The Smallcap Oil & Gas round up

It’s that time of the week again as we come to the end of 2012 it’s the famous BMD Smallcap Oil & Gas round up. Busy week for Board changes with heads rolling at Madagascar, Petromatad & Chariot to name but three. Good riddance to the lot of them! Failure will not be tolerated!

Bridge Energy LON:BRDG
A busy week for Bridge as the company released three epistles
A notice of an Extraordinary General Meeting of the Company to its shareholders to elect Caroline Brown as a new non-executive board member according to the Nomination Committee’s recommendation & an announcement that operations on the 16/1-16A sidetrack on the Asha discovery in PL 457 in the Norwegian North Sea are about to complete. The discovery was made by the first wellbore, 16/1-16, encountering good quality oil in excellent reservoirs of the Middle Jurassic Hugin Formation and Triassic Skagerrak Formation. A sidetrack well, 16/1-16A, was then drilled to appraise the discovery and to identify an oil-water contact. The sidetrack well has now been drilled to its total depth confirming the good quality reservoir and an oil-water contact has been established. Data assessment is on-going. Bridge estimates the size of the Asha discovery to be between 25 and 35 mmboe recoverable resources within PL 457, excluding potential additional volumes outside the licence. The Asha discovery well is the first exploration well in PL 457. Other prospects, located in the immediate vicinity of the discovery, are under evaluation. A second exploration well is planned to be drilled in the area. The good news was tempered by Bridges’ third announcement that the gas export infrastructure system used by the Bridge operated Victoria field has been unavailable since 30 November 2012. This unavailability is due to issues on the Lincolnshire Offshore Gas Gathering System facilities. As a consequence production from the Victoria field is currently closed in. Production from the Victoria field will resume as soon as the Export System availability is restored. The Export System Operator is providing updates on the shutdown status via its website: ” target=”_blank”>”>

Chariot Oil & Gas LON:CHAR
It’s goodbye to Paul Welch who stepped down as CEO of Africa focused E&P group Chariot Oil & Gas to pursue “other interests” Also out the door goes James Burgess, previously commercial director, who has also left to develop new business opportunities. Larry Bottomley, previously executive chairman, has replaced Welch as CEO and Philip Loader, previously non-executive director, has been appointed non-executive chairman Mark Reid has been appointed to the Board as chief financial officer. He has over 20 years of experience in financial services and investment banking. Before joining Chariot he was CFO at Aurelian Oil & Gas and prior to that, Head of Oil & Gas at the London office of BNP Paribas Fortis. Heindrich Ndume moves from country director, Namibia, to non-executive director and George Canjar has become senior independent non-executive director

Circle Oil LON:COP
The Middle East and Africa focused oil and gas exploration, development and production company, said that it has agreed a US$12.5 million secured working capital facility with Ahli United Bank Egypt. The Facility will be used to fund ongoing expenditures in respect of Circle’s 40% interest in the North West Gemsa Concession in Egypt enabling Circle to use its available cash balances for alternative projects. The Facility has a term of two years and is secured primarily on certain of Circle’s receivables from the Egyptian General Petroleum Company to which it sells its production from NWG.

Empyrean Energy LON;EME
Hit the skids today as the company released a miserable set of unaudited interim results for the period ended 30 September 2012. No cash! Where’s it all gone? The begging bowl will be getting dusted off to be passed around here.

Gulfsands Petroleum LON:GPX
Informed the market that the Company has reached an agreement with the Caithness Petroleum Group to acquire Cabre Maroc Limited a wholly owned subsidiary and operator of an extensive portfolio of highly prospective oil and gas exploration licences and gas exploitation concessions covering an area of 13,352 square kilometres in northern Morocco. The total consideration for these transactions will result in cash payments totaling approx’ US$19 million by way of purchase consideration, the provision of up to $11.5 million of financial guarantees for the performance of future exploration commitments made to ONHYM, the regulator of Morocco’s oil and gas sector (to be refunded immediately upon fulfillment of those commitments), and up to US$11 million in funding a portion of Caithness’s pro rata share of the cost of exploration activities on two of the permit areas in which Caithness has retained minority participating interests. The purchase of Cabre Maroc delivers to Gulfsands a large, contiguous and highly prospective acreage position in an area with proven petroleum systems, revenues from near term production, and multiple drilling targets. The Company believes that there is meaningful near term value potential contained within the proven conventional and shallow depth gas play in the Rharb Centre permit, together with significant exploration upside related to the fold and thrust belt structures identified in the adjacent Rharb Sud, Fes and Taounate permits. Completion of the acquisition of Cabre Maroc is anticipated for mid January 2013 following approval of the transaction by Caithness’s shareholders. The transaction is however not subject to regulatory approval.

Leyshon Resources LON:LRL
Completed flow tests on two potential pay zones in its recently drilled well ZJS5 in China. Tests have confirmed that stimulation will be required to produce commercial flows. Leyshon’s local subsidiary Pacific Asia Petroleum finished drilling the well at the end of November. Two zones totalling 25 metres had been identified as having the potential to flow without stimulation and the opportunity was taken to flow test them ahead of the planned frack testing in the spring. The local practice is not to conduct frack testing during the coldest of the winter months. However, neither of the zones recorded sufficient gas flows and accordingly the frack testing will proceed as originally planned. The next well in the programme, well ZJS6, is currently at approximately 800 metres depth with a target depth of 2,320 metres and wireline logging scheduled for mid to late January. The plan is to test any zones that have the potential to flow without stimulation in ZJS6 and then conduct frack tests on both wells following Chinese New Year.

Madagascar Oil LON:MOIL
Rang in the changes this week with the terms of a proposed financing package together with an operational update and details of certain board changes. Out went Mr. Laurie Hunter and Mr. Mark Weller who step down immediately as Chairman and Chief Executive Officer and Chief Operating Officer respectively. They will be retained as consultants to the Company for up to six months.Up the ladder went Mr. Andrew Morris and Mr. Paul Ellis, both existing Non-Executive Directors of the Company, having been appointed as Non Executive Chairman and Chief Executive Officer respectively, with immediate effect. For a full read of RNS click

Magnolia Petroleum LON;MAGP
Announces that the Roger Swartz #1 vertical well operated by Magnolia and targeting the producing Mississippi Lime formation, Oklahoma, has been drilled to total depth of 5,180 feet, logged and casing has been set to a depth of 5,000 feet. Further perforations have been made in the Mississippi Lime and the Mississippi Chat and the Company confirms that hydrocarbons have been encountered. Testing is underway to determine production capabilities and/or the economic feasibility of further fracturing or stimulation of these zones.

Northern Petroleum LON:NOP
Issued an update that really didn’t tell investors anything that they never already knew. An update (just to remind people that they are still there) on its fully funded four well drilling programme that is under way in French Guiana. We already know so that’s the end of that!

Petroceltic LON:PCI
Announces that the Algerian Competent Authorities have given their approval Development Plan for the Ain Tsila gas condensate field in the Illizi basin of Algeria. This follows the declaration of commerciality which was made on 8th August 2012, on completion of an agreement with Sonatrach to market all of the produced gas from the Ain Tsila field. The project can now move forward into the 30 year development phase of the licence. The approval is conditional on the partners committing to initiate certain planning and development works associated with the field during 2013, with the objective of optimising the execution of the development programme. Petroceltic holds a 56.625% working interest in this field, with Enel holding 18.375% and Sonatrach 25%. Petroceltic remains committed to undertaking a further 18.375% farm down of its interest in this asset during 2013.

Petromatad LON;MATD
Released an operations update yesterday along with an announcement on “Board Changes” there must be some thing in the water or is it something of a viral nature? Lots of Board changes this week! You can read their epistles by clicking the link.

PetroNeft Resources LON:PTR
Has successfully completed and put into production its Arbuzovskoye well(111) Initial oil flow from the well is currently 150 barrels per day with no associated water production. That takes PetroNeft’s total production to 2,800 bopd with three producing wells off line for remedial work on pumps. The company had expected those wells to be back online before the year end however the weather conditions at the field continue to be extremely cold (as low as -47⁰C) which has slowed the workover and completion process. They are expected to be back online by mid-January 2013.

President Energy LON:PPC
Released details of an independent evaluation of its Pirity and Demattei concessions in Paraguay. The update follows President’s farm-in to the two concessions in September & subsequent plans to begin seismic acquisition over the licences. DeGolyer & MacNaughton, the international reserves and resources auditors, have now completed their evaluation. The estimated mean gross prospective recoverable oil resources assessed by D&M adjusted for probability of geologic success are 159 million barrels. President said the figures supported its own internal estimates made at the time of the farm-in to the relevant concessions in Paraguay. The estimated mean net Pg-adjusted prospective recoverable oil resources to President are 94 million barrels on the basis that President fully completes its staged earn-in to achieve a 59% working interest in the Pirity concession and 60% interest in the Demattei concession. The combined size of the two concessions is in excess of 16,000 sq km. The full D&M report is available on President Energy’s website,

Range Resources LON:RRL
Updated with respect to the Company’s Trinidad operations and Texas
divestiture this week. Click the link to read. news-detail.html?announcementId=11432492

Sefton Resources LON:SER
Serial TURD POLISHERS Sefton released an “Update” Strange term to use as this is the first time the company had admitted that their Director Mark Richard Smith, had been cited in court documents for his part in the Bankruptcy of Stone Mountain Resources which on 6 December 2012 received approval from the Alberta Court of Queen’s Bench to undertake an asset disposal pursuant to a receivership order under the Bankruptcy and Insolvency Act of the Province of Alberta, Canada. The Transaction completed on 14 December 2012. The Transaction involved Stone Mountain Resources Holdings Ltd (“Holdings”), the parent company and major creditor of Stone and Spoke Resources Ltd (“Spoke”), which is the purchaser of the assets and a subsidiary of Holdings. Mr Smith is also a director of Holdings and Spoke. All three companies are incorporated in Alberta, Canada. Stone was placed into receivership by Holdings and the creditors of Stone will not receive the full value of amounts owed to them by Stone, although at this time the final extent of the deficit is yet to be ascertained. The actual Bankruptcy filing was April 2012 some 8 months before Sefton were finally forced to come clean.

Sound Oil LON:SOU
Soon to be consolidated Sound provided the an update on its operations: Click the link if you can be bothered. 😡

Tower Resources LON:TRP
Approval has been granted by the Namibian Competition Commission and the Ministry of Mines and Energy for the farmout agreements between Arcadia Expro Namibia and Repsol Exploration (Namibia) and with Tower’s wholly owned subsidiary, Neptune Petroleum (Namibia), to double its interest in Licence 0010. These proposed transactions were conditionally announced on 31 July 2012. With these approvals the transactions will shortly be formally completed. Repsol will become the operator of Licence 0010 and the partners’ interests will be Repsol 44%, Tower 30% and Arcadia 26%. Approval has also been given by the Ministry of Mines and Energy to extend the Second Renewal Exploration Period for the Licence by a year to 22 August 2014 and the optional Third Renewal Exploration Period by a year to 22 August 2016.

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