The Smallcap Oil & Gas round up.

Caza Oil & Gas (LON: CAZA)
Provided an operational update on the Company’s Bone Spring drilling activities in Southeast New Mexico. Lennox Property, Lea County, New Mexico. The Lennox State Unit 32 No. 2H horizontal well reached the intended total vertical depth of approximately 11,850 feet subsurface on March 12, 2013, and log data was obtained. There were good mud log shows for oil and natural gas throughout the Bone Spring formation while drilling the vertical section, notably in the 1st, 2nd and 3rd Bone Spring Sand intervals. Based on analysis of the log data, Caza and its partners have drilled the lateral section of the well through the primary objective 3rd Bone Spring Sand to a total measured depth of approximately 15,914 feet. Caza plans to fracture stimulate the lateral section of the well in multiple stages. Once completed, the well will be flowed back to establish initial production rates, and the market will be updated accordingly. Notwithstanding certain operational issues during drilling, including a mechanical failure on the rig requiring a replacement drilling rig to complete the hole, all issues were resolved and the resultant increase in drill time and well cost are not considered material to the economics of the well. Caza has a 40.00% working interest before payout (31.88% net revenue interest) and a 50.00% working interest after payout (39.85% net revenue interest) in the Lennox State Unit 32 No. 2H well. Roja Property, Lea County, New Mexico. Caza has elected to participate in a proposal from Occidental Petroleum, as operator, to drill a horizontal Delaware well on the Roja property. The well is called the Madera 17 Federal #1H and is currently scheduled for June 2013. Caza has a 20% working interest (16% net revenue interest) in the Roja property. Gateway Property, Lea County, New Mexico. The Company completed a trade on March 25, 2013 with The Blanco Company to acquire a 318 acre lease to be called the Gateway Property. Gateway will target the Bone Spring formation and is a nice addition to Caza’s Bone Spring property inventory. Caza has a 100% working interest (77% net revenue interest) in the Gateway property. Quail Ridge Property, Lea County, New Mexico. The Quail “16” State No. 4H horizontal well, operated by Fasken Oil and Ranch, Ltd. reached total measured depth of approximately 15,605 feet on January 26, 2013, and was successfully fracture stimulated and completed in the 3rd Bone Spring Sand on February 15, 2013. The average daily production rate over the first thirty days was approximately 828 bbls/d of oil and 947 Mcf/d of natural gas, which equates to 986 Boe/d. This is the second well completed on this property to date and is another very good result. The Quail Ridge wells offset Caza’s Lynch property and have helped to further de-risk the Company’s acreage position while providing valuable information for future drilling at Lynch. Caza has a 0.25% working interest (0.1875% net revenue interest) in the Quail “16” State No. 4H well. Company Bone Spring Prospects, Lea and Eddy Counties, New Mexico. The Bone Spring play in Lea and Eddy Counties, New Mexico, contains multiple potential pay zones for oil and liquids-rich natural gas, which include but are not limited to: Delaware, Lower Brushy Canyon, Avalon Shale, 1st, 2nd and 3rd Bone Spring Sands and Wolfcamp. Caza’s current prospects and properties in the horizontal Bone Spring play are: Lynch, Forehand Ranch, Forehand Ranch South, Lennox, Copperline, Mad River, Azotea Mesa, Bradley 29, Two Mesas, Quail Ridge, Chaparral 33, Rover, West Rover, West Copperline, Madera, Roja,and Gateway. The Company has acquired approximately 4,100 net acres in the play to date. Leasing and drilling activity continues to be competitive in the play, and initial producing well rates continue to improve with technological advances in drilling and frac designs. The Company is well positioned in the play, and continues to exploit opportunities to build on its current acreage position.

Edge Resources (LON: EDG)
The first well of the Company’s Spring drilling programme in Asset East has been on production for the last thirty days and is producing better than expected. The well has averaged approximately 50 barrels of oil per dayover the majority of the initial production period but has recently increased to over 60 bopd, with production fundamentals indicating further production increases are possible. The well encountered 8 meters of net pay and is being conservatively production tested using a progressive cavity pump to assist with the production of formation sand alongside the oil. Despite erratic production that is typical and expected of CHOPS wells, the well achieved an average rate of over 50bopd during the first month of production testing. The current rate is the maximum production rate allowable with the production pump at its current setting. However, the pump rate can be increased at any time the Company chooses, and both pressures and fluid levels indicate further increases are feasible. In these early stages of production, the Company is choosing not to produce this well at – or near – maximum capacity. The Company is conservatively producing near the low end of the production range, to promote stability and avoid heavy and sudden influxes of sand and/or water.

Egdon Resources (LON: EDR)
Has reached agreement for the sale of a 12.5% interest in Wessex Basin Licences PL090 and PEDL237 to Corfe Energy Limited for a cash consideration of £500,000. The Waddock Cross field development area in PL090 is excluded from the transaction. In addition, under the terms of an Earn-In Agreement, Egdon will be able to earn back a 6.25% interest in both Licences through paying the costs attributable to such interest as well as the costs attributable to the 6.25% interest acquired by Corfe from Egdon up to a combined maximum of £500,000. The net financial effect of the transaction to Egdon is as if it had benefitted from a “two for one” promote on the relevant proportion of the gross £4 million work programme planned on the Licences.

Leni Gas & Oil (LON: LGO)
Said that a further ten new pumps jacks have arrived in Trinidad and are being installed at the Company’s operated Goudron Oilfield. Since the last news release on the 29 January 2013, when the Company announced that it had reached a significant milestone of producing 200 barrels of oil per day in Trinidad, the Company has been preparing additional wells in readiness for the arrival of the new pumping equipment. It’s anticipated that 10 new wells will be put in to production over the coming weeks, increasing the number of wells operating by approximately 50% to over 30 wells. This is expected to result in another significant step up in oil production from the field.
A further ten pump jacks are also on the order and should arrive in Trinidad in late April, with an additional ten pump jacks expected to arriving in June. The Goudron Field has approximately 90 wells suitable for production and this program of well reactivation will continue through 2013. Over the next month LGO also expects to carry out the first of a number of planned well re-completions. The first well is targeting over 65 metres (200 feet) of additional reservoir in a perforation program using modern methods. This will be the first program for 30 years intended to access new reservoir in the field since well GY-658 was drilled in 1981. It is anticipated that this work will both raise overall oil production and provide valuable information to assist in designing the next phase of the work program, which will lead to the drilling of new wells in the second half of 2013.

Rita was at it again this week. Magnolia Petroleum (LON: MAGP) reports initial production rates for three wells across its portfolio of interests, focused on proven and producing US onshore hydrocarbon formations. These include the prolific Bakken / Three Forks Sanish Formations in North Dakota and Mississippi Lime and Hunton / Woodford Formations in Oklahoma. Yes Rita all very good but what is the total daily bopd for all the drills? Initial Production Rates. The Company has been informed by the relevant operators of wells in which it participates in that production has commenced…. Yawn………

Matra Petroleum (LON: MTA)
A sad day for MTA holders this week. Sir Michael Jenkins, Non-executive Chairman passed away on Monday 1st April. Sir Michael had served on the Board of Matra since 2007. The Board will meet this week to appoint a chairman and expects to make a further announcement shortly. Maxim Barskiy, Chief Executive of Matra commented: “On behalf of the Board, I would like to express our heartfelt sadness and regret at Sir Michael’s passing. Sir Michael’s career was one of great distinction, and we were extremely fortunate to receive the benefit of his wisdom, experience and leadership while he served as our Chairman. He will be sorely missed. Our thoughts are with his family at this difficult time.” Later in the week MTA announced the entry of ALLTECH Group, a private equity fund, as one of the cornerstone investors in the Company. Alltech Capital Limited, a subsidiary of the ALLTECH Group, acquires an indirect shareholding in the Company through the purchase of 50 per cent of the entire issued share capital of Winpro Ventures Corp, a British Virgin Island incorporated company. Winpro’s sole asset is the 575,000,000 ordinary shares in Matra representing 29.7 per cent of the issued share capital of Matra. As announced on 28th March 2012, Maxim Barskiy the Company’s CEO, transferred his total interest of 575,000,000 ordinary shares in Matra to Winpro which, at that time, was 100 per cent beneficially owned by Mr Barskiy. As set out above, pursuant to the Transaction, ALLTECH Capital acquires 4,580 shares in Winpro, representing 50 per cent of the issued share capital of Winpro for a consideration of $4,080,000. Mr Barskiy will retain 4,580 shares in Winpro representing 50 per cent of the issued share capital of Winpro. Mr Barskiy does not hold any interest in Alltech Capital or the ALLTECH Group. The ALLTECH Group was established in 1993, as a private equity fund with a portfolio exceeding $2 billion of investments under management. With a strategy focused on investing in early stage assets to identify and support independent company management through to becoming fully fledged companies, ALLTECH has already made visible and successful investments in West Siberian Resources, Siberian Anthracite, Yauza Realty and Pechora LNG. Mr Barskiy also has an indirect minority interest in the Pechora LNG project

Max Petroleum (LON: MXP)
Said this week that the ZMA-A22 development well in the Zhana Makat Field has successfully reached a total depth of 1,363 metres, encountering hydrocarbons in Jurassic and Triassic sandstone reservoirs in line with expectations. The Company plans to complete the well and then place it on production as soon as practicable. The Zhanros ZJ-20 rig will now move to drill the ZMA-A24 development well in the Zhana Makat Field.

Petrel Resources (LON: PET)
Has now completed the initial work on its two highly prospective Licencing Options (1,400km2) in the promising and under-explored Porcupine Basin, offshore west Ireland. It is now moving forward in talks with prospective partners. Option 11/4 in the North of the basin covers Blocks 35/23, 35/24 and the western half of 35/25 and the second option 11/6 in the East of the basin covers Blocks 45/6, 45/11 and 45/16. In addition to the previously identified potential on Quad 35, Quad 45 (Option 11/6) has the capability to hold several hundred million barrels of in-place oil. Interest in the Porcupine Basin continues to rise with the nearby ExxonMobil well about to be spudded on the Dunquin prospect.  The basin contains known working petroleum systems at Jurassic and Cretaceous levels, with oil/gas shows recorded in most of the 29 exploration wells drilled in previous times. Flows of high API, good quality oil have been recorded from three wells, with condensate flows recorded in a fourth well. Mature source rocks are proven in the Jurassic and are also likely in the Lower Cretaceous. Good quality reservoir sands have been recorded at Jurassic, Early Cretaceous and Early Tertiary levels. The company has purchased additional 2D seismic data, 3D seismic data and well logs to supplement its data base and has carried out further regional seismic mapping integrated with well analysis. Since our last update Petrel has completed further detailed technical programmes.

Roxi Petroleum ( LON: RXP)
The Central Asian oil and gas company with a focus on Kazakhstan, is pleased to announce that on 1 April 2013 BNG Well 143 was spudded on the MJ-F structure located towards the North of South Yelemes field. The total depth of the well is planned to be 2500 metres, with drilling expected to take approximately 45 days. This exploration well is targeted to encounter Jurassic Callovian sands at a depth of 2170 metres with a secondary objective in the Cretaceous Valanginian limestone at a depth of 1935 metres.

Sefton Resources (LON: SER)
The fantasy island figures continued to flow from Sefton Resources this week with a thumping $26 million dollar valuation for their Leavenworth assets from what the company euphemistically described as an “Independent Competent Persons Report produced by Dr Nafi Onat” Of the so called $26 million future cash flows value $20,000,333 dollars are UNPROVEN while $4,010,000 million dollars are Proved Undeveloped, of the remaining $1.6 million only $930 thousand dollars are Proved Developed and Producing. Another truly shocking attempt to fool UK Investors.

Tethys Petroleum (LON: TPL)
Announced its Annual Results for the period ended December 31, 2012. The financials are highlighted by a 66% increase in annual oil and gas revenue and the first year in which the Company has generated a cash profit with oil and gas sales of USD38.11 million, an increase of 66% on 2011. Oil production (before the deduction of local governments’ share or taxation) increased from 2,148 bopd (2011) to 3,371 bopd (2012), an     increase of 57% and has increased over the year to reach a rate of 4,381  bopd in Q4. Similarly boe production has increased to 6,313 boepd in  2012 compared to 5,656 boepd in 2011. Copies of the full report can be viewed by clicking HERE

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