The Smallcap Oil & Gas round up.

It’s been an atrocious week in the Smallcaps Oil & Gas Underverse A bloodbath! Driven by panic over the impending Greek Euro-exit. However on a happier note Kea Petroleum should be keenly watched next week. Nudge! Nudge! wink! wink! Rumour of Douglas-1 announcement.

Afren Oil;

Tipped for Greatness, Takeover & Bull runs this year, Afren Oil continued it’s decline the kiss of death came when it was placed on an online “Hotlist” Afren released 3 RNS’s this week. A TR-1 Notification, an Interim Management Statement & news that the Ebok North Fault Block has successfully encountered 370 ft net pay. All to no avail the sp continued to decline in tandem with most smallcap Oilers.


Issued its Interim Management Statement for the period 1 January 2012 to the 16 May 2012. You can read it by clicking the link.

Cadogan Petroleum;

Published its financial report for 2011 on 30 April 2012. At 17 May 2012 the Group had current cash and cash equivalents of approximately $56.6 million. The Group continues to operate safely and efficiently throughout the period.

Chariot Oil & Gas;

The dreaded words “Plugged & Abandoned” came this week from Chariot, the Africa focused exploration company, has failed to find commercial hydrocarbons in the first well in a drilling programme offshore Namibia. Preliminary logging results from the Tapir South (1811/5-1) exploration well in Northern Block 1811A in the Namibe basin, indicate that excellent reservoirs were penetrated. However, no commercial hydrocarbons were found and the well will be plugged and abandoned.

Empyrean Energy;

Noted that Aurora announced that they have reached agreement to purchase a 6% non-operated working interest in the Sugarloaf Project for US$95m. Aurora is a partner with Empyrean in the Sugarloaf Project in Texas, USA. Empyrean holds a 3% working interest in the same project.

Good News came this week for Enegi Oil;  Who were “delighted to announce” the latest results from testing of the PaP#1-ST#3 well which indicate that the connected oil and gas in place associated with Garden Hill South is in excess of 61.5 million barrels of Stock Tank Oil Initially In Place and 117 BCF Gas Initially In Place, with the Absolute Openhole Flow Potential expected to increase from 310 boepd. Good news? You’d think so. The stock bounced up then hit the buffers; now trending down!

Gran Tierra Energy; the operator of the Azar Block located in the Putumayo Basin, Colombia has informed Gold Oil that the drilling of the La Vega Este -1 well on the block has commenced with the well spudded on 14th May.  The La Vega Este -1 well will be drilled to a depth of 11,485 feet and will target primarily the Villeta formation with the Caballos as a secondary objective.  Gold Oil is currently producing from the Villeta formation in its Nancy Burdine fields. The operator believes the well has a 34% chance of finding oil and could flow at initial rates of between 1,500 and 2,000 bopd if all objectives are oil bearing (300 to 400 bopd net to Gold Oil before royalty payments). The well is expected to take 35 days to drill.  If during drilling the well indicates oil potential it is intended that the well will be completed and tested using a less expensive work over rig. Gold Oil has a 20% interest in the block.

Magnolia Petroleum;

Announced its participation in three further wells in proven onshore oil plays in Oklahoma, as part of its expansion strategy to rapidly build production. Magnolia currently has interests in 74 producing properties. Participating in following three wells: Joan 2-21,Grant County, targeting The Mississippi Lime Formation,(Magnolia 3.75% WI) operated by Tessera Energy. The total cost of the well has been estimated at US$677,700 with the Company’s share estimated at US$25,414. Bollinger 1-27H Horizontal Well, CanadianCounty, targeting theWoodford/Hunton Formation, Oklahoma (Magnolia 1.0% WI) operated by Cimarex. Total drill costs are estimated at US$5.9m with the Company’s share estimated at US$59,000. Sherri#1 Well, Viola/Simpson Formation, Oklahoma (Magnolia 1.4297% WI) operated by Steve Nail who has proposed the re-entry of the Sherri#1 well targeting the Viola and Simpson zones. The total estimated cost for the proposed work is US$218,250 with the Company’s share estimated at US$3,120. Updates on four wells targeting the Mississippi Lime. Thomason 10-27-12 1H, (Magnolia 12.5% WI) has been completed, initial production rates are awaited. Brady 17-27-12 1H, (Magnolia 0.34375% WI) has been completed, initial production rates are awaited. Lois Rust 7-27-12 1H (Magnolia 2.3% WI) has been drilled and is waiting to be fracture stimulated. Redfork 1-25H (Magnolia 1.96% WI) is waiting on spud.

Matra Petroleum;

Continued to surprise investors this week with a bolt from the blue. The independent oil and gas exploration and production Company with operations in Russia, announced that Neil Hodgson, Exploration Director, has confirmed his intention to resign from the Board and to leave the Company. This will become effective on 31 May, 2012.

Max Petroleum;

Informed investors that the ASK-J1 appraisal well in the Asanketken Field has reached a total depth of 1,378 metres with electric logs indicating 36 metres of net oil pay.

Nostra Terra;

Has spudded its third horizontal well in Oklahoma. The first and second horizontal wells have finished drilling and are awaiting completion. The first horizontal well is within the Warrior Prospect and operated by Crown Energy Company. The drilling stage has finished according to plan and it is anticipated that completion will be underway within the coming weeks. Nostra Terra has a 10 percent working interest in this prospect.

Range Resources;

Failed to impress the markets this week as they released a Puntland drilling update which went down like a fit of giggles at a funeral. The company then released an “Open Briefing interview with Managing Director Peter Landau” in a belated attempt at damage limitation. Too late the damage has been done. Range announced that drilling on the Shabeel-1 well on the Dharoor Block in Puntland, Somalia had reached a total depth of 3,470 meters and encountered metamorphic basement at a depth of 3,430 meters. *Drilling has been suspended for future testing. *Therein lies the problem. No Oil in Place figures & a suspended well. The rig will now move to the Shabeel North location which is 3.5km north of the current location with spudding scheduled for the first week of June 2012.

Wessex Exploration;

The AIM quoted oil and gas explorer with a stake in the discovery of a new basin offshore French Guiana, has released more details about plans for further exploration on the licence. The latest details of plans for the discovery came in a market update from Tullow Oil. It said that following the basin-opening Zaedyus discovery in September 2011, a drillship had been contracted by the joint venture to commence a comprehensive exploration and appraisal programme in June. The first well will appraise the discovery made by Zaedyus-1 and explore for deeper objectives, followed by an exploration wildcat well. Planning is also ongoing to acquire two large 3D seismic surveys; a 4,700 sq km Eastern Slope survey and a 620 sq km Cebus survey either side of the Cingulata fan system containing Zaedyus and other mapped turbidite fans.

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