The Smallcap Oil & Gas round up.

Afren (LON: AFR)
Said today that following the recent shareholder approval on the recommended acquisition of a 10.4 per cent. interest in First Hydrocarbon Nigeria (“FHN”), it is pleased to confirm the acquisition of an additional 23.3 per cent. beneficial interest in FHN.

Caza Oil & Gas (LON: CAZA)
Updates for the Company’s initial horizontal Bone Spring well on its Lennox Prospect and an operational update on the Caza Ridge development well on its Copperline Prospect. Both properties are located in Lea County, New Mexico. The fracture stimulation on the Lennox State Unit 32 #2H horizontal Bone Spring well was successful. The well was placed on artificial lift and has been producing to recover frac fluids and establish stabilized flow rates for oil and natural gas. During controlled flowback the oil and natural gas rates have continued to increase and have now stabilized at daily rates of 334 barrels of oil and 337 thousand cubic feet of natural gas, which equates to 390 bbls of oil equivalent per day. Caza 40.00% working interest before payout (31.08% nri) and a 50.00% working interest after payout (38.85% net revenue interest) in the Lennox State Unit 32 #2H well and will participate with a 50.00% working interest in all subsequent wells drilled by Caza on the Lennox property. The Company’s Caza Ridge 14 State #4H well has reached its kick-off point above the 3rd Bone Spring sand interval in the vertical portion of the wellbore. Log data and core samples have been obtained across the Brushy Canyon, Avalon and 2nd Bone Spring sand intervals and have indicated the presence of oil and natural gas across each of these intervals. The Company will now proceed to set the curve and drill the lateral section of the well in the 3rd Bone Spring sand interval, which is producing oil and natural gas in the offset Caza Ridge 14 State #3H well. Caza has a 58.75% working interest in the Caza Ridge 14 State #4H well.

Enegi (LON: ENEG)
Announces that along with its Joint Venture partner ABTechnology, it has signed Heads of Agreement with Antrim Resources that governs UK Central North Sea Licence P077 which contains the Fyne Field. Antrim currently holds a 100% interest in and is Operator of the Licence. Under the HOA, Enegi and ABT will be responsible for the costs associated with preparing an amended Field Development Plan for Fyne, based on using ABT’s buoy technology, for submission to the UK Department of Energy and Climate Change. Upon approval of the FDP by DECC, the JV will earn a 50% interest in the development of Fyne. A FDP has been previously prepared for Fyne and much of this work can be integrated into the new FDP. Fyne has been subject to considerable investment to date. Five successful wells have already been drilled, producing oil at 25o API and achieving free flow test rates of up to 4,000 bopd. Fyne has 2P reserves of 9.9 million barrels and, being well appraised, it is now ready to be developed and ABT’s buoy technology has been identified as the most suitable development solution.

Falcon Oil & Gas (LON: FOG)
Talk about putting the best possible spin on the worst possible news. I take my hat off to FOG! Hess Australia did not elect to commit to drilling the five wells required to earn their interest in the Beetaloo permits by the agreed deadline of 10pm Friday the 28th June. In accordance with the Participation Agreement dated 28th April 2011, as amended on the 2nd August 2012, which granted Hess the first extension, failure to elect on time means that Hess forfeits their right to earn 62.5% in three of the Beetaloo permits. A late request by Hess to defer the election date again was unanimously rejected by Falcon’s Board.

Gulf Keystone Petroleum (LON: GKP)
Appointment of Simon Murray C.B.E., aged 73, to the Board of Gulf Keystone. Chairman Murray has now got his snout firmly up Kozels arse!

JKX Oil & Gas (LON: JKX)

The multi-stage frac operation on well R-103 has commenced in its Rudenkovskoye licence in Poltava, Ukraine. Well R-103 was drilled to a total depth of 4,641 metres into the Rudenkovskoye Devonian sandstone reservoir with a horizontal section of just over 1,000 metres at a true vertical depth of 3,650 metres.

Magnolia Petroleum (LON: MAGP)
Rita was at it again today screaming from the rooftops that an initial production rate of 1,401 boepd for the Marathon Oil operated Helgeson 41-30H well in the Bakken Formation, North Dakota in which Magnolia holds a 4.071% net revenue interest. (57boepd) In addition, the Company announces its participation in seven new wells in producing US formations in Oklahoma, in line with its strategy to rapidly build production and reserves. Question. Rita how long was this IP Test?

Matra Petroleum (LON: MTA)
Following completion of the Disposal and the approval of the Investing Policy by Shareholders at the Company’s General Meeting held on 28 June 2013, the Company is now considered an Investing Company. Accordingly, the Company will be required to make an acquisition or acquisitions which constitute a reverse takeover under the AIM Rules or otherwise implement its Investing Policy within 12 months, failing which, the Company’s Ordinary Shares will be suspended from trading on AIM. If the Company’s Investing Policy has not been implemented within 18 months the admission to trading on AIM of the Company’s Ordinary Shares will be cancelled and the Directors will convene a general meeting of the Shareholders to consider whether to continue seeking investment opportunities or wind up the Company and distribute any surplus cash back to Shareholders. Completion of the Disposal is a significant milestone for Matra. The initial payment of US$25 million, which has been received today, means that the Company will have considerably more resources and financial flexibility to pursue attractive value enhancing opportunities than it has previously enjoyed. The Company intends to use the proceeds of the Disposal to acquire alternative oil and gas assets with material production potential and exploration upside. The initial focus will remain on Russia and CIS but the Company may consider projects elsewhere should attractive opportunities arise. A full version of the Company’s Investing Policy can be seen at

Nostra Terra (LON: NTOG)
I expect the company are scratching their head this week. Just what does NTOG have to do to get their message across. Debt Free, Cash positive, Asset rich, Increasing Bopd with a $1.5 million dollar Richfield Judgement now actually being recovered. One of the best little oilers on AIM.  The oil and gas producer with a growing portfolio of horizontal and vertical drilling projects in the USA, updated on progress on the collection of the Richfield Judgment. On 27 June, 2013 certain of the assets securing the Note Richfield defaulted upon, resulting in a Judgment in favour of Nostra Terra, were sold at a Sheriff’s foreclosure sale in Russell County, Kansas. Nostra Terra submitted the winning bids for the cumulative amount of US$165,000. The assets are known locally as the Furthmyer #1 well (West), the Neidenthal #1 well (South), two producing oil wells, their associated production equipment, facilities and leases, along with a common Salt Water Disposal well, the Furthmyer #11. Current production on these leases averages approximately 6 barrels of production per day (gross).Once the sale is confirmed by the Court the US$165,000 bid will be applied to reduce the balance of the outstanding Judgment granted in favor of Nostra Terra, which is currently in excess of US$1.5 million. Nostra Terra will continue to aggressively pursue collection of the remainder of the Richfield judgment. Further updates will be made in due course. The penny will drop eventually here methinks! Well done Lofgran/McCall for never giving up the Richfield fight. That’s the kind of management we want. Matt Lofgran, Chief Executive Officer of Nostra Terra, commented: “We’re delighted with this outcome. We’ve acquired producing assets, which we already operate, to add to our growing portfolio, increasing both cash flow and reserves.”

Petroceltic International (LON: PCI)
Advised that Eni Spa, as operator of the Carisio permit (Eni 47.5% Operator, Petroceltic 47.5%, Condotte 5%) in the Western Po Valley, has lodged an application with the Ministry of Economic Development requesting a further suspension of the permit. This suspension will enable Eni to incorporate all latest technologies in order to identify a new well location and drilling plan which enables all well objectives to be achieved, whilst also meeting local stakeholder concerns with respect to distance of the wellsite from the village of Carpignano Sesia

Roxi Petroleum (LON: ROXI)
Released an operational update on its flagship BNG asset. Well 143 was spudded on 1 April 2013, on the MJ-F structure located towards the North of South Yelemes field at BNG. The total depth of the well was planned to be 2,500 metres. This exploration initially targeted Jurassic Callovian sands at a depth of 2,170 metres with a secondary objective in the Cretaceous Valanginian limestone at a depth of 1,935 metres. The well has reached the total depth of 2,750 meters and wireline logging has been run. Interpretation of these results has been encouraging with three intervals of interest identified at 2193, 2216 and 2692 metres. One of these intervals at 2692 metres will be perforated before the rig is mobilized to spud Well 807, which is to be drilled to a depth of 2,500 meters targeting Jurassic Callovian sands and Cretaceous Valanginian limestone. The remaining two intervals at Well 143 will be perforated and tested using a work-over rig. Subject to the outcome of these tests, 90 days testing is planned to commence later in the current year. Roxi also announce that a further $5.0 million has been called and received under the previously announced $40 million equity commitment with Mr. Satylganov, a Director of the Company. This brings the total called and received to date to $17.5 million. The proceeds will be used to continue the exciting drilling campaign at BNG. Roxi will accordingly issue a further 41,895,714 shares to Mr. Satylganov, so that the total number of shares issued to Mr Satylganov are 146,635,001, representing 18.8 per cent of the enlarged total shares in issue.

Rialto Energy Limited (LON: RIA)
Updated on the Starfish-1 oil exploration well in the Offshore Accra Contract Area, Ghana. The well is 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. During the period from 1400 hours (AWST) on 25 June 2013 to 1400 hours (AWST) on 2 July 2013 the 17½” (444.5mm) hole section was drilled to final total depth. The 13⅜” (340mm) casing was run and set at 3,035 metres and the well drilled ahead in the 12¼” (311mm) hole section to 3,695 metres. The forward plan is to drill ahead in 12¼” (311mm) hole to final total depth.

San Leon (LON: SLE)
Has signed a binding letter of intent with Wisent, under which Wisent shall carry out a three stage vertical fracture of San Leon’s Rogity-1 well on the Braniewo S Concession in the Baltic Basin, Poland. Subject to the execution of a comprehensive farm-out agreement, Wisent will fully fund the costs of the Fracture and any subsequent testing. One fracture stage will be executed in the Cambrian Piasnica Formation targeting conventional oil and two fracture stages will be executed in the Lower Silurian section targeting shale oil. Upon obtaining regulatory consent, operations are expected to commence on 31 July 2013. SLE also announced that they had successfully completed the hydraulic fracture of Lewino-1G2 well in Gdansk W Concession in the Baltic Basin. United Oilfield Services carried out the operation yesterday and attained an average main treatment pump rate of 120 barrels per minute at pressure, which is the highest achieved outside North America. The pumping lasted less than three hours. The fracture was completed on schedule and the well will now have tubing installed, in preparation for clean-up and testing. San Leon will update the market with test results as soon as they are available.

Sefton Resources (LON: SER)
The bullshit continues apace. As Ellerton released results of a “Mississippian Limestone Study” in North East Kansas Concocted by Ibrahin Nafi Onat (Where have we heard that name before) Of course there’s no actual MLP going on in Eastern Kansas but what the hell if it can get the BB Loons to spout it out long enough and loud enough….. Yawn… That’s enough of that… See you in court Ellerton. You are a Liar and a Fraud. Add that to your case.

Sirius Petroleum ( LON: SRSP)
Has commissioned Professor Nicos Christofides and sw7reseαrch to complete a Real Options Valuation on two oil assets over which the Company has confidential pre-farm-in agreements, the Oil Block and the Second Oil Block, in order to assist in determining whether to proceed with entering into a binding farm-in agreement on both assets, a decision which is at the Company’s sole discretion. Professor Nicos Christofides and sw7reseαrch are in aggregate due a fee of £150,000 for these services. {Nice work nice fee!} Professor Nicos Christofides and sw7reseαrch have completed a number of Real Options Valuation for FTSE100 and other listed and private oil & gas companies.
These fees, together with other fees amounting to £25,000 due to unconnected third parties, are to be satisfied through the issue, in aggregate, of 4,375,000 new Ordinary Shares. Application for the admission of the new Ordinary Shares to trading on AIM has been made and is expected to occur on 10 July 2013. The Shares will represent 0.53 per cent. of the Enlarged Share Capital and will rank equally in all respects with the existing Ordinary Shares. Following this issue the total number of shares in issue will be 822,137,044. This number may be used by shareholders as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the company.

Range Resources (LON: RRL)
Range increases its footprint in Trinidad by over 280,000 acres. If you want to read it then click HERE.

Sound Oil (LON: SOU)
Updated on the Nervesa appraisal well. The well has been successfully drilled (through the Upper Miocene conglomerates and into the top of the underlying marls) to the next casing point at 1389 metres. Operations are now in progress to install the 9 5/8″ casing. The well is therefore now approximately 210 metres above the first reservoir objective.

The Oil & Gas Development Company (LON: OGDC)
I love this release. Its ain’t half hot mum language had me in fits of giggles!

Dear Sir,

For partial resolution of Circular Debt issue prevailing in energy sector, the Government of Pakistan has approved the arrangement for issuance of Pakistan Investment Bonds (PIBs) having face value of Rs 50,772.70 million, maturing on July 19, 2017 (issued date: July 19, 2012) with coupon rate of 11.50% payable on six monthly basis. These PIBs have been subscribed by Oil and Gas Development Company Limited (OGDCL) in order to settle its overdue receivables amounting to Rs 55,728.93 million from gas distribution companies, oil refineries and Independent Power Producers (IPPs). The valuation date for this transaction was June 28, 2013.

This is being provided to you in compliance with the requirements of Clause No.(xx) of the Code of Corporate Governance.

Thanking you.

Tower Resources (LON: TRP)
Busy week for Tower. RNS’s galore. An Namibian Update. Much too long for the Smallcap so click HERE to read it. TRP also announced it is entering into a long term strategic partnership agreement with P.D.F. Limited, an international oil and gas exploration advisory group, to provide the Outsourced Exploration Department tailored to the expanding exploration and new ventures needs of the Company. Under this innovative OExD™ strategic partnership agreement Tower will secure access to an excellent integrated exploration team including long-term safeguards for corporate memory and data management. PDF will earn a portion of its fees in TRP shares, thereby gaining a stake in Tower and linking the success of the OExD™ to the overall performance of the Company. And the acquisition of a 20% carried interest in Marovoay Block-2102, onshore Madagascar. The acquisition is through the acquisition of Wilton Petroleum, a private UK registered exploration company. Wilton Petroleum’s sole asset is a 20% carried interest in Marovoay Block-2102, onshore Madagascar, in the Majunga Basin, which is operated by Ophir Energy plc through its subsidiary Ophir Madagascar Limited (“Ophir Energy”, 80%). Block-2102 covers an area of 8,444 km2 and possesses prospectivity across multiple play types within the Jurassic and Cretaceous age sequences. The first exploration well in Block-2102 is due to be drilled by mid-2014. It will target the Anjohibe prospect with mean prospective resources of c. 90mmbbls* of what is expected to be light volatile oil in Jurassic and Cretaceous plays. These are the onshore equivalent of the deep-water plays being explored by ExxonMobil in the Ampasindava Block to the north. This is one of over 20 prospects identified on the block. And finally a CPR Update which can be read HERE

Xcite Energy (LON: XEL)
Submitted its Environmental Statement for the Bentley Field Development to the Department of Environment and Climate Change for review. This will be subject to public consultation as soon as practicable, and is available through the Company’s website,

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