The Smallcap Oil & Gas round up.

Amerisur Resources : AMER

Released their results for the six months ended 30 June 2012. Click the link to read. Excellent potential here.

Aurelian Oil & Gas : AUL

The European focused E&P Company, today announced its Interim Results for the six months ended 30 June 2012. It’s much of the same. Click the link to read.

Bahamas Petroleum : BPC 

Announced a “vigorous and proactive” campaign to win the support of local people for possible drilling work off the country’s coast. The move follows confirmation by the Bahamas government earlier this month that the company had so far paid for, and met the terms of, its licence interests in the region. However, the government noted that any permit to drill would be contingent on the outcome of a general referendum to be held in the Bahamas on oil exploration. The precise nature and timings of that referendum are currently unknown, which means a licence stipulation for Bahamas to drill a well before April 2013 has been postponed. A well is not now likely until the end of 2013 at the earliest. Meanwhile, announcing its half-year report this week, the company reiterated that the initial ‘fast track’ interpretation of 3D seismic had been positive, reinforcing existing 2D results. Interpretation is currently under way on a full PSDM data volume. The company has also completed the plans and designs for a 22,500ft deep exploration well.

Bayfield Energy Holdings : BEH)

An upstream oil and gas exploration and production company with interests in Trinidad and South Africa, today released its results for the six month period ended 30 June 2012. Click the link

Borders & Southern : BOR

Announced its interim financial results for the six month period ending 30 June 2012.

Coastal Energy : CEO

Good news from Coastal this week; as they published the initial flow rates from Songkhla A-10 well in Thailand. The Songkhla A-10 well was completed using an electric submersible pump and is initially flowing approximately 4,000 barrels of oil per day (bopd) while still cleaning up. The next well, the A-13, has been spudded and will test the northeastern fault block at Songkhla A. Songkhla A-10 well was drilled earlier this month to a depth of 7,400 feet TVD and encountered 213 feet of net pay in the Lower Oligocene with 20% porosity. The gross oil column in the well was approximately 550 feet thick.

Egdon Resources : EDR

Chipped in their two penneth this week reminding investors that the release made this week by Europa Oil and Gas advising on the ruling by the Planning Inspectorate to dismiss the appeal against Surrey County Council’s original decision to refuse planning permission for the drilling of the Holmwood-1 exploration well. The joint venture partners are taking legal advice and considering their options with regard to the decision. Holmwood is situated in PEDL143 where Egdon holds a 38.4% interest. The joint venture partners are Europa Oil & Gas Ltd (Operator) (40%), Warwick Energy (20%) and Altwood Petroleum Limited (1.6%).

Falkland Oil & Gas : FOGL

The exploration company currently drilling on its extensive licence areas to the South and East of the Falkland Islands, has spudded the Scotia exploration well. Drilling commenced at well FI 31/12-01 on 25 September 2012. The well is located 315 km east – northeast of Stanley, Falkland Islands and 114 km from GOGL’s previously drilled Loligo prospect. FOGL is the operator of the well, holding a 75 percent interest, together with its partner Edison International Spa, which holds the remaining 25% interest. Under a farm-out agreement announced in August 2012, Noble Energy will also participate in this well for a 35 percent interest, thereby reducing FOGL’s interest to 40 percent. The farm-out agreement has been approved by the Falkland Islands Government and the changes to the licences will be formally executed in the near future.

Forum Energy : FEP

Released a poor set OF unaudited interims for the six months ended 30 June 2012. Forum recorded a loss of US$1,696,000 for the interim period ended 30 June 2012 (profit – US$3,322,000 for interim period ended 30 June 2011)…The loss for the period compared to the profit for 2011 is principally due to income from the Galoc field (in which Forum holds a 2.27% equity interest) being 87% lower than the 2011 interim period due to the temporary suspension of production at the Galoc oil field (SC-14C) which was required whilst the Floating Production, Storage and Offloading vessel was upgraded. Production at the Galoc field has subsequently recommenced at normal rates…Operational Highlights…SC72 seismic interpretation and resource update completed in April 2012, which  showed an improvement in the resources previously estimated and supporting the case to proceed with a drilling programme;…Development of Libertad Gas Field (SC40) by DESCO with first commercial production in Q1 2012, with expected net income to Forum to be modest on an annual basis;… Completion of Galoc oil field, Floating Production, Storage and Offloading vessel upgrade in Q1 2012….Financial Highlights…Revenues of US$1,346,000 (US$7,556,000 – 30 June 2011);…Gross Profit of US$30,000 (US$4,557,000 – 30 June 2011);…Loss before tax of US$1,696,000 (profit before tax of US$3,322,000 – 30 June 2011);…Working capital of US$6.9m as of 30 June 2012, of which $5m remained available as undrawn loan facility from Philex (US$3.4m – 30 June 2011);…US$4.4m settlement of legal dispute with Basic Energy Corporation relating to deferred consideration on assets acquired in the North Palawan area,  which has been capitalised as Galoc acquisition costs;…Exercise of 2,185,000 options during the period by Directors and staff at US$0.484;… Increase in loan facility provided by Philex Mining Corporation (the parent Company of Forum’s two principal shareholders) from US$10m to US$15m for short-term working capital purposes and repayable in November 2013.

Kea Petroleum : KEA

Buoyed investors with an additional flow test and down hole pressure gauge data update which confirmed that the oil and gas reservoir accessed during the initial test of Puka 1 is of commercial quantity. The initial build-up data established by down-hole pressure gauges have confirmed that no confining boundaries have been observed. The Maximum flow rate of oil achieved was 310 barrels of oil per day  and of gas was 1.8 million cubic feet per day. The testing program is continuing with choke sizes being varied to determine the optimum production parameters for future field performance. Following the encouraging test results from Puka 1, the Company has decided to proceed to drill a follow up well, Puka 2, as soon as possible. Planning for Puka 2 is well advanced. Puka 2 will be drilled by a larger capacity rig and has been designed as a conventional larger diameter production wellbore that will allow for higher flow rates and flexibility with completion and production. The Wingrove production facilities will now be moved to the Puka site with installation work being undertaken during the drilling of Puka 2. Planning is also advanced for a Puka 3D seismic survey with long lead items purchased so that the survey can be acquired over the upcoming New Zealand summer. This will assist management to locate future drilling targets. Ian Gowrie-Smith, Kea’s Chairman, commented: “We are delighted that the latest oil and gas flow and down hole pressures data have led to the conclusion that the Puka discovery is indeed a commercial oil field discovery. The commitment to drill Puka 2 and the move of Wingrove production facilities to the Puka production site emphasises our intent to convert this discovery into a cash flow as soon as possible” To learn more about Kea Petroleum, visit:

Lansdowne Oil & Gas : LOGP

Interim results for the six months to 30 June 2012.

Lochard Energy Group : LHD

Annual Report and Accounts for the year ended 30 June 2012 have been sent to shareholders together with the Notice of Annual General Meeting and a form of proxy. An electronic copy of the Annual Report and Accounts will be available from the Company’s website at The Company’s Annual General Meeting will be held at 10.00am on 25 October 2012 at 1 Wood Street, London.

Madagascar Oil & Gas : MOIL

Hit the buffers today as the company released their half year results for the six month period ended 30 June 2012. The fly in the oily ointment being increased development costs which have risen by an extra $17 million dollars. The company are now fully funded to 2013 as opposed to 2014. You can read the full report here by clicking the link.

Magnolia Petroleum : MAGP

Carried on its meteoric rise this week despite announcing that it has raised £1.25m gross through an issue at 2.4p each of 52,222,208 new ordinary shares of 0.1p each in the capital of the Company. The issue price represents a discount of approx’ 3%. to the 15 day volume weighted average price of 2.49p. £1,053,333 has been raised through a draw down against its £10 million equity financing facility with Darwin Strategic Limited with the Company allotting 43,888,888 New Ordinary Shares to Darwin under the terms of the EFF agreement and conditional on admission to trading on AIM. The draw down is the second undertaken by the Company since the announcement of the EFF on 9 August 2012 with the Company now having drawn down an aggregate of approximately £1.8m. The Company is also pleased to announce that it has raised £200,000 via the issue of 7,499,990 New Ordinary Shares, including 1,250,000 New Ordinary Shares to Ronald Harwood, a non-executive director of the Company.

New World Oil & Gas : NEW

Said today that the Blue Creek #2 well targeting the B Crest prospect commenced drilling on 27 September 2012, at its Blue Creek Project, located in the productive Petén Basin in Northwest Belize.  The Company’s Competent Person, RPS Energy, estimates B Crest to hold a P50 un-risked prospective resource of 92.1 million barrels of oil (Y1 and Y2 intervals) and a P50 un-risked Net Present Value of US$2.4 billion on a 100% working interest basis. Following New World’s farm-down of a 5% working interest in the Blue Creek #2 well with the drilling contractor, ThermaSource International LLC, rig #104 will drill to a target depth of 7,000ft, targeting the mid cretaceous Yalbac 2 Formation.  RPS Energy reports a Probability of Geologic Success of 1 in 5 and drilling results will be released once TD has been reached, which is expected to be in mid November 2012.

Nighthawk Energy : HAWK

Released their annual results yesterday, detailing a catalogue of past management and operational failings. The honesty with which Executive Chairman Steven Gutteridge has opened up the soul of the company to investors should be applauded. Nighthawk’s main asset is the Jolly Ranch project in the Denver-Julesberg Basin in Colorado, which until recently was operated by Running Foxes Petroleum. In December 2011, Nighthawk paid US$12.5 million to buy half of Running Foxes’ stake and take its own holding to 75% with operatorship of the field. In executive chairman Steven Gutterigde’s note to shareholders, he spelt out how Nighthawk has subsequently uncovered substantial operational shortcomings including problematic wells and equipment, which it then spent five months fixing. Running Foxes, which still owns a 25% stake in Jolly Ranch and a 13.65% stake in Nighthawk, was largely blamed for the failings. Gutteridge said Nighthawk was attempting to claim back the costs for the remedial work as well as auditing all billings to Nighthawk by Running Foxes and its associates over the past two years, which could result in further claims. While the work that Nighthawk undertook led to an increase in average daily production from 30 barrels to 61 barrels, the company has had to accept some hefty impairments in its account ($27 million) and finished the year with an overall loss of $35.9 million.

Nostra Terra Oil & Gas : NTOG

Investors weren’t happy this week with Nostra after the company squeezed out yet another placement on top of the 6th September 2012 placement. The dilution to the company share capital this month totalled 297 million shares or 14%. Last year (1st/July/2011) Nostra also raised £2,000,000 before expenses by way of a placing of 333,333,335 new ordinary shares at 0.6 pence. The total dilution since July 2011 in the share capital is a thumping 635,222,225 shares which represents approx 34% while the share-price has fallen over 70% in value since its  highs of 2011. On top of this loyal investors are still awaiting the results from the drills at Bale Creek which began in early February 2012 over 7 months ago!  Nostra also released their Interim results for the six month period ended 30 June 2012. You can read them by clicking the link

PetroNeft Resources : PTR

Released an update on the flow rate achieved from recently drilled Arbuzovskoye well 101 in Russia. The Arbuzovskoye well 101, the first of ten planned new production wells on the Arbuzovskoye oil field, has been successfully completed and brought into production at a stable rate of 310 bopd with less than 3% water cut. Arbuzovskoye well 102, the next well in the drilling sequence, is currently drilling ahead. Total oil production, comprising both the Lineynoye and Arbuzovskoye oil fields has increased to about 2,300 bopd with the addition of the Arbuzovskoye No. 101 well.

San Leon ; SLE

Released an upbeat interim results for the six months ended 30 June 2012.  You can read the full update by clicking this link. Although I’ll give you a flavour of what’s actually in the RNS by posting, Oisin Fanning, Chairman of San Leons’ comments: “This has been San Leon’s most active period to date both operationally and corporately.  We have continued to prove up the potential of our assets through the drillbit whilst the calibre and potential of these assets has been further endorsed by the partners we have brought in. As we enter the next exciting phase of our development the level of activity seen in the last period is set to continue.  We have an extensive work programme across our portfolio and will continue to manage our risk profile through the completion of further transactions similar to those done in Morocco.  San Leon is well placed with a highly attractive portfolio of assets across a number of different play types and an excellent technical team in place. We look forward to providing further updates in due course.”

Sefton Resources : SER

The US-based oil and gas exploitation and production company has agreed to acquire a new lease in Kansas. Sefton has signed a Purchase and Sale Agreement for the acquisition of a 100 percent working interest in a lease with 14 well bores, surface equipment and water disposal facilities. The deal is expected to be wrapped up in October once title ‘problems’ have been corrected. Let’s hope the deal doesn’t drag on in the same vein as the “still to see the light of day” Doctor Ali steam flood report. Investors have been waiting nigh on 3 years for it!

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