The Smallcap Oil & Gas round up

Once again it’s the Smallcap Oil & Gas round up brought to you by the Famous (or infamous as the puppets would have you believe!) BMD. It’s been a great week for Petrel whose share price hit the moon this week. Not been a good week for Silvermere or GXG listed USOP & as ever the Sefton Fantasy Show continues unabated as they head for Bankruptcy. All in all it’s steady as she goes on the oil & gas front.


Released a healthy set of interims this week. Much to long in word for our Smallcap Oil & Gas round up. But here’s the link to it.

Antrim Energy LON:AEY
Agreed an option deal to lease a floating production, storage and offloading vessel for the development of the Fyne Field in the North Sea. The company has signed a Heads of Terms agreement with Hummingbird Production, a subsidiary of Teekay Corporation, for an option to lease the “Hummingbird Spirit” FPSO. Antrim is currently planning the development of its 100% controlled Fyne Field in UKCS Central North Sea Block 21/28a.

Caza Oil & Gas LON:CAZA
Released a decent set of third quarter results and an Operational Update. You can read them by clicking the link

Empyrean Energy LON:EME
Released a summary of 30 and 60 day production data recently received for wells at the Sugarloaf Project: Empyrean currently has 55 wells in production in total at the Sugarloaf Project. In addition there are currently 3 wells being drilled and a further 4 wells in the process of having completion/ stimulation operations carried out. Empyrean CEO – Tom Kelly stated, “Empyrean is encouraged by these latest 30 and 60 day production updates. The fundamental data coming through is strong and shows improvement in some wells. We are mindful of the time that the updated Reserve Report is taking and we are working through outstanding issues with a view to being able to update shareholders in the short term.”

Enegi Oil LON:ENEG
Enegi has appointed Nick Elwes as Director of Communications with immediate effect. (Good move on their part Elwes is a smooth operator. Not as smooth as me!!!) Nick has worked in the communications industry for the last 19 years at College Hill, a leading communications consultancy, and for the last ten years he has focused solely on the Natural Resources sector advising independent oil and gas companies; across all phases of the E&P model from exploration through to production including oil field services companies. He has extensive experience of working with listed companies and has advised companies across all aspects of PLC life from IPOs, secondary fundraising, financial calendar work and mergers and acquisitions as well as crisis management. His responsibilities will involve all aspects of the Company’s communications mix & communications strategy with a view to building the understanding and profile of the Company amongst all its stakeholders. He will be based in London.

Fastnet Oil & Gas LON:FAST
Announced details of two new deals to expand its acreage position in the North Celtic Sea. The deals come as Fastnet announced the appointment of Paul Griffiths as its new managing director. He replaces Dr Stephen Staley who is continuing at Fastnet as a non-executive director. The first agreement involves Fastnet farming-in to the ‘Shanagarry’ 12/5 licensing option, east of the Kinsale Gas Field and Barryroe Oil Field, subject to approval. Shanagarry was recently awarded by Irish regulators to a joint venture group comprising Adriatic Oil plc, Carob (consultants to Fastnet) and Petro-Celtex Consultancy, a company established by Paul Griffiths. The licensing option area lies south and northeast of the undeveloped Helvick oil and Old Head of Kinsale gas fields, respectively. It commences from 1 December 2012 until 31 May 2014 and includes part-Blocks 49/18, 49/19, 49/20, 49/23, 49/24 and 49/25 in the North Celtic Sea. Fastnet has also been awarded a licensing option over blocks 49/7, 49/8, 49/9, 49/12 and 49/13 in the North Celtic Sea. The option requires the re-mapping of the area and review of existing seismic data together with an anticipated 3D seismic acquisition. Again, the application was made jointly by Fastnet, Carob and Petro-Celtex Consultancy. The acreage lies in water depths of up to 100 metres in the North Celtic Sea basin. Marathon Oil drilled two wells in the area in 1974 (49/13-1) and 1986 (49/13-2).

Ithaca Energy LON:IAE
Updated on progress made with its Greater Stella Area development activities and schedule. The modifications contract for the “FPF-1” floating production unit has been awarded to the Remontowa shipyard in Gdansk, Poland. The FPF-1 is now located In Gdansk.While the Ensco 100 drilling rig is now forecast to commence the development drilling campaign in Q1-2013, due to delays in the completion of drilling programmes for other operators. Four initial Stella wells are to be drilled over a period of approximately twelve months prior to the arrival of the FPF-1 for hook-up and commissioning, currently anticipated in H1-2014. While Detailed design has been completed for the subsea infrastructure that is to be installed in 2013 by Technip, a world leader in the execution of subsea projects. Fabrication of the required linepipe is underway and a suite of gas transportation and processing agreements has been executed for export of gas processed on the FPF-1 via the Central Area Transmission System and Teeside Gas and Liquids Processing terminal. The Company’s net share of remaining capital expenditure prior to first hydrocarbons from the GSA production hub is $395 million, which will be funded from existing financial resources.
The successful appraisal of the Hurricane discovery in Q3-2012 and the offer of Block 29/5e, adjacent to Hurricane, in the 27th UK Offshore License Round in October 2012, have further augmented the opportunity set for the GSA hub. The Company’s partners in the GSA are Dyas UK Limited, a long established privately owned North Sea oil and gas producer, and Petrofac, a leading international service provider to the oil and gas industry listed on the FTSE 100 in London.

Leyshon Resources LON:LRL
Pissed on their own parade this week by telling investors that “The Board is not aware of any reason that would lead to such a movement in the Company’s share price” It often tickles me when company’s do this. Are Leyshon saying that their company isn’t worthy of such a rise or that ongoing drilling operations are likely to be Dusty?

Magnolia Petroleum LON:MAGP
Yet more dilution came this week via Magnolias Equity Financing Facility yes that’s the third one so far raising close on £5 million pounds while diluting share-holders. 63,157,894 New Magnolia. The Company’s enlarged issued share capital will comprise of 844,672,851 ordinary shares. Not too worry there’s more dilution on the way on the next ramped up spike. Be wary of Magnolia it’s all going to end in tears! You have been warned!

New World Oil & Gas LON:NEW
Announced that as of 02.30 CST in Belize on 14 November 2012, the Blue Creek #2 well had drilled to a depth of 9,282ft. Total depth is expected to be reached by 18 November 2012 or sooner. This follows the extension of the TD to 10,450ft. The Well is drilling on the B Crest prospect on its flagship Blue Creek Project, located in the productive Petén Basin in Northwest Belize. The drilling programme is on budget and in line with the Company’s geologic prognosis. A further update will be made when the TD of 10,450ft is reached. Coin toss!

Nostra Terra LON:NTOG
Announced that the first horizontal well in the Chisholm Trail Prospect where Nostra Terra has a 0.47% working interest, located in Oklahoma, has been completed and is undergoing production testing. Hooray! The well is recovering a mixture of oil and frac fluid, and oil sales have begun. Hooray again! Once the well flows back (recovers water) from the hydraulic frac and production levels begin to stabilise, production rates will be announced. Completion operations have begun on the second horizontal well (CT2) which is currently undergoing hydraulic fracturing. Hooray! The third and fourth horizontal wells (CT3 and CT4) are drilling according to schedule. Hooray! Based on the current progress, it is anticipated that the first four wells will be producing by the year end. Hooray! Additional wells are in the process of being planned and permitted, and a leasing program focused in the area is also ongoing. Once elections are received and made on the following wells, the Company will make relevant announcements. BOO!!! We want news now! Keep up the good work Matt.

Petrel Resources LON:PET
Hit the stratosphere this week with a 400% rise after the company provided a technical update on work done on its 100% owned Quad 35 Licensing Options (11/4 and 11/6) on Blocks 35/23, 35/24 and the western half of 35/25, and Quad 45 Blocks 45/6, 45/11 and 45/16 in the Atlantic Margin. These are located in the highly prospective South Porcupine Basin, in the Irish Atlantic Margin. Mouth-watering numbers of over 1 Billion barrels were being thrown around. The blocks cover approx’ 1,400 kilometres squared in total, in the northern and eastern sections of the Porcupine Basin. David Horgan, Managing Director of Petrel, commented: “We have long known that Ireland’s offshore Porcupine Basin is a hydrocarbon province. There are established petroleum systems, reservoir sands and possible traps at several levels. Our recent work has identified a number of high-potential prospects, at least one of which, we believe, has a billion barrel potential.

Range Resources LON;RRL
Released some much needed news this week. A, Georgia, Puntland and Financing Update. Click the link to read.

San Leon Energy LON:SLE and Aurelian Oil & Gas LON:AUL have agreed the terms of a recommended merger. The move will see San Leon acquire Aurelian, with investors receiving 1.3 new San Leon shares for each Aurelian share. Existing Aurelian shareholders will ultimately hold approximately 34 percent of the enlarged company. The merger values Aurelian at approximately 12.47 pence per share, or £61.6 million. Both sides said the combined group had the potential to become a leading exploration and production company across Europe and North Africa.

Sefton Resources AIM:SER
The Sefton Fantasy show continued unabated this week to great guffaws of laughter from the City of London as the company shot itself in the proverbial foot by describing themselves as “The independent oil and gas EXPLOITATION & production company. A Freudian slip if ever there was one! Jim Ellerton, Chairman of the Board said:”Sefton is moving rapidly towards the important milestone of establishing consistent oil production at Kansas with a programme of work-overs and re-completions planned over the coming months. That’s funny as I don’t recall Kansas ever producing any oil whatsoever. Still if Jim keeps up with his “exploitation”……..

Silvermere LON:SLME
Hit the skids today as they frightened the life out of investors with the announcement of a General Meeting designed to allow share-holders to vote for an authority for the Board to issue more shares. Since the Company’s last Annual General Meeting on 18 June 2012, the Company has raised funds through the issue of new Ordinary Shares. This has meant that the Company has very little remaining authority to raise additional funds through the issue of further new Ordinary Shares until the Company’s next AGM. The funds raised to date have enabled the Company to bring the I-1 well on line and position the Company for first production and cash flow. The Company would like increased authority now to enable additional working capital to be raised if appropriate in relation to the funding of further development of the Mustang Island field and/or other development opportunities for the Company.

Sound Oil LON:SOU
Has been advised by the Italian Ministry of Economic Development that it has immediately re-opened the Company’s applications for two of its offshore permits; d150DR-CS (containing the Laura gas discovery) and d148DR-CS, both located in the Gulf of Taranto, southern Italy. The two permit applications had previously been withdrawn by the Ministry in August 2011 in compliance with the environmental decree 128/2010 enacted in June 2010 (which was preventing oil and gas activity within a 5 nautical mile radius of the Italian coast). A new Law 134/2012 gazetted in August 2012 reverses this previous restriction.

An oil and gas exploration and appraisal company focused on the UK Continental Shelf region of the North Sea, announced the signing of a legally binding agreement with Caithness Oil and its parent company, Caithness Petroleum to exchange equity interests and vary certain of Caithness’ pre-existing farm-in obligations in respect of the Knockinnon (Licence P.1270, Block 11/24) and Forse (Licence P.1286, Block 11/23 and Licence P.1270, Block 11/24) prospects, subject to the satisfaction of certain pre-conditions.

Valiant Petroleum LON:VPP
Announced first oil from its Causeway field in Block 211 of the UK Northern North Sea. Valiant holds a 64.5 percent interest and operator-ship of the field, which is currently producing around 4,500 barrels of oil per day on a 53% choke. Initial production rates are being impacted by longer-than-anticipated clean-up due to the long horizontal nature of the well. Valiant is currently investigating a range of well stimulation and intervention options to assist in achieving anticipated production rates, if necessary. Valiant has also appointed Michael Bonte-Friedheim as Acting CEO in order to allow Peter Buchanan to focus on a possible buy-out of the company.The move follows an announcement by Valiant in September that it was reviewing all options to maximise value for shareholders. It now appears that Buchanan, the founder and CEO of Valiant, is preparing a buy-out bid for the North Sea E&P company. Valiant said that work on the review process was ongoing and that the board was now considering a number of different proposals, including corporate transactions and stand alone organic growth alternatives.

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