The Smallcap Oil & Gas round up.

Apologies for the recent break in the Smallcap Oil & Gas round up. Business dealings have meant that my time has been very limited. (More of which will be revealed later this year!) Fortunately It’s now back by <sic> popular demand.



Andes Energy (LON: AEN)
Announced the commencement of drilling of the Las Varillas x-1 exploration well located in the El Manzano West block in the Neuquén basin, South Mendoza Province, Argentina. The well is located 1.5 km from the successful Mirador del Valle x-1 well discovery announced on 13 November 2013, which targeted the Neuquen Group formation producing an average flow rate of 535 bopd during testing with the potential for 15 million barrels of recoverable resource.Alejandro Jotayan, CEO of the Company, commented: “The Manzano West block has already demonstrated significant conventional oil production potential following the drilling of the Mirador del Valle x-1 well in November 2013, which was sourced from the Vaca Muerta formation and has significantly de-risked this well. The Las Varillas x-1 well will investigate the complete stratigraphic column including the world class source rock Vaca Muerta as the main target, in an area located in the Northwest of the Neuquén basin where Andes has 170,000 net acres nearby. A successful program will provide Andes and YPF with the opportunity to develop a large and promising area with unconventional and conventional resources potential.”

Bowleven (LON: BLVN)
Out goes John Brown as Finance Director. In comes Kerry Crawford who has been appointed as Finance Director effective 6 Jan’ 2014.

Chariot Oil & Gas (LON: CHAR)
The former darling of Private Investors said that it has completed its 2,128 km 2D seismic survey in Southern Block 2714B offshore Namibia (Chariot 85% (Operator), NAMCOR 10% (carried interest), Quiver Oil 5% (carried interest). The survey was contracted to and carried out by Dolphin Geophysical Ltd. in order to provide further detail on the shallower petroleum system in the region. Once the data has been processed and calibrated with the legacy 2D data on the block, it will be interpreted in-house with the aim of identifying specific areas of interest for a 3D programme.

Coastal Energy (LON: CEO)
shareholders have voted to approve the merger with Condor Acquisition Limited (“Purchaser”). As previously announced on November 19, 2013, the Purchaser, a newly-incorporated entity controlled by Compañía Española de Petróleos, S.A.U. and in which Strategic Resources Limited is an investor, entered into a definitive merger agreement with Coastal pursuant to which it would acquire all of Coastal’s issued and outstanding shares. The Merger was approved by 97.56% of the votes cast at Coastal’s EGM. Under the terms of the Merger, Coastal shareholders will receive consideration of C$19.00 in cash for each common share.

Eland Oil & Gas (LON: ELA)
Updated on activities for the OML 40 licence, located onshore Nigeria. The rehabilitation work on the Opuama flowstation has now been completed. Eland have entered the pre-commissioning and testing phase, including the testing of the final section of the 12 inch export line. The company expect commencement of production shortly following the successful completion of pre-commissioning and testing.

Empyrean Energy (LON: EME)
Informed share-holders that it that it had arranged a US$5 million drawdown under Tranche B of its facility with Macquarie Bank to fund operations during 2014. This work will include the increased pace of drilling expected on the Sugarloaf AMI, an Eagle Ford Shale oil, condensate and gas development project, in which the company has a 3% working interest and which is operated by Marathon Oil. In addition, it completed its scheduled repayment of an amount totalling US$1,500,000 on its term debt under Tranche A of the facility. This repayment was made from sales proceeds received from production. After the repayment and drawdown, the resulting balance currently outstanding on the facility is US$12,170,664. The Company expects that further drawdowns on the facility will take place to fund the development of its WI in the Sugarloaf AMI.

Europa Oil & Gas (LON: EOG)
Open warfare has broken out at Europa this week as the company announced that it had received a notice from Paul Barrett and Erika Syba requisitioning a general meeting of the Company’s shareholders. The Requisition proposes a resolution that Bill Adamson, Chairman of the Company, and Roderick Corrie, a Non-Executive Director of the Company, be removed from the Board of Directors of the Company, to be replaced by Paul Barrett and Erika Syba. Later on in the week Europa announced a 47,694,665 (APPROX. 35% DILUTION) share placing to raising £2.86 million (before expenses). Shareholders are reminded that the Open Offer to raise up to a further £1.16 million (before expenses) remains open for acceptance until 11.00 a.m. on 17 January 2014. (MORE DILUTION!) Maybe Paul and Erika have a point?

Gulf Keystone Petroleum (LON: GKP)
Said; “Significant progress had been made since the Field Development Plan for the Shaikan field was approved in June 2013. In July 2013 the Company commenced commercial production, marking Gulf Keystone’s transition to an operator with revenue generation. In December 2013 crude oil exports from the Shaikan field commenced.

Itacha Energy (LON: IAE)
Released an ebullient RNS this week titled “Successful Stella A2 Well Test Results and GSA Development Update” Mucho too long for the Smallcap round up. However you can read it by CLICKING HERE

Matra Petroleum (LON: MTA)
The still suspended MTA announced that on the 30 December 2013, the Company had received, on 5 January 2014, further notification under DTR 5.3.1R, that Tricon Energy Finance Limited has acquired a call option over 157,000,000 ordinary shares in Matra (representing 8.11% of the Company’s voting rights) currently owned by Delek Energy Systems Limited.

Nighthawk Energy ( LON: HAWK)
Another solid set of production figures came this week from HAWK on drilling and production at its 100% controlled and operated Smoky Hill and Jolly Ranch projects in the Denver-Julesburg Basin, Colorado. Big Sky 12-11 and John Craig 1-2 wells commenced production in December 2013. Gross oil production over last ten days of December 2013 averaged 1,753 barrels per day. Average gross oil production in month of December 2013 of 1,556 bbls/day. Gross oil production in the full year 2013 of 364,968 barrels (average 1,000 bbls/day), a tenfold increase on full year 2012. Big Sky 14-11 well at Arikaree Creek currently undergoing completion in Mississippian formation. Telluride 13-2 well to be completed in Pennsylvanian formation. Drilling program continues with Jackson Hole 1-32 well north-west of Arikaree Creek and the Big Sky 13-11 well at Arikaree Creek.

Nostra Terra Oil & Gas (LON: NTOG)
Updated on the Company’s Verde prospect in Colorado and its Chisholm Trail prospect in Oklahoma. Rather anodyne in tone. In Colorado, the tank battery for the Verde 3 well has been installed. The well is now under continuous production. Nostra Terra has a 17.54% Working Interest in the well, which is operated by Plainsmen Partners. No oil production figures were given! The CT8 (Jones1-25H) and the CT9 (Mel B 1-33H) wells, in the Hunton formation, fracced in December 2013. Both wells are now undergoing completion operations, including construction of tank batteries and putting the wells into production testing. Nostra Terra has a tiny 2.00% WI and 7.375% WI in each well, respectively. The CT11 (Bugg 1-5H) well, also in the Hunton Formation, is now drilling. Nostra Terra recently elected to participate in this well under a 3.53% WI, and completion is anticipated in Q1, 2014. There is potential for a minor adjustment in the WI and the Company will provide an update when the negotiations are finalized. Nostra Terra has elected to participate in the 12th well (Oswald 1-28H) in the Chisholm Trail prospect (CT12). The well is now permitted and is planned to be drilled to test the Mississippian formation in early 2014. Nostra Terra has a 1.59% WI in the well which will be operated by Alta Mesa. Ward Petroleum has scheduled a pooling and spacing hearing for an additional horizontal Hunton well that is scheduled to take place in January 2014. Following Oklahoma Corporation Commission approval, it is anticipated that the well will be permitted and drilled as early as Q1, 2014. While the exact Working Interest has not been determined, it is anticipated that it will be Nostra Terra’s largest WI to-date in Chisholm Trail.

Petroceltic (LON: PCI)
Released a lengthy epistle this week. An operational update together with guidance for its 2014 production outlook and exploration and development work programmes. You can read it by CLICKING HERE

President Energy (LON: PPC)
Released an operational update on the Company’s assets. You can view it by CLICKING HERE

Range Resources (LON: RRL)
The serial failure announced that they would “like to draw attention to the announcement released today by Citation Resources Limited (ASX: CTR) with respect to the Company’s interest in Guatemala with the following highlights” Yes I bet they would. Sadly they didn’t want to draw any ones attention to the fact that they’d issued this website a libel threatening letter! Not to worry we all now know what this failed lot try to do to silence it’s detractors. Stick that in your writ Landau.

Salamander Energy (LON: SMDR)
Said that due to a damaged production riser, production from the Bualuang oil field has been temporarily shut-in. Boo!

Sound Oil (LON: SOU)
Has signed a Letter of Intent (“LOI”) for the forthcoming well addressing the Nervesa discovery on the Carita permit in Northern Italy. Hooray! While the onshore Rapagnano field total 2013 production for the period May to December was 2.25 MMscm (79.45 MMscf), some 15% above budget. Which was achieved without lost time incidents. The average production rate onshore was 9,770 Scmd (0.34 MMscfd) with total 2013 gas deliveries yielding revenue of circa €567,000, which is €900,000 on an annualised basis. The Company plans to produce a further 1.2 Bscf over a twelve year period.

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