Smallcap Oil & Gas Round-up.

It’s been another tough week in the smallcaps underverse! However there are some signs of life still out there!

Aurelian Oil & Gas;

More news came from Aurelian this week with further announcements that Kulczyk Investments S.A had been increasing their stake. That’s 4 RNS releases in as many days. This comes on the back of the recent announcements that Tosca fund had also been increasing their stake.

Woody's Roundup: A Rootin' Tootin' Collection ...

Rootin tootin Oil & Gas round-up!

Caza Oil & Gas;

The U.S. focused exploration, appraisal, development and production company, is pleased to announce the appointment of Randy Nickerson to the position of Vice President, Exploration.

Chariot Oil & Gas;

Said it was “pleased” to announce that the drilling permit for its Tapir South prospect (located in Northern Licence 1811 A&B) offshore Namibia has been received from the Ministry of Mines and Energy. This permit was approved and granted further to the review of a detailed well plan, an environmental impact assessment and an oil spill response plan submitted by Chariot.

Global Petroleum Limited;

Today issued a correction on the production numbers coming out of Tyler Ranch EFS #2H. Texon Petroleum has advised that the second Eagle Ford well in which Global has an interest, Tyler Ranch EFS #2H, has produced 38,677 bo and 31,329 mcfg over 60 days.  This represents an average daily rate of 732 boepd (645 bopd + 522 mcfgpd) on the basis of 6 mcf of gas converting to 1 barrel of oil equivalent. The volume of oil produced from the Company’s second Eagle Ford well over its first 60 days of production is 24% more than the first Eagle Ford well in which Global has an interest, Tyler Ranch EFS #2H. Correction On 11 October 2011, a 30 day average rate of 1,000 boepd was reported for the second Eagle Ford well.  Texon have advised that the corrected 30 day average rate for Tyler Ranch EFS #2H is 817 boepd, with the oil rate still being significantly better (some 23%) than the first Eagle Ford well over its first 30 days. The cause of the discrepancy was a faulty oil meter which for seven days was reading above the actual rate – now determined on the basis of oil tanker off-take volumes from the well site.  On-site personnel changed the meter but continued to report the prior incorrect daily oil readings for the previous seven days and this resulted in reporting the wrong 30 day average. Texon advise that oil and gas measurement systems and procedures for both of the Eagle Ford wells in which Global has an interest have been checked by an experienced production engineer and are in good order. Global has a 7.939% working interest (5.95% NRI) in approximately 1,651 acres beneath the Olmos formation including the Eagle Ford Shale

Gulf Keystone Petroleum;

More good news came for investors as the company announced a major upgrade of the gross oil-in-place volumes at its Shaikan discovery in the Kurdistan Region of Iraq. The revised gross oil-in-place volumes, as calculated by independent consultants Dynamic Global Advisors , are a P90 value of 8 billion barrels to a P10 value of 13.4 billion barrels of oil-in-place with a mean value of 10.5 billion barrels. This is the second very significant upgrade of the Shaikan resources estimates in 2011 and it revises the previously announced range of 4.9 to 10.8 billion barrels of gross oil-in-place with a mean value of 7.5 billion barrels. This latest upgrade is based on the data acquired since the last resource evaluation of the Shaikan discovery by DGA issued in April 2011 and is a third successive upward revision by DGA since the Shaikan discovery was announced in August 2009.

Hardy Oil and Gas;

The oil and gas exploration and production company with assets in India, issued its Interim Management Statement for the period from 1 July 2011 to the 08. November 2011. Copy’s of which can be viewed by clicking this link.

Leni Gas & Oil;

Has reached an agreement to acquire the subsurface rights of several additional land leases in the Cedros Peninsula of SW Trinidad, totalling 937 acres.  These leases, which lie immediately adjacent to the Company’s producing interests at Icacos, will be combined with the 815 acres already leased earlier in 2011. A Private Petroleum License will be applied for shortly.  The leases require a minimum work programme of geological studies and have no fees other than net production royalties in the event of success. Elsewhere in Trinidad; the farm-in to the Advance Oil Moruga North leases has been substantially progressed and it is hoped to drill the first of the three exploration wells in first quarter 2012.  A location for the first well has been agreed, environmental permits have been applied for and the contracting of a rig and well services has been initiated.  An update on this programme will be issued later in November. Progress on the assignment of the Goudron Area Increased Production Service Contract continues and the Company is optimistic that field operations can be commenced in early 2012.

Matra Petroleum;

SOME GOOD NEWS CAME TODAY as Matra Announced a placing, through Fox-Davies Capital Limited, of 170,000,000 new ordinary shares at 0.5p per share to raise £850,000 before expenses. The funds will be used for working capital and to initiate production from Well A-13, which is expected to produce at approx’ 100bopd. In addition it is anticipated that Delek Energy Systems Ltd will subscribe for a further new 70,000,000 new ordinary shares at 0.5p per share next week to raise a further £350,000 and when completed will bring the total proceeds raised to £1.2 million. Matra also announced the appointment of Fox-Davies Capital Limited as broker to the Company, ditching Matrix Corporate Capital LLP. Managing Director, Peter Hind said: “We are delighted to have successfully completed this Placing and to welcome Fox-Davies as the Company broker.The funds raised will allow Matra to commence initial production in early 2012 from the Sokolovskoe Field that has 15.1 million barrels of 2C recoverable contingent resources and finalize plans to progress its further development.”

Mediterranean Oil & Gas;

Has entered into a short term secured loan with affiliates of certain of MOG’s substantial shareholders, namely affiliated investment funds of Och-Ziff Capital Management Group, for up to €3.5million. The proceeds of the Loan will assist the Company in funding the payment of fees to a specialist seismic contractor which will undertake the acquisition of 1,000 square kilometres of 3D seismic exploration data on behalf of the Company, in relation to its licence commitment at Area 4 Offshore Malta, under the Malta Production Sharing Contract signed with the Maltese Government on 18th July 2008 and its Addendum signed on 17th May 2011. MOG are currently in negotiations with a seismic contractor and expects shortly to enter into a contract in order that 3D seismic acquisition activity may commence prior to the end of November 2011.

Nostra Terra;

Released an upbeat update on progress on the development plan at the Bale Creek Prospect, located in Oklahoma. As indicated in the development plan, announced on acquisition of our interest in June 2011, the 2D seismic has now been shot and interpreted as a precursor to the 3D program that will now follow. The reflections of the key zones and markers are clear and easily distinguished. These results provide confidence to the Board that the 3D interpretation will be highly reliable as a predictor of geologic structure. The 3D seismic grid has been laid out and will be shot soon. The final interpretation from the 3D seismic is expected by the end of November which will enable the final selection of the drill sites. Drilling of wells in the United States requires operators to go through an approval process at the state level, prior to moving in the drilling rig.  The spacing and pooling hearings for all three horizontal wells in Phase 1 of the Bale Creek Project are now complete and approved.  The process was accelerated in order to facilitate drilling of the wells in quicker succession than originally planned. The first well is now planned to spud in December.

Petroceltic International;

Issued an update on operations at the Ain Tsila field on its Isarene permit (Blocks 228 & 229a) in south-eastern Algeria.  Petroceltic operates the permit with a 56.625% interest, Sonatrach holds a 25% interest, and Enel holds an 18.375% interest, pending Algerian authorities approval.


Has now completed the local community consultation process which was required to be undertaken in order to commence a seismic acquisition programme in the north part of  the Putumayo-4 exploration block. Tenders have been invited from more than 10 seismic service companies for the acquisition of an initial 104.8km of 2D seismic, together with an additional 45-50km of 2D seismic further to our bid commitments to the Agencia Nacional de Hidrocarburos, and we aim to initiate this seismic acquisition programme during December 2011. We expect the programme to take approximately three months to complete.Petrolatina are consulting with local communities to enable them to spud the first exploration well in 2012. An Environmental Impact Study is being prepared, and when completed will be presented to the relevant authorities in order to obtain the necessary exploration well drilling licence.  They currently intend to present this application in December 2011 and expect that the Ministry of Environment will take between approximately 6 to 8 months to process the permit before drilling operations can commence. The initial Putumayo-4 exploration well will target the Villeta formation N, U and T sands as well as the Caballos formation, from which rival companies within close proximity to our Putumayo-4 block are currently producing. In addition, the Company announced that Strand Hanson Limited is the Company’s sole broker and nominated adviser with immediate effect.

Providence Resources;

Informed the market that it had has taken delivery of the GSF Arctic III semi-submersible drilling rig ahead of the upcoming appraisal drilling programme at Barryroe, offshore southern Ireland. The Arctic III came under contract over the weekend & is currently being mobilised to Irish waters from the North Sea. Providence holds a 50% interest in the Barryroe licence (SEL 1/11) & operates on behalf of its partners San Leon Energy (30%) and Lansdowne Oil & Gas (20%). Last month the Barryroe partners were granted an exploration licence by the Irish government & drilling is now expected to begin within the next two weeks. The well will mark the start of a planned multi-well, multi-year drilling programme for Providence as well as the return of major oil drilling off the Irish coast

Rockhopper Exploration;

More good news came from RKH this week. (as hinted at by the Blog) A second oil discovery in the North Falkland Basin with confirmation that its latest well had encountered oil and gas on the Casper prospect. Exploration well 14/10-9 was the latest in a multi-well exploration and appraisal drilling programme being carried out by Rockhopper following its original oil discovery at the Sea Lion prospect early last year. Rockhopper had been using the latest well to appraise the Sea Lion geology  (known as the Sea Lion Main Complex) but also to explore two new prospects, Casper and Kermit. The well was drilled 5.9 km to the south-west of the Sea Lion discovery well towards the southern edge of licence PL032.

Solo Oil;

Announces that it has secured a three-year Equity Line Facility of up to £10 million with Dutchess Opportunity Cayman Fund Ltd. The ELF has been arranged by First Columbus LLP who is Dutchess’s joint venture partner in the UK.

Sound Oil;

Announces that it has drawn down on its Standby Equity Distribution Agreement with YA Global Master SPV Ltd in the amount of £350,000. This draw down has been undertaken at a price of 2.6p per share and will result in the issue of 13,461,538 ordinary shares of 0.1p each in the Company to Yorkville. The proceeds will be applied to the funding of Sound Oil’s combined work programme and ongoing costs of the Company and its subsidiaries. Sound also announced that it has increased its asset position in Italy with a US$9.0 million acquisition of Celtique Energie Spa. The company also agreed the terms of a private share placing that will net £4.0 million in order to fund drilling operations. The acquisition of Celtique for $5.0 million in cash and the balance in shares, brings with it 50% working interests in three permits in Italy, including Torrente Alvo (Strombone oil discovery), Carita (Nervesa gas discovery) and Monte Negro (gas exploration). The move means that Sound Oil now has 100% ownership of Nervesa and Strombone.

Xcite Energy;

Has drawn down on its Standby Equity Distribution Agreement with YA Global Master SPV Ltd in the amount of £2.5 million. This draw down has been undertaken at a price of £1.153 (CAD$1.875) per share and will result in the issue of 2,168,257 ordinary shares of no par value in the capital of the Company  to Yorkville. This funding will be used as future working capital for the Company and to progress towards first oil from the Bentley field. Subject to the terms of the SEDA and except in accordance with Canadian securities laws and with prior written approval of the TSX Venture Exchange, the SEDA Ordinary Shares may not be sold or otherwise traded on or through the facilities of the TSX Venture Exchange or otherwise in Canada or to or for the benefit of a Canadian resident until the date that is four months and one day from the date of issue

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