The Smallcap Oil & Gas round up.


It’s been a some what quiet week in the Smallcap oil & gas underverse. Not much happening. I’ve decided to stop including company’s that are basically ripping Investors off.

Hence why Sefton’s woeful cock up RNS of today isn’t included in the round up. I am cutting off the oxygen of publicity. I will obviously write excoriating articles continuing to expose the blighters as and when appropriate.


Amerisur Resources (LON: AMER)
The oil and gas producer and explorer focused on South America, updated on its operations in the Platanillo field, Colombia. Platanillo-12 produced 2,371BOPD of 31.8° API on test from U sands…. Platanillo-2 ST1 sidetrack progressing well…. Total field controlled production estimated at 8,500 bopd with the contribution of Platanillo-12.

Baron Oil (LON: BOIL)
Farm-Out Agreement with S&J Full Services Ltd. in the Nancy- Burdine – Maxime field, located in the Putumayo Basin, Colombia. Under the terms of the agreement, BOIL will farm-out 50% of its interest in NBM to S&J Full Services Ltd. and, in return, will receive US $1 million upon signing the Farm Out Agreement plus another US $1 million in ten monthly consecutive installments, starting 30th August 2013. Commenting on the update, Chief Executive Officer Rudolph Berends said, “This is an important step for our company in Colombia. Having a local partner with the expertise and track record of S&J Full Services in the Putumayo Basin should add significant value through the optimizing of NBM operations.”

Egdon Resources (LON: EDR)
Lincolnshire County Council has granted Planning Consent for the drilling of an exploratory borehole on the Laughton Prospect in UK Onshore Petroleum Exploration and Production Licence PEDL209, located between the towns of Gainsborough and Scunthorpe in the East Midlands Petroleum Province. The Laughton-1 well will target a structural trap defined on 2D seismic data. The prospect has multiple conventional Carboniferous sandstone reservoir targets with the primary objective being the Silkstone Rock, an approximately 15 metres thick sandstone interval which is productive in the Corringham oil field 5 kilometres to the South East. Egdon currently estimate gross Best Estimate Prospective Resources of around 1 million barrels of oil for the Silkstone Rock in the Laughton Prospect. Under the terms of a Farm-in Agreement Egdon will earn a 60% interest in the Licence in return for paying 100% of the cost of the Laughton-1 exploration well which is estimated at around £1.3 million.

Enegi Oil (LON: ENEG)
Provides the following update on its partnership in Newfoundland with Black Spruce Exploration. As announced on 12 June 2013, Phase 1 includes the drilling of three appraisal and development wells in PL2002-01(A), consisting of two new wells and a rework of the existing Garden Hill Field PaP#1-ST-#3 well. The Company is pleased to announce that BSE have now concluded its technical due diligence review. Based on the results, the Company and BSE plan to drill at least one of the two new wells on PL2002-01(A) in 2013, after the arrival of BSE’s drilling rig in western Newfoundland. This is anticipated to be in the Autumn of 2013. The Company and BSE continue to work towards completing a definitive Farm-in Agreement. As such the Letter of Intent, which initially provided for completion no later than 12 July 2013, has been extended. This will allow the parties to incorporate additional collaboration procedures to accelerate the planning and execution of a multi-well program over the Company’s acreage in Newfoundland. The Company and BSE expect to conclude the Farm-In Agreement imminently and will advise when appropriate.

Europa Oil & Gas (LON: EOG)
Announces the commencement of a 3D seismic acquisition programme in the South Porcupine Basin, offshore Ireland, following the award by the Irish Government of Frontier Exploration Licences 2/13 and 3/13 to Kosmos Energy Ireland Ltd and Europa.

Exillon Energy (LON: EXI)
The independent oil producer with assets in two oil-rich regions of Russia, Timan-Pechora (“Exillon TP”) and West Siberia (“Exillon WS”), today issued a drilling update.
Production Expectations. “We intend to give an update on our production expectations for 2013 along with our H1 reviewed financial results. These are expected to be released in late August.” If you want to read the full update click HERE

JKX Oil & Gas (LON: JKX”)
Well NN-71 in the NovoNikolaevskoye field has been successfully recompleted to the Visean V-15 sandstone reservoir. Following a three stage test, the well is producing at a stabilised rate of 4.3 MMcfd of gas and 342 bpd of condensate through a 93/64″ choke with a flowing wellhead pressure of 625 psi. Well NN-71 was first drilled in 2009 as a Visean V-25 reservoir well and subsequently recompleted to the V-16 as part of the early development of the NovoNikolaevskoye production licence at Poltava, Ukraine. Both of these deeper reservoirs are no longer producing at this well location. JKX Oil & Gas plc is an exploration and production company listed on the London Stock Exchange. The Company has licence interests in Ukraine, Russia, Hungary and Slovakia.

Lekoil (LON: LEK)
Recently listed LEK pulled a fast one this week after announcing an oil discovery on the OPL310 licence offshore Nigeria, on 26 June 2013, They have diluted their share-holders through the placing of, in aggregate, 33,850,000 new Ordinary Shares at a placing price of 39 pence per Ordinary Share.

Magnolia Petroleum (LON: MAGP)
Rita seems to be moving the focus some what. Maybe she’s reading the Smallcap Oil & Gas round ups? I do detect a shift of emphasis. The quarterly update on its operations has highlighted “Reported initial production rates (IPRs) for 15 wells totalling 110 boepd net to Magnolia (note existing production from these wells will be lower due to decline rates).” Now the very fact that Rita is beginning to talk about “decline rates” should be seen as a cautionary tale. The bopd here isn’t what people have been lead to believe. Decline rates rarely make it into an RNS, for obvious reasons. It is welcomed that at long last Metermaid Rita is coughing up slowly but surely.

Max Petroleum (LON: MXP)
4 RNS’s this week. So I’ve included 2 of them. The Government of the Republic of Kazakhstan has granted regulatory approval to convert the Borkyldakty Field to full field development status effective immediately. FFD approval will allow Max Petroleum to fully develop and produce the Borkyldakty Field and sell 80% of crude oil production from Borkyldakty on the export market under the terms of its Blocks A&E exploration and production contract. Borkyldakty is currently capable of producing approximately 200 barrels of oil per day from its two productive wells and a third development well, BOR-4, is planned to be drilled in the field in August 2013. Max has also commenced drilling the UTS-10 appraisal well in the Uytas Field on Block A using the Zhanros ZJ-20 rig.

Mediterranean Oil & Gas (lon: MOG)
Released an operational update related to the Company’s activities. Click HERE to read it.

New World Oil & Gas (LON: NEW)
Released what can be described as a desperate attempt to keep the wheels rolling. The only point worth remembering for potential investors is this; THE GEOLOGIC CHANCE OF SUCCESS. Upgrade in Probability of Geologic Success to 1 in 9 for Z2, 1 in 10 for Pre-Zechstein and 1 in 13 for Z1 – RPS previously assigned a geological risk of between 1 in 12 and 1 in 16 for the Zechstein. Keep your money under the bed.

Nighthawk Energy (LON: HAWK)
The US focused oil development and production company announces an update on the drilling and development of the Arikaree Creek oilfield at its 100% controlled and operated Smoky Hill project in the Denver-Julesburg Basin, Colorado. Click HERE to read it

Nostra Terra Oil & Gas (LON: NTOG)
Yet more good news came from NTOG as the fifth horizontal well in the Chisholm Trail Prospect (CT5), located in Oklahoma, exceeded the Board’s expectations by a substantial margin, with the most recent ten days of production having averaged 448 barrels of oil equivalent per day (BOEPD). Nostra Terra owns a 2.2% working interest in this well.
New well permitting continues in the Chisholm Trail Prospect area. Once elections are received and made on further wells, the Company will make relevant announcements. Alden McCall, Chief Operating Officer of Nostra Terra commented “The Horizontal Hunton Play is continuing, in our view, to fulfill the definition of a Resource Play. According to the Society of Petroleum Evaluation Engineers, a Resource Play is an “accumulation of hydrocarbons known to exist over a large areal expanse and believed to have a lower geological and/or commercial development risk. We are delighted to report that the most recent 10-day average at CT5 exceeds our expectations. Numerous new wells are in the planning stages with Ward Petroleum and other operators and we look forward to updating shareholders as they progress”. That’s another 10 barrels a day to the ever increasing bopd!

Roxi Petroleum (LON: RXP)
The BNG licence has been successfully renewed for a further period of two years ending on June 6, 2015 during which significant exploration activity is planned that is not expected to require additional shareholder funding.

Sound Oil (LON: SOU)
Confirms that mud log gas shows (Nervesa Gas Discovery) were recorded while drilling across multiple sandstone intervals in the target reservoir zone within the Miocene San Dona Formation. The Company has now completed logging operations and is pleased to confirm the identification of 476 metres of gross pay and 239 metres of gross reservoir with 46 metres of net gas pay in 13 separate zones. A further announcement confirming the estimated quantity of commercial gas and expected cash flows will follow once the Company has fully reviewed the well test results and revised the subsurface model for the field. Following completion of testing, it is the Company’s intention to apply for a Production Concession – with a view to achieving first gas sales in 2015. Also reported. Stuart Joyner has been appointed as Chief Financial Officer of the Company effective Monday 22nd July. Stuart Joyner, aged 41, joins from Investec Bank where he had been Head of Oil & Gas from 2010. Stuart has 19 years’ experience in investment banking for the oil and gas sector having previously worked for Credit Suisse, Morgan Stanley, Dresdner Kleinwort and NatWest Securities.

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