The Smallcap Oil & Gas round up! 25. Feb. 2013

Not much happening this week.  A quiet week on the smallcap oil & gas front.


Amerisur Resources (LON:AMER)
Successfully completed the Platanillo-6 well in Colombia, with test production volumes currently 1,550 barrels of oil per day. The latest well brings production at the Platanillo field to 4,600 bopd, constrained by pipeline and export facility upgrade works. The field production capacity is estimated at 5,400 bopd. Platanillo-6 is the fifth well of a planned eight well drilling programme and located on Platform 5 South (5S). It was drilled to a total depth of 8,608ft MD using the recently contracted Latco-01 drilling rig and has been completed for production.

Antrim Energy. (LON:AEY)
Announced that its wholly-owned UK subsidiary Antrim Resources has entered into a US$30 million Payment Swap transaction with Credit Suisse AG and a Brent oil price Commodity Swap transaction with Credit Suisse International. Under the terms of the Payment Swap, the US$ 30 million is repayable in 29 installments commencing September 2013 and concluding January 2016. The interest rate under the Payment Swap is fixed at 5.1%. Additional information concerning Antrim Energy Inc. is available at

Caza Oil & Gas (LON:CAZA)
Has begun drilling work on its Lennox Prospect in Lea County, New Mexico. The Lennox State Unit 32 No. 2H horizontal well is the initial test well at Lennox. It will be drilled to a total vertical depth of approximately 11,850 feet with a total measured depth of approximately 14,740 feet. The primary target is the Bone Spring Sands with potential secondary targets in the Delaware, Lower Brushy Canyon, Avalon Shale and Wolfcamp.

Egdon Resources (LON:EDR)
Confirmed that drilling work is underway on its Mairy Permit in the eastern part of the Paris Basin, onshore France. Licence operator Hess Oil France began drilling the Huiron-1 exploration well on 20 January 2013. The well will evaluate the hydrocarbon potential of the Jurassic, Rhaetian and older formations and is expected to take around 60 days to drill. The news comes as Egdon said it had negotiated a reduction in its exposure to the well, including a farm-out of part of its interest in the Mairy Permit to Hess. Under the terms of the deal, Egdon will transfer an unencumbered 35% interest in the permit to Hess, taking their total beneficial interest to 85%, in return for a carry of the well costs attaching to Egdon’s retained 15% interest, capped at the level of a gross cost of $10.25 million for the Huiron-1 well.

Gold Oil (LON:GOO)
Returned to trading on the London AIM this week then issued details of a new fundraising with an operational strategy. Shares in Gold Oil were suspended last June when open warfare involving major shareholders spilled out in to the public domain. In today’s move, the company raised £2.085m before expenses in a placing priced at 0.75 pence per share. It has also appointed William Colvin as an additional non-executive director. Proceeds from the placing will be used to strengthen the company’s balance sheet and for working capital including the payment of creditors such as BGP. The rest will principally be used to consolidate Gold Oil’s position in the Nancy Burdine field in Colombia and for optimisation of the field. The company’s strategy remains focused on stabilising production at Nancy Burdine, currently in line with historical rates at 450-600 bopd. Last November a suspension was lifted at Nancy Burdine four months after operations were put on hold by a local judge acting on the request of certain indigenous communities. That decision was later ratified by the Supreme High Court. However, the order was lifted and the wells were being returned to production.

Madagascar Oil (LON:MOIL)
Confirms that, further to its announcement yesterday of the terms of the New Financing Transaction, the document setting out further details, including certain risk factors and action to be taken by Shareholders, was posted to Shareholders yesterday and a copy is now available to download from the Company’s website

Magnolia Petroleum (LON:MAGP)
The company that refuses to release any kind of bopd data even monthly or quarterly or clarify the declines that are obviously taking place in “production” released an update on the Company’s “commercial activities” in proven US onshore formations including the Bakken/Three Forks Sanish, North Dakota, and the Mississippi Lime and Woodford/Hunton formations in Oklahoma. Suffice it to say that the update once again omitted any kind of meaningful daily, monthly or quarterly oil production figures. But Rita did say;  “Our participation alongside Marathon in Gustafson and Helgeson is in line with our strategy to grow our production and reserves by increasing both the number of wells in which we have an interest, as well as the average size of those interests.” {To which I reply what reserves? Figures please!} Through drilling we are systematically proving up the large number of leases in producing hydrocarbon formations which we have acquired over the last twelve months, increasing Magnolia’s proven reserves and thereby creating significant value for shareholders.” To which I reply again; Figures? No figures = CREDIBILITY GAP.

New World Oil & Gas (LON:NEW)
Issued details of what it described as an “extremely positive” independent assessment of its Danica Resources Project in Denmark. A new Competent Person’s Report from RPS Energy on the 1.67 million acre licence follows the first phase (166.44km) of a 2D seismic survey on the 1/08 Licence totalling 6,420 sq km. New World can now apply for 12.5% working interest in the project from the Danish Energy Agency. New World also reported that its Blue Creek #2A side track well in Belize had drilled to a Measured Depth of 11,490 feet towards a total depth of 11,880 feet. Drilling operations have been halted whenever sections of interest in the targeted Hillbank and Y3 formations have been encountered so that core samples can be taken. As a result, the rate of drilling has been slower than that anticipated. At Danica, four Zechstein leads have been identified on the new data which are of better quality than previous vintages. Plans are to acquire additional 2D data and / or 3D seismic surveys on Falster and Lolland Islands over the Zechstein Zn-2, Zn-3 and Zn-4 leads which were targeted by several of the latest 2D lines. Resource volumetrics are unchanged with the ‘Als’ Zechstein prospect estimated to contain P50 resources of 97 million barrels of oil and the Rotliegendes prospects with a P50 estimate of 1.401 trillion cubic feet of gas. A total of 28 leads and one prospect have now been identified on the Licence based on available seismic data, surface soil geochemistry, some well data and a number of academic papers.

Providence Resources (LON:PVR)
Confirmed this week a detailed analysis of recently acquired survey data has identified significant oil potential in the Rathlin Basin, offshore Northern Ireland. Last year Providence hired Bell Geospace to conduct a Full Tensor Gradiometry (FTG) and magnetic airborne survey over its 100% owned acreage on licences P1885 and PL 5/10. Initial processing of that data revealed the presence of five FTG anomalies which were deemed prospective for hydrocarbon exploration. The primary FTG anomaly, the “Polaris Prospect”, which lies in the Rathlin Sound just off the Northern Irish coast, is coincident with a significant structural feature imaged on vintage 2D seismic data.

Range Resources (LON:RRL)
Updated with respect to the Company’s Trinidad operations this week. Range also released news regarding increases in its Latin American footprint by acquiring a strategic stake of 19.9% in Citation Resources Limited. For a full read you’ll have to Click Here

Rockhopper Exploration (LON:RKH)
It’s goodbye to Mr David Bodecott at the end of January 2013. Mr Bodecott retires as Exploration Director of the company. We wish him well.

Ruspetro (LON;RPO)
Released a lengthy epistle today titled “Balance Sheet Strengthening, Funded Investment Plan” which has been well received. Much to long and important to be summed up in the smallcap round up. You can read the full version by clicking this link Ruspetro news here

Sefton Resources (LON:SER)
Have hired Keith Morris as a non-executive director. Another pensioner on the books. Although it must be said that Morris is the most agreeable Board Member with an actual work history that is impeccable; unlike Arleth, Milne & Smith.

Serica Energy (LON:SQZ)
Released details of its forward work programme for 2013, including the planned development of the Columbus field in the North Sea. The Columbus gas/condensate field was discovered by Serica in 2006 but development plans stalled for a time while negotiations took place with BG Group, which is active in the adjacent Lomond block. Serica said that the UK’s Department of Energy and Climate Change had now indicated that it was content with the Columbus Field Development Plan subject to certain standard conditions. The project is currently proceeding on schedule for first gas in mid-2015. Tender documents for the construction and installation of a Bridge Linked Platform, through which Columbus field gas and condensate production will be exported, have been issued by BG as operator of the Lomond field with contractor bids to be received in the first quarter. Subject to the receipt of acceptable bids and arrangements between BG and the partners of the Arran field, the BLP construction project is projected to commence on schedule in 2013. Serica said it was evaluating financing proposals which it had received for its share of development costs and which it expects to put in place when final sanctions for the project are given.

Sound Oil (LON:SOU)
The recently consolidated Italian focused oil & gas minnow has completed the ‘Conferenza Servizi’ process for its forthcoming Nervesa appraisal well. This is the final step of the approval process organized by the Ministry of Economic Development with the participation of the Veneto Region, Treviso Province, Local Council and various local governmental bodies to reach agreement to approve the drilling of the well. Sound Oil also confirmed that preparation of the Nervesa well site, to allow access and equipment storage, has now commenced.

Trapoil (LON:TRAP)
Completed a farm-in agreement with Extract Petroleum Ltd with respect to the acreage awarded to it in the recent 27th Seaward Licensing Round. The acreage concerned comprises one Promote Licence (P.1938) covering thirteen blocks or part blocks totalling 1,026 sq km. Subject to DECC’s approval, Trapoil will become operator of the acreage and farm-in for a 100% working interest while Extract will retain a 1% royalty interest over any future production from the acreage.

Valiant Petroleum (LON:VPP)
Announced today that the Transocean John Shaw semi-submersible drilling rig has arrived on location to complete drilling of the Timon prospect (Valiant, 10%) located in the UK Northern North Sea in Blocks 211/11b and 211/16b. The 211/11b-7 well was originally spudded in May 2012 before being suspended due to operational problems with the previous drilling rig. The well is anticipated to take around 40 days to complete. Timon is an Upper Jurassic sand play with gross best estimate prospective resources estimated by Valiant to be 30 million barrels of oil equivalent (net 3 mmboe).

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