The Smallcap Oil & Gas round up

Yes it’s here again back by popular demand the famous BMD smallcap oil & Gas round up. There are many pretenders to the Throne. But alas there can can only be one.

Antrim Energy (LON:AEY)
The curse of the Cormorant struck this week as Antrim confirmed that production has been suspended at its North Sea Causeway and Cormorant East fields following a potential pipeline leak related to TAQA Bratani’s Cormorant Alpha platform. The company said that the export infrastructure system used by Causeway and Cormorant East in the UK Northern North Sea was currently unavailable due to the potential hydrocarbon leak. As a consequence, all production and associated pipeline infrastructure associated with the Cormorant Alpha platform are currently shut-in, including the two fields. Production from both Causeway and Cormorant East is processed at the North Cormorant platform operated before being exported to the Cormorant Alpha platform. Besides the Causeway and Cormorant East Fields, the shutdown has affected a number of other platforms and over twenty other fields in the UK Northern North Sea. Cormorant Alpha handles over 90,000 barrels per day of crude oil, which is transported through the Brent pipeline to the BP-operated Sullom Voe terminal for sale.

Chariot Oil & Gas (LON:CHAR)
Announced that it’s completed its 3500km2 3D seismic acquisition programme in Block C19 offshore Mauritania.The survey was contracted to and carried out by Fugro-Geoteam AS and targeted an area in the South Western section of the block. Once the data has been processed, it will be interpreted in-house with the aim of identifying prospects for drilling.

Egdon Resources (LON:EDR) is pleased to announce the results of an independent evaluation by RPS Energy (“RPS”) of the potential shale-gas resources in the Company’s onshore U.K. East Midland licences PEDL139 and PEDL140 where the Company holds 13.5% interests. The Licences are located in Lincolnshire and cover an area which is underlain by the Gainsborough Trough, a geological basin which contains a 125 metre thick sequence of the Carboniferous age Pendleian Shale at a depth of over 2000 metres.
RPS estimates the mean net Egdon total gas in place as 1.76 trillion cubic feet of gas within the Licences.

Faroe Petroleum (LON:FPM)
Has been awarded eight new prospective exploration licences, including three operatorships, under the 2012 Norwegian APA Licence Round on the Norwegian Continental Shelf. The company has been awarded two licences in the northern North Sea, which the company described as exciting exploration opportunities in a very active exploration area with established production infrastructure. It has also been awarded five licences in the North Sea, where it already holds a number of licences, including the 2011 Butch discovery, and two licences in the prolific Halten Terrace hydrocarbon province of the Norwegian Sea where it made the Fogelberg discovery in 2010.

Global Petroleum (LON:GBP)
The AIM and ASX listed exploration group with interests in Africa, has begun a farm-out process for its Namibia licence. The company opened a data room for prospective partners following an earlier announcement that it planned to farm down part of its 85% interest ahead of further exploration. The farm-out is being managed by Global’s recently appointed exploration manager, Chris Lewis, who has now completed a review of all 2D data purchased or acquired by the company on the two blocks covered by the licence.

Gulfsands Petroleum (LON:GPX)
Completed its purchase of an extensive portfolio of oil and gas exploration licences and concessions in Morocco. In December 2012, Gulfsands said it was buying the 13,352 sq km of assets as part of its purchase of Cabre Maroc Ltd from Caithness Petroleum. The total consideration for these transactions resulted in cash payments totalling approximately US$19 million by way of purchase consideration and the satisfaction of existing liabilities of Cabre Maroc. A guarantee of US$5 million for the performance of future exploration commitments on the Rharb permits has also been provided to ONHYM, the regulator of Morocco’s oil and gas sector. This guarantee will be refunded immediately upon fulfilment of those commitments which is expected to occur during the second half of this year.

Lansdowne Oil & Gas (LON:LOGP)
Has been carrying out additional technical work on its portfolio in the North Celtic Sea Basin, offshore Ireland. Pre-stack seismic inversion work has been carried out on 3D seismic datasets acquired in 2011 over the Amergin (SEL 5/08 – Lansdowne 100%), Rosscarbery (SEL 5/07 – Lansdowne 99%) and Midleton (SEL 4/07 – Lansdowne 100%) licences. The inversion study integrated log data from previous wells with the 2011 seismic data. It has highlighted positive fluid anomalies, likely indicative of the presence of gas, in Greensand reservoirs in the Midleton and SE Rosscarbery prospects along with the Galley Head gas accumulation. Additional fluid anomalies have also been identified in the Upper Wealden sands in Main Rosscarbery and other prospects. Lansdowne said the findings had further de-risked the opportunities ahead of drilling. Lansdowne has also commissioned a third party specialist oil and gas engineering consultancy to explore conceptual development options for a gas discovery on the Midleton prospect and the Galley Head gas accumulation. The study concluded that, if drilling proved successful, Midleton is economically viable as a stand-alone development project or a tie-back to existing infrastructure in the area. The smaller Galley Head gas accumulation would require tieback to existing infrastructure to be economically viable.

Lochard Energy (LON:LHD
Is to let its interest lapse in the Thunder-ball gas discovery after losing its ability to operate and fund a commitment well on the North Sea licence. The company said it had entered discussions with the government over the future of Licence P1611 but a lapse was the most likely outcome. Lochard is currently generating average revenues of $1.7 million per month from its interest in the producing Athena field. However, financial commitments to repay a settlement to services company Senergy and a loan to Gemini Oil & Gas Fund II, L.P. have put a severe dent in its available funding.

Magnolia Petroleum (LON:MAGP)
A busy week for MAGP as the company had to to come out to scotch speculation on Internet bulletin boards over the weekend regarding production rates at the Prucha 1-23MH suffice it to say that MAGP has walked away from Prucha1-23MH telling investors “The Board has now decided to relinquish the Company’s interest in the Prucha well on the basis that the funds allocated for Prucha may be better utilised elsewhere in the Company’s portfolio. No funds had been transferred to the operator prior to this date and hence it is expected that there will be no loss to Magnolia through this decision” Are you sure? While the Brandt 31-28-12 1H wells reported initial production rates from two new wells in the Wilcox formation, Oklahoma. Magnolia said that the Basis-operated Bowen 2-29 and Bowen 3-29 vertical wells were both producing at rates above expectations. The Bowen 2-29 is producing at 65 barrels of oil equivalent per day (boepd) – 1.13 boepd net to Magnolia. While the Bowen 3-29 is producing 30 boepd (0.52 boepd net). No information on decline rates.

President Energy (LON:PPC)
At long last some thing worth reporting in the Smallcap oil & gas round up. First time in for PPC. Board appointments. In comes Miles Biggins and Richard Hubbard, both existing members of senior management, with immediate effect. Miles will join the Board as Commercial Director and Richard will be maintaining his current role as Chief Operating Officer following his appointment to the Board.

Rialto Energy (LON:RIA)
Issued an updated independent resources estimate for Block CI-202, offshore Côte d’Ivoire. The report follows a drilling programme and the results of a 3D seismic survey that was carried out on the block during 2012. Overall, the report sees a decline in Rialto’s contingent reserves to 40 million barrels of oil and and 270 billion cubic feet of gas from 50 MMbbls and 396 Bcf previously. However, the company’s prospect inventory has increased substantially to 21 with 8 new prospects identified using the new high quality 3D seismic data. That data has been fully processed and interpreted ahead of the planned 2013 drilling programme.

Roxi Petroleum (LON;ROXI)
I wonder who they employ to do their sums? Schoolboy errors apart here’s the corrections. Further to the announcement of 8 January 2013, concerning the agreement in relation to the equity investment of $40 million, Roxi announced an amendment to the number of ordinary shares to be issued, as follows. The total number of shares to be issued in consideration for the $40 million investment will be 335,165,716, rather than 355,165,716, representing 35.5% of the enlarged share capital. The number of shares to be issued in consideration for the initial subscription of $10 million will be 83,791,429, rather than 88,791,429. The aggregate number of shares to be issued for the subsequent $30 million subscriptions will be 251,374,287, rather than 266,374,287. The effective price per share will be 7.4p per share rather than 7.0p per share. Roxi will apply for the initial 83,791,429 subscription shares to be admitted to trading on AIM following the completion of the initial subscription and it is anticipated that trading in such shares will commence on 6 February 2013.

Sound Oil (LON:SOU)
Confirms that the fifth and sixth tranches of the share placement announced on 16 July 2012 have been closed, generating a total of £1.9 million (at an average VWAP for both periods of 9.45 pence per share, adjusted to post consolidation levels). The seventh and final pricing period will expire on 11th February. The Company’s current cash balance, following receipt of the sixth tranche payment, is US$12.4 million, with no debt. Sound expects to commence the appraisal drilling targeting the Nervesa discovery with a cash balance between US$ 14 million to US$ 15 million. The estimated total remaining expenditure for the Company on the Nervesa appraisal well (with an independently assessed NPV of around US$60 million) is some US$1.8 million.

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