The Smallcap Oil & Gas Round Up.

It’s been another exciting week in the Smallcaps Oil & Gas Underverse! The focus this week shifted nearer home as the Irish & North seas captured  the attention of investors.

Bowleven : BLVN

The Africa focused oil and gas exploration group traded on AIM, released a Group Operations Update this week….Dilling operations commenced on IM-5 appraisal/development well on block  MLHP-7, Etinde…Draft Etinde exploitation authorisation application submitted to Cameroon authorities…Gas sales term sheet for proposed fertiliser plant in advanced stages of negotiation….Discussions ongoing with preferred bidder on Bomono farm-out…Extensive and highly prospective exploration acreage position obtained onshore Kenya…Group cash balance at end August 2012 circa $140 million.

Chariot Oil & Gas : CHAR

The independent Africa focused oil and gas exploration company, today announces its unaudited interim results for the period ended 30 June 2012. Copies of which can be viewed by clicking the link  ttp://

Empyrean Energy : EME

Updated the market today on their Sugarloaf Project : Onshore Texas, USA with a Production and Operational Update on 9 wells that Empyrean hold a 3% interest in. It’s very good news. The following is a summary of 30 day production data recently received for the 9 wells at the Sugarloaf Project: As ever they are back of the fag packet figures but are certainly close to the mark. The total daily boe/d net to Empyrean is approx 250 *boe/d. All of the 9 wells updated on commenced production during July. Further production results will be released as they come to hand. *The wells have had the Average Daily Equivalent Oil Rate recalculated on a simple 6:1 basis.

Europa Oil & Gas : EOG

Excellent news came from Europa this week as the company announced it has identified two large, previously unknown prospects on its acreage in the highly prospective South Porcupine Basin, offshore Ireland. (The sp went into orbit at one stage showing a 100%+ increase) Europa’s licence interests in the region comprise its 100% owned Licensing Options LO 11/07 and LO 11/08, which span a total area of approximately 2,000 sq km. The two sizeable prospects, Mullen in LO 11/07 and Kiernan in LO 11/08, have been identified in the lower Cretaceous clastic play of the Irish Atlantic Margin – a play proven by the Burren oil discovery. Europa said that seismic mapping had showed potential for large stratigraphic closures of up to 120 sq km in size in the case of Mullen and 244 sq km in the case of Kiernan Both prospects are supported by amplitude anomalies identified on 2D seismic data, and detailed mapping shows the development of a possible mechanism for trapping hydrocarbons. Europa are currently reprocessing key seismic lines over both prospects, which will be followed by a rock physics and 2D inversion study to calibrate the seismic response. The company added that discussions with potential joint venture partners for both licences were ongoing.

Falkland Oil & Gas : FOGL

Confirmed that the Loligo exploration well is a gas discovery. Loligo was the first of a two-well programme being undertaken by FOGL and the company is now planning to drill on the Scotia prospect. It said the latest well had proven a working hydrocarbon system in the northern part of the East Falkland basin and also demonstrated that Loligo is a viable stratigraphic trap. (It demonstrates that there’s no oil there, only gas.)

Magnolia Petroleum : MAGP

Updated on Initial Production from Brandt and Bollinger Wells in Oklahoma. The company report initial production rates of 499.33 boepd for the Brandt well (4.1937 % working interest) in the Mississippi Lime formation, Oklahoma, and 686.388 boepd for the Bollinger well  (0.45955% interest) in the Woodford formation, Oklahoma.

Max Petroleum : MAX

Uttered those three dreaded words this week; “Plugged & Abandoned.” Max announced that it has completed drilling the DOSNW-1 exploration well on the Dossor North-West prospect on Block E. The well reached a total depth of 1,334 metres without encountering producible hydrocarbons and will be plugged and abandoned. The Zhanros rig will now move to drill the Besbolek North-East exploration prospect in Block E targeting 10 mmbo of mean resources.

Nighthawk Energy : HAWK

It’s champagne all round this morning for holders of the much maligned Nighthawk Energy (commonly referred to as “Shitehawk” among the chins in the City) Nighthawk has struck the oily stuff as the company announced an update on drilling at its 75% owned, operated project at Jolly Ranch in the Denver-Julesburg Basin, Colorado. It’s congratulations, congratulations a celebrations as Steve Gutteridge struts his stuff this morning! The John Craig 6-2 well has tested commercial oil flow rates from the Cherokee shale formation of just over 600 bopd on a 24 hour test. With Three (yes that’s correct three (3)) further potential oil-bearing zones clearly identified in addition to further Cherokee targets, which have yet to be tested. The John Craig 6-2 well is being fast-tracked onto permanent production. Nighthawk has a 100% working interest in the 6-2 well (80% net revenue interest). While drilling of the Pike’s Peak Williams 4-30 well proceeds to schedule. Drilling of the Pike’s Peak Williams 4-30, the second well in the drilling program, commenced on 14 September. This well is located 2.5 miles north-west of existing Nighthawk producing wells and will test the up-thrown side of a large, seismically defined, basement fault. The well has a planned target depth of 8000 feet and primary targets include the Cherokee and Marmaton formations, with a number of secondary targets. Drilling is proceeding on schedule and is currently through 5300 feet. Nighthawk has a 100% working interest in the 4-30 well (80% net revenue interest). These are the first two wells in a four well drilling program. Stephen Gutteridge, Chairman of Nighthawk, commented: “The results from the John Craig 6-2 represent a very positive start to our new well drilling program, and the well is expected to significantly step-up our current production levels. We are delighted with the initial flow rates and we will update on sustainable flow levels once the well has been on production for a few weeks. The results are also early confirmation that our geo-science led development strategy to identify the ‘sweet-spots’ in the Cherokee resource play, coupled with relatively mild formation interaction, yields results. We are looking forward with increased confidence to the next wells in the program.”

Nostra Terra Oil & Gas : NTOG

The tiny US-focused oil and gas producer, has begun drilling work on a second development well on its Verde Prospect in Colorado. Nostra Terra’s first well on the prospect reached payout in nine months. This second development well will be drilled to a depth of approximately 5,300 feet, which expected to take approximately 30-days. That will be followed by completion and initial production testing.

Petrel Resources : PET

Said yesterday that it was encouraged by results emerging from a technical study of its option blocks in Porcupine Basin, offshore Ireland. Petrel has been carrying out work on Blocks 35/23, 35/24 and the western half of 35/25, and Blocks 45/6, 45/11 and 45/16 in the Atlantic Margin. These cover approximately 1,400 sq km in total, in the northern and eastern sections of the Porcupine Basin. The first two phases of work are now complete and several new targets have been identified. David Horgan, the managing director of Petrel, said: “We are excited by the progress being made in the Atlantic margin, as we look to develop our promising assets and yield value for shareholders. Petrel has identified encouraging targets at the Lower Cretaceous and Tertiary levels in both sets of our blocks, with blocks in quadrant 35 looking particularly promising. Our objective is to develop targets that will attract large partners, to facilitate an early seismic campaign, followed by exploration wells.”

PetroNeft Resources : PTR

Confirmed this week that production from its Linenoye and Arbuzovskoye fields, in Russia, is remaining steady at 2,000 barrels of oil per day and that the first new production well on the Arbuzovskoye field should come into production at the end of September. Arbuzovskoye well 101, the first of ten planned new production wells on the Arbuzovskoye oil field, has been successfully drilled. Well completion is now underway utilising a work-over rig and we expect to bring the well into production around the end of this month. The production drilling rig has been moved and has started drilling well 102.  Well 101 penetrated the J1-1 reservoir essentially as prognosed at -2,463.2 metres tvd.  Core and log data indicate that the reservoir is substantially identical to the good quality reservoir in the Arbuzovskaya No. 1 discovery well.  The reservoir is made up of coarse grained sandstone at the top and grades to fine grained sandstone to siltstone at the base – these types of sandstones are excellent reservoirs as demonstrated by the Arbuzovskaya No. 1 where production is currently steady at approximately 300 bopd.  The gross reservoir thickness is about 8 metres with about 4.2 metres of net pay. Arbuzovskoye contains 2P reserves in excess of 13 million barrels of oil according to independent reserve auditors Ryder Scott and is the PetroNeft’s second production development.

Salamander Energy : SMDR

The Atwood Mako jack up rig has arrived on location and commenced development drilling from the Bualuang Alpha platform on the Group’s B8/38 licence in the Gulf of Thailand. The Mako is on long term contract, and will initially complete a short development drilling programme on the Bualuang Alpha Platform.  Salamander will then be using the rig to drill two exploration prospects on its acreage in the Greater Bualuang area ahead of an extended development drilling campaign from the Bualuang Bravo platform from the end of October.

Serica Energy : SQZ

Has farmed-out a major portion of its UK Central North Sea Block 22/19c to JX Nippon Exploration and Production. Serica presently holds a 100 percent interest in the block and has agreed to part with 85 percent of that stake. In return, JX Nippon will pay to Serica US$250,000 and carry Serica’s share of all future costs associated with the licence up to and including, at JX Nippon’s discretion, the drilling of an exploration well to the Jurassic or deeper. Serica had previously participated in the drilling of the Oates, Palaeocene Forties sand prospect in 22/19c, with its costs carried by Premier Oil : PMO. Following lack of success at Oates, Premier relinquished its interest in the licence, which was retained by Serica. It is the prospectivity of deeper, older strata which is now being pursued.

Trapoil : TRAP

Two pieces of news this week from Trap Oil. Centrica have walked away and elected not to drill an appraisal well on the Inverewe, formerly known as the Kew, prospect (Licence P.1864, Block 9/24d) in which Trapoil currently has a 20%.interest. While further on down the week operations have commenced on the Romeo (Licence P.1666, Block 30/11c) exploration prospect (Trapoil 12.5%. carried interest). Romeo is a four-way dip closure mapped at Base Cretaceous Unconformity with Fulmar sands as the reservoir objective, and with best estimate gross prospective resources for the entire prospect of approximately 44 million barrels of oil equivalent (3.3mmboe net to Trapoil unaudited estimate by Trapoil’s management). The well is being drilled by the Awilco WilHunter rig and well operations are currently estimated to last 78 days in the dry hole case. The well will be drilled to an estimated total depth of 15,180 feet Measured Depth Below Rotary Table or 15,095 feet True Vertical Depth Sub Sea. The partners in Licence P.1666 are Suncor Energy UK Limited (50.625%, operator), Norwegian Energy Company UK Limited (21.875%), First Oil and Gas Limited (15.0%) and Trapoil (12.5%.).

Xcite Energy : XEL

Successfully concluded a pre-production well test on its Bentley Field in the North Sea. The test work was conducted as part of Xcite’s Phase 1A work programme at Bentley, and the company said the results had exceeded its expectations. Xcite said the test had demonstrated the mechanical and operational aspects of the drilling, completion and flowing of the proposed well design for application in Phase 1B. It also collected additional reservoir and production data to improve the calibration of the reservoir engineering model and production facilities design, enabling field development optimisation. Of particular note, the company observed that the timing of first water ingress to the wellbore and the subsequent rate of water build-up was better than expected; in other words, less water was produced.

Join the Forum discussion on this post

You may also like...