Smallcap Oil & Gas Round-up. 28.10.2011

*UK Smallcap Oil & Gas stocks bounced back this week as investors cheered an agreement reached by European leaders on a plan to resolve the euro-zone’s debt crisis.* Lets hope it lasts!

Chariot Oil & Gas;

Released their Interims this week Indicating that the schedule for drilling the first well on its acreage offshore Namibia may slip beyond the original target of the fourth quarter of this year. The company said the timing of other planned wells in its drilling programme could also be delayed beyond the first quarter of 2012 as its farm-in partners spend time setting up operations in Namibia. The full results can be viewed by clicking this link.

Circle Oil;

Announced the following update regarding the Al Ola-2 well drilled in the Al Amir SE field, the Geyad-D well in the Geyad field and a progress update following the commencement of water injection. The Shagar sands were found to be oil bearing from 10,143 to 10,158 ft MD, with 15 ft MD of net pay, an average porosity of 13% and an average water saturation of 22%. The Rahmi sands were encountered with poor quality sands. Although Al Ola-2 was initially planned as an injector, the presence of the oil column in the Shagar resulted in the decision to complete the well initially as a production well from the Shagar sands. Geyad-D…The rig has now been mobilised to drill a production well at the Geyad-D location on the northern flank of the Geyad field, updip of the Geyad-2XST producer. The well’s objective is to appraise both the Shagar and Rahmi sands for production in that location. The proposed total depth of the well is 6,050 ft MD into the Upper Rudeis Formation. Water injection in AASE commenced successfully on two wells in the Al Amir SE field, on 27 Sept 2011 in AASE-7X in the Shagar and Rahmi sands and on 1 October 2011 in AASE-8X in the Rahmi sand. The combined water injection rate is currently approximately 9,750 barrels per day. Production from the Al Amir SE and Geyad fields is running steady at around 7,800 bopd (3,120 bopd net to Circle). The NW Gemsa Concession partners include: Vegas Oil and Gas (50% interest and operator); Circle Oil Plc (40% interest); and Sea Dragon Energy (10% interest).

Desire Petroleum;

As reported here on the Blog several days ago. Desire announced the conclusions of a recently completed Competent Person’s Report (CPR) on part of the Company’s extensive exploration acreage in the North Falkland Basin. The oiler also updated on the Ocean Guardian drilling rig. The CPR covers only 40% of the Company’s northern licences Tranches C, D and F and is focussed on the areas of the fast-tracked fully processed 3D data covering the northern part of Tranche D (PL004) and the Ann prospect sub-area within Tranche C (PL003).

Europa Oil & Gas;

Announced that its broker, finnCap, has raised approximately £700,000 (before expenses) through an oversubscribed institutional placing of 7,777,776 new ordinary shares at a price of 9p per share. Proceeds from the Placing will supplement the Company’s existing cash resources in funding the near-term working capital requirements of the Companyand its ongoing projects, and to strengthen the Company’s balance sheet inlight of the recently announced Romanian VAT liability, as notified on 27 September 2011.

Exillon Energy;

Issued its Interim Management Statement for the period beginning 1 July 2011.  Unless otherwise stated, the financial and production data are for the period from 1 July 2011 to 30 September 2011 and all other information is as at 25 October 2011. All oil rates are presented in barrels of oil per day (bbl/day) and all wellbore depths are presented in meters true vertical depth sub-sea (meters, TVDSS). Highlights included The Group’s average daily production in the period was 9,137 bbl/day, an increase of 53% over the comparable period in 2010 (5,985 bbl/day)….The Group’s daily peak production was 10,276 bbl/day during the period. Beginning 15 November 2011, the Group intends to publish unaudited monthly production data for the preceding calendar month via RNS and on

Frontera Resources;

Announced some good news this week. Frontera said that is was seeing encouraging results from ongoing flow test work at its latest gas discovery well on the Mtsare Khevi Field. Earlier this month, Frontera said the recently drilled Mtsare Khevi #32 on the Shallow Fields Production Unit, Block 12, could expand the size of the field’s gas potential by as much as five times the previously identified recoverable gas estimates. Testing operations associated with approximately 33 meters of gas bearing net pay have since continued at the well, which was drilled to a depth of approximately 370 metres in the undeveloped northwestern portion of the field.

Global Petroleum;

Has appointed Houston based Albrecht & Associates to seek buyers for its interest in the Olmos production and related leases which form part of the Leighton Project.  The sale follows the lead of Texon Petroleum Limited, the major partner in the Leighton Project who are seeking buyers for their Olmos assets. Global’s interest in the Olmos reservoir comprises a 15% working interest in approximately 873 acres and includes 9 production wells. Global will retain its Eagle Ford production and related leases in the area.

Gulf Keystone Petroleum;

Updated on its ongoing exploration and appraisal programme for the Shaikan, Ber Bahr and Akri-Bijeel blocks in the Kurdistan Region of Iraq. Shaikan is a major discovery with independently audited gross oil-in-place volumes of between 4.9 billion barrels to 10.8 billion barrels calculated on the P90 to P10 basis with a mean value of 7.5 billion barrels. Copies of the update can be viewed by clicking the link.

Kea Petroleum;

Reported that it has sold its 50% shareholding in a joint venture business that owns the drilling rigs that it has been using for exploration.Kea  sold its stake in Petra Drilling together with associated rights to the Titan workover rig and the VR500 drill rig, to Webster Drilling and Exploration. As part of the deal Petra will repay a US$1.5 million loan from Kea to Petra that was used to initiate the project to bring to New Zealand a state of the art drilling unit, namely a fully automated VR500 rack and pinion topdrive rig. In addition, Webster has also paid Kea the full asset value of the Petra shares, and Petra has repaid the money advanced by Kea last year to enable the purchase of the Titan workover rig.

Mediterranean Oil & Gas;

Finally released some good news the company reported gas production under way from its offshore Guendalina gas field in Italy. The development is expected to provide a much needed revenue boost for the company. Mediterranean has a 20% working interest in Guendalina, which is 80% owned and operated by ENI. According to ENI, the anticipated final project cost is likely to be approximately 7% higher than original estimates. That means that the final project capex, net to Mediterranean, is expected to be approximately €15.5 million.

Nighthawk Energy;

The struggling US focused oil development and production company announced that it has raised approximately £1.97 million through the placing of 78,892,000 new ordinary shares of 0.25 pence each at 2.5 pence per share. The Placing is being carried out under the existing power granted by shareholders to the directors of the Company at the 2010 annual general meeting. The Placing Shares have been issued and allotted conditional only on admission to trading on AIM which is expected to occur on 31 October 2011.  Following the Placing, there will be 456,995,080 ordinary shares of 0.25p each in issue.

Nostra Terra;

Once again failed to thrill investors as the company announced the results of the initial well in the Verde Prospect Unit, which covers 636 acres in south-eastern Colorado and in which the Company has a 16.25% working interest. During the initial 30 days of production, the well produced an average rate of 64 bopd (barrel of oil per day gross), with 100% of production being oil. Once a minimum of 6 months production has been established, this initial well, together with potential off-set locations will allow the Company to post an increase in its aggregate reserves. Matt Lofgran, Chief Executive of Nostra Terra, commented: “I am delighted with the progress at the Verde Prospect. This first well has de-risked the leases, thus creating value for the entire prospect. The well is demonstrating a relatively shallow decline curve, and along with production rates, is performing above our expectations.” Unfortunately the market disagreed. Nostra ended the day flat.


Released a quarterly report to shareholders* Netherland, Sewell and Associates, Inc. completed an initial independent assessment of the Cambay “tight” reservoirs and provided Best Estimates; two shallower zones (X and Y) with combined discovered gross in-place volumes of 1,314 BCF of gas and 1,633 million barrels of oil and unriskedgross recoverable volumes of 494 BCF of gas and 83 million barrels of oil, four deeper zones (Z, 180-200, 200-300, 300-400) with undiscovered gross in-place volumes of 12,644 BCF (12.6 trillion cubic feet) of gas and 11,592 million barrels of oil and unrisked gross recoverable volumes of 934 BCF of gas and 140 million barrels of oil. Oilex successfully drilled and completed the 2,740 metre Cambay-76H well including 610 metre horizontal section and conducted an eight stage fracture stimulation program. Completed micro-seismic and pressure data acquisition during fracture stimulation program of Cambay-76H. These data will be used in evaluating the effectiveness of the fracture stimulation program. Clean-up operations on Cambay-76H in preparation for production testing were started. These have been suspended while tools stuck in the well bore are retrieved. Cash at end of the Quarter of A$15.4 million with no corporate debt at the end of the Quarter.

Range Resources;

Were forced to respond to an ASX Query regarding Bulletin Board rumours. The company said a  comprehensive update will be released at the end of the week once all material information is received. Today Range released a disappointing operational update copys of the report can be found by clicking this link.

Rockhopper Exploration;

Announced that the 14/10-9 well was spudded at 10.45 hrs BST on 25 October 2011. The Well, situated on Licence PL032, which is 100% owned and operated by Rockhopper, is the eighth well to be drilled on the Sea Lion feature. It is located approximately 5.9 km to the south west of the 14/10-2 discovery well and is designed to investigate reservoir presence and hydrocarbon charge within the Sea Lion Main Complex towards the southern edge of the Company’s acreage and is also an exploration well on the Eastern side of the Casper prospect.  Drilling operations are expected to take approximately 33 days and a further announcement will be made once drilling is completed

Sound Oil;

Reported that a drilling rig has been mobilised to the Casa Tiberi-1 wellsite, located at Falconara, Ancona, central Italy. Rigging up is expected to take five days and drilling operations are expected to start within one week. Casa Tiberi-1 will be drilled to a total depth of 700 m to test the hydrocarbon potential of Pliocene sands.  The well is expected to take 10 days to complete.

Victoria Oil & Gas;

Has completed, conditional on admission, an equity placing of 292,307,687 new ordinary shares at a price of 3.25 pence per share raising £9.5 million before expenses through Fox-Davies Capital Limited. The funds raised through the Placing will be utilised by the Company, inter alia, to complete the development of the Logbaba gas and gas condensate project in Cameroon following the increase in the Company’s working interest in the project to 95%. It will also fund the final payment to acquire a one third interest in Cameroon Holdings Limited, announced in August 2011. These transactions have considerably enhanced the project economics to the Company, increasing net proved and probable gas reserves by approximately 80 billion cubic feet and the post tax NPV by $270m to $676m. Today the company released their Results for year ended 31 May 2011 copys of which can be viewed by clicking this link

Xcite Energy;

Has drawn down on its Standby Equity Distribution Agreement with YA Global Master SPV Ltd as announced on 28 September 2010 in the amount of £3.20 million (CAD$5.15 million). This draw down has been undertaken at a price of £1.18 (CAD$1.90) per share and will result in the issue of 2,707,504 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 first oil from the Bentley field

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  1. wcj says:

    Hi Dan,
    Im puzzled why the share price of (EME) Empyrean Energy has not blown its roof of today when releasing this news.

    Empyrean’s proven reserves (1P) have increased by 41.7% to 1.5 MMboe

    · Empyrean’s probable reserves have increased by 37.1% to 1.7 MMboe

    · Empyrean’s proven plus probable reserves (2P) have increased by 39.1% to 3.2 MMboe

    · NPV (10) of 1P reserves of US$30.8m equates to approximately 8.9p/share*

    · NPV (10) of 2P reserves of US$57.7m equates to approximately 16.8p/share*

    · Closing price of Empyrean as of yesterday was 5.25p/share

    · Eagle Ford Shale is proving to be one of the USA’s largest onshore discoveries

    Theyre share price is only 6 pence,any ideas???

    Much appreciated


  2. Steve Picot says:

    Great reporting, look forward to your postings each day,