The Smallcap Oil & Gas round Up

Ascent Resources (LON: AST)
Continued its descent. They have agreed to flogged their 48.66% interest in PetroHungaria Kft, which held its interest in the Penészlek field, to their joint venture partners, DualEx Energy International, Swede Resources and Geomega for a cash consideration of €450,000. The sale is a way to realise the full value of the remaining production in an up-front cash payment that we can redeploy to advance our core Slovenia project. The company said. Why not just hold a big wake for share holders with the money? Len Reece, Chief Executive Officer, commented: “Given the relatively short life expectancy of?” At this juncture I leave you to ponder, Life, the Universe and Companys’ in financial difficulty.

Bridge Energy ( LON: BRDG)
The Annual Report and Accounts for the financial year ended 31 December 2012 is now available on the Company’s website at and has been posted to shareholders. Bridge also confirmed that its Annual General Meeting is to be held at 11am CET/10am BST on 22 May 2013 at the Company’s office in Lensmannslia 4, 1386 Asker, Norway. A copy of the Notice of AGM, together with relevant appendices will be posted to shareholders shortly and will also be available on the website thereafter. I don’t think there’ll be many, if any, attending from the UK.

Cadogan Petroleum (LON: CAD)
Released their Annual Financials for the year ended 2012. Key developments during 2012 being the completion of a major transaction between Eni S.p.A, NAK Nadra and Cadogan resulting in establishment of LLC Westgasinvest, which holds a portfolio of 10 licences for unconventional gas covering a total area of 3,795square kilometres, and subsequent farm-out to Eni of 50.01%. Cadogan retains 15% interest in WGI. The flogging off of two gas plants for $29.5 million and settlement of all associated litigation with Global Process Systems completed in April 2013. Just what is this information doing in their 2012 reports.  As it’s from 2013! Hey ho there you go. Lets pad out the financials! Total impairment of $86.3 million mainly related to the Zagoryanska license… Total capital expenditure of $22.3 million (2011: $21.3 million) during the year of which $4.1 million was funded by the deferred consideration from the disposal of 30% of Cadogan’s interest in the Pokrovskoe licence to Eni in 2011… Net cash and cash equivalents at year-end of $42.4 million (2011: $65.0 million). Cash and cash equivalents at 24 April of $67.2 million.

Europa Oil & Gas (LON: EOG)
Released their Interim Results (today) for the six month period ended 31 January 2013. You can view them by clicking HERE

Global Petroleum (LON: GBP)
Presented its Quarterly Report for the period ending 31 March 2013 this week which wasn’t enough to halt the continued slide back to 2009 share price levels. In Summary Global said that efforts to engage potential partners with the aim of broadening Global’s African portfolio were still ongoing. RFC Ambrian appointed as Nominated Adviser and Joint Broker on 7 February 2013. 2D seismic data purchased or acquired by Global on the two Namibian blocks covered by the licence published. A data room was opened. Total production from the two Eagle Ford horizontal wells (Tyler Ranch EFS #1H and #2H) in which Global has an interest was 14,317 boe (11,340 bo and 17,863 mcfg) or 159 boepd. Global has a 7.939% working interest (5.95% NRI) in approximately 1,368 acres beneath the Olmos formation including the Eagle Ford Shale. Dallas based Moyes and Co were appointed to flog Global’s Eagle Ford Shale interests in Texas.

Gulf Keystone (LON: GKP)
Hit the buffers again this week as they said that Todd F Kozel Executive Chairman and Chief Executive Officer had on 19 April 2013 transferred ten million (10,000,000) common shares to a third party, in respect of a repayment in full under a financing arrangement, at a price of £1.6875 per share. Mr Kozel no longer has any interest in the common shares transferred. And don’t forget we are due the litigation outcome which is obviously a coincidence that Kozel transferred his stock to pay off a debt. No smoking gun here.

Jubilant Energy (LON: JUB)
Announces that KPL-3E-6, the third well of the six wells Phase-III-Extension development drilling campaign in the oil producing Kharsang Field, Arunachal Pradesh, was spud on 20 April 2013. KPL-3E-6 is located in the central part of the field and is planned to exploit the untapped hydrocarbons in the infill area between wells KSG#11 and KSG#25, with the H-00 layer as the primary objective and the G-00 and I-00 layers as secondary objectives. The well is planned to be deviated by approximately 140 metres towards the southeast from the existing drilling pad of KSG#11 and will be drilled to a target depth of approx’ 1,021 metres Measured Depth and 1,000 metres True Vertical Depth . The well is expected to take approximately three weeks to drill. The second development well of the current campaign, KSG#66 (previously referred to as KPL-3E-4), which was spudded on 23 March 2013, was successfully drilled to a revised target depth of 1,128 meters MD and 1,047 metres TVD on 8 April 2013. Based on the results of wire-line log interpretation, drill cuttings and formation pressure data from the Reservoir Dynamic Tester, twelve potentially hydrocarbon bearing sands have been encountered in the well with a total net pay of 50.31 metres, out of which seven appear to be oil bearing with a total net pay of 30.33 metres. The company will be testing the sands and, assuming positive test results, expects to put the deepest oil-bearing sand on production within two weeks. A further release will follow regarding the actual tested rates. The KSG#66 well will be tested with the smaller capacity work-over rig, which is currently being mobilized to the site.

Leyshon Resources (LON:LRL)
Updated on the progress made during the first quarter of 2013. The Company has commenced an accelerated exploration and appraisal programme for its Zijinshan Gas Project on the eastern fringe of the prolific Ordos Gas Basin in Central China. The main objective of the 2013 work programme, with a total estimated cost of up to US$20 million, is to define a resource sufficient to delineate a third party independent resource by the end of 2013 and to submit a Chinese Reserve Report (CRR) by mid 2014.The Company is well placed to carry out its 2013 exploration and appraisal programme with a strong cash position of U$45 million (unaudited). With 249 million ordinary shares on issue this represents approximately 12 pence per share. One to watch. Flow testing still ongoing.

Magnolia Petroleum (LON: MAGP)
Rita was at it again this week reporting an update on activities in proven US onshore formations including the Mississippi Lime and Woodford in Oklahoma. {What are the Mississippi lime decline curves like these days?} Production has commenced at the following Peck 1-5H Mississippi Range 630.76 boepd with 1.46% MAGP interst which equates to 9.2 boepd.

Max Petroleum (LON: MXP)
Has commenced drilling the ZMA-E5 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 885 metres targeting Jurassic reservoirs.

New World Oil & Gas (LON: NEW)
Has deemed the Rio Bravo well non-commercial and decided to plug and abandon. Exactly when they “Deemed” this would be nice to know. Was it before or after the recent £6.3 million pound placing?

Northern Petroleum (LON: NOP)
Spot the difference. NOP announces “Completion of GM-ES-3 Exploration Well” Wessex Exploration (LON: WSX) announce it as a “Drilling Report” You can’t sugar coat failure. Just report it as it is. Plugged & Abandoned. Private Investors don’t like being treated as idiots! Upset them at your own peril

It’s not been a good week for Peter Landaus’ Range Resources (LON: RRL) who announced this week a proposed merger with International Petroleum on a ratio of three Range ordinary shares for every two International Petroleum (NSX : IOP) ordinary shares (3:2 basis) subject to various conditions, including final due diligence. The less said about this merger the better. It is not welcomed by Private Investors. It’s now up to Landau to deliver the goods.

Roxi Petroleum (LON: ROXI)
Updates the market with interim results from the testing of Well 806, at its flagship BNG asset. Roxi has three wells at South Yelemes. Well 54 is a Soviet era well that was re-entered in 2010 and Wells 805 and 806 were drilled in 2010. Testing of these wells was delayed pending changing farm-in partners. Following the $40 million equity commitment secured in January 2013 Roxi decided to test these wells. On 18 February 2013, Well 54 produced at a daily rate of 219 bopd with a 2mm choke. On 14 February 2013, Well 805 produced at a daily rate of 120 bopd using a sucker rod pump. Well 806 is being tested at three different intervals and is therefore significantly more complex and has taken longer than initially expected. The Board is pleased however to report that oil has been indicated in the first interval being tested between 2022 and 2032 metres. A reliable figure for anticipated daily production from this interval should be known in the next few weeks. Once testing of the first interval has been completed the second interval between 1998 and 2015 metres will be tested. Following the completion of that test the interval between 1985 and 1994 metres will be tested. The sequential nature of these tests may mean that the full test results for the three intervals at Well 806 is not likely to be known before the end of May 2013. Roxi will update the market accordingly in due course. Clive Carver, Chairman commented: “We are pleased to have commenced testing at Well 806 and early oil indications from the first interval is positive for the Company.” Good news indeed.

Ruspetro (LON: RPO)
Informed on 23 April 2013 that Mr. Alexander Chistyakov, Executive Director, has purchased 30,000 ordinary shares of 10p each in the Company at a price of 33p per share Following this transaction, Mr. Chistyakov will hold a total of 57,281,475 shares in Ruspetro representing 17.18% of the Company’s issued share capital.

Sound Oil (LON: SOU)
The Italian focused upstream oil and gas company updated investors on its Badile project, located onshore in the Po Valley in Northern Italy. Badile is an exploration prospect some 45 km south-west from the geologically analogous Malossa gas field. The prospect has independently assessed Low-Best-High prospective resources of 47-175-938 Bscf respectively in Upper Triassic reservoirs. Following the decision to retain Sound Oil’s 100% operated position, the Company has completed the technical work required for the drilling application and Environmental Impact Assessment. As a result of this technical work the Company has made the following enhancements to the detailed Badile drilling programme: Reduction in target depth from 5,300 metres to 4,200 metres targeting only the Upper Triassic “Dolomia Conchodon” reservoir without significantly reducing the likelihood of encountering hydrocarbons. Shorter period required for drilling (down from an estimated 164 days to 143 days) resulting in significantly lower costs (from €20 million to €18 million). Associated reduction in drilling complexity due to lower expected pressures and temperatures. Increased likelihood of gas-condensate occurrence in the target section. The Company confirms that a dedicated team of highly qualified and experienced professionals has been secured for the Badile project including the appointment of a high profile ex ENI industry professional as Badile Project Director. This Milan based role will commence in September 2013 and will form part of Sound Oil’s Executive Team. James Parsons, Sound Oil’s Chief Executive Officer, commented: I’ll say anything to get another placing off! That’s a joke! He actually said;“This positive re-framing of the Badile drilling programme is an important step forward for the Company which will lower the technical complexity of the well, shorten its drilling time, lower costs and increase well deliverability in the case of success. In addition, we expect that the revised programme objectives will accelerate the approval of the well by the various permitting authorities without compromising on the economic proposition for shareholders. The drilling request and EIA will be submitted shortly in anticipation of spud in 2014. The Company will also sign a Letter of Intent on a suitable rig in the near future.”

Wessex Exploration (LON: WSX)
Herr Direktors were out in force zess week splashing zee cash trying to instill confidence on 23 April 2013 the Directors purchased shares in the Company as follows: Malcolm Butler 1,000,000 at 1.42p total holding 1,400,000. Andy Yeo 3,099,334 at 1.4p total holding 5,500,000. Iain Patrick 930,000 at 1.5p total holding 930,000. 10p takeover what a missed opportunity!

Join the Forum discussion on this post

You may also like...