The Smallcap Oil & Gas Round Up.

Aminex : AEX

Released the results of an independent technical evaluation of its Ruvuma and Nyuni Area Licences in Tanzania. ISIS Petroleum Consultants confirmed that the licences contain a total of 11.4 trillion cubic feet of discovered and undiscovered mean Gas Initially in Place; a 400% increase on the previous report. Most of the increase is down to Aminex’s Ruvuma licence, where the company recently flow tested the Ntorya-1 discovery well. The well produced a final flow of 20.1 million standard cubic feet per day of gas and an estimated 139 barrels per day of condensate from a 3.5 metre perforated section in Lower Cretaceous sands. The Ntorya prospect accounts for a total of 1.17 TCF mean unrisked Gas Initially-in-Place in the new report, of which 178 billion cubic feet (BCF) is discovered. The total discovered and undiscovered mean Gas Initially-in-Place for the Ruvuma PSA area is 5.75 TCF.

Aurelian Oil & Gas : AUL

Released an operational update yesterday. John Smallwood, Exploration Director, commented; “The oil encountered in Sosna-1 is an encouraging outcome as we move forward in realising the potential of the Zechstein deposits – Main Dolomite oil play in the Cybinka and Torzym licences.  Elsewhere across the portfolio the key play and prospect de-risking activities are progressing well in order to improve the prospect inventory and prepare for the next phase of selective portfolio improvement and drilling.” Just what Smallwood is talking about is any ones guess. The sp promptly dropped 21%!

Exillon Energy : EXI

The independent oil producer with assets in two oil-rich regions of Russia, Timan-Pechora (“Exillon TP”) and West Siberia (“Exillon WS”), announced unaudited production data for the month of June 2012. Average daily production was 12,131 bbl/day during the period, an increase of 7% over the equivalent figure for
May. Average daily production for Exillon TP was 3,069 bbl/day, and for Exillon WS it was 9,062 bbl/day during the period. Peak daily production was 12,528 bbl/day during the period. Exillion expect to make the July production announcement by 5 August 2012.

Ithaca Energy : IAE

Won their legal wrangle with private company North Sea Energy over who was responsible for funding work on the Jacky 103 well in the North Sea. The legal wrangling began back to December 2010 when North Sea Energy said it was seeking to withdraw from investing in the Jacky J03 well. Ithaca responded by commencing proceedings in the Commercial Court of the High Court of Justice in London for a declaration that the well was a joint operation. That court has now handed down judgment in favour of Ithaca and confirmed that the Jacky J03 well was drilled as a “Joint Operation” under a joint operating agreement. Accordingly, North Sea Energy remains obliged to contribute to the well costs in accordance with its field equity of 10 percent. NSE has not requested leave to appeal the judgment and has been ordered to pay Ithaca’s legal costs of the proceedings.

Magnolia Petroleum : MAGP

Are set to participate in three further wells in proven onshore oil plays in Oklahoma, as part of its expansion strategy to rapidly build production and revenues. Magnolia currently has interests in 80 producing properties, a further four currently being drilled or completed and, following today’s announcement, an additional 12 waiting to be spud. The wells include the Brandt 31-28-12 1H and Otis 2-27-12 1H, which are both targeting the Mississippi Lime Formation and will see Magnolia take a working interest of 4.1937% and 4.188% respectively. The third well is the Campbell 1-H, which is targeting the Woodford Formation, Magnolia has a 0.0694% working interest.

Matra Petroleum : MTA

In comes Canaccord Genuity who have been appointed as nominated adviser and broker to the Company with immediate effect. Out goes FD!  Changes continue!

Max Petroleum : MAX

Another hand-grenade landed this week as bombed out Max lobbed in more bad news. Drilling at the NUR-1 pre-salt well on its Blocks A&E Licence has been temporarily suspended. Since announcing the drill string on the NUR-1 well had become stuck, the Company has been unable to free the drill string and resume drilling ahead through the salt. Therefore, Max has decided to temporarily suspend drilling operations and to seek additional sources of financing to resume the drilling of NUR-1 to its total depth of 7,250 metres. Based on a review conducted by the Company’s in-house technical team and external consultants with expertise in drilling high pressure, pre-salt wells, the Company believes that it is technically feasible to complete the drilling of NUR-1 with certain modifications to the existing drilling programme to address the higher than expected pressures encountered in the salt. (Of course this all costs money. So holders should expect a big placing.) Max intends to either release the Saipem rig or place it on standby once the operations to temporarily suspend the well have been completed. If the rig is released, the Company expects that a smaller rig could be used to complete the NUR-1 well, given that the well is in good condition and cased down to a depth of 5,681 metres. The Company has also initiated discussions to seek regulatory approval to allow additional time to complete the drilling of NUR-1 beyond the existing deadline of 4 March 2013, should that be necessary. The Company is currently generating positive net cash flow from operations and is continuing to have constructive discussions with its senior lender, Macquarie Bank Limited, as well as with other sources of debt and equity financing regarding providing additional capital to enable the Company to complete its post-salt exploration programme.

Petroceltic International : PCI

Has been awarded two exploration licences in the central Adriatic offshore Italy. The company, which holds assets in North Africa, the Middle East and the Mediterranean, has also applied for three other adjacent exploration permits, which are currently under consideration by the Ministry of Economic Development.

Salamander Energy : SMDR

Plugged & Abandoned The Far East-1 well prospect in its operated B8/38 licence, Gulf of Thailand. Further to the announcement on 26th June 2012, a barefoot DST was conducted over a zone of potential oil pay in the Ratburi carbonates. The Far East-1 well will now be plugged and abandoned as a dry hole and the rig is being prepared for release.

San Leon Energy : SLE

Announced today that it has been awarded the Czersk Exploration Concession by the Polish Ministry of Environment.  The Czersk Concession consists of 173,584 acres (702.5 km2) covering portions of Blocks 87 and 88 in the Baltic Basin of Poland.  Combined with San Leon’s existing Gniew concession, the company now has a 100% working interest in two Baltic Basin concessions (totalling more than 468,000 net acres) as well as significant interests in five other concessions.  The Czersk concession expands San Leon’s interest in the Baltic Basin to 1,574,680 gross acres (958,000 net acres). Earlier this week SLE also announced that they will begin a two well exploration program to test the conventional oil potential of its 100 percent held Nowa Sol concession in Poland. The first well, Lelechow-SL-1, is planned to spud mid- to late July and will target the Main Dolomite in the Southern Permian Basin. The second well, Czaslaw-1, which will spud immediately after, will also test the Main Dolomite in a separate, but similar structure. Both wells are being drilled based on the results of a 3D seismic survey that was shot over Nowa Sol in 2010, which has redefined the potential of the area being the first 3D survey ever shot on the concession. The significantly improved imaging provided by the new 3D data has given San Leon greater insight into the complex structural fabric of the area.

Silvermere Energy : SLME

Started the week off releasing an incomprehensible RNS. “Silvermere is pleased to provide an the tie-in of the I-1 well in its Mustang Island 818-L Field” However we here spared no expense we sent the aforementioned epistle off to Bletchley Park for deciphering. ++++Silvermere Energy is pleased to provide an operational update on the tie-in of the I-1 well in its Mustang Island 818-L Field. This is based on information provided by the Operator, Dominion Production Company. The barge containing the platform jacket was loaded out and departed from Galveston on Saturday 29 June 2012. After arrival at the staging port at Aransas Pass, Texas the jacket will be rotated to the vertical position before the barge then continues to the designated platform location for offloading. The lift-boat, “Dularge”, is expected to load the pilings and installation equipment later today, Monday 2 July, and then to rendezvous with the barge on location. Meanwhile, a dive crew will check the surrounding area and remove any potential seabed impediments. Once the lift-boat and barge are on location, pile-driving will begin. A second barge containing the Platform and the Deck Extension will load out and follow the first vessels in the next few days.

Solo Oil : SOLO

See Aminex entry.

Urals Energy : UEN

Continued its good showing from last week.  The independent exploration and production company with operations in Russia, announced that it has successfully completed final production testing on Well #41 on the Petrosakh Field. Well #41 is now producing approximately 180 BOPD, which was within the Company’s target range. Current production at Petrosakh is now 1,429 BOPD. The Company is currently considering recommendations from several respected oil service companies in order to evaluate future steps regarding Well #51 which was temporarily abandoned due to difficult drilling conditions. Urals also confirmed that the license for the Okruzhnoye field, which expires at the end of 2012, has been renewed until 2037. Current production at Arcticneft is stable and stands at 710 BOPD. Alexei Maximov, CEO said: “As we approach the European summer break, we continue to make solid progress on a number of fronts, both in terms of resolving the final legacy issues as well as our drilling programme which, with the completion of Well #41, has already achieved tangible positive results for the Company.” Maximov is certainly making progress here. Well done Alexei!


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