The Smallcap Oil & Gas round up

Tough week for the smallcap oilers. Another rollercoaster week.


Released their 2011 Full Year Results announcing “Record financial results”; 2P reserves up 132% to 185 mmboe; exploration success in Nigeria. The Board went further stating “In 2011, we achieved the major milestone of first oil on the Ebok field development and progressed our Nigerian growth strategy. We also expanded our geographical footprint through the acquisition of assets in Nigeria, East Africa and the Kurdistan region of Iraq. Looking forward, we have a balanced portfolio combining production and development assets that we can leverage to internally fund our high impact exploration activities, underpinned by a capital structure that will support long-term inorganic growth.” Yes you’ve guessed it the stock carried on downwards.

Antrim Energy;

Said it was pleased to announce that it has entered into an agreement with Crown Point Ventures,whereby Crown Point will acquire all of the issued and outstanding common shares of Antrim’s Argentina subsidiary, Antrim Argentina S.A. by way of a plan of arrangement under the Business Corporations Act. Under the terms of the Arrangement, it is expected that Crown Point will directly or indirectly acquire all of the issued and outstanding Antrim Argentina Shares for total consideration of approximately $53.75 million. Antrim also released their final results this week.


Completed of the sale of its entire equity interest in the EOV Permit, offshore Gabon, to Perenco SA for a cash consideration of $35 million plus a working capital adjustment. The transaction involves the sale of GGPC Gabon Limited, a wholly owned subsidiary of Bowleven.  GGPC’s sole asset is a 100 percent interest in the EOV Permit. Proceeds from the disposal of GGPC will provide Bowleven with additional working capital to progress its dual objectives of converting resources to reserves and further exploring the significant potential of the Douala Basin in Cameroon. The Group’s net cash balances, including these disposal proceeds, are approximately $160 million. They also released their interim results for the six months ended 31 December 2011. Copies of which can be viewed by clicking the link.

Enegi Oil;

The Newfoundland focused oil and gas company, released its results for the six months ended 31 December 2011. Key points: The Company is nearing completion of the workover on the PAP#1 well…Data collected suggests that the well can be flowed on a continuous basis…The Company believes it has a potentially large Green Point Shale play across its assets…Agreement signed with Advanced Buoy Technology Ltd. to apply for licenses in the UK North Sea under the 27th Seaward Licensing round organised by the Department of Energy and Climate Change…Enegi continues to execute early stage prospecting programme in County Clare, Ireland…Strengthened management team and Board providing the Company with further significant industry and business related experience…Strengthened Advisory Panel to assist in the Company’s decision-making process.  Outlook:…Results from the bullhead acid squeeze on the PAP#1 well at Garden Hill South are expected shortly..Enegi will be applying for licences in the UK North Sea under the 27th Seaward Licensing Round organised by the Department of Energy and Climate Change pursuant to the strategic partnership with Advanced Buoy Technology…The Company continues to implement its strategy of avoiding risk concentration

Faroe Petroleum;

Has reported that drilling is under way on the North Uist prospect, West of Shetland. This deep water exploration well (Blocks 213/20b, 214/16b, 213/25C) is located near to Chevron’s Rosebank oil discovery, also on the Corona Ridge, West of Shetlands. There are several reservoir objectives the most significant of which is North Uist at the Upper Jurassic level. Shallower in the section the well will also test the edge of the Cardhu prospect where sandstones of Paleocene age may be present.

Ithaca Energy;

Agreed a deal to take over operatorship and increase its working interest in the Carna discovery, located in the Southern Gas Basin of the UK North Sea. The transaction with Centrica North Sea Gas increases Ithaca’s working interest in the Carna discovery to a material level from 16% to 32%. The financial terms of the transaction remain confidential between the parties.

Kea Petroleum;

The Puka-1 exploration well in the PEP51153 licence area in onshore Taranaki  spudded on 24 March 2012, and has already run and set surface casing to 307m. It is anticipated that the well will be drilled to a total depth of 1,550m by early April 2012. Kea’s gross recoverable resource is estimated to be approximately one million barrels, with a potential upside of up to three million barrels.

Leni Gas & Oil;

A sou’s ear presented as a silk purse came from Leni this week. A poor result; as the company announced that the A2ST01 sidetrack at the Eugene Island Field in the US Gulf of Mexico has reached a total depth of 13,496 feet. Basically there’s no oil worth extracting although their’s plenty of water. Well plugged.

Matra Petroleum;

Hooray! Has finally achieved oil production (which was officially announced this week) under way from Well A-13 on its 100% owned Sokolovskoe oil field discovery in Orenburg.  Well-A13 is currently flowing oil naturally and is likely to take some time to stabilise. Production is also likely to be affected during the next few weeks due to the start of the thaw period when oil trucking may be difficult and also during the commissioning period for new equipment.

Nostra Terra Oil & Gas;

The (TIDDLER WITH A BIG PLAN) AIM quoted oil and gas producer with numerous horizontal drilling projects in the US, announced yet another drilling on the first horizontal well in the Bale Creek prospect in Oklahoma. Nostra has a 30% working interest in the Bale Creek prospect, which is operated by Pathfinder Development Capital. The well is the first of seven potential horizontal well locations and drilling is expected to be completed in approximately 30 days, followed by completion and initial production testing.


Another Cambay update came this week from Oilex. Following the procurement and installation of equipment capable of managing the high reservoir pressure, the milling and clean out of fracture stimulation stages 8, 7, 6 and 5 have been successfully completed. This means that four of the eight fracture stimulation stages have now been fully opened and one partially opened. Once milling of the remaining four stages has been completed, production tubing will be installed. The well will then be flowed to surface for clean-up and production testing.

The Parkmead Group;

An emerging independent oil and gas company, reported its interim results for the six month period ended 31 December 2011. Copies of the RNS can be viewed by clicking the link.


President Petroleum;

Announced better than expected results from logging and test work on Well DP-1001 in the Dos Puntitas field in Argentina. The well, which lies on the Puesto Guardian Concession has found the Oil Water Contact at or near its original level and, combined with a well location in a structurally high position. The log apparently demonstrates a gross oil column of 54 metres at a depth of between 3115 -3169 metres with a net pay of 33 metres. In addition, rock properties and hydrocarbon saturations are seen to be at the high-end of the pre-drill range.

Salamander Energy;

Has pud of the Tutung Alpha-3 appraisal well in the Bontang PSC, East Kalimantan, Indonesia. The TA-3 well will be drilled to a total vertical depth of 3,200 metres sub sea and will target Middle Miocene deltaic sandstones, which were found to be gas-and condensate-bearing in the Tutung-1 and Tutung Alpha-1 wells. The Tutung discovery is a gas-condensate accumulation with a mean resource volume estimated at circa 60 Bcf. Flow rates of between 10 MMscfd and 15 MMscfd have been tested by previous wells on the Tutung structure. The well will be drilled by the MB Century 28 land rig and is expected to take approximately 30 days to reach target depth.

Solo Oil;

Great mystery surrounded Solo oil in the city this week as the  Company today advised that Mr. Kiran Morzaria has resigned as a director of the Company with immediate effect in order to dedicate more time to his other business interests. The Board would like to sincerely thank Mr. Morzaria for his valuable contribution to the Company over the past few years. Just what “valuable contribution” the Board are talking about remains a mystery!

Tower Resources;

Entered into a £20 million Equity Financing Facility with Darwin Strategic in order to provide greater funding flexibility for the company in the future. Tower chose to enter the EFF with Darwin in addition to its existing £8 million Standby Equity Distribution Agreement which Tower previously HAD with YA Global Master SPV. The Promissory Note which was provided by Yorkville in January has now been completely repaid.

Valiant Petroleum;

Busy week here. Valiant began drilling the Tybalt appraisal well in Blocks 211/8c & 13c in the UK North Sea this week. The work programme, which includes a well and a contingent test, has been designed to prove up commercially exploitable volumes via nearby infrastructure which includes the Magnus fields and the Dons Area complex. Tybalt is an Upper Jurassic discovery originally made by Valiant in 2010 with gross resources estimated internally by the company to be 7 million barrels. They then released their full year results for 2011 while two days later an update came out for their LTIP (Long term incentive plan)

Wessex Exploration;

The hydrocarbon exploration company, announces that it has consulted with its principal shareholders who have confirmed they consider the price of 10p per share inadequate to secure their support for any offer which Total might consider at this level.  Yes they want more money. And good luck to them.

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