The Smallcap Oil & Gas round up.

Happy Easter from Dan & Nick. It’s a good read this week

Xcite Energy (LON: XEL)
Hotly watched & hotly tipped for greatness XEL released their results for the year ended 31 December 2012. The Highlights included the, completion of the pre-production extended well test on the Bentley field, producing over 149,000 barrels of Bentley crude. The development of a cost effective full field development solution, which maximises the recovery of crude oil and associated economics. Xcite now believe that the Bentley field has been substantially de-risked and is development-ready. Substantial part of the funding requirement for Phase 1B development of the Bentley field. (US$155 million Reserves Based Lending facility signed). Strengthened balance sheet, with new net equity capital financing of £63.4 million and new debt financing of US$60 million during 2012. Cash balance at year end of £25.6 million.

It was a busy & difficult week for Trap oil (LON: TRAP),
The independent oil and gas exploration, appraisal and production company focused on the UK Continental Shelf region of the North Sea, released 3 RNS’s this week. The first announced that operations on the Scotney (Licence P.1658, Block 20/5b) exploration prospect have experienced certain operational and weather related delays. As a consequence, the well is currently approximately 24 days behind schedule. Trap Oil 12.5% We then were treated to its audited results for the year ended 31 December 2012. Which can be read by clicking HERE Then a Director resignation, out went David Kemp, the Group’s Finance Director & in came John Church. In out shake it all about!

TomCo Energy (LON: TOM)
Announces an update in relation to its Holliday Block, Utah in the United States. TomCo had previously reported that it was working on providing SRK Consulting (UK) Limited with the required technical reports to enable the Company’s JORC compliant Resource to be upgraded to a JORC compliant Ore Reserve by the end of the first quarter of 2013.
The Company continues to wait for Red Leaf Resources Inc to supply its updated capital and operating costs for the EcoShale™ process that incorporates all the improvements made by the Total/Red Leaf joint venture management team. Accordingly, until these updated capital and operating costs are received, the Board cannot provide an accurate estimate on when the JORC compliant Ore Reserve will be published. However, the Board is confident that Red Leaf is close to completing its review of capital and operating costs. CEO Paul Rankine commented “While we remain beholden to receiving updated cost projections from Red Leaf, the process to upgrade to a JORC compliant Ore Reserve is a priority for the management team and we anticipate to updating the market on this again in the short term.” Hmmmm Do I detect another 2013 ‘future’ “Pass the hat around”

Failed…. ssshhh don’t mention “Kurdistan” oil explorers Sterling Energy (LON: SEY), who now announce themselves as an independent oil and gas exploration and production company with interests in Africa, advises that it has published its Report and Financial Statements for the year ended 31 December 2012. Copies of the Annual Report are now available to download from the Company’s website,

Sound Oil ( LON: SOU)
Updated on the forthcoming drill of the first Nervesa appraisal well. LP Drilling SrL, the owner of the contracted TB2100S drilling rig, has informed the Company that its operations in the Netherlands are currently being finalized with mobilization to Italy expected to commence within the next two weeks. Preparations at the Nervesa site are now materially complete with the final stage being driving the 20 inch conductor to a depth of 30 metres, which will occur shortly. Similar to a Stake through the vampires heart? Let’s hope there’s not an omen in there.

Serica Energy (LON: SQZ)
Bad news for holders of SQZ as the Operator of the Columbus field, BG said that it has decided not to proceed with the construction of a Bridge Linked Platform adjacent to the BG operated Lomond field. The BLP was to be part of the export route for gas and gas condensate from the Columbus field. As a consequence, the Columbus group are reviewing other alternatives for the export of Columbus gas and liquids production. This includes the possibility of the Columbus field being tied directly to the Lomond Platform. Serica believes this to be a viable alternative and will be reviewing this with its partners and with BG to provide, as far as possible, that the impact on the Columbus sub-sea development programme and timetable will be minimal. Rubbish. The delay & cost will be anything other than “minimal”.

Ruspetro (LON: RPO)
A raft of Director buys came in this week as RPO Directors put their money where their mouth is. Donald Wolcott bought 800,147 shares at 17.5p which increased his holding to 23,660,147 SHARES = 7.097%. Then Mr. Alexander Chistyakov, Executive Director, purchased 656,521 at 15.91p per share. Following this transaction, Mr. Chistyakov now holds a total of 43,864,914 = 13.16%. While, slow on the uptake, Mr. Rolf Stomberg, Non-Executive Director, purchased 30,000 shares at 28.47p per share. Mr. Stomberg now holds a total of 100,000 = 0.03%.

Roxi Petroleum (LON: ROXI)
Said that it has agreed to issue 22,654,731 new Roxi shares in satisfaction of a $2.5 million debt. The effective issue price for these new shares is 7.412668p based on a £ / $ exchange rate of $1= £0.671728. The new shares will be issued to Raditie N.V. in return for their previous payments made in respect of Roxi’s Munaily asset. Following the issue of the new shares Raditie N.V will be interested in 59,654,731Roxi shares out of an enlarged total of 716,036,441 representing 8.6%. Smart move?

Rockhopper Exploration (LON: RKH)
The North Falkland Basin oil and gas company, announced that it will post a circular before the end of April 2013 to seek authority from shareholders to cancel the share premium account of the Company so as to create distributable reserves. The cancellation of the Company’s share premium account will be subject to the approval of the High Court who will need to be satisfied that the interests of the Company’s creditors and contingent creditors will not be prejudiced as a result of the cancellation. On successful completion of the cancellation of the share premium account, the distributable reserves created would, subject to any undertakings given to the High Court, then be available for the funding of dividends, to facilitate any buy-back of the Company’s own shares or for any other general corporate purposes which the Directors may consider appropriate at that time. As the Company does not currently have the authority to buy-back its own shares the circular will also seek that authority from shareholders. Any decision by the Directors in relation to the use of the authorities referred to above will be made once the Company has completed an evaluation of its medium term funding requirements. Concept Selection for the Sea Lion development, which is anticipated to be in July of this year, will be a key part of this evaluation, as we expect it to provide greater clarity on the expected cost and schedule of the project. Slowly, slowly catchy Monkey.

President Energy (LON: PPC)
On January 30th, President announced a potential oil pay zone of some 30 feet on Well 54 at East White Lake. The well has now been perforated and is currently producing, ahead of expectations, approx’50 bopd net to President. The well is exhibiting strong down hole pressure and is also producing associated gas. Now here’s a salient point for investors. Taking into account the A54 well, additional production from two plug backs on existing wells and a modest contribution from an overriding royalty associated with a discovery on a recently unitised field adjacent to EWL, production from President’s Louisiana fields is now at a three year high of some 250 boepd of which 85% is oil. Crude prices obtained in Louisiana currently are some US$15-20 per barrel higher than WTI and President continues to benefit from no corporate income tax on its production. New Prospects… Global Geophysical Inc., who are shooting President’s extensive 3D seismic programme in Paraguay, are due in approximately two months to provide President with the results of a 3D reprocessing exercise over an oil prospect at a President operated lease at East Lake Verret. (One for the watchlist?) Remember President is actively evaluating other exploration prospects in its existing acreage, which are possible candidates for drilling at or around the end of the year.

Pantheon Resources (LON: PANR)
Released interim results for the six months ended 31 December 2012. Too long an epistle for the round up. Click HERE to read.

An interesting tid bit of news came this week from Matt Lofgrans’ Nostra Terra Oil & Gas (LON: NTOG) who have joined nine other companies in sponsoring a study of the Woodford Shale under the direction of Dr. Roger Slatt and the University of Oklahoma. The consortium will conduct a regional study of the Woodford Shale in the Anadarko-Arkoma-Ardmore Basins and Central Platform of Oklahoma, a region known for prolific gas production. The primary goal will be to better understand the regional sequence stratigraphy, and from that, characterisation at the wellbore, log and sample scales, including electron microscopy for pore analysis. The project is expected to span approximately 18 months. Still no comprehensive bopd figures from Matt.

New World Oil & Gas (LON: NEW)
Share-holders received a good kick in the teeth this week to go with the recent Blue Creek kick in the balls as they woke up to find that their holdings had been massively diluted by the company who had through the issue of 315,000,000 shares at 2p per share wiped off nearly 30% of the closing price on 27 March 2012. The placing raised £6.3 million pounds. It’s all ok though as the money will be used to keep paying the Board while they limp along with the Rio Bravo#1 well in Belize. If that fails then they intend to keep paying their salaries while they decamp and move to Juntland Denmark all the while stringing us all along for as long as possible until they go tits up. Time for a change at the top. It clearly isn’t working.

More nonsense came from Magnolia Petroleum (LON: MAGP) as Rita reported an update on activities in “proven US onshore formations including the Bakken/Three Forks Sanish, North Dakota and the Mississippi Lime in Oklahoma.” Still no comprehensive bopd figures from MAGP which leaves me to believe that they are not what the company are trying to infer. Remember you heard it all here first. Rita went on to say “The wells included in today’s release are targeting three separate formations, an indication of the multiple payzones that exist across the 5,000 plus net mineral acres we hold in Oklahoma. Combined with the numerous proposals we are receiving to add to the 126 wells at various stages of development in which we have an interest, we remain confident that we will continue to grow Magnolia’s net production and reserves, and in the process, generate significant value for shareholders.” You’ll note the use of words; “multiple payzones, significant value, reserves, net production, 126 wells, 5,000 plus net mineral acres, etc” You may also notice what Rita isn’t telling share-holders such as the daily, monthly or quarterly production figures. No mention of just how much oil they’re producing. You may find that strange. You may also like to know that IP’s almost always decline rapidly. Hence why they don’t release their bopd. Until we get clarity I’d tread very carefully here.

Fastnet (LON: FAST) 
Opened the data room for its Celtic Sea assets on 22 March 2013 and that a range of super majors, mid-caps and small-caps are conducting initial due diligence. The Company also announces that share options over a total of up to 1,500,000 new ordinary shares of 3.8 pence each in the Company have been awarded to Gama Services Limited a company beneficially owned by Paul Griggs, a consultant and advisor to the Company. The Option Shares have an exercise price of 26.0 pence per ordinary share, being the mid-market closing price per share as at 22 March 2013.

Argos Resources (LON: ARG)
The Falkland Islands explorer released financial results for the year ended 31 December 2012. Highlights.   Final processed 3D seismic data was received in January 2012 and proved to be of exceptionally good quality, helping to de-risk the numerous stratigraphic prospects in the licence… Many of the stratigraphic prospects described in the October 2011 Competent Person’s Report (CPR) are larger than originally described… Over 30 new prospects and leads, not reported in the CPR, have been identified… Estimated prospective recoverable resource figures are expected to increase substantially from those reported in the 2011 CPR… New CPR commissioned to independently document the full potential of the licence as now identified. Publication expected in 2Q 2013… Both Premier Oil and Noble Energy, two substantial independent oil companies, have committed to the Falkland Islands through farm-ins… The Falkland Islands Government is investing in new infrastructure projects and updating its legislation and approval procedures in readiness for field development and production.

Antrim Energy (LON: AEY)
Released their Annual Report 2012. Crash, bang, wallop sums up their performance.

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