The Smallcap Oil & Gas round up.

*News has been thin on the ground this Christmas week. (As you’d expect). So here’s what’s out there!*

Department of Energy and Climate Change

Antrim Energy;

Announced the Approval of their Causeway Field Development Plan. The UK Department of Energy and Climate Change has approved the Field Development Plan for the Causeway Field in the UK North Sea Block 211/23d. Antrim holds a 35.5% working interest in the Causeway licence.
The Causeway FDP includes a production well and a water injection well in the East and Far East fault panels utilising existing wells on the field drilled during the appraisal phase. The production well will be completed with dual electrical submersible pumps and first oil is anticipated in mid-2012. Hydrocarbons will be transported to and processed at the Cormorant North platform operated by TAQA Bratani Limited, before being exported to the Sullom Voe terminal for sale. Development costs net to Antrim are estimated at $32 million, after receipt of $21.8 million associated with the previously announced sale of Antrim Causeway.
The Operator of the Causeway Field, Valiant Causeway Limited, is proceeding with tie-back installations. The FDP envisions average production for the first twelve months will be 8,400 bopd (net 3,000 bopd to Antrim).

Aurelian Oil & Gas;

Released an operational update today. Copy’s of which can be viewed by clicking this link.

Caza Oil & Gas;

Provided an operational update on the Caza McMillan #1 well in Wharton County, Texas. Re-entry operations on the Caza McMillan #1 well to test the Yegua 9,650 sand have been successful.  The well was perforated at intervals between 9,692-9,704 feet and 9,714-9,716 feet, then fracture stimulated, resulting in gross, initial production rates of 1.375 million cubic feet of natural gas, 57 barrels of oil and 29 barrels of water per day on a 16/64ths inch choke on November 20, 2011.  The well is still recovering frac fluid and is expected to be online at the sales point within the next ten days.Caza currently has a 42.53% working interest and a 31.05% net revenue interest in the Caza McMillan #1 well.

Desire Petroleum;

The exploration company wholly focused on the North Falkland Basin notes the announcement made today by Rockhopper Exploration plc (“the Operator”) regarding the 14/15-4z well. Desire has a 40% carried interest in this well. According to the Operator, coring and logging operations at well 14/15-4z have been successfully completed. The sidetrack well 14/15-4z (approximately 12.5m from the main well bore), was drilled to a total depth of 2555m md. A total 115m of core was cut through the hydrocarbon bearing Beverley, Casper South, Casper and Sea Lion reservoirs bringing the total amount of core cut during the entire drilling campaign to 455m (1493ft). Drilling of the well has completed the commitments required to earn the 60% interest and operatorship of licence PL004b. The well will now be plugged and abandoned as planned and a further announcement will be issued when the rig is off hire.

Enegi Oil;

Two RNS’s came this week from Enegi. The first confirmed the Annual Report and Accounts for the year ended 30 June 2011 had been mailed to shareholders, a copy is available to view on the Company’s website. while the second was a rather curious Director dealings RNS. Enegi informed that Obsideo LLP, which is part of the RMRI group of companies controlled by Alan Minty, Chairman and Chief Executive Officer of Enegi, sold 2,750,000 ordinary shares in the Company at an average price of £0.10p in an Over The Counter transaction. It then went on to state that Alan Minty has not sold any of his own shareholding and his interest in the Company in his own right and through related parties following this transaction is as follows: Alan Minty 6,808,911 shares; RMRI Companies 3,711,377 shares. Alan Minty’s interest in Enegi therefore totals 10,520,288 shares, representing 10.69 per cent of the Company’s issued share capital. I certainly don’t like the way this RNS has been handled if Minty is being credited with holding 10,520,288 shares in total then he has in effect DECREASED his holding by 2,750,000 which equates to a percentage decrease of approx’ 20%.

Max Petroleum;

Released an operational update on its activities in their Blocks A&E Licence area in the Republic of Kazakhstan. Results of SAGW-2 appraisal well. The completed drilling of the SAGW-2 appraisal well in the Sagiz West Field on Block E with the well reaching a total depth of 1,451 metres without encountering producible hydrocarbons.  Extensive shows of oil and gas were seen in the well throughout the Triassic section, indicating close proximity to the edge of the Field. The SAGW-2 well will be cased for future use as an injection well during future field development. The SAGW-1 well has begun testing in the lower-most Triassic reservoir from depths between 1,273 and 1,280 metres. The well flowed from this interval at an initial rate of 82 bopd with no water. This interval exhibits lower porosity and permeability than the four shallower Triassic zones which will be progressively tested in this well. The current zone appears a good candidate for stimulation to enhance productivity, such as hydraulic fracturing. The well will be recompleted into a shallower reservoir in January 2012. The NUR-1 well is currently drilling below 4,200 metres, and is on track to reach total depth in April 2012 as expected.

Nighthawk Energy;

Is to acquire an additional 25% stake in its main Jolly Ranch project in Colorado. This will take Nighthawk’s holding in Jolly Ranch to 75% and give it operatorship of the project. The holding is being acquired from the company’s long term partner Running Foxes Petroleum, which is understood to be in talks with a third-party to sell its remaining 25% stake. Nighthawk are paying Running Foxes an initial US$8.5 million in cash and US$4.5 million in shares for the holding. It intends to fund the move with the issue of 10 million zero coupon unsecured loan notes to raise £10 million, convertible at 2.5p per share. In addition, it is planning an open offer of shares to existing shareholders in January. The entire deal remains conditional on Nighthawk shareholder approval.

Range Resources;

Announced a Texas & Trinidad update this morning STATING it has successfully drilled and logged the QUN118ST development well on the Morne Diablo concession in Trinidad. The QUN 118ST logged more than 200 ft. of gross oil pay in the shallow Forrest formation, further extending the existing field area to the north and east. The well is currently being completed for initial production from natural pressure, which is expected to commence within the next week.
The Company operates three production areas onshore Trinidad, where it continues to develop existing reserves, extend producing trends, and exploit marginal producing properties. Exploratory drilling for deeper targets is programmed for 2012, following reprocessing and interpretation of the Company’s 3D seismic database, which is scheduled to be completed next month.
Texas…The Company would also like to announce that the surface casing was successfully set on the Albrecht #1 appraisal well on the Company’s North Chapman Ranch Project in Texas and recommenced drilling and is currently drilling ahead at a depth of 7,900 ft. with a target depth of 14,500 ft.
The Albrecht # 1 appraisal well marks another milestone in the Company’s onshore Texas drilling program, as if successful, it is anticipated to prove up reserves in the South East portion of the North Chapman Ranch license area, and support a re-classification of current Possible (P3) reserves into the Probable (P2) and Proved (P1) categories. Following on from the Albrecht #1 well, the joint venture has the option to continue with the development of the field with a possible four-well program in 2012 under discussion among the joint venture partners.

Rockhopper Exploration;

See Desire Petroleum entry.

Sound Oil;

Announces that Gerry Orbell, a director of the Company, and certain employees of the Company have been awarded bonuses including, in total, the award of 5,794,118 new ordinary shares in the Company.  Included in Mr Orbell’s bonus is an award of 1,764,706 ordinary shares at an issue price of 1.7p per share.  Following this award, Mr Orbell will hold 14,513,124 ordinary shares in the Company, representing 0.79% of the Company’s issued ordinary shares. Application has been made for the new shares referred to above to be admitted to AIM and this is expected to become effective on 5 January 2012.  Following the issue of these shares, the Company will have 1,833,199,548 ordinary shares in issue with each share carrying the right to one vote.  There are no shares held in treasury.  The total number of voting rights in the Company is therefore 1,833,199,548 and this figure may be used by shareholders as the denominator for the calculations by which they determine if they are required to notify their interest in, or a change to their interest in, the Company under the Disclosure and Transparency Rules.

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