A busy week on the shale gas front for UK licence holders. With Total SA throwing pots of money in the exploration plays. Among the winners were Egdon Resources. Broker analysis suggests that this is the first round. More big hitters could come to the fore. Tip. Research potential UK shale play companies.
Edge Resources (LON: EDL)
Brad Nichol, President and CEO of Edge, presented at the Proactive Investors One2One Forum in London on Thursday (January 16, 2014). As expected (see December 18, 2013 announcement), the first three wells of the recent drilling programme were put on production test just prior to the year end; the fourth is expected to be brought on production within the next two weeks. Total combined production from the three new wells is 175 bopd. However, as is usual with Cold Heavy Oil Production with Sand (“CHOPS”) wells it can take an extended period of time for these types of wells to clean up and for the combination of sand, oil, water, foam and gas rates to stabilise. Brad Nichol commented, “We are excited at the prospect of these wells adding to the production and reserves of the Company and are looking forward to getting them cleaned up and fully on-stream.”
Egdon Resources (LON: EDR)
Share-holders hit pay dirt this week as the company announced the signature of a Farm-out Agreement with Total E&P UK Limited a wholly owned subsidiary of Total SA, in respect of UK Onshore Petroleum Exploration and Development Licences PEDL139 and PEDL140 located in the Gainsborough Trough geological basin in Lincolnshire, whereby Egdon will hold a 14.5% interest in The Licences. The Licences cover an area of 240 square kilometres and are immediately adjacent to licences PEDL209 and PL161/162 where Egdon has further interests. Under the terms of The Agreement Total will earn a 40% interest in The Licences through the payment of $1.6 million in back costs and the funding of a fully carried work programme of up to $46.5 million. Total has the option to exit after an initial period of this work programme corresponding to a minimum commitment of $19.5 million. The programme will include the acquisition of 3D seismic, the drilling and testing of a vertical exploration well and associated well pad construction, and, conditional on the success of the testing of the exploration well, the drilling and flow testing of a second appraisal horizontal well. The shares ended the week at 24.88p. Up over 150%.
Enegi Oil (LON: ENEG)
Notice of the Annual General Meeting has been posted to shareholders. The meeting will be held at 11.30am on Thursday 6th February 2014 at the Walter Suite, Radisson Edwardian Manchester, Free Trade Hall, Peter Street, Manchester, M2 5GP.
Europa Oil & Gas (LON: EOG)
3 RNS’s this week. EOG received notification from the Department of Energy and Climate Change that phase 1 of the PEDL 181 Licence has been extended by one year until 30 June 2015. This will enable Europa to drill the 2.9 mmbo Kiln Lane-1 prospect in the second half of 2014. Europa holds a 50% interest and is operator of PEDL 181 which covers 540 sq km in East Lincolnshire, a known oil producing region. A holdings RNS. Paul Barrett and Erika Syba are now the beneficial owners of 17,110,140ordinary shares representing 9.22% of the Company’s issued share capital. And lastly confirmation that the EGM has been cancelled. EOG received a letter from Paul Barrett and Dr Erika Syba formally withdrawing the Requisition Notice.
Genel Energy (LON: GENL)
Released a Trading and Operations Update in advance of the Company’s 2013 full year results, which are scheduled for release on 6 March 2014. The information contained was audited and is subject to further review. You can read it by CLICKING HERE
Ithaca Energy (LON: IAE)
Issued an operational update and guidance on its planned 2014 production and capital expenditure programme. CLICK HERE to read.
Nighthawk Energy (LON: HAWK)
Have plugged & abandoned Jackson Hole 1-32 Exploration Well at its 100% controlled and operated Smoky Hill and Jolly Ranch projects in the Denver-Julesburg Basin, Colorado. Nighthawk has filed documentation with the Colorado State authorities to plug and abandon the well. The drilling rig is now back on location at the Arikaree Creek oilfield and will drill in quick succession the Big Sky 13-11 and Big Sky 5-11 wells. These are located due south and due north respectively of the recent successful Big Sky 12-11 well. Stephen Gutteridge, Chairman of Nighthawk, commented: “The Jackson Hole 1-32 was our first exploration well for some time and will provide valuable information on this part of our acreage. It will take some time to fully analyse the data and we should not at this stage rule out revisiting this area at a future date.”
Nostra Terra (LON: NTOG)
Busy week for the tiddler as the Company released their Quarterly Operations Update which can be read by CLICKING HERE. Nostra also updated on the Company’s Chisholm Trail prospect in Oklahoma. The CT8 (Jones1-25H) well was successfully drilled to a total depth (“TD”) of 11,773 feet, at a true vertical depth of 6,747 feet with a 4,428 foot lateral in the Hunton formation. The well, where Nostra Terra has a 2.00% Working Interest (“WI”), is now in production. Average production rates will be announced once the rate of production has stabilized. The CT10 well, previously unnamed, has now been named the Katy 21-1H. The well is planned to be drilled to a TD of 12,750 feet with a lateral of approximately 4,000 feet in the Hunton formation. Nostra Terra has a 1.875% WI in this well, which will be operated by Gastar. Nostra Terra has elected to participate in the 13th well (Foster 31-1H) in the Chisholm Trail prospect (CT13). The well is planned to be drilled to a TD of 12,750 feet with a lateral of approximately 4,000 feet in the Hunton formation. Nostra Terra has a 2.00% WI in this well, which will be operated by Gastar.Additional wells are being planned and permitted by a number of operators in Chisholm Trail. Nostra Terra will update shareholders of its participation in these wells once elections are made. Matt Lofgran, Chief Executive Officer of Nostra Terra, commented: “In addition to the 6 producing Chisholm Trail wells, where production rates have been announced, we currently have seven additional wells in which we’ve elected to participate and which are in various stages of development, ranging from permitting through to production. Being in a resource play such as Chisholm Trail we’re excited to see the results of all of these upcoming wells and anticipate that they will grow our net production in the coming weeks and months.”
PetroNeft Resources (LON: PTR)
The owner and operator of Licences 61 and 67, Tomsk Oblast, Russian Federation, released an operations update this week. The Highlights of which were thus; Delineation drilling results at Lineynoye No. 9 indicate the J1-1 interval is oil saturated and in line with expectations.. Average Production remains at about 2,300 bopd, with additional workovers planned.. Farmout negotiations well advanced with an international oil company. You can read the full update by CLICKING HERE
Range Resources (LON: RRL)
Yet another WE WOULD LIKE TO DRAW YOUR ATTENTION TO RNS from Peter Landau. Range Resources Limited would like to draw attention to the announcement released by Citation Resources Limited (ASX: CTR) with respect to the Company’s interest in Guatemala with the following highlights: YAWN! The Atzam #5 oil well has been spudded – Latin American Resources Harold Lee 500 rig is drilling ahead towards the well’s initial reservoir targets – Drilling schedule for Atzam #5 is approximately 40 days on a trouble free basis, to a planned target depth of 4,100 feet – Primary reservoir targets are the C17, C18 and C19 carbonates – Atzam #5 well to target the same carbonate reservoir targets as the Atzam #4 production well – 2.3m barrels of 2P reserves which excludes the C18 and C19 carbonate sections in Atzam #4 – Increased Atzam #4 production well flow rate following opening of choke- flow rate increased to 150 bopd immediately following small increase in thechoke size (12/64 to 16/64 inch), still with no water production to date – Significant exploration potential on Atzam Oil Field – unexplored salt dome and anticline structures to be evaluated and tested through 2014. Range has a direct and indirect 32% interest in the Guatemalan Project.
Rockhopper Exploration (LON: RKH)
Has completed the concept selection process for the Sea Lion Development with partner Premier Oil. Premier as Operator of the field has recommended the Tension Leg Platform option as the most suitable technical and commercial solution for the development of Sea Lion. Rockhopper has been working closely with Premier and agrees with that recommendation. Premier has also indicated that Final Investment Decision is now likely to be taken in the first half of 2015 and Rockhopper continues to expect first oil 3½ – 4 years after project sanction. In terms of exploration, the Zebedee, Jayne East, Elaine/Isobel, and Chatham prospects have been matured to drillable status and a rig tender process is underway. This is being conducted in conjunction with other regional operators and includes four firm slots for the Rockhopper / Premier joint venture. Rockhopper expects a contract to be awarded in the first half of this year and the first well to spud in late 2014 or early 2015. Sam Moody, Rockhopper Exploration’s Chief Executive Officer said: ‘We are pleased to have reached another significant milestone in the commercialisation of the Sea Lion Field. The Tension Leg Platform provides operational and commercial advantages over the FPSO alternative and it was worth taking the extra time needed to evaluate the option. We now move forward into the Front End Engineering and Development stage with a view to making a final investment decision in 2015.’
Tangiers Petroleum (LON: EOG)
Have had their Aussie exploration permits cancelled by the government. (Well done Tangiers. A lesson on how to waste cash if ever there was one) Consequently, it is anticipated that exploration permits, WA-442-P and NT/P81 will be cancelled by the National Offshore Petroleum Titles Administrator in the near future. Not to worry you can read the quarterly report on Tangiers by CLICKING HERE.
TomCo Energy (LON: TOM)
Has submitted a Notice of Intention to Commence Large Mining Operations to the Utah Division of Oil, Gas and Mining. You can read the Company’s application on the DOGM’s website by CLICKING HERE While the precise timing is beyond TomCo’s immediate control, it is envisaged that DOGM should publish its tentative decision to approve TomCo’s Notice of Intention to Commence Large Mining Operations and request a 30-day public comment period around mid-2014, although it could be earlier. The Company reported that work on its Groundwater Discharge Permit is progressing well and its submission to the Utah Division of Water Quality is anticipated to take place during the Q1 2014. TomCo also announced that the term of the Liquidity Facility with Windsor Capital Partners has been extended for a period of 24 months beyond the original expiry date of 24 January 2014. The other terms of the facility remain unchanged following the reinitiating of the facility, as announced, on 23 September 2013.
Tethys Petroleum (LON: TPL)
Received an updated Oil Resource Report for a new prospect in Kazakhstan with total Unrisked Mean Recoverable Oil Resources being estimated independently at over 400 million barrels.
Urals Energy (LON: UEN)
The independent exploration and production company with operations in Russia, said that the flow rate for Well #53 has been successfully established and remains stable at around 70 bbls per day. At the same time, drilling of Well #112 is underway and has reached the depth of slightly more than 1000 meters. Also published its responses to a number of shareholder questions and these can be viewed at http://www.uralsenergy.com/ir_shareholderQ&A.htm