The Smallcap Oil & Gas round up.

Amerisur Resources : AMER

Good news came this week as AMER announced the Platanillo-5 well encountered an interval of 99ft gross, 79ft net pay in the U sands of the Villeta formation. Platanillo-5 flowed 31.8°API oil with trace water at 2,472 BOPD in natural flow, the well has been placed on commercial production and is envisaged to produce at a controlled rate of approximately 1,500 BOPD initially, taking total Company controlled rate production up to approximately 3,500 BOPD. The Company is currently rigging down the Serinco Rig D-10 in order to move and rig up over the fourth drilling slot on Platform 9 to drill the fourth well of the current programme (Platanillo-9), deviating the well to an offset of approximately 1,550ft west of Platanillo-3

Borders & Southern : BOR

Signed a contract with Petroleum Geo-Services for the acquisition and processing of a new 3D seismic survey. The survey, measuring approximately 1100, will be located in Quad 61 adjacent to the northern margin of the Company’s existing 3D area. The aim of the survey is to provide more data on the proven Early Cretaceous play fairway, deliver greater definition to prospects that have been mapped on 2D data and potentially identify new leads. PGS, who were responsible for the acquisition and processing of the Company’s first 3D survey, will use their vessel the M/V Ramform Challenger. Acquisition is expected to commence around the middle of January 2013.

Bridge Energy : BRDG

The New Kid on the Block has completed the acquisition of a 1.55% working interest in the producing Boa field from OMV (U.K.) for an adjusted consideration of $18.1 million. The acquisition includes a transfer of around 40,000 barrels of oil stock which will be sold following completion for an estimated value of around $4.4 million (based on prevailing prices of around $110/bbl).The acquisition is being funded through a combination of current cash and Bridge’s existing reserve base lending facility. The unitised Boa field extends across the UK/Norway median line and lies 88.65% in Norway Block 24/6 and 11.35% in UK Blocks 9/15a and 9/15b. The Boa reservoir is contained within a high-quality upper Heimdal sand and comprises a light oil rim with an overlying gas cap and very strong natural aquifer drive. The field was developed in 2008 as part of the wider Alvheim area development with three subsea development wells tied back to the Alvheim FPSO operated by Marathon Oil Norge AS. Oil is then shipped by shuttle tanker, while gas is exported into the UK market via the Beryl SAGE system. The Boa field facilities and the Alvheim FPSO has an excellent utilisation record with typical uptime above 90%. The field had produced around 25 million barrels of oil up to the effective date of the acquisition (1st January 2012) and is currently producing 15,000 bopd gross. The production performance of the field has exceeded expectation and recovery estimates have continued to increase during the field life. Potential for further infill drilling in the field has been identified as well as the development of the field gas cap. Bridge’s CEO, Tom Reynolds, commented: “The completion of the Boa acquisition continues our previously stated strategy to build a solid cash flow base for future re-investment and growth. The Boa field delivers reliable production with very strong operating margins, which is efficiently supported by our accumulated tax pool in the UK. The addition of Boa also continues to broaden our producing assets portfolio and further diversifying our revenue streams.”

3Legs Resources : 3LEG

Confirmed that ConocoPhillips has declined an option to take a 70% interest in its three eastern Baltic Basin concessions in northern Poland. 3Legs said the decision by the US oil major had been expected and that it was now focusing its efforts on its three western concessions in the country. In March, ConocoPhillips took up an option to acquire a 70% interest and operator-ship in the western concessions. The Group will be considering its options carefully before engaging in any operations on its eastern concessions.

Caza Oil & Gas : CAZA

Started drilling operations on its Forehand Ranch Prospect in Eddy County, New Mexico this week. The first test well in the programme is the Forehand Ranch 27 State Com No. 1H horizontal well. It will be drilled to a total vertical depth of approximately 9,200 feet with a total measured depth of approximately 11,929 feet. The primary target is the 2nd Bone Spring Sand at a vertical depth of approximately 7,450 feet subsurface with potential secondary targets in the Delaware, Lower Brushy Canyon, Avalon Shale, 1st and 3rd Bone Spring Sands and Wolfcamp. Caza has a 54.83% working interest before pay-out (42.02% net revenue interest) and a 63.00% working interest after pay-out (48.27% net revenue interest) in the Forehand Ranch 27 State Com No. 1H well. Drilling is also continuing at Caza’s Copperline Prospect in Lea County, New Mexico, with the Caza Ridge 14 State No. 3H horizontal well. That well is currently at a measured depth of approximately 12,027 feet in the horizontal section of the well. The horizontal section is being drilled through the primary objective Lower 3rd Bone Spring Sand to a total measured depth of approximately 15,780 feet.

Coastal Energy : CEO

Announced this week the signing of a contract with a subsidiary of Atwood Oceanics, Inc. to use the Manta jackup drilling rig for its operations in the Gulf of Thailand and offshore Malaysia. In accordance with the contract, Coastal will pay a $145,000 day rate throughout the 12 month firm duration. The company anticipates delivery of the Manta by late November. Randy Bartley, the president and chief executive of Coastal, said: “We are pleased to announce the signing of this contract with Atwood and are eager to commence drilling with the Manta later this year. The addition of a second drilling rig is an important milestone for Coastal, as it will allow us to conduct our development and exploration programs simultaneously. Given the active drilling program that we have outlined, we believe a two rig program is an appropriate step toward unlocking the value of our highly prospective asset base.”

Exillon Energy : EXI

The London Premium listed independent oil producer with assets in two oil-rich regions of Russia, Timan-Pechora (“Exillon TP”) and West Siberia (“Exillon WS”), released unaudited production data for the month of September 2012. Average daily production[1] was 13,796 bbl/day during the period. Average daily production for Exillon TP was 3,172 bbl/day, and for Exillon WS it was 10,624 bbl/day during the period. Peak daily production[2] was 14,583 bbl/day during the period. Exillion expect to make the October production announcement by 5 November 2012.

Global Petroleum : GBP

IN comes Dr. Robert Arnott who will be joining the Board as non-executive Chairman with effect from 4 October 2012. As announced on 30 April 2012, OUT goes Mr. Mark Savage, with immediate effect.IN comes Christopher Lewis who joins as Exploration Manager, also with effect from 4 October 2012. In, Out Shake it all about do the Hokey cokey & turn around that’s what it’s all about. Alllll do the Hokey cokey…. ermmm that’s enough of that!

Gulf Keystone Petroleum : GKP

Launched a convertible bond offering to raise US$200 million to fund work on its Shaikan field in the Kurdistan region of Iraq. The senior unsecured convertible bonds are due October 2017 and the overall issue could be increased by up to US$50 million in the event that an increase option and overallotment option are taken up. Funds raised via the offering will boost Gulf Keystone’s liquidity position and contribute to its ongoing move to the large-scale staged development of its Shaikan block, which was declared a commercial discovery in August 2012. Cash has also been earmarked for aggressive exploration and appraisal of its other three blocks in the region.

Jupiter Energy : JPRL

Good news came today from Jupiter as the company hit the oily stuff. Well J-55 has reached its final total depth; mud logs, core and open hole wireline logs indicate hydrocarbons in the Mid Triassic horizon. Initial analysis indicates 112m of gross reservoir and approximately 60m net pay in the Mid Triassic carbonate reservoir unit. This is similar to that of Jupiter’s already discovered Akkar East oilfield. Well J-55 is currently running production casing to allow for a period of up to ninety days of flow testing from the Mid Triassic section. The J-55 structure is mapped as a separate accumulation to that of East Akkar.

Leyshon Resources : LRL

Off the radar Leyshon Resources has commenced drilling at the 708 km2 Zijinshan block located on the Eastern flank of the prolific Ordos Basin, China’s second largest and one of the world’s major gas producing basins.

Magnolia Petroleum : MAGP

Said this week that it’s participing in four further wells in proven onshore oil plays in Oklahoma. Magnolia currently has small interests in 84 producing properties, a further 10 currently being drilled/ completed and, following today’s announcement, an additional 14 waiting to be spud.

Max Petroleum : MXP

The ailing oil and gas exploration and production company focused on Kazakhstan, has commenced drilling the BSBNE-1 exploration well on the Besbolek North-East prospect on Block E using Zhanros Drilling’s ZJ-20 rig. Total vertical depth of the well will be approximately 1,580 metres. The Besbolek North-East Prospect is a four-way anticline targeting unrisked mean resources of 10 million barrels of oil in Triassic reservoirs.

Providence Resources : PVR

Has been awarded a Foreshore Licence over an area in the Kish Bank Basin, offshore Dublin, Ireland. The licence permits the carrying out of a 2D seismic programme, a well site survey as well as the drilling of an exploration well on the Dalkey Island prospect, located within Standard Exploration Licence 2/11.

Serica Energy : SQZ

Has successfully completed the acquisition of 4,180 square kilometres of 3D seismic data in its Luderitz Basin Blocks, offshore Namibia. The survey, conducted by Serica on behalf of its partners in the Licence, BP, NAMCOR and IEPL, commenced on 10 May and took four and a half months to complete. The survey was undertaken by Polarcus Seismic Limited using the 10-streamer seismic vessel Polarcus Nadia.

Sound Oil : SOU

It’s been a good week for holders here. As the upstream oil and gas company with assets in Italy and Indonesia, updated on its operations onshore Java, Indonesia. Citarum PSC, Java (Sound Oil 20%): Drilling at the Geulis-1 exploration well commenced at 00.40 local time on 2 October 2012. The well will be drilled as a deviated hole to a proposed total measured depth of 3,937 ft to target limestone and sandstone reservoirs in the Miocene, Parigi and Cibulakan formations. Operations are scheduled for 42 days. The well is located in the Jonggol area approximately 7 km east of the Pasundan-1 well and 16 km south of the Jatirarangon gas and oil discovery. In this part of the block drilling conditions are expected to be less challenging than at the Cataka-1 and Jatayu-1 wells as the structural style is less complex and more drilling information is available from surrounding wells. The Geulis prospect has been independently assessed by Fugro Robertson Limited to have gross P90-P50-P10 prospective gas resources of 9-26-55 Bscf respectively (P50 5 Bscf net to Sound Oil).

Victoria Oil & Gas : VOG

Published an independent Competent Person’s Report compiled by petroleum and gas industry specialists ERC Equipoise Limited on its producing Logbaba gas and condensate field in Cameroon. The Highlights of which were thus: Independent reserve auditors confirm a 50% increase in total 1P Reserves and 1C Contingent Resource gas volumes…1P (Proven) Reserves of 39.1 bcf, plus 32.7 bcf of 1C Contingent Resources, giving potential 71.8 bcf of producible gas (gross), plus 1.14 mmbbls condensate… Expect to reclassify Contingent Resource volumes as Reserves, once producibility of Lower Logbaba sands has been established by stimulation and testing…Results provide independent endorsement of Logbaba gas security of supply.

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