The Smallcap Oil & Gas round up.

It’s been a very busy week in the Smallcap Oil & Gas sector. I am at present incognito heading down to the UK Investor show. Any one who spots me there can have a free cup of “None-saleable fluids!” Still giggling on that one.

Have a great weekend.



Following the successful completion of the pre-production well test in September 2012 and a new 3D seismic survey, Xcite Energy (LON: XEL) announced the results from its updated reserves assessment report as prepared by TRACS. Mean PIIP for the Bentley field of 909 MMstb, increased from 550 MMstb as previously reported in February 2012. With oil reserves for the Bentley field of 1P, 198 MMstb, 2P, 250 MMstb and 3P, 312 MMstb, respectively, based on an initial 35 year production period. Xcite have “Projected P50 peak production rate of approximately 45,000 stb/d in the first phase development, increasing to approximately 57,000 stb/d in the second phase development” NPV10 (after tax) value of oil reserves for the Bentley field of approximately $1.5 billion, $2.2 billion and $2.8 billion on a 1P, 2P and 3P basis, respectively. An additional 46 MMstb of P50 Contingent Resources assigned to the Bentley field for recoverable volumes beyond the initial 35 years production period. Aggregate, unrisked mean Prospective Resources assigned of approximately 96 MMstb, relating to prospects adjacent to the Bentley field and prospects as awarded in the recent UK Offshore 27th Licence Round. Rupert (the bear) Cole, Chief Executive Officer of Xcite Energy commented: “I am very pleased to report this significant increase in both reserves and value attributable to our assets, which supports our long-held belief in the potential of the Bentley field. This 2P reserves update, at 250 million barrels, plus considerable upside potential, has exceeded our expectations. We have now moved Bentley from being a significant asset to one of the major strategic assets in the North Sea, which will be an important source of future employment and economic contribution to the UK for many years to come. We shall now continue to move the project forward with on-going studies into the potential for enhanced oil recovery, which has yet to be factored into the reserves assessment. There isalso further scope for field optimisation in order to accelerate delivery of the Contingent Resources, as well as the potential for exploration barrels from our Prospective Resources. Our next goal is to fund the future development of our assets. Having put in place the RBL facility last year, we still see this as an important part of our future funding structure. By increasing our reserves so significantly and developing a more balanced phasing of production volumes, with approximately half of the 2P reserves now expected to be delivered from the first phase development wells, we anticipate being in a position to increase the borrowing capacity of the field considerably and we shall be discussing this with our existing and potential new lenders. Based on this reserves update, it is also the right time to evaluate suitable farm-in partners for Bentley. We have demonstrated the value of the field, materially de-risked it ahead of development and we would expect potential partners to recognise these achievements. Finally, an updated Field Development Plan will be submitted to DECC in the coming months, which will reflect the results of the successful well test last year and the greater capacity of the first phase of development.”

Trinity Exploration (LON: TRIN)
A leading independent E&P company focused on Trinidad and Tobago, updated on its operations. Highlights…. Current net production of 3,911 bopd (4,579 bopd gross)…. Four onshore wells drilled and completed with average initial production rates of 150 bopd per well (versus budget of 50 bopd)…. Deployment of Trinity’s operational management team at Galeota and implementation of new procedures complete; shut-in wells at Trintes coming back online at expected rates… Rig Sharing Agreement executed with three other operators for the Rowan Gorilla III jack-up rig. Trinity is taking the first rig slot and will drill its first exploration well on the Galeota licence in Q3 2013.

Trapoil (LON: TRAP)
More bad news this week for Trap as they had to utter the words those three words ALL oil company’s dread! The Scotney exploration well has been“Plugged & Abandoned”

Just when you think it can’t get any worse it does. Serial bulls hitters Sefton came out this week with what must be the most laughable RNS so far, after perpetrating yet more fraud on UK Investors. (After the BMD site & the Highly Respected City of London financial Journalist Mr T Winnifrith exposed yet more fraudulent oil production figures released pre Dowgate placing.) This time, like so many others, Jim Ellerton said it was all down to a spreadshit oops “sheet” mistake “apparently” Sefton had added in Januarys’ SLOP figures to Februarys Oil production. All 525 barrels of it. Thus inflating their update & oil data ahead of the Dowgate placing which netted Jim £650k. Yes when calculating February oil production one ALWAYS reaches for the January non-saleable fluids spreadshit, then adds it to the February oil production spread sheet. Who do you think you are kidding Mr Ellerton?Things can only get better!


Non-Saleable Fluids!

Salamander Energy (LON: SMDR)
Said that the North Kendang-1 exploration well in its operated South East Sangatta PSC has been suspended as a potential gas discovery.  The rig is now being mobilised to the Bontang PSC to drill the Bedug-1 exploration well, the third well in Salamander’s multi-well programme in the North Kutei basin.

Ruspetro (LSE: RPO)
Announced the Board’s decision to convert  part of the Directors’ cash remuneration into shares at the 2012 IPO price of 134 pence per share. This reduction in Directors’ cash remuneration, equivalent to approximately 30% of total executive and non-executive directors’ combined remuneration, will result in a cash cost saving of approximately US$ 1 million at the current share price of 33p. The reduction is effective from 1 April 2013 for a period of one year. April fools day? Is there a hidden message in here for the King of the shorters Mr Simon C?

Nostra Terra (LON: NTOG)
Happy days are here again for Nostra Terra Oil & Gas as yours truly forced the company into revealing their highly secretive “Chisholm Trail” Oklahoma county drill locations. Nostra has elected to participate in a fifth horizontal well in the Chisholm Trail Prospect, in which it will have a 2.2% working interest. The CT5 horizontal well was recently spudded. The four wells drilled so far have exceeded the Board’s expectations by a substantial margin. The acquisition of new leases to consolidate interests and new well permitting has been ongoing in the Chisholm Trail Prospect area for the past six months. Once elections are received and made on further prospect wells, the Company will make relevant announcements. They then went on to admit this. “We note with interest (translation that f***k*r BMD has found our drill locations) the recent acquisition announced on 1 April 2013, by Gastar Exploration Ltd. (NYSE: GST) of 157,000 net acreage, a portion of which is located in Kingfisher County, Oklahoma, close to our Chisholm Trail Prospect area. We believe this acquisition supports our assertion that the area is a prolific new oil play.”

Nighthawk Energy (LON: HAWK)
At last some much needed good news from HAWK. An update on production from its 100% controlled and operated Smoky Hill and Jolly Ranch projects in the Denver-Julesburg Basin, Colorado. Average gross oil production in March 2013 of 372 barrels per day, a record monthly production level for the project. John Craig 6-2 well brought back on-line on 22 March 2013 and currently producing 75-100 bbls/day with minimal water production. Further increases in production are anticipated from the continuing work-over program and new drilling. Production from the Steamboat Hansen 8-10 well has continued to increase to over 270 bbls/day in March 2013 with zero water production and minimal downtime. The Company plans to drill two new wells on the Smoky Hill project in April to further develop this oilfield. The current work-over program has successfully brought four wells back into production. The John Craig 6-2 well, which was shut-in due to high levels of water production, came back into production on 22 March 2013 and has settled down to a steady production rate of 75-100 bbls/day of oil with minimal water production. Three older wells have also been brought back into production over the past three weeks and the Company anticipates further additions to production from the work-over program.

It’s fingers crossed at New World Oil & Gas (LON: NEW) The Rio Bravo #1 Well on the West Gallon Jug Crest prospect in Belize is currently drilling at approximately 7,700 feet. Whilst a number of hydrocarbon shows have been recorded, the commerciality of these shows can only be determined once the well is drilled to total depth (‘TD’), open hole logs are run and interpreted, and well testing results are available. The planned TD of the Well is estimated at 8,800 feet. On-going operations are continuing to proceed without incident, are on schedule and under budget. Rio Bravo, which commenced drilling on 1 March 2013, is targeting a non-fault dependent four way structural closure in the Upper Jurassic Margaret Creek Formation. The Well is currently drilling through the Cretaceous interval, through the anhydrite top seal and dolomite sequences. To date drilling operations at WGJc have been in line with the Company’s geologic expectations. Good Luck to holders.

The Board of Mediterranean Oil & Gas (AIM: MOG) Were ” pleased to announce the following operational update related to the Company’s activities in Q1 2013: Who writes this GUFF? If you want to read it click HERE. Take a tip from Max Petroleum (LON: MXP) On how to word an update just read and weep. Max an oil and gas exploration and production company focused on Kazakhstan, is pleased to announce that it has commenced drilling the ZMA-A24 development well in the Zhana Makat Field on Block E using Zhanros Drilling’s ZJ-20 rig. Total vertical depth of the well will be approximately 860 metres targeting Jurassic reservoirs. Spot the Difference? Neither can we!

Matra Petroleum (LON: MTA)
Announced the appointment of Bill Guest as non-Executive Chairman. Bill succeeds the late Sir Michael Jenkins.

Magnolia Petroleum (LON: MAGP)
Rita!!!!! Has been at it again. She’s only gone and further muddied the bopd waters by acquiring a further 250 net mineral acres in the Mississippi Lime formation, Oklahoma which has existing production and multiple potential drilling locations from Fairmount Ridge Partners.The Company also announces it has agreed to sell an interest in leases it already owns to ISDX listed North American Petroleum plc (`NAP’) as part of its ongoing lease management activity. What about an ongoing “how many Barrels of oil per day production programme?” Or is the truth that Rita just really hasn’t got the numbers?

Leni Gas & Oil (LON: LGO)
Said that a second work-over rig has been mobilised and is now operating at the Goudron Oilfield in Trinidad. Further to the recent announcement concerning the installation of thirty additional beam pumps at the Goudron Field, the Company has now mobilised a second work-over rig, Altech-2, to complement the on-going work of the existing light work-over rig, Altech-1, which has been operating continually at the field since LGO took over operations in October 2012. The Altech-2 is rated at 80,000 lbs and can operate to depth of 6,000 feet.

Kea Petroleum (LON: KEA)
Released successful results from its initial oil production testing at Puka 2. During the initial clean-up flow period of 5 days, the well achieved an initial oil flow rate of 719 barrels of oil per day with an associated gas flow rate 0.419 million cubic feet per day on a 22/64″ choke over the initial 12 hour flow period. No formation water was produced during the flow period. The first shipment of oil from Puka 2 was dispatched to market on 31 March 2013. Well production is now temporarily halted until Sunday 14 April 2013 to establish initial pressure build up. The current test programme calls for a main flow period up to 45 days followed by a build-up period before continuous production can begin.

Gulfsands Petroleum (LON: GPX)
The order of the boot goes to Mr Ric Malcolm who has resigned as Chief Executive. In comes Mr Mahdi Sajjad, currently Executive Director and President. In Out shake it all about!

Fastnet Oil & Gas (LON; FAST)
Said this week that an independent assessment of the Company’s prospective resources on licensing option 12/5 has been completed by SLR Consulting. Fastnet farmed-into the licence on 14 November 2012 and now operates and holds an 82.35% working interest in Shanagarry following ministerial consent received on 8th April 2013. The independent assessment was carried out in accordance with generally accepted international standards. The Geologic Chance of Success ranged from 5% to 14% depending on the formation.

Enegi Oil (LON:ENEG)
The independent Oil and Gas Company with a portfolio of assets located in the UK North Sea, Newfoundland Canada, Ireland, and Jordan, provided an update on its activities in western Newfoundland. Much too long for the Smallcap round up. But you can view it HERE

Borders & Southern (LON: BOR)
The London based independent oil and gas exploration company, updated on its activities in the South Falkland Basin. The PGS vessel Ramform Challenger has completed the Company’s 3D seismic programme in the South Falkland Basin offshore the Falkland Islands. It acquired 1,025 square kilometres of full fold seismic data. The data will now be processed by PGS and a fast track product will be available for interpretation in about three months. The final, depth processed data will take approximately nine months to be delivered but work will commence on well planning using the fast track data, with ultimate well locations to be selected using the final product.

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