$35 million from Transocean Drilling. The deal came on the very same day that Ithaca outlined plans to develop the Stella, Harrier, Hurricane and Helios fields in partnership with integrated energy services group, Petrofac the partners intend to create a production “hub” by deploying a floating production unit, with the export of processed fluids to nearby oil and gas transportation pipelines. First hydrocarbons from the hub are forecast by Ithaca in the second half of 2013 at an initial annualised average rate of approximately 30,000 barrels of oil equivalent per day.

Kea Petroleum; Woke up from its sleep and announced plans to drill a new well in the Taranaki Basin of New Zealand, which will be 50% funded by international methanol producer, Methanex.

Lansdowne Oil & Gas; Welcomed the announcement by Providence Resources regarding the award of Standard Exploration Licence (SEL) 1/11 over the Barryroe area, in which Lansdowne has a 20% working interest. As noted by Providence, the area of SEL 1/11 is larger than held previously under Licensing Option 08/1, an increase of some 25 sq km, with the extra area lying on the northern side of the concession where additional potential has been recognised. Providence has also updated details of the forthcoming Barryroe appraisal well, 48/24-J, the location of which has been finalised using the new fast-track 3D seismic data and which is expected to commence drilling operations in mid November. The Licence is for a period of up to 6 years, split into two 3 year phases, the appraisal well will fulfil the drilling commitment for the first phase of the licence. It is planned to test the well using vacuum insulated tubing which has been demonstrated to be effective when dealing with high pour point crudes such as those seen in the original well.

Leni Gas & Oil; Hit the buffers yet again as the company released an operational update announcing plans for further development of the Ayoluengo Field in Northern Spain including its plans for Enhanced Oil Recovery.

Matra Petroleum; Once again under-whelmed the market with an operational report. The independent oil and gas exploration and production company updated on its operations and plans in the Sokolovskoe Field, Russia.The company said that additional data acquisition on Well-12, as recommended by the Gaffney Cline review has been completed. The well temporarily produced under gas lifting with Nitrogen and a series of production logs and pressure surveys have been acquired.Matra have undertaken a detailed review of the data acquired and reported that the pressure data showed that the reservoir recovered to its initial pressure and showed no signs of depletion. The data also showed signs of pressure support from another (water) zone. Analysis of the production logs showed indications of water influx from behind the liner possibly from the higher Franski zone that is a known water-bearing reservoir in this well. As a result of this the workover rig has recommenced operations and is currently undertaking preparatory works before setting a plug and perforating the liner to ascertain if a remedial squeeze cementation on the liner section, between the Franski water-bearing zone and the Aphonenski oil reservoir, is possible.

New World Oil & Gas; Confirmed that the Belize Ministry of Natural Resources and the Environment has formally approved the assignment of an initial 12.5% working interest in the 420 sq km Blue Creek Project located in the Petén Basin in Northwest Belize to New World’s wholly owned subsidiary, New World Oil and Gas (Belize) Ltd (‘NW Belize’).  This represents the assignment of the first tranche under the Farm-Out Agreement announced on 16 June 2011 and follows the acquisition of 45 line km of 2-D seismic data and the re-payment of certain historical costs by New World to Blue Creek Exploration Ltd. The Company is continuing to carry out its Phase 2 125 line km 2-D seismic survey on the Project area, upon the completion of which, NW Belize will be transferred a further 12.5% working interest in the Project, bringing the Company’s total working interest in the Project at that stage to 25%.

Nighthawk; Holders of beleaguered Nighthawk Said “Good riddance” as the company announced that Michael Thomsen and Geoffrey Metzger are stepping down from Board of Directors with immediate effect.

Petrel Resources; Have been awarded two blocks in the latest Irish Offshore licensing round. Two licensing options in the prospective Porcupine Basin. These licences total 1,405 km2 in extent, and compare well in prospectivity with any frontier acreage of any emerging oil & gas province. Ireland’s fiscal terms are competitive internationally.Petrel’s technical team has detailed knowledge of offshore Ireland. The Irish Atlantic margin has an established petroleum system, though there have not yet been large discoveries.

Petroceltic International; Informed the market on a couple of “Director buys” on 14th October 2011 that Brian O’Cathain, an executive director of the Company, acquired 1,000,000 ordinary shares of €0.0125 each at a price of 5.20p each on that day. Mr O’Cathain holds a total of 3,776,821 ordinary shares representing approximately 0.16% of the issued share capital of the Company. While Alan McGettigan, an executive director of the Company, acquired 1,115,968 ordinary shares of €0.0125 each at a price of 5.30p each on that day. Mr McGettigan holds a total of 4,177,320 ordinary shares representing approximately 0.18% of the issued share capital of the Company.

PetroNeft Resources; Discovered a new oil field in Licence 67 at Cheremshanskaya.  HIGHLIGHTS of which were. The Cheremshankaya No. 3 well discovers two hydrocarbon pools…Oil discovery in main Upper Jurassic target…Gas/oil discovery in Lower Jurassic target…Successful open hole inflow test on both intervals…Development drilling at Lineynoye continues to push field boundary further north…The hydraulic fracturing programme at Lineynoye to commence shortly.

Providence Resources;  Expects to spud an appraisal well over the Barryroe oil discovery in the North Celtic Sea Basin, offshore southern Ireland in mid-November. The 48/24-J well will offset and primarily appraise the 1990 vintage Marathon Oil operated 48/24-3 well, which tested c.45 degree API light sweet oil at c.1,600 BOPD from Base Cretaceous sands. Providence holds a 50% interest in the Licence and operates on behalf of its partners San Leon Energy (30%) and Lansdowne Oil & Gas  (20%).

Roxi Petroleum; The Central Asian oil and gas company with a focus on Kazakhstan, announced the following update: Cancellation of the sale and purchase agreement (the “SPA”) with BT Corporation for the sale of 58.41 per cent. interest in Munaily. Loan of US$2 million provided to Munaily. Update on pilot production from NW Konys and South Yelemes fields. BNG North Yelemes Well 136 exploratory well planned to spud during November 2011. Plans to mobilize a rig to drill 2 appraisal wells in NW Konys.

Sterling Energy; Issued its Interim Management Statement for the period beginning 1 July 2011. HIGHLIGHTS; Production, net to Sterling from the Chinguetti field, averaged 622 bopd for the third quarter 2011 (Q3 2010: 621 bopd). Adjusted EBITDA in third quarter of $1.7 million (Q3 2010: $2.8 million) (unaudited)…Profit after tax in third quarter of $0.05 million (Q3 2010: profit $3.1 million) (unaudited)…Cash as at 30 September 2011 of $105.6 million (unaudited), including partner funds of $1.6 million…Farm out of the Ntem deep water block, Cameroon, expected to close by year end….Dr Philip Frank appointed as Exploration Director on 3 October 2011. Angus MacAskill, Sterling’s Chief Executive, said: “We are pleased with the progress made towards introducing a partner to the Ntem block in Cameroon and expect to complete the process by the end of 2011. Following the disappointing results of the Sangaw North-1 well in Kurdistan, we continue to integrate all the information from the well to determine the remaining potential of the block.The focus for the Sterling organisation is the acquisition of new ventures whilst remaining ready to progress our existing assets once the in-country situations allow.”

Tethys Petroleum;  Has said that in Tajikistan, after a workover of the Beshtentak well BST20 has tested oil at a rate of 533 barrels of oil per day, accompanied by 12,500 cubic metres of gas per day on a restricted choke (10 mm -25/64 inch) with a flowing tubing head pressure of 26 atmospheres (377 psi). The well is being placed on oil production and the gas tied into the nearby local gas grid.

Valiant Petroleum; Has announced that drilling operations have commenced on the Zapffe exploration prospect (Valiant, 10%), located in PL518 in the Norwegian Barents Sea. Gross prospective resources associated with the Zapffe prospect are estimated by Valiant to be 170 mmboe (net 17 mmboe). The well is anticipated to reach total depth by early December.

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  1. Uri says:

    Dear Mr Chairman (Dan the man)

    very useful, very informative, I am a great fan!
    Ever thought of starting a share trading business?

    • Brokerman says:

      Although you lot out there may not believe it. But last week I was tentatively approached about a Brokermandaniel investment fund! I of course declined. Much too busy with my other life!
      I can see some thing of what you’ve asked on the new site once it gets going for the future. I have been asked to organise a Share Club by about a dozen subscribers. I did speak to two brokerages regarding this, Alexander David & Guardian. Once again it comes down to time. I really am struggling. I need help!



  2. Haseem says:

    I like the idea of a shareclub Dan
    Are you going through AD securities for the brokerage facility? I was in one >a share club that is> several years ago left it as there was so much argument on what stocks to invest in. They are great fun. I’d be interested if you decide to organise one.

    Haseem Shah

  3. Dan says:

    No mention of mxp – who found oil again today.
    Rig is 60% ready for the deep dill on 31st .

  4. Dan says:

    Good to get a mention in the Daily Mail City page. Just states that “Broker merchant services has a target price of 33.7P and trhe ZMA=E2 well represents the 12th consecutive successful well drill by the company”

    12 in a row dan

  5. Mike Jonsey says:

    Hi Dan thanks for the round up. I always enjoy the read.
    Have you heard of the Hub 2011 Hotlist? I’d like your thoughts on it if you have, every single stock on it is down between 30% & 80%. He’s cost Private Investors a fortune with his bullacca.
    The mans a fool I told him so today on his site. No doubt he’ll censor it.
    A right toerag.

    Mike Jones

    • Brokerman says:

      OK Mike
      These people are Day-traders masquerading as investors they’re looking to clip a few percentage points here and there. Never invest on any article, Blog post or a few comments read in a chat forum. Always check out your target via online searches,telephone calls to the company,your Broker. stock reports, market sector reports, national reports,company reports. It will take you some time but at least you’ll know the company. All stocks are down at the moment Mike even the professionals are suffering this Hub is a day-trader operating on iii with a Clique to try to influence Interactive chat members. He’s a fraud. But he’s not responsible for where the market is at the moment. Culpability there rests with Governments.