The Smallcap Oil & Gas Round Up!

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Amerisur Resources (LON: AMER)
Reported an update on the Platanillo Exploration and Production contract in Colombia. Amerisur has been notified that the Agencia Nacional de Hidrocarburos, the governing body of hydrocarbon exploration and production in Colombia, has approved a request by the Company to increase the commercial area of the Platanillo field. This further extension of the southern part of the field will extend the current contract essentially to the national frontier with the Republic of Ecuador and is made without associated drilling obligations or payments. AMER expects to sign the required annexe to the Platanillo E&P contract within the next weeks, and is currently designing the wells which will be drilled to drain the additional field area awarded.

Bankers Petroleum (LON: BNK)
Announces 2014 First Quarter Financial and Operational Results. Which can be viewed by clicking HERE

Circle Oil (LON: COP)
Updated on their Egyptian operations this week. The AASE-21 well was spud on 9 March 2014 and is located about 1,100 metres south-east of the AASE-4 well and 750 metres north-west of the AASE-1X well to appraise both the Shagar and Rahmi sands for production. The well encountered the Kareem sands with 19 feet of net oil pay in the Shagar and 4 feet of net oil pay in the Rahmi, both zones of good reservoir quality. The well has been completed as a Shagar producer & initial short term testing has yielded flow rates, on a 48/64″ choke, of 3,005 bopd and 3.228 MMscf/d of gas (587 boepd) for a total of 3,592 boepd. Current gross daily production rate over the last month from the AASE and Geyad fields continues at approx. 11,000 bopd & 11 MMscf/d. Total gross production from the NW Gemsa fields has now exceeded 15.3 MMbo of 42 degree API crude oil with a water injection total of 19.9 MMbw. After drilling the AASE-21 well the rig was moved to drill AASE-22, planned as an infill support injector well, 500 metres north and up dip of the AASE-8 injector in the western central part of the field. Following completion of AASE-22 the rig will be released on sub contract for the rest of 2014. A dynamic reservoir model to assess reservoir behaviour for the future is in construction to provide input for the effective and efficient management of the AASE field. This reservoir management study will also permit the planning for any future infill drilling both for producers and injectors to maximise reserve recovery for the medium and long term. The Al Amir and Geyad Development Leases cover an area of 82 square kilometres, and lie about 300 kilometres south-east of Cairo in a partially unexplored area of the Gulf of Suez Basin. The concession agreement included the right of conversion to a production licence of 20 years, plus extensions, in the event of commercial discoveries. The NW Gemsa Concession partners include: Vegas Oil and Gas 50% operator; Circle Oil 40%; and Sea Dragon Energy 10%.

Edge Resources (LON: EDG)
Said it was “very pleased” to have finalised its Competent Person’s Report, which has resulted in a large increase to its year-end reserves. The Company also issued an operational update. Which can be viewed HERE

Falcon Oil & Gas (LON: FOG)
He who has kissed the Blarney stone, Phillip O’Quigley, take a bow. Falcon released an RNS titled; Transformational Farm-Out of Beetaloo Unconventional Acreage, Northern Territory, Australia. Click HERE

Fastnet Oil & Gas (LON: FAST)
Tanked this week as the company had to utter those immortal words that send investors running for cover. Plugged & Abandoned. In Morocco, the FA-1 well in the Foum Assaka Offshore block will be plugged and abandoned after failing to encounter commercial hydrocarbons.

Global Energy Development (LON: GED)
Has signed a farm-out agreement with respect to its Bocachico Association Contract area, in the Middle Magdalena Basin, with Everest. Under the terms of the Agreement, Everest will acquire a 50% interest in the Contract Area, including any and all rights, obligations and duties in respect of the Contract Area in exchange for payment of the work commitments stipulated in the Agreement and the cash payment of $1 million. The Agreement is subject to certain conditions, including Ecopetrol approval. Under the Agreement, Everest commits to undertake the funding of a work program with respect to the Contract Area, including an obligation to pay all future costs and expenses incurred with respect to the proposed operations:

Ithaca Energy (LON: IAE)
Updated on their Greater Stella Area operations & overall development schedule. Continued progress has been made on execution of the main GSA development work programmes since the start of 2014. Construction activities on the main deck of the FPF-1 have been advancing and are currently centred on fit-out of the main pre-assembled units that were lifted on to the vessel in the first quarter of the year along with preparation for the installation of additional equipment packages. While progress has been made on the FPF-1 modification works over recent months, the topsides construction programme has advanced more slowly than planned. As a consequence, Petrofac is now forecasting that the vessel will be ready for sail-away from the Remontowa yard in Poland to the Stella field in spring 2015. This schedule is anticipated to result in first hydrocarbons from the GSA hub in mid-2015.Ithaca is working with Petrofac to expedite the remaining construction and commissioning works on the FPF-1. Updates on the progress of the modification works will continue to be provided at regular intervals over the coming months. The delayed start-up is estimated to be between $5-10 million, relating primarily to project management costs.

Leni Gas & Oil (LON: LGO)
It’s been a fantastic month or so for David Lenigas, Neil Ritson & LGO share-holders. The SP has started on a trajectory that DL thinks will break 2p. Leni announced that the first new development well in the Goudron Field, GY-664, successfully reached a depth of 1,680 feet at 7 am (Trinidad) on 3 May 2014, after logging and casing was reported to be drilling ahead midnight on 5 May 2014. A full suite of conventional electric logs have been run to 1,680 feet and initial analysis of those logs confirms the presence of over 350 feet of hydrocarbon bearing Goudron Sands. The first casing point was deepened from an anticipated depth of 1,540 feet to 1,680 feet due to the well encountering a thicker than expected section of oil bearing Goudron Sands. The first 1,680 feet of well has now been successful cased and cemented with 9 5/8 inch steel casing. Drilling is now continuing with an 8 1/2 inch hole section to a planned total depth of approximately 4,000 feet in order to test the primary objectives in the Gros Morne and the Lower Cruse Sands at depths below 2,800 feet. Lenigas is now in Trinidad tweeting some (amateurish) photographs directly from the field! But we here at the BMD blog admire a tryer. Stick to oil David!

Madagascar Oil (LON: MOIL)
Released a Declaration of Commerciality and Field Development Planning statement this week. The Tsimiroro Oil Field, the Group’s flagship asset, is a giant heavy oil field in western Madagascar with independently audited contingent oil in place of 1.7 billion barrels (P50) Stock Tank Oil Originally In Place. Madagascar Oil S.A. has been operating the SFP since April 2013 and the data from the SFP, together with field development, technical and marketing studies have been used to support this weeks declaration of a Commercial Discovery under the terms of the PSC. The Group plans to continue to operate the SFP throughout 2014 and into 2015 to provide additional data on how the Tsimiroro Amboloando reservoir responds to both Cyclic Steam Stimulation and steam-flood thermal recovery methods to inform the future development plans for the Licence. MOIL proposes to commence development of the well-defined high quality reservoir areas close to the existing SFP area, while also addressing the geological uncertainties in other areas of the Tsimiroro Main Field. Appraisal programmes including drilling, seismic acquisition & the newly tested land magnetometer techniques are being prepared for implementation in 2014 and 2015.

Magnolia Petroleum (LON: MAGP
Poor Rita. You were all warned about this company many times. Click HERE to read the latest fantastic news. (Not)

Max Petroleum (LON: MXP)
Announced further successful drilling results in the East Kyzylzhar I Field. The KZIE-4 appraisal well has reached a vertical depth of 1,318 metres with electric logs indicating 15 metres of net oil pay in two Jurassic reservoirs, including ten metres of net pay in an interval at vertical depths between 837 and 861 metres and five metres of net pay in an interval at vertical depths between 1,155 and 1,171 metres. Reservoir quality is excellent with porosities ranging from 30% to 36%. The Company is setting production casing in the well and will begin testing KZIE-4 as soon as practicable. The Zhanros ZJ-30 rig will next move to drill the KZIE-3 appraisal well before moving onto the Zhana Makat field.

New World Oil & Gas (LON: NEW)
Has signed a Binding Framework Agreement for oil production in Kuwait and updated on a Subscription to raise US$25 million. The company has continued to work with the Subscriber, Niel Petroleum SA to complete the subscription on the agreed terms. In line with this, New World has been informed that Dr. Muaaz KH M Alfahaid, a Kuwaiti national representing Al Maram Trading & Contracting LTD, will be acquiring a 20% ownership stake in Niel for a consideration of US$20 million, and in turn Niel will be using this consideration to complete the Subscription with New World.

Nighthawk Energy (LON: HAWK)
Released a drilling and production communique at its 100% controlled and operated Smoky Hill and Jolly Ranch projects in the Denver-Julesburg Basin, Colorado. The Snow King 13-33 well commenced production on 12 April 2014. Average gross oil production from all wells in the 24 day period since Snow King 13-33 commenced production was 2,153 bbls/day. Over this period the Snow King 13-33 well performed strongly with the average gross production rate at the upper end of the 300-400 bbls/day range. Applications for permits to drill three additional Snow King wells have been submitted to the State of Colorado and these wells will be scheduled into our drilling program this summer. Average gross oil production in April 2014 was 1,998 bbls/day, a monthly record production level. Production in April benefitted from the commencement of production at Snow King 13-33 and a steady 100 bbls/day contribution from the Pennsylvanian formation in the John Craig 1-2 well. The drilling rig has completed the drilling of the John Craig 2-2 well and is expected to spud the John Craig 10-10 well within the next few days. Based on the recent success with Pennsylvanian production at the John Craig 1-2 well, the primary targets for additional production in these wells are the Pennsylvanian Morrow, Cherokee and Marmaton formations. Both wells will collect further valuable data on the Mississippian formations in this area which is some 25 miles south of Arikaree Creek. Completion of the John Craig 2-2 well will commence next week and a number of potential oil bearing zones will be evaluated and tested. Financing Arrangements As previously disclosed discussions are currently underway with a number of potential providers of finance with the objective of re-financing all existing short-term, non-convertible loans with new longer term borrowing facilities. The Board is confident that these discussions will be successfully completed within the next two months.

Northcote Energy (LON: NCT)
Has entered into a heads of terms agreement to acquire a 35% interest in and become operator of the producing wells at the 1,670 gross acre Shoats Creek Oil Field in Beauregard Parish, Louisiana. Northcote will initially acquire a 70% interest in the Shoats Creek Field from Springer Oil & Gas and will simultaneously farm-down 50.0% of this interest (35%) to North American Petroleum plc (‘NAP’) on the same terms. The acquisition of the 70% interest is to be satisfied via issue of Northcote ordinary shares valued at US$350,000 (valued at the date of closing); and a production payment of $10.00 per barrel up to a maximum of US$3.15 million. On completion of the farm-down to NAP, NAP will make a payment to Northcote of US$175,000 in cash and will assume 50% of Northcote’s production payment (US$1.575million). In parallel Springer has agreed to acquire 100% of the ordinary share capital of Aminex USA Inc for total consideration of $5,000,000. Click HERE to read the May 2 2014 Operations Update

Nostra Terra Oil & Gas (LON: NTOG)
Announce that, in line with its increase in production, there has been a 120% increase in the borrowing base on its US$25m Credit Facility to US$1,100,000. In addition, the Company also announces the collection of US$231,000 from Richfield Oil and Gas. The redetermination has been approved by Texas Capital Bank and the borrowing base has been immediately increased from US$500,000 to US$1,100,000. Nostra Terra will use the increased funds available to expand its portfolio further. CEO Matt Lofgran, said: “The increase in the Facility and the collection from Richfield gives us an additional US$831,000 to be used in the field to continue growing our portfolio. I’d like to add that the increase in the Facility’s borrowing base doesn’t take into account the newest wells in our portfolio where Nostra Terra has an 11% and 20% working interest. Once those wells have stabilised production we anticipate a significant increase in production and subsequently a further increase in the borrowing base. This should help demonstrate the ability for the Company to grow its production and cash flow without the need for dilution to shareholders.”

Petro Matad (LON: MATD)
Provided a rather long winded update on its operations, results of the interpretation of the 220 kms of seismic acquired over Blocks IV and V in November 2013 and the continuing farmout process RNS. You can read it by clicking HERE

Range Resources (LON: RRL)
More bad news from Range as the company once again tried to pull the wool over their share-holders. Cash strapped Range, announces that, given its focus on Trinidad, it has made a “strategic decision” for a partial withdrawal from Colombia and has relinquished its investment obligations on PUT-7 block in the Putumayo Basin in Colombia. In relation to PUT-6 block or to the $3.48 million performance bond that it holds over PUT-6. The Company is currently reviewing its options with regards to PUT-6 and will update the market accordingly in due course. Or to put it plainly. They’re looking to flip-on the PUT-6 option so they can get their hands on the $3.48 million bond. Range then went on to announce yet another debt for equity share issue of 25,000,000. Rotten to the core.

Salamander Energy (LON: SMDR)
Issued an Interim Management Statement for the period from 1 January 2014 to 6 May 2014. Click HERE

Sterling Energy (LON: SEY)
Has signed a second Farmout Agreement with Jacka Resources Somaliland to acquire an additional 15% interest in the Production Sharing Contract for the Odewayne Block, located onshore in the Republic of Somaliland. Click HERE

Wessex Exploration (LON: WSX)
What in the name of Jumping Jehovah is going on at Wessex? This weeks sharp rise in the share price looks like a manipulation caused by the on-going battle for control of the company. Wessex came out and said that it remains in advanced negotiations regarding a potential acquisition which, on completion, would result in the addition of a prospective offshore asset in the Far East. The acquisition which only came to light AFTER Milroy Capital requisitioned a General Meeting (to kick out the failed board) scheduled for 15 May 2014. The unknown mysterious Far East Acquisition will only proceed if the resolutions proposed by Milroy Capital are defeated. Does Wessex think that we were all born yesterday? The fact that this rotten failing BOD have the audacity to attempt such a schoolboy trick on UK Share-holders is proof positive that share-holders should vote them OUT!

Xcite Energy (LON XEL)
Said that its 100% owned subsidiary, Xcite Energy Resources (“XER”), has entered into a Collaboration Agreement with Statoil (U.K.) and Shell U.K, which allows all the Parties to make available and share field-specific technical and operational information for the evaluation of potential synergies and collaboration between the Bentley and Bressay Fields. A joint XER, Statoil and Shell team will work together to analyse the current available information and develop a number of proposals for assessment, including the potential utilisation of common infrastructure, assets and operational solutions during the phased development of the Bentley Field and the future development of the Bressay Field. XER believes that collaboration in a number of key areas, along with a coordinated approach to an area development, will realise a number of mutual opportunities which have the potential to benefit all stakeholders.

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