It’s here again the famous BMD Smallcap Oil & Gas round up. If it ain’t in then it’s not worth reporting on! Keep your eyes on Matt Lofgrans’ Nostra Terra Oil & Gas for some company making news. nudge,nudge,wink! wink!
3Legs Resources LON3LEG
Released an operational update this week. Copys’ of which can be viewed here by clicking the link. http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail.html?announcementId=11424669
Were in the news this week as they announced a “Significant new 3D seismic programme underway in Seychelles” Afren East African Exploration (EAX), a wholly owned subsidiary of Afren plc said that it has commenced a major 3D seismic programme in the Seychelles, the first 3D survey to be conducted in the country. (They even made the news in the Daily Telegraph). The programme will consist of two surveys in Afren’s licence areas that extend over a combined area of approximately 14,319 km² on the Seychelles micro-continent. The areas are located in shallow to deep water in the Northern half of the Seychelles Plateau. A number of attractive prospects have been identified during the interpretation of 3,733 km of 2D seismic data which were acquired in 2011/2012. The 2011/2012 2D survey was designed to better reveal the areas’ true prospectivity, following the earlier identification of several large scale structures. The first 3D survey will be conducted in the southern portion of the licence over the Bonit prospect and this will cover 600 km². The second survey will be in the northern section of the licence area and will cover an area of 2,750 km². In this area, significant prospectivity exists in both Cretaceous and Jurassic intervals. Gross un-risked prospective resources for the two areas are estimated at 2,800 mmboe. EAX operates the blocks with a 75% interest and is partnered with Avana Petroleum which holds a 25% interest.
Amerisur Resources LON:AMER
Reported production from its Plantillo field in Colombia has reached 4,342 barrels of oil per day. Hooray! The Platanillo-9 well, which is the fourth well in a planned campaign of eight wells in the Platanillo field, is currently producing approximately 730 bopd. Following optimisation and workover of Platanillo-3, Amerisur’s year end production target of 5,000 bopd remains on track. A new reserves report is now due in the first quarter of 2013 to reflect the results of the first four wells Platanillo-9, located on Platform 9 South, has been successfully drilled to a total depth of 8,689ft, achieving an offset of 1,485ft to the west of the bottom hole location of Platanillo-3. The reservoir section was logged and initial log analysis indicated the presence of a 71ft gross, 45ft net oil column in the U sand formation, 7ft net pay in the N sand formation and pay intervals in the B/T formation, in line with the pre-drill prognosis. Mechanical problems during the perforation of the well initially caused suppressed flowrates, but this was subsequently rectified with a workover. However, the problems – caused by a faulty completion packer – damaged the well and this will require a corrective chemical stimulation using a Coiled Tubing Unit. Once that work over is completed the company will mobilise a Coiled Tubing Unit to Platform 9S and perform chemical stimulation work on Platanillo-4 and Platanillo-9. Elsewhere in the field, civil works have been completed at Platform 5 South and a drilling location constructed approximately 1.2 km north of Platform 9S. Amerisur has also entered into a Day Work Drilling Contract with Latco Drilling SA for the use of the Latco 01 1000HP drilling rig. The unit is currently being rigged up on Platform 5S to begin the drilling of Platanillo-6, the fifth well in the planned eight well drilling programme.
Bayfield Energy LON:BEH
Released details about its operations in Trinidad & Tobago and the progress of its proposed merger with Trinity Exploration & Production. (More delays on the merger) Shares in Bayfield have been suspended since October when plans for the merger were first announced. It seems that shareholders still have some weeks if not months to wait before trading resumes, with Bayfield indicating that an admission document won’t be circulated until February 2013, with a meeting to approve the merger following two weeks after that. As part of the merger, the new group is planning to raise additional debt and/or equity capital in order to drive forward the combined portfolio. Pending that fund raising, the two sides have agreed that Trinity will provide Bayfield with a US$10 million secured loan for general working capital purposes. Meanwhile, back at the ranch, production during October and November from Bayfield’s offshore Trintes field, where it has a 65% working interest, averaged 2,106 and 2,164 barrels of oil per day respectively.
Empyrean Energy LON:EME
Released a production update this week along with a tongue in cheek “Independent” reserves report written by Netherland Sewell & Associates, Inc. of Houston, Texas but paid for by? Empyrean Energy. If you want to read it then go to their web site click http://www.empyreanenergy.com/
Enegi Oil LON:ENEG
Agreed a deal this week with Korea Global Energy Corporation in relation to a ‘highly prospective’ project in the Hashemite Kingdom of Jordan. KGEC is in advanced discussions with the Hashemite Kingdom of Jordan over a Production Sharing Agreement for the Dead Sea/WadiAraba Block. Enegi has agreed a Heads of Terms with KGEC under which it will be issued a 5% interest in the block. Before the PSA becomes effective it must also be approved by the Board of Directors of the NRA, the Council of Ministers and ratified by the Parliament of the Hashemite Kingdom of Jordan. Enegi said it expected the process to be complete in early 2013. Under the terms of the agreement, Enegi will provide technical and operational expertise to the development of the Block. It said a number of wells had been drilled on the block and oil and gas shows had been encountered. The initial work programme will involve evaluation of technical data and the acquisition of new geophysical data. Thereafter, at least three exploration wells are required to be drilled within 4 years.
Falkland Oil & Gas LON:FOGL
Has started a 3D seismic survey over its southern licences. The PGS M/V Ramform Sterling has commenced the survey over the mid Cretaceous Diomedia fan complex. The survey will cover a minimum area of 4,000 square kilometres and is likely to take approximately four months to complete. This survey will be operated by Noble Energy Inc. Falkland said the original plan was that the Diomedia survey would be acquired later in 2013. However, due to the late completion of the Scotia well, there has been insufficient time to allow the Scotia results to influence the exact location and design of the 3D survey. As a result, Falkland and its joint venture partners have decided to swap the order of the two surveys and the northern area 3D survey will now be acquired in the fourth quarter of 2013. A second 3D survey, operated by Falkland and using the PGS M/V Ramform Challenger, is expected to commence in the first quarter of 2013.
Faroe Petroleum LON:FPM
Updated the market this week by announcing that drilling the Rodriguez exploration well in the Norwegian North Sea has begun. The Rodriguez prospect is located in the APA 2007 license PL475 on the Halten Terrace in the Norwegian Sea four kilometres north-east of the Tyrihans field and eight kilometres south-east of the Maria discovery (made by Faroe in 2010). The main objective for this well is to test for oil in the middle Jurassic sandstones of the Garn, Ile and Tilje formations. The water depth is 291 metres and the well is planned to be drilled to approximately 4,040 metres with a total depth within the Tilje Formation.
Leyshon Resources LON:LRL
Started flow testing work on its ZJS5 well gas discovery, with drilling operations on its ZJS6 well also under way. ZJS5 was successfully drilled to a total depth of 2,155 meters in late November, with analysis of the wireline logs and testing of the core samples ongoing. Contractor CCDC Downhole Services has now installed a Testing Rig over the ZJS5 wellhead and testing of the first of the selected potential pay zones is expected to be complete by the end of December. The second well in the current three well program, ZJS6, has commenced drilling and completion is scheduled for late January 2013. The well is located seven kilometres to the south west of ZJS5 and close to the boundary of the 708 sq km Zijinshan Production Sharing Contract with the neighbouring Sanjiaobei gas discovery. All three wells in the current program are located within approximately 10 kilometres of a tie-in point on the recently commissioned Lin-Lin pipeline which supplies the growing demand in Shanxi Province where well head contracts have recently been struck in the US$ 6/7.5 per mscf range.
Nostra Terra Oil & Gas LON:NTOG
Came under intense scrutiny this week as the AIM quoted oil and gas producer with projects in the USA, announced that the second horizontal well in the Chisholm Trail Prospect (CT2), located in Oklahoma, has exceeded the results of the first well by a substantial margin and exceeded the Board’s initial expectations. The most recent ten days of production have averaged 555 BOEPD, the first well averaged 258 BOEPD. With speculation that results could be due any day on C3 & C4. As with the first well, the second well is still in the process of being cleaned up and will continue to recover a mixture of fracking fluid, oil and gas during this process. Oil and gas sales continue to be made from both Chisholm Trail wells. In addition, hydraulic fracturing operations have now been completed on the third and fourth horizontal wells (CT3 and CT4), where Nostra Terra has a 12.58% and 5.31% working interest, respectively. It is anticipated that production testing will begin on both wells in the coming weeks. The acquisition of new leases and new well permitting continues in the Chisholm Trail Prospect area. Once elections are received and made on further wells, Nostra will make relevant announcements.
The Company advises that a letter has been dispatched to shareholders this week from Ron Miller, acting Managing Director, providing an update on the Company’s Cambay Project. A copy of the letter can be viewed by clicking on the link below. http://www.rns-pdf.londonstockexchange.com/rns/1063T_1-2012-12-10.pdf
Rialto Energy LON:RIA
Has received approval to acquire a 12.5% participating interest in the Offshore Accra Contract Area in Ghana, West Africa. Rialto is acquiring its interest alongside fellow new entrants Ophir20% and Vitol Upstream30%, joining existing partners Afex Oil20% and Tap Oil17.5%, (current operator). As part of the transaction, operator-ship is transferring from Tap to Ophir. Approval for the deal was received from the Ghana government and Ghana National Petroleum Corporation. To complete the acquisition of its interest, Rialto is required to pay its 12.5% proportional share of past costs, which amounts to a net payment of around US$3 million, and provide a bank guarantee in respect of its participating interest share of the approved work program and budget for the current Exploration Period. The Accra Block contains a number of prospects, including Starfish, a large, deep-water prospect, which according to the current operator is analogous to Tullow Oil’s Jubilee discovery with unrisked prospective resources estimated to be in the range of half a billion barrels (431 mmbbls (P50); 665 mmbbls. The prospect is recommended for drilling in 2013.
Sound Oil LON:SOU
Announced this week that it has sold its legacy 5% holding in the Bangkanai Production Sharing Contract in Indonesia for up to US$7.1 million. The agreement will see Sound Oil sell its Indonesian subsidiary, Mitra Energia Bangkanai Limited. to FTSE 250 company Salamander Energy LON:SMDRthe operator of the Bangkanai licence. Under the terms of the deal, US$4.5 million is payable immediately and a further US$1.1 million is payable on the later of first gas from the Kerendan field or signature of a new gas sales agreement for the currently unsold gas in the Kerendan field. A further fee of up to US$1.5 million will be paid as a royalty out of revenues from a future discovery on the Bangkanai PSC. Sound also announced its intention to propose a share consolidation at a General Meeting of shareholders to be held on 4 January 2013 pursuant to which every 10 existing ordinary shares of 0.1p each that are in issue as at 5.00 p.m. on 4 January 2013 will be consolidated into one ordinary share of 1p each (“New Ordinary Share”). As at 11 December 2012, the Company had 2,870,120,815 Existing Ordinary Shares in issue. Stay well away from them