The Smallcap Oil & Gas round up. 01. February. 2013

It’s been a Dusty week in the Smallcaps Underverse, a BUSY WEEK.

Agriterra (LON:AGTA)
Has completed the assignment of its 20% interest in the South Omo Block to Marathon Oil and has received a payment of US$28million from Marathon Oil. In addition a gross sum of US$12 million has been lodged with the Government of Ethiopia, on account, pending finalisation of any tax payable by Agriterra related to this transaction. Tax will be calculated at 30% of the net gain realised after attributable past costs incurred by Agriterra in the development of the Block. After final determination of any tax payable, the balance will be refunded to Agriterra.

Aminex (LON:AEX)
Has extended the bidding period for its proposed farm-out of an interest in the onshore Ruvuma Basin, Tanzania. In October 2012, Aminex announced that it had appointed First Energy Capital to manage a formal farm-out process for its interest in the Ruvuma Production Sharing Agreement, which is estimated to contain a total 5.75 trillion cubic feet discovered and undiscovered Pmean Gas Initially-in-Place. Aminex operates and holds a 75% working interest in the Ruvuma PSA. Solo Oil (LON:SOLO) has a 25% working interest and is participating alongside Aminex in the farm-out process. The extension has been requested by several interested parties which have already visited the data room. The bidding process is now likely to be completed in March.

Antrim Energy (LON:AEY)
Announced today that the Causeway field is still producing at a restricted rate of 4,500 bopd and that the adjacent Fionn field development no longer meets its economic hurdles. At Causeway (Antrim35.5%) rig operations are currently underway to complete the water injector. The operations, on a previously drilled well, are expected to be finished in February 2013. Start-up of both the water injection and the electrical submersible pumps are now scheduled for the second half of 2013 rather than the first half as previously thought. Currently, the Causeway Field is producing approximately 4,500 bopd (Antrim net 1,600 bopd) under primary depletion. Elsewhere, Antrim Energy said that Production from Cormorant East Field (Antrim8.4%) resumed on January 20.2013 following a precautionary shutdown of the Cormorant Alpha platform and Brent Pipeline System. Production is temporarily shut in to assess well integrity and reservoir potential via down-hole pressure monitoring. A draft FDP for the Antrim-operated Fyne Field in Block 21/28a (Antrim100%) was submitted to DECC on January 14. 2013 with approval expected by April 2013. Front end engineering design work for the sub-sea facilities and the modifications of the floating production, storage and offloading vessel is underway. First oil is expected in Q4 2014, contingent on the timing of the redeployment of the Hummingbird Spirit from its current location.

Borders & Southern Petroleum (LON:BOR)
Plans to drill an appraisal well on the Darwin discovery and will focus its exploration efforts on the early cretaceous play close to Darwin. In April 2012, Borders & Southern announced that it had made a significant gas condensate discovery with its first well in the South Falkland Basin.

Bowleven (LON:BLVN)
Announced a IM-5 drilling update and potential Intra Isongo hydrocarbon discovery this week. Click the link to Read All aAbout It!

Enegi Oil (LON:ENEG)
Were “delighted” to announce that they have reached agreement with Azimuth Limited with a view to farming-out part of Block 3/23, in the UK North Sea, to Azimuth. The Block contains the Malvolio prospect with the remaining acreage on the Block being made up of potential exploration opportunities. Under the agreement, Azimuth, given their extensive exploration expertise, will earn a 50% interest in the Exploration Area in exchange for the completion of an agreed work programme

Faroe Petroleum (LON:FPM)
Has announced that further results from the Rodriguez exploration well in PL475 (6407/1-6S) (Faroe 30%), in the Norwegian Sea, have confirmed a significant gas condensate discovery in the Lower Cretaceous interval.

Kea Petroleum (LON:KEA)
Has spud Mauku 1 and recommenced drilling Puka 2 in New Zealand.
Mauku 1, located in the onshore portion of PEP 381204 in the Taranaki Basin, spud on 8 January 2013. Mauku 1 will be drilled to a planned total depth of 3400 metres by the Icelandic Drilling Odinn rig which is expected to be on location in approx’ three weeks to recommence drilling with the well which is expected to take approximately 40 days to reach TD. On a P50 basis the Mauku prospect addresses a gross mean prospective recoverable resource of 485 BCF of gas and 27 million barrels of associated liquids. Puka 2 located in PEP 51153 spud on 28 November 2012 and was suspended at the surface casing point due to the commencement of seismic recording. Drill-force Rig 6 recommenced drilling on 28 January 2013 and is expected to be at TD by mid-February.

Leni Gas & Oil (LON:LGO)
Reported a rapid build up of production from its Goudron and Icacos fields in Trinidad. During the last week production at the Goudron and Icacos Fields in Trinidad (LGO, 100% and 50% respectively) has averaged over 170 bopd, with production reaching 201 bopd on the 27 January 2012.

Leyshon Resources (LON:LEY)
Paul Atherley, a director of the Company, purchased 1,800,000 Ordinary Shares at 14.91 pence per share on 25 January 2013. His resultant holding in Ordinary Shares in the Company is 31,330,000 ordinary shares representing approximately 12.56% of the total issued share capital of the Company.

Max Petroleum (LON:MXP)
Hit dust this week at the TOLW-1 exploration well on the Tolegen West prospect on Block E, Kazakhstan.The well reached a total depth of 1,540 metres without encountering producible hydrocarbons. The well will now be plugged and abandoned. The Zhanros rig will next move to the Zhana Makat field to drill the ZMA-A20 well, the first of five development wells to be drilled in Zhana Makat during 2013.

New World Oil & Gas (LON:NEW)
Hit the skids today as the Blue Creek #2A ST well located in the productive Petén Basin in Northwest Belize was plugged & abandoned. I’ll save investors from the guff written in their rns today. Plugged & Abandoned is all you need to know here.

Northcote Energy (LON:NCT)
Initiated a four well workover programme at its Horizon Project , Oklahoma, to boost production from horizontal wells not currently slated for fraccing. The first well has doubled gross production from 13 to 27 bopd. Northcote Energy also expects to commence fraccing of two wells around the end of February.

Nostra Terra Oil & Gas (LON:NTOG)
Has announced that the third horizontal well in the Chisholm Trail Prospect (CT3), located in Oklahoma, USA, has exceeded expectations by a substantial margin. The most recent ten days of production have averaged 348 barrels of oil equivalent per day , 148 above the 200 BOEPD originally expected in August 2012 when Nostra Terra first entered into the Chisholm Trail Prospect area. Nostra Terra owns a 12.58% working interest in this well. The fourth horizontal well (CT4), where Nostra Terra has a 5.31% working interest, is still in the process of being cleaned up and will continue to recover a mixture of fraccing fluid, oil and gas during this process. Results are anticipated to be released shortly.

Rialto Energy (LON:RIA)
Reported this week for the period to 31 December 2012 that it had contracted a rig to drill between two and five wells on Block CI-202 offshore Cote D’Ivoire. Block CI-202, offshore Côte d’Ivoire comprises an area of 506 km2 and is located in one of the world’s most exciting petroleum provinces, the West African Transform Margin. Block CI-202 contains multiple exploration and appraisal targets all in shallow water depths of 50 to 100 metres. In January this year, RPS Energy Services provided an updated Reserves and Resource Report in relation to Block CI-202. The CPR certified a Total Mean Prospective Resource of 897 MMbbls (liquids) and 2,936 Bcf (gas); as well as a Total Mean Contingent Resource of 40 MMbbls (liquids) and 270 Bcf (gas)

Tethys Petroleum (LON:TPL)
Has doubled the net price of the gas which it is selling in Kazakhstan. Two gas supply contracts have been signed by Tethys’ wholly owned Kazakh subsidiary, Tethys-Aral-Gas LLP, with Intergas Central Asia JSC, a wholly owned subsidiary of the Kazakh State company KazTransGas JSC, for the Kyzyloi and Akkulka natural gas fields. The contract is for annual volumes up to 150 million cubic meters at an increased net price of USD65 per 1,000 cubic metres (USD 1.84 per 1,000 cubic feet) of gas (USD72.8 per 1,000 cubic metres or USD2.06 per 1,000 cubic feet including VAT) net of marketing and distribution costs, and runs through to December 31, 2013. The previous price was USD32.5 including VAT.

Sound Oil (LON;SOU)

The Italian focused upstream oil and gas company is provided an update across its Italian portfolio today. Copy’s of which can be viewed by clicking the link.

San Leon (LON:SLE)
Following the Company’s announcement of the farm-out agreement with Cairn Energy (LON:CNE) on 28 August 2012, San Leon said this week that all parties have now received full Moroccan Authorities approval of the assignment of interest in the Foum Draa farm-out agreement. Cairn has assumed operator-ship of the Foum Draa block, offshore Morocco and plans to drill an exploration well targeting a Lower Cretaceous objective in Q4 2013. Cairn acquired a net 50% operated equity interest in Foum Draa, pro rata from each of San Leon, Serica Energy (LON:SQZ) and Longreach Oil and Gas Ventures. In return, Cairn will now pay its equity interest share of past costs, being US$1.5 million (US$850,000 net to San Leon) and pay the first US$60 million towards the drilling of the commitment exploration well. San Leon Energy now holds a net operated interest of 14.17%, Serica holds 8.33% and Longreach holds 2.5% in the Foum Draa Block. ONHYM, the National Bureau of Petroleum and Mines will continue to hold 25%.

Tower Resources (LON: TRP)
Announced that all conditions relating to the farmout agreement between Arcadia and Repsol and with Tower’s wholly owned subsidiary, Neptune Petroleum, to double Neptune’s interest in Licence 0010, Namibia, have now been completed. With the transactions now completed, Repsol has assumed operator-ship of Licence 0010 and the partners’ interests are Repsol 44%, Tower 30% and Arcadia 26%.

Sterling Energy (LON:SEY)
Finally threw in the towel this week as the company announced the death of its interests in Kurdistan. Sterling has elected to withdraw from the Sangaw North PSC effective 29 January 2013.

Trapoil (LON:TRAP)
Announces that on 29 January 2013, it entered into a three-year senior secured borrowing base facility agreement of up to US$20 million with an affiliate of GE Energy Financial Services and associated hedging arrangements with Britannic Trading Limited, a subsidiary of BP International Limited.

Victoria Oil & Gas (LON:VOG)
Said this week that a further 4 customers are taking gas from its Logbaba field in Cameroon and is close to operational cash break even. In total, VOG now has 15 contracted customers taking gas and there remain a further 10 contracted customers that await conversion of their facilities to take gas. This is an increase from 6 customers taking gas in November 2012. All 25 contracts have been executed at an energy price of US$16 per million British thermal units fixed for 5 years for thermal use. This contract price represents a significant discount compared to alternative liquid fuels used to raise heat in industrial boilers or furnaces for the companies’ process requirements.

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