The Smallcap Oil & Gas Round Up.

It’s been a busy week for share-holders with some good gains in Caza, Europa, Leyshon, Fastnet, Tangiers performing well on genuine good news while laughs were had in the City Of London as The Sefton Fantasy Show continued unabated.

3Legs Resources LON:3LEG

Commenced further testing of the Lebien LE-2H horizontal well in October, flowing natural gas initially with the assistance of a nitrogen lift. The well has continued to flow natural gas unassisted, through 3.5 inch tubing, since the nitrogen lift was suspended on 29 October. 3Legs said the well had flowed continuously and unassisted at a rate of between 560 and 780 mscf/d of natural gas over the 8-day period since 29 October. It has also produced between 320 and 450 barrels of frac water per day as it has continued to clean up. As at 6 November approximately 26% of the frac water originally injected had been recovered.

Altona Energy LON:ANR

Announced that it has signed a Memorandum of Understanding with Parsons Brinckerhoff’s Global Mining Business group with the intent to engage them to act as Project Management Contractor to oversee the Arckaringa Mine development and the design-build activities for Altona’s 30,000 BPD Clean Energy Coal to Liquids Project in South Australia. Parsons Brinckerhoff is the professional services division of the Balfour Beatty group with a combined global workforce exceeding 50,000 personnel. One of the first tasks that Parsons Brinckerhoff will undertake is to assist Altona in the selection and project management of the Drilling Contractor to carry out a test drilling program at Arckaringa. The programme is an important milestone achievement for Altona’s flagship Arckaringa project.

Caza Oil & Gas LON:CAZA

It’s been a very good week for Caza share-holders as the company provided a production update for the Caza Ridge horizontal Bone Spring well on its Copperline Prospect in Lea County, New Mexico. Under controlled flowback producing rates have continued to increase each day, and during a 24 hour flow the well produced a total of 844 barrels of oil, 1,063 thousand cubic feet of natural gas, which equates to 1,021 bbls of oil equivalent, and 667 bbls of frac fluid. The well continues to clean up and recovered hydrocarbons and frac fluids at a gross rate of approximately 1,688 bbls equivalent on an 18/64ths adjustable choke at 2,900 pounds per square inch flowing casing pressure. Caza currently has a 45% working interest (35.213% net revenue interest) before payout and a 58.75% working interest (45.972% net revenue interest) after payout in the Caza Ridge 14 State No.3H well.

Europa Oil & Gas LON:EOG

Released a technical update on its 100% owned Licensing Options 11/7 and LO 11/8, located in the highly prospective South Porcupine Basin, in the Irish Atlantic Margin, where two large, previously unknown prospects, Mullen and Kiernan, were identified on Europa’s acreage in September 2012. Europa believes the South Porcupine Basin has the potential to host a new hydrocarbon province and is encouraged by the results of the initial prospect evaluation… Indicative resources at Mullen range from 66 million (P90) up to potentially 1.1 billion (P10) barrels of oil… P50 resources at Mullen are estimated at 318 million barrels of oil and are supported on seismic data by an amplitude shut-off at a constant depth…First pass seismic reprocessing over the Mullen prospect has been completed and reprocessing over Kiernan is on-going… Europa is seeking a joint venture partner to undertake further technical work to de-risk the Mullen and Kiernan prospects and mature them to drill-able status.

Falkland Oil & Gas LON:FOGL

Announces, further to the statement of 25 October 2012, that the necessary repairs were carried out on the blow-out preventer within the expected time-frame, and drilling has re-commenced. The Company estimates it will take a further 4-6 weeks to complete drilling operations. The Company will make a further announcement at that time. Tim Bushell, Chief Executive of FOGL said: “Whilst this work has resulted in a two week delay to our drilling operations, safety is our number one priority and it was essential to resolve this issue before recommencing drilling operations.”

Fastnet Oil & Gas LON:FAST

Has exercised its option over a 50% participating interest in a proposed exploration licence application onshore Morocco. The option is being routed through Fastnet’s local subsidiary, Pathfinder Hydrocarbon Ventures. It provides for a 50% ‘ground floor’ paying interest in the Merada Licence Application with Drillbit Exploration Ltd, a subsidiary of Pathfinder Energy Maghreb Plc. Fastnet’s option to participate in the Merada Licence Application was acquired as part of its purchase of Pathfinder Hydrocarbon Ventures in July 2012. As part of the proposed move, Fastnet will pay 50% of all exploration costs including a pro-rata share of a US$1.5 million guarantee in favour of the Moroccan government. There are no back costs.

Gulf Keystone Petroleum LON:GKP

Confirmed yesterday that its latest exploration well in Kurdistan is a discovery. The oil and gas group said that testing had now been completed on the Sheikh Adi-2 well, which lies on its operated Sheikh Adi block. The block is located immediately to the west of Gulf Keystone’s Shaikan Block, which is a major commercial discovery. Sheikh Adi-2 spudded in May 2012, 1.45 km to the north of the Sheikh Adi-1 exploration well, and was drilled to a total depth of 2,754 metres in September 2012. In the course of the Sheikh Adi-2 well testing programme the company successfully tested four reservoir zones at measured depths of between 1,420 metres and 1,700 metres, achieving total stabilised aggregate flow rates of 4,235 barrels of oil per day across the Upper Butmah, Adaiyah, Mus and Sargelu formations in the Jurassic.

Leni Gas & Oil LON:LGO

Announced this week that it has signed a definitive agreement to sell its remaining minority interests in the US Gulf of Mexico for $1.625 million. The assets are being sold to a US group in a deal that is expected to be completed this week. Leni said the cash would reduce its need to source additional capital through the equity or debt markets and would allow it to actively accelerate the development of its Trinidad portfolio. In particular, the company wants to focus on the Goudron Field, where it has recently reported proven and probable (2P) reserves of 7.2 million barrels of oil and 3P reserves of 30.5 million barrels

New World Oil & Gas LON:NEW

Reported drilling work on the Blue Creek #2 well in Belize is ahead of schedule. The well is targeting the B Crest prospect on New World’s flagship Blue Creek Project in Belize’s productive Petén Basin. The company said results so far were in line with its geologic prognosis. New World said that because the current programme is US$750,000 under budget, it had decided to drill into the Y3 formation and the Hillbank intervals and test this area where there remains considerable potential for the existence of multiple productive horizons. New expects to reach the revised total depth of 10,450ft, on or before 15 November 2012. Following completion of the drilling, New World will then evaluate the intervals which have oil shows on both the mud logs recorded while drilling, & the electric logs which will be recorded after drilling has been completed, to ascertain amongst other factors the oil and gas saturation levels, porosity and thickness of the reservoirs. The company will then determine at what depth and which zones to commence well testing operations.

Petroceltic LON:PCI

Announced its participation in a joint venture which was the successful bidder on Block 12 ‘El Qa’a Plain’ in the 2011 Egypt General Petroleum Corporation bid round which closed on March 29, 2012. Partners in the application were Petroceltic (37.5% Working Interest), Dana Petroleum (37.5% Working Interest, as Operator), and Beach Petroleum (25% Working Interest). The block is composed of two largely unexplored areas covering 1824 square kilometres in the southern part of the Sinai Peninsula, east of the prolific Gulf of Suez. The overall licence term for the Block is 6 years, with the work commitment in the first 4 year period comprising the acquisition of a minimum 450 square kilometres of new 3D seismic data and the drilling of at least one exploration well. It is expected that the new concession will be formally awarded in 2013 following the ratification process which culminates when each concession is passed into law by the People’s Assembly (Parliament).

Petrofac LON:PFC & Bowleven LON:BLVN, the Africa-focused oil and gas company, have agreed a strategic alliance to develop the Etinde Permit, offshore Cameroon. Petrofac said the alliance was an opportunity for it to leverage its extensive capabilities to support Bowleven’s proposed development and builds on the company’s presence in West Africa. Under the terms of the strategic alliance, which is subject to Bowleven shareholder approval, Petrofac will provide engineering capability to Euroil, Bowleven’s Cameroonian subsidiary, to support the delivery of a Field Development Plan (FDP) for the proposed first phase of the development, pending satisfactory completion of Euroil’s appraisal of its asset. Prior to approval of the FDP, Petrofac will be remunerated by Euroil for the provision of its service capability.

Premier Oil LON:PMO

Will plug and abandon the Spaniards East well in UK North Sea after it was found to be dry. The well on block 15/21, where Premier has a 28% equity stake, reached a total depth of 10,694 feet. The well encountered 75 feet of Jurassic sands but these were shown to be water wet on the logs.

Ruspetro LON:RPO

An independent oil & gas development and production company listed on the London Stock Exchange, located in the Khanty-Mansiysk region of the West Siberian basin published an update on its operations for the period since 29th August to date. Which can’t be read by clicking the company link as they’ve not bothered to post it on their own website! But here’s a link to it on LSE.

Sefton Resources LON:SER

The Sefton Resources Fantasy Show continued today as the company said it was “pleased to announce an update on oil production from California” The only problem being that the figures for October were “Preliminary” & unverified by the California DOGGR while the figures for September 2012 were just plain wrong! However Sefton are drilling a new water disposal well to resolve the water disposal and surface equipment limitations at the Tapia Canyon oil field. Maybe they could also dispose of the the troughing Board & bogus BOPD figures that they’ve been releasing!

Sound Oil LON:SOU

The Italian focused upstream oil and gas company, announced the receipt of formal approval from the Treviso Province authorities of the Environmental Impact Assessment for the Nervesa appraisal well. It is expected that the final approval from the Italian Ministry of Economic Development will follow in approx’ five weeks. Formal operations at the site will then commence with a view to commencing drilling around the end of the year.

Urals Energy LON:UEN

Updated provided its results to 30 June 2012. As announced on 28 September 2012, the arbitrator in the ongoing Arbitration against Vyatcheslav Rovneiko has issued a third Partial Final Award which orders that Mr Rovneiko is liable to pay to Urals Energy the sum of US$3,730,000. The only remaining issues in the arbitration are to determine the amount of Mr Rovneiko’s liability to pay interest on the loan and the allocation of the costs of the arbitration. Urals intends to seek recovery of its costs now that Mr. Rovneiko’s liability for the full amount of the principal of the loan has been finally determined by the arbitrator in favor of the Company. The Company also reports that the loading of the tanker on Kolguyev Island from Arktikneft has been completed with the shipment of 231,594 barrels of crude to Petraco. Photographs from the recent loading of the tanker will be available on the company’s web-site. Daily production at Arktikneft has remained stable at 700 bopd, while at Petrosakh it has increased by 45 bopd and reached a level of 1440 bopd.

Xcite Energy LON:XEL

Announced its results for the 3 and 9 month periods ended 30 September 2012. Which can be read by clicking this link.

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