The Smallcap Oil & Gas round up.

It’s been a great week for our Members with the continued MOIL, XEL, UEN, LHD rises. Just some of the stocks discussed, researched & analysed in our famous Insider Information oil & gas chatroom! Join up now!

Afren Oil : AFR

And operator Hunt Oil (Middle East) have commenced exploration drilling at the East Simrit prospect located on the Ain Sifni PSC in the Kurdistan region of Iraq.  The    Simrit-3 well is located approximately 10 km east of the successful Simrit-2 discovery well, and is exploring the eastern extent of the large-scale Simrit anticline. Afren has a 20%. interest in the Ain Sifni PSC and is partnered by Hunt Oil who have 60% & are operator. The Kurdistan Regional Government own 20%.

Bahamas Petroleum : BPC

Updated this week. Following the recent general election in the Bahamas, it has received written confirmation from The Government of The Bahamas regarding its existing licences on 7 September 2012. The Company has been notified that it is, and has been, in full compliance with the terms of the signed oil exploration licences, the provisions of the Petroleum Act, and the Petroleum Regulations of The Bahamas and that all fees due thereunder have been paid. Farm-out discussions are still ongoing with a number of interested parties

Caza Oil & Gas : CAZA

Has successfully completed the first stage of drilling a well on the Copperline Prospect in Lea County, New Mexico. The company said yesterday. The Caza Ridge 14 State No. 3H horizontal well has reached the intended total vertical depth of approximately 11,750 feet subsurface and log data and core samples have been obtained. Based on analysis of that data, Caza and its partners are now preparing to begin drilling the horizontal section of the well through the primary objective Lower 3rd Bone Spring Sand, targeting the interval centered at 11,365 feet measured depth. Caza said there had been good mud log shows for oil and natural gas throughout the Bone Spring formation while drilling the vertical section, notably in the Avalon Shale and 3rd Bone Spring Sand along with shows in the shallower Lower Brushy Canyon and deeper Wolfcamp formations. All shows will be considered for further evaluation both behind pipe and for future drilling on the lease and in the play. Caza farmed out an additional 9.375% interest since the spud announcement on August 16, 2012, and now has a 45% working interest.

Chariot Oil & Gas : CHAR

Sank like a stone in a cess-pool this week as the company confirmed yet another failure, offshore Namibia. Chariot had been hoping for a change of fortunes with the latest well, which was targeting the Nimrod prospect on its Southern Block 2714A licence in the Orange basin. The company tried to dress up the RNS but  those fatefull words “plugged and abandoned” sent investors & traders alike rushing for the exit door.A comprehensive evaluation programme was conducted to further understand the stratigraphy, lithology  the nature of the formation fluids in this remote area. Detailed analyses will now be undertaken on the data collected and this information will be used to calibrate the existing data set. Chariot said a resource update of the remaining prospectivity in the block would be provided once this evaluation has been completed. The Kabeljou well follows the May drilling of the Tapir South exploration well in Northern Block 1811A where Chariot also failed to find commercial hydrocarbons. Jinxed I tell you! Jinxed!

Exillon Energy : EXI

A busy week for EXI as the company announced a “Cheap as Chips” asset snatch. Exillion has secured a 100% interest in LLC VenlockNeft (“Venlock”) for a total consideration of approximately US$2.5 million. Peanuts for a field with four Exploration, Appraisal and Production licenses in Timan-Pechora The initial assessment of cumulative recoverable reserves and resources across nine prospective structures was 160 mm bbl (mostly in the Russian “C3” category). One of these structures was tested by Venlock in 2009 with a well that flowed 260 bbl/day naturally to surface. What an absolute steal! Pushing on the next day Exillion announced 17.8 metres of effective vertical net pay from Well East EWS I – 571 which spudded on 15th August 2012 on the northern part of the East EWS I field. The well flowed water-free oil naturally to the surface with a test flow rate of 882 bbl/day on an 8 mm choke. Written & discussed on the BMD site when they were a lowly 89p!

Falkland Oil & Gas : FOGL

The oil and gas exploration company focused on its extensive licence areas to the South and East of the Falkland Islands,  updated on drilling operations at the Loligo prospect following recent market speculation. The well has been drilled to a depth of 3,900 metres and is expected to reach total depth within the next 24 hours. Drilling operations are approximately five days behind schedule, principally as a result of having to run an additional string of casing in the top section of the well. No abnormal pressures have been encountered during the drilling of the well and all operations have been conducted without issue. A further announcement will be made within the next seven days, once the well has reached TD and wireline logging operations have been completed.

Gulf Keystone Petroleum : GKP

The punters favourite “GKP”announced its results for the six months ended 30 June 2012. Click the link to read it.

Ithaca Energy : IAE

Announced an Athena field operational & production update. The planned hydraulic intervention to eliminate the production tubing blockage in the P1 well, using a Remotely Operated Vehicle Support Vessel, has been performed. This intervention, involving the pumping of fluids into the P1 well flowline (at the wellhead), has resulted in a minor incremental increase in the previously observed flow rates achieved from the well, with gross production from the well now being approximately 700 to 800 barrels of oil per day  (160 – 180 bopd net to Ithaca). The production data that has so far been obtained from the field indicates that the anticipated sweep of oil within the reservoir is likely to result in the reserves attributed to P1 being fully produced by the well in its current production condition, supported by recovery from the other wells on the field. The P1 well is the original appraisal well that was drilled on the field in 2006 (completed as a development well in 2011) and represents the least significant producer in terms of forecast ultimate oil recovery from the field.

Lochard Energy : LHD

(See Ithaca Energy entry). Relating to the Athena project.  Lochard has a net 10% interest in this field through its 100% ownership of Zeus Petroleum Limited.

Madagascar Oil : MOIL

Announced that first oil (“cold” production) has been recovered from the multi-billion barrel Tsimiroro heavy oil field in line with expectations. This is an important milestone prior to the imminent introduction of steam to the reservoir. The installation of the steam equipment at the Tsimiroro steam flood pilot is substantially complete and the initiation of cyclic steam (also referred to as “Huff and Puff”) is proceeding with first steam injection expected in Q4 2012. In addition, the Company anticipates receiving the final results for the Airborne Gravity Graviometry (AGG) survey over the Tsimiroro field shortly. Although the capital cost of the steam flood pilot has exceeded initial projections, the remaining work is either prepaid or relatively predictable.  The Company currently has approximately US$25 million in cash and prepayments and is funded into 2013.

Mediterranean Oil & Gas : MOG

Hand-bags continued to fly as MOG hit LENI right back in the kisser! This week Bill Higgs (MOG Ceo) continued to refute the suggestion by LGO tag team duo Neil Ritson & David Lenigas “that MOG or Phoenicia Energy may have misrepresented to LGO the factual position prior to the sale by LGO to MOG of its 10% working interest in Malta Area 4.” MOG’s legal advisers have written to LGO’s legal advisers to….. bLAH bLAH bLAH. We all know the rest. Where will it end up? Pistoleros at dawn? Drive by shootings in the city? Bare knuckle fisticuffs on the steps of the High court? Or both companies wasting hundreds of thousands of pounds in legal fees? Grow up! Sort it out amicably & move on!

Magnolia Petroleum : MAGP

(Yawn!!!!!!!!) Are participating in two further wells targeting the prolific Bakken and Three Forks Sanish formations in North Dakota.

Max Petroleum : MXP

The  oil and gas exploration and production company focused on Kazakhstan, has commenced drilling the DOSNW-1 exploration well on the Dossor North West prospect on Block E using Zhanros Drilling’s ZJ-20 rig. Total depth of the well will be approximately 1,400 metres. The Dossor North West Prospect is a four-way anticline targeting unrisked mean resources of 7 million barrels of oil in Triassic reservoirs.

New World Oil and Gas : NEW

Confirmed the arrival of the ThermaSource rig #104 in Belize, with drilling on the company’s acreage scheduled to get underway shortly. New World, which holds assets in Belize and Denmark, said the drilling work would begin on the B Crest prospect, one of three drill ready prospects identified on the its flagship Blue Creek Project in the Petén Basin. The rig has been provided by the company’s drilling contractor, ThermaSource International, following a farm-down of 5% working interest per well for the first two wells in exchange for a 25% reduction in drilling costs. (That’s thinking out of the box. Good business!) The rig arrived in Belize in 65 containers, all of which have been transported to the drill site in the Blue Creek area, where it is currently being rigged up. Once fully assembled, the rig will be tested for operational capability and drilling is expected to commence on or around 1 October 2012.

Nostra Terra : NTOG

The tiddler has begun drilling the first horizontal well in the Chisholm Trail Prospect, located in Oklahoma. The well, in which Nostra terra owns a 0.47% working interest, is the first horizontal well on the prospect. Drilling of the well is expected to take 30 days. Two more wells are planned to be drilled by the end of 2012, including the one in which Nostra Terra has a 20% working interest. Matt Lofgran, Chief Executive Officer of Nostra Terra, commented: “We’re pleased to see the first well spud so quickly.  As we mentioned in the acquisition announcement 11 days ago, this well is one of three being drilled this year where Nostra has interests of up to 20%. We are closely monitoring its progress in anticipation of the commencement of drilling the initial well where we have a 20% interest.” Yes that’s all very well Lofgran. We want the BOPD increasing! Talk! Talk! Talk!

President petroleum : PPC

Here comes the begging bowl! A proposed fundraising comprising a firm placing of 28,962,500 New Ordinary Shares, a conditional placing of 86,887,500 New Ordinary Shares, an open offer of up to 19,998,541 New Ordinary Shares and a subscription of 18,750,000 New Ordinary Shares, in each case at 20 pence per share to raise £30.92 million assuming a full take-up under the Open Offer. Now comes the Farm-in! The Farm-In Agreement provides for President to earn up to a 59 per cent. interest in the Pirity Block from Pirity  Hidrocarburos (a subsidiary of PetroVictory); and up to a 60 per cent. interest in the Demattei Block from Crescent  Global Oil Paraguay S.A. (a subsidiary of Crescent Oil LLC)  in the Chaco region of Paraguay. The combined blocks have a gross risked recoverable resource potential of greater than 150 million barrels, with a net success case NPV10 estimated at over US$25 per barrel (President estimates).

Providence Resources : PVR

Confirmed plans are under way to drill the Dunquin prospect offshore Ireland in the first quarter of 2013 after a rig deal was agreed by the licence operator, ExxonMobil. Exxon has signed a letter of intent with Ocean Rig UDW Inc. for the “Eirik Raude” semi-submersible drilling rig. Under the terms of the agreement, it is proposed to use the Eirik Raude to drill an exploration well at Dunquin, located in Frontier Exploration Licence (FEL) 3/04, with an estimated programme duration of up to six months. Subject to satisfactory contract corporate and co-venturer approvals, the rig is scheduled to commence this contract in the first quarter of 2013. ExxonMobil 27.5%  operates FEL 3/04 on behalf of Eni Ireland 27.5%, Repsol25%, Providence16.0%, with Sosina Exploration holding 4.0%. Tony O’Reilly, the chief executive of Providence, said: “We are extremely pleased to confirm that this letter of intent has now been agreed, and that drilling operations at Dunquin are being planned to start in Q1 2013. The Dunquin well forms an important part of Providence’s ongoing Irish multi-basin, multi-well drilling programme.”

Range Resources : RRL

The ailing, failing, flailing oiler thrashed around this week releasing an operational update on the Morne Diablo license in Trinidad. The QUN 130 well has reached its target depth of 1,300 ft. with well logs indicating a well-developed likely oil pay zone from 1,210-1,290 ft. with a secondary likely oil pay zones from 1,080-1,140 ft. as well as a shallow resistive sand at 275-300ft. Completion operations were finalised late last week and production tests commenced over the weekend. The well was produced on a 6/32″ choke and flowed approximately 170 bopd (circa 7.5 bop hour) before being opened up on a 8/32″ choke and flowed at approximately 330 bopd (circa 14 bop hour) before having to reduce the choke back to 6/32″ due to the high pressures encountered at this depth. The well maintained the flow at approximately 170 bopd, with production having been stabilised at circa 150 bopd.

Sound Oil : SOU

Not so sound Sound Oil updated on its operations in Indonesia. Operations to drill four development wells on the Kerendan gas field in Kalimantan are progressing well.

Xcite Energy : XEL

Will be presented at the World Heavy Oil Conference 2012, in Aberdeen this week, at which Xcite Energy is a sponsor.  Mr Steve Kew, Chief Operating Officer of Xcite Energy, presented on the history and background of the Bentley field, and on Thursday, 13th September, Mr Barny Brennan, Director of Subsurface of Xcite Energy, presented on the pre-2012 appraisal of the field. The presentations are available on the Company’s website at

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