Busy week in the Smallcap Oil & Gas Sector. I’m toying with the idea of listing a company myself. Pennine Oil & Gas (LON: PIG) I did find traces of oil on Kinder Scout last week. I’m contacting a Competent Person from Denver Colorado who will release his findings via a report blah, blah, blah,
Antrim Energy. (LON: AEY)
Released a bizarrely titled “Miscellaneous medium priority announcements” RNS. The sale of its option to acquire up to a 30% interest in the production sharing agreement for the Pemba-Zanzibar exploration licence offshore and onshore Tanzania. Cash consideration paid to Antrim was US $7.5 million and the effective date of the sale was 9 July 2013. There are no wells, production, reserves or resources associated with the transaction.
Proceeds from the sale will improve the Company’s future capital expenditure reserves.
What’s in a name? Baron Oil (LON: BOIL) The AIM-listed BOIL on the arse of the AIM #Cesspit announces that further to its name change from Gold Oil Plc to Baron Oil Plc the Company’s website can now be found at www.baronoilplc.com
Falcon Oil & Gas. (LON: FOG)
Received approval from the shareholders of Falcon Oil & Gas Australia Limited for the acquisition of Sweetpea Petroleum Pty 50 million shares or 24.22% interest in FOGA. Closing of the acquisition is anticipated to occur within the next 5 business days and is subject to TSX Venture Exchange final approval. FOGA is a subsidiary of Falcon and is the registered holder of four exploration permits in the Beetaloo Basin, Northern Territory, Australia. Following the completion of the Share Purchase Falcon will own 200 million shares in FOGA representing 96.90% of the issued share capital of FOGA. The terms of the Agreement, as announced on the 24th May, 2013, included 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. Sweetpea, a wholly-owned subsidiary of PetroHunter Energy Corporation will own 10.7% of the issued share capital of Falcon.
Gulf Keystone Petroleum (LON: GKP)
The mired in CorpoRATe Greed controversy Kurdistan oiler released a plethora of RNS’s this week. So many that I have now unsubscribed from them. Further to the approval of the Field Development Plan for the Shaikan field discovery, announced on 26 June 2013, the Company has commenced its development drilling programme with the spudding of Shaikan-10. In parallel, production operations from the newly commissioned Shaikan production facility are scheduled to commence shortly. If you want to read all the dross released this week you’ll need a gas -mask to waft through the smoke screen. Click HERE
Gulfsands Petroleum (LON: GPX)
The oil and gas production, exploration and development company with activities in Syria, Morocco, Tunisia, Colombia and the U.S.A. released an update on activities underway in Morocco. You can read it by Clicking HERE
Lochard Energy Group (LON: LHD)
Announces that the Scheme relating to the acquisition of Lochard by the Parkmead Group (LON: PMG) was approved yesterday at the Court Meeting and the special resolution was approved at the General Meeting.
The Smallcap Oil & Gas round up wouldn’t be complete without a Max Petroleum (LON: MAX) RNS or two. 1/ commenced drilling the UTS-11 appraisal well in the Uytas Field on Block A using the Zhanros ZJ-20 rig. This well is the second in a 13 well appraisal programme at Uytas. The well will be drilled to a total vertical depth of 450 metres targeting Cretaceous and Jurassic reservoirs in the central portion of the field. 2/commenced drilling the ZMA-A21 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.
Mediterranean Oil & Gas (LON: MOG)
Said that on 1 July 2013, in response to the lengthy and continuing delays to the Environmental Impact Assessment approval process for the Ombrina Mare Project, it wrote to the Italian Ministry of Environment and of Protection of Land and Sea giving the Ministry 10 days’ notice to complete the issuance of the EIA Decree, in accordance with applicable regulations. Following completion of this 10 day notice period, MEPLS yesterday sent a letter requesting the Company to complete an ‘Autorizzazione Integrata Ambientale’ (an Integrated Environmental Authorisation) for Ombrina Mare as a precursor to the Ministry considering the approval of the EIA. This is contrary to MEPLS previously notifying the Company in October 2012 that, consistent with the conditions required by law, the EIA procedure could be completed without performing the AIA at this time. It also follows the ruling in favour of MOG’s EIA submission from the EIA Technical Committee on the 25 January 2013, and the EIA Director General of MEPLS sending the draft EIA decree with a positive recommendation to the office of the Minister on 17 April 2013. It’s Italy chaps. You need to give out “Backhanders” to progress!
It’s yet another good day for Nighthawk Energy (LON: HAWK) as the company updated today on production at its 100% controlled and operated Smoky Hill and Jolly Ranch projects in the Denver-Julesburg Basin, Colorado. Average gross production levels have continued to increase month-on-month driven by the successful drilling program on the Arikaree Creek oil-field. Total production from all producing wells is currently running at over 1,400 bbls/day. One of our “stocks to watchlist” coming good.
Oilex. (LON: OEX)
(What a pisser) In its capacity as Operator, on behalf of the Joint Venture Participants to the Joint Petroleum Development Area 06-103 Production Sharing Contract , has today submitted to the Autoridade Nacional do Petróleo a request to terminate the PSC by mutual agreement in accordance with its terms and without penalty or claim. The Request to Terminate will require the consent of the Timor Sea Designated Authority. Managing Director of Oilex, Ron Miller, said “In a situation where sovereign nations seek to resolve issues related to international boundaries, it is in the best interests of all parties to allow such matters to run their course. The PSC is the last offshore asset in Oilex’s portfolio and the company, on behalf of the JPDA06-103 joint venture, will continue to collaborate closely with the regulator throughout this process.”
Petroceltic (LON: PCI)
A consortium comprising Petroceltic, Hellenic Petroleum S.A.(Operator) and Edison International SpA has submitted a successful bid for the Patraikos block, offshore western Greece. Each of the three companies in the joint venture will hold a one third working interest in the concession. The Patraikos block is located in the Gulf of Patra and covers an area of 1,892 square kilometres with water depths principally in the range of 100 to 300 metres. The concession is potentially oil prospective in the Jurassic, Cretaceous and Eocene formations with a working hydrocarbon system proven by the Katakolon oil discovery wells drilled in 1982 approximately 35 kilometres south of the block.
Premier Oil (LON: PMO)
Provided an Operations Update summarising key activities since the Interim Management Statement on 16 May 2013 and a Trading Statement in respect of its half year financials to 30 June 2013. This is in advance of the Group’s 2013 Interim Results which will be announced on Thursday 22 August 2013. Click HERE to read Premier also said, later in the day via another RNS reach, that in conjunction with KUFPEC Norway AS, it has agreed to acquire an aggregate 40% interest in PL407 from BG Norge AS. PL407 contains the Bream field and is on the Norwegian Continental Shelf. KUFPEC will acquire a 30% interest while Premier will increase its existing 40% to 50% and assume operatorship of PL407 and the Bream project. The aggregate consideration payable by Premier and KUFPEC will be $22.2 million prior to interim period adjustments. Under a separate agreement, KUFPEC will acquire a 30% interest in the adjacent PL406 licence from Premier for a contingent consideration of $5 million. PL406 contains the Mackerel discovery and the Herring exploration prospect. Sounds fishy to me!
Providence Resources (LON: PVR)
Confirms that the Minister of State at the Department of Communications, Energy and Natural Resources has approved Cairn’s farm-in as Operator to two licences and one licensing option offshore West of Ireland. Following this transaction, Cairn has a 38% working interest with co-venturers Providence (32% WI) Chrysaor (26% WI), and Sosina Exploration Ltd (4% WI). Cairn Energy (LON: CNE) has also announced that it has, on behalf of the co-venturers, entered in to a contract to secure a drilling rig for the planned Spanish Point appraisal well located in FEL 2/04, in the Porcupine Basin, Quad 35 area offshore West of Ireland. Cairn, and its co-venturers, Providence, Chrysoar and Sosina, will use the “Blackford Dolphin”, an enhanced Aker H3 deep-water semi-submersible rig, which underwent a $400 million upgrade in 2006. Subject to obtaining the necessary approvals, the rig will be mobilised to begin operations on this well in Q2 2014 on licence FEL 2/04.
Range Resources (LON: RRL)
Drew attention to the announcement released by Citation Resources Limited (ASX:CTR) on the Atzam #4 Well in Guatemala with the following highlights: Production underway from the perforated section in the Upper C17 carbonates (2,846-2,853ft); Strong initial production performance – flow rate restricted to 100 bopd on a small 8/64ths choke, well head pressure of 400 psi, production of 100% oil cut at 36 – 38° API and no water; Operator estimates a flow rate of 1,000 bopd on an open choke based on flow rates achieved from various choke sizes up to 32/64ths – optimal flow rate to be established in coming weeks;
Rialto Energy (LON: RIA)
Bad news came this week from RIA. The Starfish-1 well preliminary analysis’s initial interpretation of the wireline logs and MDT data is that no movable hydrocarbons have been encountered in the well, based on the current data. Plugged & abandoned.
President Energy (LON: PPC)
Updated on its operations. Which we are told “continue to go extremely well across the portfolio.” In Paraguay the seismic acquisition operation has been successfully completed one month ahead of schedule (780 square kilometres of 3D seismic and 100 kilometres of 2D seismic). Initial results appear most encouraging, already showing very prospective drilling targets. The Louisiana assets are currently producing approximately 300 boepd, a record level of production that is generating circa $600,000 per month of net operating cash flow after US tax. In Argentina the first stimulated well continues to perform with good levels of production and work on the clean up on the next two stimulated wells is on-going. We look forward to updating the market on the flow rates of each of the remaining two wells in due course.
‘Gas! Gas! Gas!’ Was the cry this week from Salamander Energy (LON: SMDR) The Tayum-1 exploration well has encountered 15 metres of net gas pay. Having found gas in the Tayum-1 well, the operator, KrisEnergy, is now evaluating the data and integrating the analysis with data from the nearby Dambus and Mangkok discoveries, before determining a forward plan.
Tethys Petroleum (LON: TPL)
Announced the conditional acquisition of interests in a number of production sharing contracts in Georgia. Tethys, through its subsidiary companies, will acquire a 56% interest in PSC’s covering Blocks XIA, XIM and XIN in eastern Georgia close to the capital city Tbilisi, and in a separate transaction will acquire a 100% interest in PSC’s covering Block VIII and Block XIG located near Tbilisi and in the Kartli area further west. In total, these blocks cover an area of over 6,400 square kilometres. Tethys will be the Operator of all these PSC’s and the transactions are subject to the approval of the appropriate Georgian authorities as well as other conditions precedent including rescheduling of the work programmes on Blocks VIII and XIG.
