The Smallcap Oil & Gas round up

Here we go yet again. It’s the famous smallcap Oil & Gas round up.

Bowleven (LON: BLVN)
Updated on operations on the Etinde Permit in Cameroon. Following the successful testing of the Middle Isongo and Intra Isongo reservoirs, the IM-5 well has been suspended as a future development/producing well and the Atwood Aurora jack-up rig has been released from contract. Stage I of the Etinde development project is based on supplying 70 mmscfd of dry gas to a proposed fertiliser plant in Cameroon. As announced on 20 March 2013, a detailed term sheet for the proposed sale of EurOil’s gas production from Etinde has been agreed among Ferrostaal, SNH and EurOil. The term sheet includes an agreement on the applicable pricing mechanism. A formal signing ceremony, attended by senior officials from all parties and the German Chancellor’s G8 Personal Representative for Africa in the Federal Ministry for Economic Cooperation and Development was held yesterday at the SNH headquarters in Yaoundé, Cameroon. The focus will now move to preparing and agreeing the detailed Gas Sales Agreement prior to FID. The Group is targeting FID by the end of 2013. The EEAA was initially submitted to the Cameroon authorities in late November 2012. As planned, an update to integrate the IM-5 well results is underway with formal submission to the Cameroon authorities anticipated during June 2013.

Europa Oil & Gas (LON: EOG)
Has relinquished all interests in the EPI-3 Brates Licence in Romania and the Bir Lahlou and Hagunia Licence Areas in the Saharawi Arab Democratic Republi. This is in line with the Company’s strategy to focus on offshore West Ireland where it has a joint venture with leading independent oil and gas company Kosmos Energy to explore two Licensing Options in the South Porcupine Basin; a 100% interest in a deep gas appraisal project onshore France; and a combination of production and exploration assets in
onshore UK.

Falcon Oil & Gas (LON: FOG)
One to watchlist. I meet their CEO this week. Announced that it has executed a conditional agreement with Sweetpea Petroleum Pty Ltd, a wholly-owned subsidiary of PetroHunter Energy Corporation to acquire its 50 million shares or 24.22% interest in Falcon Oil & Gas Australia Limited. FOGA is a subsidiary of Falcon and is the registered holder of four exploration permits in the Beetaloo Basin, Northern Territory, Australia. Falcon currently owns 150 million shares in FOGA representing 72.68% of the issued share capital of FOGA. Upon completion of the Agreement, Falcon’s shareholding in FOGA will increase to 200 million shares representing 96.90% of the issued share capital of FOGA. Terms of the Agreement include a cash consideration of US$3 million together with the issue of 97.86 million Falcon shares to Sweetpea. Based on Falcon’s share price, at the time the Share Purchase was agreed between the parties of CAD 0.20, the total value of the consideration is CAD 22.6 million. Upon completion of the Agreement, Sweetpea’s shareholding in the enlarged share capital of Falcon will be 10.7%.

Jubilant Energy (LON: JUB)
Announced that KPL-3E-2, the fourth well of the six well Phase-III-Extension development drilling campaign in the oil producing Kharsang Field, was spudded on 17 May 2013. Jubilant also said this week that KSG#66 (previously referred to as KPL-3E-4), the second of the six development wells of the Phase-III-Extension drilling campaign in the Kharsang Field, Arunachal Pradesh, has successfully tested for oil and has been put into production at an initial gross rate of 81 barrels of oil per day (“bopd”).

Leni Gas & Oil (LON: LGO)
Further to its announcement on 14 March 2013 concerning a non-binding Heads of Agreement with Maxim Resources Inc. who are listed on the TSX Venture Exchange in Toronto, the TSX-V has now released the hold on Maxim shares and Maxim have issued a further press release. The terms of the HOA have not been amended in any way and this represents additional clarification of the terms that have already been agreed between the Company and Maxim.

Max Petroleum (LON; MXP)
Yet more drilling updates rom MXP. Drilling has commenced at the UTS-5 exploration well in the Uytas North prospect on Block A using Zhanros Drilling’s ZJ-20 rig. The Uytas North prospect is a four-way anticline, targeting Triassic resource potential of 11 million barrels of oil with a geological chance of success of 24%. Total vertical depth of the well will be approximately 840 metres. After completing the UTS-5 well it is planned that the ZJ-20 rig will proceed to drill the UTS-8 well in the Uytas Field, which, if successful, will extend the Western limits of the Uytas Field. Earlier this week MXP also announced the BCHW-2 appraisal well in the Baichonas West field has reached a total vertical depth of 1,487 metres, with electric logs indicating a total of seven metres of net pay in Jurassic reservoirs and five metres of net pay in Triassic reservoirs, as well as 93 metres of lower quality Triassic reservoirs that could be potentially productive with hydraulic fracturing over a 170 metre gross interval.

Nighthawk Energy (LON: HAWK)
Updated on drilling at its 100% controlled and operated Smoky Hill project in the Denver-Julesburg Basin, Colorado. Nighthawk reported that the Big Sky 4-11 well had discovered a substantial oil column, 32 feet of gross pay, in Mississippian Spergen formation. The discovery confirms north-east extension of the Arikaree Creek oilfield discovered by Nighthawk’s Steamboat Hansen 8-10 well in October 2012. Test results from Big Sky 4-11 indicate production potential of 200 – 300 barrels/day (bbls/day) of high quality oil with minimal water production. The Well has been logged and cased and is expected to commence production by the end of May 2013. The Taos 1-10 well, which is located on the Arikaree Creek structure midway between the Steamboat Hansen 8-10 and Big Sky 4-11 wells, spudded on 17 May 2013. Cumulative production from the Steamboat Hansen 8-10 well, which commenced production on 28 November 2012, has exceeded 46000 bbls of oil, with no water production.

Nostra Terra (LON: NTOG)
Updated on the Richfield Oil & Gas Note today. Good news. On 14 April 2011 Richfield (formerly Hewitt Energy Group, Inc.) issued to the Company a US$1.3 million secured loan note (the “Note”) which has been accruing interest at 10% per annum from the date of issue and which matured on 31 January 2012. The Note is secured against certain producing leases located in Kansas and certain non-producing leases located in Utah. Nostra Terra has been operating some of the producing leases in Kansas during the foreclosure process. Last month a judgment was entered in favour of Nostra on its claims against Richfield for approximately $1,500,000, plus attorneys’ fees and collection costs, for an amount still to be determined by the court. In addition to the judgment against Richfield awarding Nostra Terra over $1.5m plus costs, the court has ordered that certain production proceeds owed to Richfield by National Cooperative Refinery Association totalling approximately $215,000 be paid to Nostra, as part of the funds due to Nostra Terra under the judgment. A portion of the funds will be applied against operating expenses already incurred by Nostra Terra for operating the leases. Those proceeds have now been received. Nostra Terra will continue collection of the Richfield judgment. Further updates will be made in due course. Matt Lofgran, CEO of Nostra Terra, commented: “These funds collected from Richfield will go towards our drilling program where we anticipate increasing our production levels significantly this year.”

Petroceltic International (LON: PCI)
Updated today on its western Black Sea drilling operations where the GSP Prometeu jack-up drilling rig has completed the first of four wells planned for this year. The Kamchia-1 exploration well offshore Bulgaria was designed to test a prospect located in the central area of the Galata exploration concession. The well was drilled to a total depth of 2,887 feet and encountered 56 feet of carbonate sands with sub-commercial gas saturations. The well has consequently been plugged and abandoned. The Company is currently analysing the well data with a view to updating the regional geologic model and deciding whether to enter into the final two year extension of the exploration licence later this year. The drilling rig will now relocate to complete the suspended Kaliakra discovery well for gas production. This well will be used to supplement production from the existing single Kaliakra field development well and is expected to be brought on stream in August when the subsea tieback operations have been completed. Subsequently, the GSP Prometeu rig will move to Romania to drill two exploration wells on the Petroceltic’s Est Cobalcescu (Block 28) and Muridava (Block 27) offshore concessions. The first well will be Cobalcescu South-1 which will target two intervals in the Miocene with a chance of success of 23 percent and 36 percent, respectively, and combined unrisked prospective resources of 404 Bcf. The planned total well depth is around 3,100 metres and the well is expected to take approximately two months to complete. The second well is Muridava-1, which is on trend with the existing Olimpiskaya and Eugenia discoveries, and has multiple targets in the Eocene, Palaeocene and Cretaceous formations with combined unrisked prospective resources of 169 Bcf and a range of chances of success between 29 percent and 43 percent. The well is expected to be drilled to a total depth of around 3,300 metres and should take approximately two months to complete. Petroceltic has a 40% operated interest in each of the Est Cobalcescu and Muridava concessions.

Roxi Petroleum (LON: ROXI)
Released an operational update on its flagship BNG asset. Roxi has a 58.41 per cent interest in the BNG Contract Area, which already has three wells at South Yelemes part of the Contract Area. 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. 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. As announced on 9 May 2013, the first level between 2,022 and 2,032 metres was tested for a period of 6 days during which the natural flow rate averaged some 90 bopd. The second interval between 1,998 and 2,015 metres has been tested for a period of 2 days during which the natural flow averaged some 130 bopd. Testing is now to be carried out on the third interval between 1,985 and 1,994 metres. As the test results are interpreted, Roxi will update the market accordingly in due course.

Salamander Energy (LON: SMDR)
The Bedug-1 exploration well in the Bontang PSC has been concluded as a gas discovery. Bedug-1 was drilled using the Ocean General semi-submersible rig, the well reaching a total depth of 1,693 m true vertical depth sub-sea. The well encountered a gas-bearing sandstone interval of 5m thickness in the Lower Pliocene BT40 primary target as confirmed by log data. Within the BT45 primary target, the interval of well-developed sandstones from which oil was tested at South Kecapi were found to have thinned out on the crest of the Bedug structure. However, with these thinner sandstones containing strong oil shows, the potential for a commercial oil discovery remains and further investigation of the up-dip extent of the South Kecapi oil discovery is warranted.

Sefton Resources (LON: SER)
A shocking attempt by this disgraceful company to deceive the market and investors this week. You can read all about it HERE 

Solo Oil (LON: SOLO)
Following the press statement by Aminex (LON: AMI) yesterday, Solo wishes to clarify that FirstEnergy Capital LLP, who are acting for both Solo and Aminex, continue actively to discuss a farm-out of the Ruvuma PSA and currently there are on-going discussions with over five interested parties. The farm-in discussions are expected to be concluded once the revised PSA terms associated with a variation of the current term of the licence are received. These revisions have been agreed in principle by the Tanzanian Government and formal approval is now awaited. The Ruvuma PSA contains the 1.1 tcf Ntorya-1 gas condensate discovery made onshore in the Ruvuma Basin by Solo and Aminex in 2012. Participants in the PSA are; Ndovu Resources Ltd (Aminex) 75% (operator) and Solo Oil Plc 25%.

Tangiers Petroleum (LON: TPET)
Executes farm-out agreement on Australian exploration acreage The deal gives Tangiers ongoing exposure to the exploration upside while enabling it to focus its resources on acquiring interests in African oil and gas assets. The Farm-Out Agreement with CWH Resources (ASX: CWH) and Ansbachall Pty Limited covers two of Tangiers’ Australian exploration permits. Permits WA-442-P and NT/P81, which are located in the southern Bonaparte Basin, about 250km south-west of Darwin (see RNS dated December 3, 2012 and May 10, 2013). The participating interests of the parties from the date of execution are: Tangiers 27%… Ansbachall 3%… CWH 70%. Under the Farm-out Agreement, CWH will fund all costs and expenses associated with seismic work, drill planning and exploration drilling within the permit areas up to a cap of A$35 million. Once CWH has spent that amount, Tangiers will be required to pay 27% of the ongoing costs relating to exploration and operations.

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