The Smallcap Oil & Gas roundup.

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2012 Turbulence predicted.

*It’s been a busy week in the Smallcaps Oil & Gas underverse as the Markets settle down after the new year. 2012 looks like it’s going to be just as turbulent as 2011. Hold on to your nerves 7 stay away from heavy medication!*               


Announced that production at the Ebok field, located offshore south east Nigeria, has been increased to a stabilised rate of circa 40,000 bopd, following the commissioning and ramp up of all production wells associated with the initial phases of the Ebok development.  As a result of the ramp up in production at the Ebok field, aggregate net working interest production attributable to the Company has reached a rate of circa 55,400 boepd.  A production rate above the year-end target of 50,000 boepd has been sustained since 19 December 2011 from the Ebok, Okoro and Côte d’Ivoire operations. In addition, gross production on the Ogini and Isoko fields has nearly doubled to circa 10,500 bopd from circa 6,000 bopd, following increased compressor uptime and the opening of an additional two strings, since First Hydrocarbon Nigeria and its partner Nigerian Petroleum Development Company completed the acquisition of OML 26 on 1 December 2011. The stock is currently charging in the City of London.

Aurelian Oil & Gas;

Said that it had  been awarded two new licences by the Ministry of Environment in Poland. Award of New Concession in their Polish Carpathians Core Area Awarded 100% of the “Wetlina” concession in south-eastern part of Polish Carpathians, covering an area of 446km2; which is Close to Aurelian’s highly prospective Bieszczady concession in Poland, where the Company is currently testing the Niebieszczany-1 well, and adjacent to Aurelian’s Snina concession on the Slovakian side of the border; Undeveloped Wetlina gas discovery is within concession and two further structures identified with potential in-place resource estimated at 40 BCF and 25 MMBBL; and Work programme consists of studies in Year 1 and 14.3km 2D seismic acquisition in Years 2-3…Award of New Concession in our Polish Permian Basin Core Area…Awarded 100% of the “Prusice” concession in central Poland in the South Permian Basin, covering areas of 758km2; and “Prusice” concession, adjacent to San Leon’s Winsko licence, is believed to be prospective for the emerging Carboniferous Shale gas play.  The Work programme consists of studies in Year 1 and 100km 2D seismic acquisition in Years 2-3. John Smallwood, Exploration Director said: “These awards enhance our portfolio in each of our two Core Areas with attractive prospects to mature with low cost work programs and risk profiles. The presence of hydrocarbons is well-established both regionally and locally within each of the new concessions. In addition, our 100% equity position gives us control over the execution of the exploration programmes. Prusice also gives us low cost entry to an emerging shale gas play which aligns well with our technical and operational expertise. We will be looking to bring partners into both blocks to fund the work programs.”

Cove Energy;

Has put itself up for sale – three weeks after it opened a data room on its 8.5% participating interest in the Mozambique Offshore Area 1 block (Rovuma Area 1), the gas LNG project which is currently moving towards development. Because the Rovuma Area 1 interest represents a substantial portion of Cove’s asset value – next to its complementary assets in East Africa – a decision has been taken to conduct a formal sale process for the entire company. The process is being handled by Cove’s adviser, Standard Chartered Bank.

Egdon Resources;

Informed the market today that EnCore Oil will assign to Egdon its 7.5% interest in a newly offered offshore licence covering part blocks 98/13 and 98/14. This assignment is a consequence of the agreement by which Egdon acquired certain UK and French assets from EnCore, and which completed in 2010. The new licence is located immediately offshore from existing Isle of Wight onshore licence, PEDL 240 where Egdon also has a 7.5% interest acquired from EnCore.  The part blocks 98/13 and 98/14 cover the offshore extension from PEDL 240 of a prospect that has been mapped using both seismic and well data and is located in the same petroleum basin as the Wytch Farm oil field.

Enegi Oil;

Released a Garden Hill  Operational Update this week. The Company said it has now completed site preparations and has been notified by Schlumberger that personnel are being mobilised and will be on site this week to start the well operations at Garden Hill South as previously announced. Updates on the progress of the workover and testing will follow as the program is implemented. Photographs of operations at Garden Hill South will be posted on the Company website during the workover. Later today Enegi released thus; The Company is pleased to note the announcement issued by Shoal Point Energy on the 5th January 2012 that drilling operations have commenced on the 3K39z well, at Shoal Point, Port au Port Bay, Newfoundland. According to the announcement, the borehole has been drilled to a measured depth of 1,745 metres and encountered liquid hydrocarbon shows over the entire gross section of the well below approximately 700 metres. Further operations and a number of tests are planned, with the programme expected to take between nine and twelve weeks to complete, depending on the final number of cased-hole tests conducted. At one point today their Enegi shares were trading up over 60%.

Global Petroleum;

Announced today that following recent discussions with Tower Resources plc, it has chosen not to take up its option to participate in the third well planned on Uganda License EA5. By agreement with Neptune Petroleum (Uganda) Limited (a wholly owned subsidiary of Tower Resources plc) in June 2010, Global had previously retained an option to earn an interest in EA5 as a result of contributing to the funding of the first two wells in the project, which is located in north western Uganda

Nautical Petroleum;

Announces that it has been offered a traditional licence, covering two exploration blocks, in the 26th Seaward Licensing Round second tranche offers. The full RNS can be viewed by clicking this link.

New World Oil & Gas;

Has opened a virtual data room for potential partners to participate in its prospective projects in Belize and Denmark. New World said it had set up the data room in response to receiving a number of unsolicited approaches from within the oil and gas industry about its Blue Creek and Danica Jutland Projects. Blue Creek is located in the productive Petén Basin in north-west Belize. Two of the project’s prospects have been rated by consultancy firm RPS as having have a 1 in 5 probability of geologic success and an estimated combined 294 million barrels of P50 reserves.

Northern Petroleum;

Announced that it had been awarded part blocks 98/13 and 98/14 in the UK 26th Licensing Round. The new licence is located offshore adjacent to Northern’s Isle of Wight onshore licence, PEDL 240, awarded in May 2008. The part blocks 98/13 and 98/14 cover the offshore extension from PEDL 240 of a prospect that has been mapped prior to 2008 using both seismic and well data and is located in the same petroleum basin as the Wytch Farm oil field. There is no firm drilling commitment attached to the licence award. The licensees in part blocks 98/13 and 98/14  are Northern with 62.5% (operator), Montrose Industries 5.0%. Oil & Gas Investments 2.5%. Magellan Petroleum (UK) 22.5%.  Encore Oil 7.5%.

Nostra Terra;

Increased its asset base yet again this week the company announced that it has entered into an agreement with Crown Energy Company Inc. to acquire a 10% working interest in the Warrior Prospect, located in Oklahoma. The Warrior Prospect lies within a prolific oil system, proven to produce from multiple, stacked-pay reservoirs. Leasing, pooling and permitting of the initial well are already complete. Drilling of the initial horizontal well is anticipated to begin during the first half of 2012, along with construction of all production and transmission facilities. Up to five additional horizontal wells may be drilled on the prospect in the future and tie into the infrastructure that is being installed for the initial well. While today Nostra announced that a 30-day extension to the repayment period of the USD1.3 million loan note has been granted to Richfield by the Company (Agreement originally with Hewitt Petroleum, Inc. (now Richfield Oil & Gas).  Settlement of the outstanding amount is now anticipated on or before 31 January 2012.


Informed the market that it is continuing to recover coiled tubing milling assembly from its Cambay-76H horizontal well in the Cambay Field, onshore Gujarat, India. Recovery work at Cambay-76H began on 6 December 2011 after operations on the well were suspended last August when the coiled tubing milling assembly, which was being used to mill out the fracture stimulation stage seat components, became stuck in the wellbore. The company reported that the retrieval operations had been proceeding “satisfactorily” with 246 metres of coiled tubing recovered in four sections over five days, indicating that the specialised tools were working as anticipated. An estimated 123 metres of coiled tubing and the milling assembly (12 metres) remain to be recovered.

President Petroleum;

Following completion of all regulatory requirements, the Company announced that President Petroleum S.A. has now been registered as an Argentine Oil Operator with the Registry of Oil Companies of the National Secretary of Energy.

Range Resources;

Released a Texas & Corporate update today.  Range announced that the Albrecht #1 Appraisal well on the Company’s North Chapman Ranch Project in Texas is currently drilling ahead at a depth of 9,150 ft. with a target depth of 14,500 ft.

Sound Oil;

A busy week for Sound Oil with no less than 3 RNS’s. The first was an Operational update the second was a management appointment while the third contained information on Director deal. Copys of all can be viewed by clicking the link.

Tower Resources;

See Global Petroleum entry

Wessex Exploration;

Has been provisionally awarded various interests in five Promote exploration blocks offshore Southern England, located within the English Channel. The second tranche of awards in the 26th Seaward Licensing Round was announced by the UK Department of the Environment and Climate Change (DECC) on 30 December 2011. Wessex and NWE Mirrabooka, a subsidiary of Perth based, Australian listed company Norwest Energy NL, will hold 35% and 65% equity and working interest in the Blocks respectively. NWE Mirrabooka will be the operator. Subject to THE relevant documentation being completed, the awards will allow Wessex and NWE Mirrabooka to explore the Blocks for a period of two years.

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