The Smallcap Oil & Gas round up

Another busy week for me personally. Family matters etc

Good read this week enjoy it. Dan x

Bankers Petroleum (LON: BNK)
Reports that the 5350 Block “F” well in Albania reached a total depth of 2,776 meters measured depth on July 17, 2013. Petrophysical and geological information indicates that the well did not encounter any hydrocarbon bearing zones that would merit testing. The well was suspended. This is the second exploration well in Block “F”, completing Bankers two well commitment on the block. Technical evaluation of the block will continue into the fall and Bankers is reviewing several other prospects including a seismic program in the next two years.

Egdon Resources (LON: EDR)
Some good news this week for EDR and Europa Oil and Gas (LON: EOG) The successful result of a High Court challenge in relation to the drilling of an exploratory well at the Holmwood prospect in Weald Basin licence PEDL143 located in Surrey, where Egdon holds a 38.4% interest. Europa (operator, 40%), Warwick Energy (20%) and Altwood Petroleum (1.6%). This judgment means that the Inspector’s decision is quashed and the appeal will be remitted to the Planning Inspectorate for redetermination, which may involve a further planning Inquiry, for the exploratory drill site at Holmwood. As announced by Europa on 1 November 2012, the PEDL143 joint venture partners applied for an order to quash the decision of the Secretary of State for Communities and Local Government’s appointed Inspector to dismiss their appeal against Surrey County Council’s refusal to grant planning permission to drill one exploratory borehole and undertake a short term test for hydrocarbons at the Holmwood prospect drill-site. Egdon was also notified by Leicestershire County Council that Planning Consent has been granted for the drilling of an exploratory borehole on the Burton on the Wolds Prospect in UK Onshore Petroleum Exploration and Production Licence PEDL201, located on the southern margin of the Widmerpool Gulf geological basin.

Enegi Oil (LON: ENEG)
Updated on North Sea Licence P1974 containing the Malvolio prospect in Block 3/23a. Further to the announcement of 31 January 2013, the Company confirms that, through the activities of Azimuth Limited, the Company has fulfilled the initial licence requirements by acquiring 100km2 of 3D seismic data over the Block and surrounding area. ENEGI also sneaked in a placing admission as it yet again diluted it’s share-holders. They raised £2.018 million (before expenses) through a placing of 24,882,944 new ordinary shares of 1 pence each with new investors at an average price of 8.11 pence per Ordinary Share.

Forum Energy (LON: FEP)
Released their interims today. You can read them by clicking HERE

Gulf Keystone Petroleum (LON: GKP)
The Board of Gulf Keystone held their annual jamboree in sunny Bermuda thus preventing the ordinary folk from attending. Not to worry fill his pockets with lots of cash Kozel told every one who could afford the flights, hotels and expenses that “all the resolutions proposed at the Company’s Annual General Meeting (“AGM”) held today at 12pm in Bermuda, were duly passed by shareholders.” This was after an embarrassing few months which saw the company climb down in the face of an onslaught from Private and Institutional investors over Kozel and the boards pocket filling. We are now told that “a constructive agreement with M&G Recovery Fund, a 5.1% shareholder in the Company and other major shareholders in the Company, regarding the current and future composition of Gulf Keystone’s Board of Directors” sic Has been reached. The Agreement follows a number of discussions between the Company and its largest shareholders, about the four nominees for Independent Non-Executive Directorships of the Company proposed by M&G, were fully aired and addressed to the satisfaction of the Company’s Chairman, Mr Simon Murray and the Grandly titled “Field Marshal the Lord Guthrie of Craigiebank”, Chairman of the Nominations Committee. Talk about money buying titles!

Magnolia Petroleum (LON: MAGP)
Reported an initial production rate of 2,244 boepd for the Statoil operated Jake 2-11 2TFH well in the Three Forks Sanish Formation, North Dakota, in which Magnolia holds a 1.465% net revenue interest. This adds 33 boepd to the Company’s net production and follows the initial production rates for the Jake 2-11 # 1H, announced on 22 July 2013, which added a further 57.5 boepd net to Magnolia. What the rate is now is any ones guess but I bet it’s down on the IPs reported.

Max Petroleum (LON: MXP)
And the week wouldn’t be complete without an update from MAX. The UTS-10 appraisal well in the Uytas Field has successfully reached a total depth of 484 metres, with electric logs indicating a total of nine metres of net oil pay in Cretaceous and Jurassic reservoirs. This includes three metres of net oil pay in the Cretaceous Aptian section within a 40 metre interval of shows at depths ranging from 125 to 165 metres. The UTS-10 well was drilled downdip on the flank of the structure and confirms the position of the oil water contact in the Aptian as seen in wells previously drilled in the central part of the structure. The Jurassic section includes six metres of net oil pay in a 48 metre interval with oil shows at depths ranging from 328 to 376 metres. Reservoir quality in both the Cretaceous and Jurassic sections is excellent. The shallow Albian was encountered in this well with visual oil shows noted from 46 to 58 metres. Electric logs through the Albian reservoirs suggest some oil saturation but are inconclusive due to enlargement of the wellbore in this interval. The Company plans to complete the well and then place it on test production as soon as practicable.

Mediterranean Oil & Gas (LON: MOG)
Following the grant of approval by the Government of Malta, it has acquired through its wholly owned subsidiary Melita Exploration Company Limited, a 40% working interest in the Exploration Study Agreement relating to offshore Malta Area 3 – Blocks 1, 2 and 3, alongside Capricorn Malta Ltd (W.I. 60%, Operator), a subsidiary of Cairn Energy PLC. In December 2012 Cairn entered into a two-year ESA with the Government of Malta for Blocks 1, 2 and 3 of Area 3, which are located north of Malta in the Sicily Channel covering an area of approximately 6,400 km2 and containing a number of prospective leads.

Petrel Resources (LON: PET)
Has said today that negotiations on a potential Iraqi investment are at an advanced stage whereby a private company with extensive hydrocarbon interests in Iraq would inject an asset into Petrel in return for a minority shareholding in Petrel as well as board representation.

Providence Resources (LON: PVR)
Updated on the Barryroe oil field in the North Celtic Sea Basin, offshore Ireland. Providence (80%) operates Barryroe on behalf of its partner Lansdowne Oil and Gas (LON: LOGP) (20%). The area which is located in Standard Exploration Licence (SEL) 1/11 and Licensing Option (LO) 12/4, lies in c. 100 metre water depth and is c. 50 kilometres off the south coast of Ireland. In April 2013, Providence published a competent person’s contingent resource audit on the in place hydrocarbon and recoverable resources from the Basal Wealden A oil reservoir, as independently reported by Netherland Sewell & Associates Inc. NSAI have now provided an estimate of the cashflows attributable to Providence from the Basal Wealden A oil reservoir at Barryroe. A summary excerpt from this recently issued report is now available on the Providence website,

Range Resources (LON: RRL)
Noted the announcement released by International Petroleum this week, announcing that International Petroleum is in negotiations with a third party relating to the potential sale of its Russian assets for cash consideration, which Range understands is expected to be between US$120 – 150 million. In the course of discussions and due diligence in connection with the proposed merger of the two companies, Range has been informed of the negotiations concerning the potential asset sale and remains committed in principle to pursue a merger transaction pending final confirmation of the sale terms. Range will update shareholders in relation to the asset sale and merger transaction in due course.

Ruspetro (LON: RPO)
Announces that a substantial reduction in the Russian Mineral Extraction Tax applicable to tight oil has been passed into law this week and will be applied to production from the Company’s qualifying reserves from 1 September 2013.  RPO estimates that 80% MET relief is applicable for production from approximately 74% of the Company’s Jurassic reserves. The 80% MET relief is estimated to be applicable to approximately 97% of the Company’s current crude oil production. The reduction in the MET rate will increase well head revenue per barrel for Ruspetro’s crude oil production from approximately US$22.40 to approximately US$39.10 at a gross price of US$100 per barrel. For this first half of 2013 production has averaged 5,455 bopd (81% crude oil, 19% condensate), a 38% increase on H1 2012 production of 3,956 bopd. Production for the second quarter of 2013 has averaged 5,002 bopd (85% crude oil, 15% condensate).

Tower Resources (LON: TRP)
Said it was “pleased to announce a placing to raise £9.0 million before expenses and an open offer to raise up to £4.1 million (US$6.2 million) before expenses” Of course share-holders weren’t pleased with the result of the Murombe-1 well. Which was plugged and abandoned. It’s yet more dilution upon dilution from the good ship Tower that has failed at every turn. Get out and stay out! That’s 802,343,266 with another 360,811,606 new Ordinary Shares to be dumped onto the market! Sell up!

Urals Energy (LON: UEN)
Announces that a two part Passive Seismic survey has been completed for Articneft on the island of Kolguev by GeoDynamics Worldwide srl, and the Company expects to receive the full results in late August / early September. Separately a Passive Micro-Seismic survey was carried out over a selected area in the West block, applying 10 measurement stations for seven days. The field operations were completed in 30 days. The results of the Spectroscopy survey will generate a hydrocarbon distribution map of the two blocks, whereas the micro-seismic will aim at locating the hypocenters of microtremors which will be a complimentary tool for upgrading the structural model of the subsurface of the West block.

Wessex Exploration (LON: WSX)
Announces the conclusion of drilling activities on the GM-ES-4 well in French Guiana. The well penetrated the primary and secondary reservoir objectives before drilling operations were concluded at a total depth of 6,292m. The results of the wireline logging programme has confirmed the presence of reservoir, however no evidence of hydrocarbons is seen from the drilling or wireline log data. The well is now being plugged and abandoned.

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