The Smallcap Oil & Gas round up.

Leyshon were this weeks big riser as rumour & counter rumour circulated. Is it or isn’t it? That’s the question that will be answered on Monday morning for holders of Leyshon Resources. Fingers crossed.


Aminex LON:AEX & Solo Oil LON:SOLO
Have begun marketing the farm-out of their oil and gas assets in the Ruvuma Basin in Tanzania. Aminex, the operator of the licences, has hired First Energy Capital to run the deal, with expressions of interest being called for by February 2013. Potential partners are being invited to acquire up to 50% interest in the licences by funding a disproportionate share of the planned forward work program and paying a pro-rata share of past expenditures.

Antrim Energy LON:AEY
Confirmed that drilling is under way on the Cyclone prospect in the UK Central North Sea. The prospect is being drilled by operator Premier Oil LON:PMO with the Awilco WilPhoenix semi-submersible rig. Well 21/07b-4 will target the Tertiary Cromarty sandstones at a drilling depth of approximately 5,000 feet true vertical depth. Antrim and Premier acquired the licence in the 26th Seaward Licensing Round in 2010. The announcement came as Antrim announced approval had been received for a Field Development Plan of the Cormorant East Field in the UK Northern North Sea, where it has an 8.4% interest.

Bridge hit the skids this week as they released an interim statement regarding the progress of the ongoing 16/1-16 well on licence PL457. The well was spudded on 24 October 2012 and drilling operations continue. No Heimdal sand was encountered by the well. Sands of the Åsgard formation (Noor prospect) were found to be water wet and at the time of publication, the well had entered the Asha target zone and detected indications of hydrocarbons. A core will now be taken. Tom Reynolds, CEO of Bridge, commented: “The Bridge 2012 exploration programme has delivered discoveries for us at Garantiana in Norway and Contender in the UK and whilst the interim results from the Noor horizon at the PL457 well were not as expected , initial results from the Asha horizon indicate the presence of hydrocarbons and we will make a further announcement following completion of drilling operations.”

Cadogan Petroleum LON:CAD
Released an interim management statement this week. Copies of which can be read by clicking this link.

Chariot Oil & Gas LON:CHAR
Begun a 3D seismic survey over its acreage offshore Mauritania. Chariot acquired Block C19 in April 2012 and holds a 90% working interest and operatorship. It has contracted Fugro-Geoteam AS to carry out a 3,500 sq km programme in water depths ranging from 30m up to 2,000m The programme is anticipated to take 90 days to complete.

Gold Oil LON:GOO
Announced that the suspension has been lifted at the Nancy-Burdine oil and gas field in Colombia, Operations were put on hold in July after a local judge acted on the request of certain indigenous communities. That decision was later ratified by the Supreme High Court. However, the order has now been listed and the wells are being returned to production. Gold Oil noted that it was likely to take some time before oil production from the field was stabilised but added that it was “a positive sign” for the company.It’s still all up in the air here at Gold Oil, whose shares have been suspended from trading since late June. A series of wrangles involving major shareholders and the board have seen a number of directors come and go during the past six months. At a general meeting held last week, shareholders accepted a resolution for the company to allot new shares but rejected attempts to dis-apply pre-emption rights and to change the name of the company to Blitzen Energy.

Desire Petroleum LON:DES
The exploration company focusing on the North Falkland Basin, announced the findings of a recently completed competent person’s report on all the assets of the company, prepared by Senergy. This CPR includes the complete prospect inventory based on the final interpretation of the 2012 merged 3D seismic survey as well as an assessment of the 14/19-1 Liz gas condensate discovery. For completeness, the CPR also includes contingent and prospective resources previously published for which there are no new data available. The full CPR can be viewed here

Fastnet Oil & Gas LON:FAST
Have raised £14,960,000 before expenses through an oversubscribed placing of 68,000,000 new ordinary shares in the capital of the Company with new and existing investors at 22 pence per share. The money raised provides additional capital to further strengthen the Company’s balance sheet which will enable Fastnet to accelerate drilling activity in Morocco to potentially generate a near-term multi-well drilling programme through the judicious use of its resources.

Gulfsands Petroleum LON:GPX
Has reached an agreement to acquire additional participating interest positions in two exploration permits in Tunisia (Chorbane and Kerkouane Permits) and one exploration permit in Southern Italy (Pantellaria or G.R15.PU) from ADX Energy Limited, XState Resources and Verus Investments. The total consideration for these transactions will result in the payment of US$1.1 million by way of purchase price and subject to final adjustment, reimbursement of approximately US$415,000 in past costs. In addition, Gulfsands has agreed with ADX to fund up to US$600,000 of the ADX share of a US$2 million seismic programme to be carried out on the Chorbane permit.

Leni Gas & Oil LON:LGO
Wrapped up a deal with Advance Oil Company to farm-in to the North Moruga area leases in Trinidad. The arrangement was first proposed in July 2011, Leni now plans to work-over the existing wells as soon as practical and drill up to ten new wells on the leases over a three year period commencing in 2013. Under the terms of the deal, Leni will be assigned a 49% interest in the private petroleum leases and Petrotrin sub-leases and assume operatorship of all the Advance leases. It will also gain an immediate 33% interest in production revenues, which will increase as the company completes the planned wells, to a maximum of 49%. In addition, Leni will drill one further development well close to the existing producible wells in order to more rapidly increase production within the known extent of the Moruga North Field.

Leyshon Resources LON:LRL
At the request of the company trading on AIM for the under-mentioned securities has been temporarily suspended from 23/11/2012 at 07:30am pending an announcement. Beware of these “Trading Halts” rarely do they bring good news. It doesn’t look too good…..

Magnolia Petroleum LON:MAGP
New kid on the block Magnolia spudded the Roger Swartz#1 well in Oklahoma. The vertical well is targeting the producing Mississippi Lime formation, with drilling expected to last between 8-10 days at an estimated cost of US$729,148. The well is located in Noble County, Oklahoma, and forms part of the acquisition of 800 gross acres previously announced by the company on 10 February 2012. The directors believe that a further seven potential well sites could exist on this acreage. Under the terms of the original farm-in deal, Magnolia acquired a 100% working interest in the leases at no initial cost to the company. The farmors have a 16.25% back-in to the well once pay-out has been achieved i.e. drilling costs have been recovered. Upon pay-out Magnolia’s working interest is 83.75% with a net revenue interest in the Well of 68.05%.

New World Oil & Gas LON:NEW
Reached total depth with its Blue Creek #2 well in Belize. The well lies on the Blue Creek Exploration PSA in northwest Belize and reached a total depth of 10,490 feet on 19 November. New World said that oil and gas shows had been present in mud logs recorded throughout the upper and middle Cretaceous intervals, including the Y1, Y2 and Y3 intervals of the Yalbac formation and the Hillbank formation. The next stage, which is currently underway, is to run electric wireline logs in the well which will amongst other things measure certain rock formation characteristics and enable the company to calculate fluid saturation levels, porosity, and determine rock thicknesses. Subject to the results of this exercise, New World will then determine at what depth intervals to carry out further evaluation which will assess the way forward.

PetroNeft Resources LON:PTR
Can’t you just tell it’s a Russian national writing this…. “Owner and operator of Licences 61 and 67, Tomsk Oblast, Russian Federation, is pleased to provide an update on its operations at Licence 61” Highlights: Arbuzovskoye well 109 successfully completed and put into production….The well is just beginning to stabilise after experiencing flow line problems caused by the very cold weather. We expect the initial flow rate of 100 bopd to increase somewhat… There’s no water production associated with the well…Arbuzovskoye well 111 drilling ahead….Group production is currently 2,500 bopd; however, 4 production wells are currently off line for remedial work on pumps….The 4 off line wells plus well 111 are expected to be all on line by year end

Sound Oil LON:SOU
Released details about its funding plans ahead of forthcoming drilling operations at Rapagnano and Nervesa. Sound reported that the third and fourth tranches of a share placement announced on 16 July 2012 had now been settled, generating a total of £2.0 million. Sound Oil’s current cash balance, following receipt of the fourth tranche payment of US$1.8 million, will be US$6.2 million, with no debt. The remaining three tranches of the placement, assuming current share price levels, are expected to raise a further £3.5 million. In addition the open offer expected to be made to shareholders in March 2013 following the conclusion of the placement should generate up to a further £1 million. The estimated total remaining expenditure across Nervesa and Rapagnano in dollars is some US$2.4 million.

Roxi Petroleum LON:RXP
Just when you think it’s all coming together at Roxi we get Knoc(k)ed. Roxi announced that it has been informed by KNOC that KNOC has decided not to complete the previously announced farm-in to BNG. All material regulatory consents had been received to allow the BNG farm-in to proceed and significant preparatory work by Roxi and KNOC had been completed. The only outstanding issue related to the procurement by Roxi of an advance waiver from the Kazakh regulatory authorities to allow KNOC to switch its investment from BNG to Galaz in the event KNOC was not satisfied with the results from BNG. Under Kazakh law, waivers are only granted after a transaction has been agreed, and in this case such a condition was not capable of satisfaction. Discussions over the past few months have centred on finding an alternative mechanism to protect KNOC’s position should it seek a switch into Galaz, but regretfully KNOC has decided none of Roxi’s suggested alternatives is acceptable. Roxi will now look to build on the preparatory work at BNG with new partners and a further announcement will be made in due course.

Join the Forum discussion on this post

You may also like...