The Smallcap Oil & Gas round up.

The BG Group has completed the sale of the Group’s 65.12% holding in India’s largest private natural gas distributor Gujarat Gas Company Limited for INR 24.6 billion or approximately $422 million at current exchange rates.

Chariot Oil & Gas (LON: CHAR)
The Atlantic margins focused oil and gas exploration company, today announces that its wholly owned subsidiary, Chariot Oil & Gas Investments (Morocco) Limited, has agreed with the Office National des Hydrocarbures et des Mines a six month extension for the first phase of exploration on its Loukos, Casablanca and Safi licences, offshore Morocco, which will be valid until 11 January, 2014. The award of this extension remains subject to the final approval of the Moroccan Ministry of Mines and Energy and the Ministry of Finance.

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 said that it has signed a Letter of Intent with Black Spruce Exploration Corp. for the development of Enegi’s lease and licence portfolio in Western Newfoundland.

Exillon Energy (LON: EXI)
Released a drilling update yesterday. EWS I – 70. The well flowed oil naturally to the surface with a flow rate of 499 bbl/day on an 8 mm choke & is now connected to existing production facilities. EWS I – 64. Upon perforation the well flowed 220 bbl/day, of which 44 bbl/day was oil. Due to the fact that the well is located lower than any other well on the structure it has been converted to water injection for the purposes of maintaining reservoir pressure. EWS I – 65. Currently operated with a submersible pump flowing at 156 bbl/day, of which 85 bbl/day is oil. Exillion will seek to minimize water cut in the production from this well. Now connected to existing production facilities. EWS I – 66. The well is currently operated with a submersible pump flowing at 574 bbl/day, of which 551 bbl/day is oil. Now connected to existing production. Well 6 is the last planned well from Pad 6.Appraisal well EWS I – 90Appraisal well EWS I – 90 was designed to test the north-east extension of the EWS I field. The structure was previously tested with well EWS I – 61, but due to a long deviation of well EWS I – 61, the structure was not tested for flow rates. The well was spudded on the 13th April 2013 and drilled and cemented in 34 days. 18.4 metres of core was collected, which is represented by mudstones, gravel conglomerates, and sandstones. The core exhibits signs of hydrocarbon saturation. During a test the well has produced only a film of oil due to low permeability of the producing horizon. Exillion will assess the core data for methods of producing from this reservoir. Two additional wells have been previously planned for drilling in this part of the field in 2013. No further drilling will be completed in this area of the field prior to the completion of petro physical studies. The well was drilled 0.7 km to the south-east of Pad 9, and has been converted to a water source well. EWS I – 201. Currently operated with a submersible pump flowing oil at 146 bbl/day. The well was drilled 1.7 km north of Pad 7, and is now connected to our existing production facilities.

Genel Energy (LON: GENL)
Some mouth-watering bopd figures came this week from Genel. The company noted that DNO International ASA, as operator of the Tawke Field in the Kurdistan Region of Iraq, issued the following press release: “[The] deep Tawke-17 well tested 1,500 barrels a day of 26-28 degree API crude oil from an Upper Jurassic reservoir underlying the Tawke field in the Kurdistan Region of Iraq. Separately, the Tawke-20 well, the Company’s first horizontal well in the Tawke field, has flowed an average of 8,000 barrels a day from each of the first four of ten fractured corridors penetrated by the well. Testing continues on both wells. “We are very pleased that initial Tawke-17 results are in line with the Company’s pre-drill estimates,” said Bijan Mossavar-Rahmani, DNO International’s Executive Chairman. “This discovery in the Sargelu formation, over 200 meters below the main field Cretaceous reservoir, likely bumps recoverable reserves on the Tawke license to the one billion barrel mark,” he added. Drilling of a second Tawke horizontal well continues on schedule. “If this second well, Tawke-23, demonstrates the significant deliverability uptick we are now seeing in Tawke-20, we will go back to the drawing board and consider further enhancements to our current target of 200,000 barrels a day of production capacity by 2015,” Mr. Mossavar-Rahmani said. Last month the Company announced that it had met its previous goal of delivering 100,000 barrels a day from the Tawke field following 72 hours of well and facility tests. The Tawke-17 well, the deepest drilled by the Company in the Tawke field, encountered several Triassic zones that proved either tight or water bearing. Two additional identified reservoir intervals in the Upper Jurassic remain to be perforated and tested.” Tony Hayward, Chief Executive of Genel Energy, said: “Today’s news reinforces the extremely positive first half of 2013 that Genel has had with the drill bit, with the company having three new discoveries in the Kurdistan Region of Iraq in the space of three months. We look forward to working with DNO to determine the full extent of the new discovery.”

GeoPark (LON: GPK)
Good news from GPK. The company drilled and completed the Tua 4 well to a total depth of 3,432 metres. A test conducted with an electric submersible pump (“ESP”) in the Gacheta formation, at approximately 3,290 metres, resulted in a production rate of approximately 526 barrels of oil per day of 11 degrees API oil, with 3% water cut, through a choke of 51mm and well head pressure of 125 pounds per square inch (“psi”). A second test conducted with an ESP in the Guadalupe formation, at approximately 3,260 metres, resulted in a production rate of approximately 857 bopd of 16.1 degrees API oil, with a 1.3% water cut, through a choke of 19millimetres and well head pressure of 59 psi. Further production history will be required to determine stabilized flow rates and the extent of the reservoir. Surface facilities are already in place and the produced crude oil from the Guadalupe formation is now being marketed and sold. The Tua oil field was discovered in July 2012 with the Tua 1 well. Current gross production of the Tua oil field is approximately 4,800 bopd. GeoPark has announced the discovery of three oil fields (Max, Tua and Potrillo) since moving into Colombia in early 2012 and Colombia oil production net to GeoPark grew to 4,932 bopd in 1Q 2013 – representing a 66% increase vs. proforma 1Q 2012. During 2013, GeoPark plans to carry out a 15-20 well exploration & development drilling program in Colombia and is currently testing a new prospect on the Llanos 34 Block. GeoPark has interests in 27 exploration, development and production blocks in Colombia, Chile, Brazil and Argentina. During 2013, GeoPark plans to carry out a total 35-45 well drilling program with an expected work program investment of US$200-230 million.

Gold Oil (LON: GOO)
Released their final results for the year ended 31 December 2012 and confirms that the Annual Report and Financial Statements have been posted to shareholders.
A full version of the Annual Report and Accounts is available for download from the Company’s website at

Kea Petroleum (LON: KEA)
Released results of testing Puka wells 1 and 2, some views on the potential size of the Puka fields, possible future production levels and plans to drill Puka 3. Preliminary analysis of the recent 3D seismic over Puka as well as testing results to date indicate that both Puka discoveries are at the edge of a substantial channel. Puka 2 is only a 3.6 metre net sand and whilst initial flow tests achieved rates of over 700 barrels of oil per day, flows from such thin pay could not be expected to be sustained at particularly high levels. The sustained rates totalling over 300 BOPD detailed below are certainly commercial but the opportunity to achieve total daily production rates of over 2,000 BOPD, which remains the Group’s objective, rests on more holes being drilled into thicker sands. The Group intend to proceed as quickly as possible to the drilling of Puka 3. The Group has adequate cash resources to drill this hole as well as complete the on-going capital production works at the Puka site. Sales of oil to date from Puka have raised NZ$1.45M (£730,000).

Leni Gas & Oil (LON: LGO)
More good news. Group-wide oil production from its operations in Trinidad and Spain now exceed 400 bopd and on the 10th June 2013 total production was over 450 bopd, a new Group record. In Trinidad, where the Company produces from the Goudron and Icacos fields, LGO’s net oil production has increased to 315 bopd on the 10th June 2013.
Oil production has increased consistently since the acquisition of the Goudron field in October 2012 (LGO; 100% operator) and Goudron now contributes two-thirds of the Group total. Production growth is expected to continue through 2013 as additional wells are reactivated and placed on pump. Neil Ritson, LGO Chief Executive, commented: “We continue to be ahead of our planned progress towards the 400 bopd target set by the Company for Trinidad by end year. We are continuing at an aggressive pace in Trinidad and we remain confident of the development potential in the country.”

Petro Matad (LON: MATD)
is pleased to announce that it has raised $5 million before expenses through the issue of 90,612,540 ordinary shares of US$0.01 each to its largest shareholder Petrovis Matad Inc. The New Shares have been issued to Petrovis at an issue price of 3.56 pence per ordinary share. Following the issue of the New Shares, Petro Matad will have 277,288,541 ordinary shares in issue.

Matra Petroleum (LON: MTA)
Has signed an agreement to dispose of its 100% interest in the Arkhangelovskoe Licence which includes the Sokolovskoe Field, to a third party, consisting of an initial payment of US$25 million with a further payment of US$10 million payable within nine months, conditional on drilling results. Having commissioned a seismic survey on the Sokolovskoe Field, leading to the revised management estimate of 2P Recoverable Reserves of 13.5 mmbbls, the Board conducted an extensive review of the conceptual Field Development Plan and associated economic forecasts, as well as investigating other options for maximising the value of the Sokolovskoe Field for shareholders. The Board believes that the disposal of the licence for a consideration of up to $35 million represents compelling value when compared to the capital costs required to develop the asset and the technical risks associated with the field. The proposed monetisation of the Arkhangelovskoe Licence is consistent with the Company’s growth strategy and will provide the Company with increased flexibility to pursue new upstream investment opportunities, with the potential to create significant value for Shareholders.

President Energy (LON: PPC)
Annual General Meeting of shareholders at 11 am today. Paraguay. President is acquiring 100 km of 2D data in the Demattei Concession, and 780 km2 of 3D in the Pirity Concession. The 2D was acquired in April and the results are very encouraging and confirm the presence of a prospective structural trend. The 3D seismic acquisition began in May in the Jurumi prospect area of the Pirity Concession, and is now completed. The initial results are equally encouraging. Data quality is excellent and the presence of a prospective structural trend has been confirmed. Detailed prospect mapping will proceed over the next few months. 3D acquisition over the Los Naranjos prospect area of the Pirity Concession will commence this month, and is expected to be completed by early August. We look forward to announcing the final prospect evaluation, including the selection of initial drilling locations by the end of November. An updated CPR will also be published. Planning continues to be made with a view to commencing the drilling campaign at the end of the rainy season in Q2 2014. Argentina. Good progress has been made on President’s work over and well stimulation campaign. Two out of the three stimulations, on wells PE7 and PE8, have been successfully completed and are awaiting clean up prior to being brought on production. The third, on well DP1001, is due within the next few days. President will announce the stabilised production rates of all three wells shortly. Louisiana. Production remains at solid levels well above 200 boepd, and oil prices remain at over US$100 per barrel.

Range Resources (LON: RRL)
Said it was “pleased to provide the following update” on its Trinidad operations, with the following highlights: Too long for the Smallcap round up. You can read it HERE

Rialto Energy (LON: RIA)
It’s good riddance to Charles Nieto and Vance Querio they resigned from the Board of the Company with immediate effect. In addition, Matthew Worner has resigned his position as Company Secretary and Chief Legal Officer. You will not be missed. Nieto, who was an Executive Director of the Company, remains employed as Chief Operating Officer pending a review of the Company’s operating needs at the conclusion of the previously announced proposed transaction with Vitol. In addition, the Company is pleased to advise that Miss Sandra Rosignoli, an experienced oil and gas lawyer, will be joining Rialto as General Counsel in London in a part-time capacity. You mean going through the books!

San Leon Energy (LON: SLE)
Updated on the Czaslaw-1 well and the Siciny-2 well. Czaslaw-1; Based upon the encouraging data obtained during the acid wash performed in May on Czaslaw-1, stimulation modelling has been performed by Denver-based engineers. Their recommendation, which the Company will now implement, involves undertaking one or more additional acid fracture treatments on the well. A liner will first be run and cemented to facilitate targeting of the stimulation to specific depths. This is expected to take place in late summer, following necessary permissions and equipment sourcing. Siciny-2; Pressure fall-off data has been acquired from the first Diagnostic Fracture Injection Test on Siciny-2, on what was expected to be a relatively low-permeability section. This was performed first for operational reasons, as it is the deepest interval of potential interest. The results show a permeability which is below the range which would be considered for full fracturing. A second DFIT further up in the same reservoir section will now be performed in the coming weeks, with the aim of determining a possible suitable depth for hydraulic fracturing.

Sefton Resources (LON: SER)
More piss & wind came from Sefton yesterday. Apparently the company are kyboshing monthly production reports in favour of quarterly. That will save a few quid in RNS fees! Cash is critical. Expect yet another dilution. No more bottom tank sediments or non-saleable fluids or even pre-shrinkage provisional bopd announcements. All gone from RNS announcements just like the fantastical PV10 bullshit cash flows. (Tools of manipulation). Looks like some one or some organisation has read them the riot act. We now just get actual production figures as reported to the DOGGR. Which is what we should have got ALL along. Invest in this POS? You’d have to be utterly stupid!

Sound Oil (LON: SOU)
Released what can best be described as a very short update on a section of drilling. (Waste of an RNS fee!) The Nervesa appraisal well has successfully completed drilling of the 16″ hole section through the Plio-Pleistocene gravel formations to a depth of 322m. Operations are in progress to install the 13 3/8″ casing. That’s it folks!

Urals Energy (LON: UEN)
Has entered into a short-term loan agreement with Petraco under which Petraco will advance the sum up to US$7.0 million to the Company. Repayable immediately following the loading of the next tanker shipment, scheduled for Autumn 2013 or 30 November 2013 (whichever is earlier); interest rate of 5% over LIBOR until the date of the bill of lading of the tanker at which point it reduces to 2% over LIBOR; and it is included in Petraco’s existing security over CJSC Arcticneft, further details of which appear in the Company’s announcement dated 12 April 2010. The proceeds of the Loan will be used by the Company to both progress its 2013 drilling plan and working capital financing. In view of the fact that Ingeborg Srenger is a director of both Urals and Petraco and the control she exercises over Petraco, the Loan is considered to be a related party transaction pursuant to Rule 13 of the AIM Rules for Companies. The Company’s directors (with the exception of Ingeborg Srenger), having consulted with the Company’s nominated adviser, Allenby Capital Limited, consider that the terms of the transaction are fair and reasonable insofar as the Company’s shareholders are concerned.

Xcite Energy (LON: XEL)
Another yawn. Xcite Energy Resources Limited (XEL 100% owned Subsidiary) has entered into a Memorandum of Understanding with AMEC Group Limited (“AMEC”) setting out commercial principles for future cooperation to support the development of the Bentley Field.

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