The Smallcap Oil & Gas round Up.

It’s been a busy week in the Smallcap Oil & Gas Underverse.  Upset the BBLoons! Feel free to post some links of the round up on the various financial sites.

Caza Oil & Gas (LON: CAZA)
Their Operational Update can be read HERE

Egdon Resources (LON:EDR)
Dorset County Council has granted planning permission for the development of the Waddock Cross oil field in onshore Production Licence PL090, located around 10 kilometres to the east of the town of Dorchester.

Falkland Oil & Gas (LON: FOGL)
“We have an ambitious and fully funded work programme and the first six months of this year have been hugely productive, with the successful acquisition of two very important 3D seismic surveys. This investment will allow us to take our sub-surface understanding to the next level, and will provide well locations for the forthcoming drilling campaign. The 3D seismic will reduce exploration risk, help us focus on the oil potential within our licences and maximise the chances of delivering value through the drill-bit.” Says Tim Bushell, Chief Executive.

Faroe Petroleum (LON: FPM)
Focused principally on exploration, appraisal and production opportunities in the Atlantic margin, the North Sea and Norway, released an operational update. The Company has a material and active investment programme which is fully funded from existing cash flow, cash reserves and debt facilities. Click HERE to read

GeoPark Holdings (LON: GPK)
Announced the discovery of a new oil and gas field on the Flamenco Block in Chile following the successful testing of the Chercán 1 well – the first well drilled by GeoPark in Tierra del Fuego. GeoPark operates and has a 50% interest in the Flamenco Block in its partnership with Empresa Nacional de Petroleo de Chile, the Chilean state-owned company. A production test in the Tobifera formation, following stimulation, at approximately 1,920 metres, flowed at a rate of approximately 4.0 million standard cubic feet per day of gas and 35 barrels of oil per day through a choke of 8 millimetres, with a well head pressure of 1,800 pounds per square inch. Further production history will be required to determine stabilized flow rates and the well is continuing to clean up.

Gulf Keystone Petroleum (LON: GKP)
The darling of the Bulletin Boards, announced that the Field Development Plan for the Shaikan field, a world class commercial discovery, is now approved. Kozel, Chairman and CEO of Gulf Keystone, commented: This is an historic moment in the evolution of the Company. Gulf Keystone is now fully permitted to commence production from the Shaikan field and this represents a key milestone in the Company’s growth. We have been a pioneer in the region from the outset and this milestone reconfirms our pioneering spirit and our desire to lead the upstream oil industry in Kurdistan. The initial production capacity will start in the coming weeks, steadily increasing to 20,000 barrels oil per day and then quickly progressing to 40,000 bopd on the completion of the second production facility. This will increase to 150,000 bopd within 3 years and 250,000 bopd by 2018.This is an enormous achievement by the GKP team who have worked so long and hard to achieve this goal and have forged such strong links within the Kurdistan Region, at all levels”

Jubilant Energy (LON: JUB)
Were “pleased” to announce that KPL-3E-1, the fifth well of the six well Phase-III-Extension development drilling campaign in the oil producing Kharsang Field, was spudded on 23 June 2013. KPL-3E-1, located in the southern part of the field, is being drilled as an infill development well between KSG#55 and KSG#53 with the S-00 reservoir sand layer as primary objective and Q-00 and T-00 sand layers as secondary objectives. The well is planned to be deviated by approximately 766 metres to the south-west from the existing plinth of the well KSG#34 and will be drilled to a target depth of approximately 1,666 metres Measured Depth and 1,450 metres True Vertical Depth.

Lekoil (LON: LEK)
Struck oil this week at the high impact Ogo-1 well located on the OPL 310 licence offshore Nigeria. They “discovered a significant light oil accumulation, based on the results of drilling and wireline logs.” The Ogo-1 well is being drilled by Afren (LON: AFR), as technical partner, under a farmout to Lekoil of OPL310, offshore Nigeria, as announced on 14 May 2013. The well has been drilled to a total measured depth of 10,518ft (10,402ft true vertical depth subsea, and has encountered a gross hydrocarbon section of 524ft, with 216ft of apparent stacked, net pay. Further wireline log evaluation is currently underway prior to extending the well to target deeper prospectivity above basement, to a total measured depth of 11,800ft (11,684ft TVDSS). The expected timetable for completion of this further drilling together with additional testing is four to six weeks (inclusive of drilling a planned Ogo-1 side-track well). The Ogo-1 discovery, testing a four-way dip-closed structure in the Turonian, Cenomanian, and Albian sandstone reservoirs, confirms the extension of the same Cretaceous play that has yielded other significant discoveries along the West African Transform Margin. The results also indicate a working hydrocarbon system that is weighted more towards liquids than gas. This has been confirmed by MDT samples; light oil samples in the Turonian and Cenomanian sands and condensate samples in the Albian sands.

Leni Gas & Oil (LON: LGO)
Hit the buffers this week as they announced a placing raising £1.3 million gross proceeds through the issue of 162.5 million and a secured 3 year US$10 million debt facility with YA Global Master SPV, one of the potential debt providers currently working with LGO. The first US$2 million has been successfully drawn down. The first draw down carries a twelve month repayment schedule and a fixed coupon of 9%. Global Master has also agreed to increase the debt facility to US$15 million after 60 days, should the Company elect to do so, dependent on certain conditions being met. The initial US$2m debt draw down, in conjunction with the £1.3 million placing announced earlier this week, will be used towards increasing the Company’s oil production operations, predominantly at the Goudron field in Trinidad.

Lochard Energy (LON: LHD)
See Trapoil entry

Magnolia Petroleum (LON: MAGP)
Rita was at it again this week releasing two RNS’s no point reporting the first but we will report on the second. “We are delighted with the initial production rate for the Gustafson well which demonstrates the prolific nature of the Bakken formation in North Dakota. Combined with a 4% NRI in the well, net production attributable to Magnolia from Gustafson is currently 50 boepd. As a result, this well alone represents a 40% increase on the 122.5 boepd reported in the Competent Person’s Report as at 31 December 2012. Since then, in addition to Gustafson, a number of new wells have come on stream and we therefore expect our next CPR to report a significant increase in production as at 31 December 2013. Yes that’s all very well & good Rita but what is the bopd as of today? Are you saying that the 122 bopd from 6 months ago has risen or declined? We all know Rita’s IP rates are not worth shit They decline rapidly. Buyer beware

Max Petroleum (LON: MXP)
The week wouldn’t be a week in the oil & gas underverse without drilling updates from Max! This week we are told the UTS-7 appraisal well in the Uytas Field on Block A. Was plugged and abandoned. Max also said that it has commenced drilling the ZMA-E3 development well in the Zhana Makat Field on Block E using the Zhanros ZJ-30 rig. Total vertical depth of the well will be approximately 860 metres targeting Jurassic reservoirs. Yawn

Petrel Resources (LON: PET)
Will farm-out 85% of its Atlantic Porcupine Basin holding to Woodside, Australia’s largest independent oil and gas company. The agreement covers all of Petrel’s participating interest in Licensing Option 11/6 (comprising offshore blocks 45/6, 45/11 and 45/16) and Licensing Option 11/4 (comprising offshore blocks 35/23, 35/24 and the western half of 35/25). The Agreement is subject to the execution of fully-termed agreements, completion of due diligence and other necessary government approvals. It includes any subsequent frontier exploration licences that are granted in respect of the licensing options. Woodside will be operator of the licensing options.

Nighthawk Energy (LON: HAWK)
More good news came this week from HAWK a drilling report. You can read it in full HERE

Petro Matad (LON: MATD)
Final Results can be viewed HERE

Petroneft (LON: PETN)
Final Results can be viewed HERE

President Energy (LON: PPC)
Preliminary results from the first of the three hydraulically stimulated wells at the Puesto Guardian concession (President 50%) are performing ahead of expectation.
Well DP1001 at the Dos Puntitas Field is currently free flowing (without pump) into the facility at a gross flow rate of liquids (oil and injection water) of 490bpd. The oil cut is presently 70% and continues, as expected, to increase steadily as the injection water continues to be cleaned up. This gross flow rate represents a five-fold increase in production pre-stimulation, with oil coming from both the carbonates and A6 sand sections. The reservoir pressure is estimated at 4130 psi which is within 10% of the original field pressure recorded in 1983. Whilst it would be premature to draw too many conclusions at this stage of the clean-up and initial production of these three wells, the magnitude of flow-rate increase on this first single stage oil well stimulation is an extremely encouraging response. The work-over rig is now moving to well PE-8 at the Pozo Escondido Field to commence the clean-up operation on the second stimulated well, where after it will move to PE-7.

Rialto Energy (LON:RIA)
Diluted share-holders with 471,555,109 million ordinary shares this week trousering approximately £8.5 million. Then updated on the Starfish-1 oil exploration well in the Offshore Accra Contract Area, Ghana. The well will target a large stratigraphic trap in the deep water of eastern Ghana, interpreted to be potentially comparable to the Jubilee oil field in western Ghana. The operator, Ophir Energy (LON: OPHR)), estimates mean prospective resources of 292 MMBOE with a 20% chance of success. The Starfish prospect was matured following reprocessing of the original 3D seismic data and the acquisition of the new 3D survey in 2011 over the outboard deep water area. The Contract Area is now covered by quality 3D seismic data. In the event of a discovery at Starfish-1 confirming a significant petroleum system, there are a number of other leads and prospects identified on the block that would be of interest. Ophir continues to work on the existing lead and prospect inventory. The well was spud on 19 June and will be drilled as a vertical well in a water depth of 1,500 metres and is expected to take 40 days to drill to a proposed total depth of 4,560 metres. During the period from 1400 hours on 19 June 2013 to 1400 hours on 25 June 2013 the well was drilled to a depth of 2,627 metres. The 20″ (508mm) casing was run and set at 2,218 metres and the BOPs were installed, prior to drilling ahead in the 17½” hole section. The forward plan is to drill ahead in 17½” hole to the next casing point planned at 2,889 m metres.

San Leon (LON: SLE)
Updated on Lewino-1G2 well in the Gdansk W concession in the Baltic Basin, Poland. Mobilisation of hydraulic fracturing equipment from United Oilfield Services is underway, and the wellbore has been prepared using coiled tubing. Expected timings for the remainder of the work are subject to operational change. 29 June 2013: Pressure test and perforate the well. 02 July 2013: Perform a hydraulic fracture treatment through the 5-1/2″ liner. As part of the evaluation process, UOS will provide microseismic monitoring to generate an image of the hydraulic fracture produced. The pumping itself is expected to last less than three hours, and will be followed by a flow back of fracture fluid for a number of hours. Sustained flow will require a completion tubing to be installed. 04 July 2013: Rig up workover unit and installation of 2-3/8″ completion tubing. 14 July 2013: Commence cleaning the well of fracture fluids in order to achieve sustained flow. Coiled tubing and nitrogen will be used as required to lift fracture fluid returns. Up to 30 days of clean up and flow may be performed, for data acquisition. SLE also released their final results which can be read HERE

Salamander Energy (LON: SMDR)
Has started its multi-well exploration programme in Block G4/50, Gulf of Thailand. Salamander has a 100% operated interest in Block G4/50 which surrounds the B8/38 Production Licence (that contains the Bualuang oil field).

Serica Energy (LON: SQZ)
Has reached agreement with Centrica through its subsidiary Hydrocarbon Resources Limited for the farm-out of UK East Irish Sea Blocks 113/26b and 27c (Licence P.1482), in which Serica presently holds a 65% interest. Under the agreement, HRL will acquire an operated 45% interest in the licence, with Serica retaining 20%, in consideration for HRL bearing Serica’s share of costs associated with the drilling of an exploration well up to a cap of $17 million.

Sound Oil (LON: SOU)
Updates on the Nervesa appraisal well. Drilling on the well experienced a stuck drill pipe incident at 1087 metres while drilling in the Upper Miocene conglomerate formation. Following unsuccessful attempts to free the pipe, corrective action has been taken to cut the drill string at 884.5 metres, plug back with cement and drill a sidetrack. The planned sidetrack is still expected to reach the planned bottom hole location within two weeks. As a consequence of this operation the total well cost will increase by approximately £1 million.

Trapoil (LON: TRAP)
the independent oil and gas exploration, appraisal and production company focused on the UK Continental Shelf region of the North Sea, noted the announcement made by Ithaca Energ. (LON: IAE). As part of this announcement Ithaca provided the following operational update with regard to the performance of Athena where it’s UK subsidiary is the operator and in which Trapoil’s subsidiary holds a 15%. working interest. “During the quarter the Athena field completed its first full year of operations, with gross production of approximately 3.6 million barrels having been produced to date. Gross daily production from the field is currently at a reduced level, primarily as a function of one of the four producing wells, the “P2″ well, being temporarily shut-in awaiting a repair to the electrical cable serving that particular well. A diving support vessel has been contracted to perform the necessary operations to fix the electrical fault and reinstatement of production from the well is anticipated within the next few weeks. During the quarter, the Athena field commenced the production of water with oil. This is significantly later than originally anticipated. As previously noted, the evolution of the water production profile will now provide important information for forecasting the ultimate field production profile and the scope for future potential upside investment opportunities” Subsequent to the shut-in of the “P2” well Athena is currently producing just under 9,000 barrels of oil per day.

Woburn Energy (LON: WBN)
Serial failure this one. They used to be called Black Rock oil & Gas cost investors a fortune. Reinvented themselves came back as Woburn Energy. Now suspended. Stay well away. You have been warned.

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