The Smallcap Oil & Gas Round Up.

Yep! It's a good one this week!

Yep! It’s a good one this week!

It’s been a very busy week in the Smallcaps Oil & Gas underverse. Lot of activity going on behind the scenes from ‘yours truly’ trying to source information. Had a great sauce in Italy that has now gone quiet. Suspect that they’ve been rumbled.

Right let’s crack on.
Argos Resources (LON: ARG) Released their financial results for the year ended 31 December 2013. Highlights included; $0.7 million invested in further exploration and evaluation activities $1.8 million loss from expensed overhead… $2.9 million cash reserves at 31 December 2013… New Competent Person’s Report published in July 2013 identifies significant increase in number of prospects and prospective resources… 52 prospects mapped with a Best Estimate of unrisked recoverable resource of 3.1 billion barrels of oil and an upside of 10.4 billion barrels… Several prospects similar to the adjacent Sea Lion oil discovery… 40 further leads identified… Independent basin modelling work confirms the presence of two source rocks mature for oil generation within the licence area… Progressing farmout discussions with interested parties… Preparing for shared drilling activity in 2015.

Andes Energia (LON: AEN)
Notes with interest the drilling activities of ExxonMobil in its Bajo del Choique area, which is in close proximity to the Company’s Corralera block. The Bajo del Choique x-2 well is reported to have been drilled to a total depth of about 4,570 metres, including 3,570 metres vertical with a 1000-metre lateral and to have flowed at an average rate of 770 barrels per day on a 4.7 millimetre choke. The Board also notes the recent Crown Point announcement that “it has drilled, logged, cased and rig released the La Hoyada x-1 exploration well as a potential Vaca Muerta oil discovery on the Cerro de los Leones Concession in the Neuquén Basin, Province of Mendoza, Argentina. The La Hoyada x-1 well was drilled to a total depth of 1,953 metres and encountered persistent oil and gas shows while drilling through the Vaca Muerta formation, which consisted of 125 metres of shale and 84 metres of imbedded fractured igneous intrusives.” This block lies close to the east border of Andes’s Malargue block and 40 km to the east of Andes’s La Brea block. The Board continues to see substantial prospectivity in the Company’s Vaca Muerta acreage, which is on trend with the reported flow rates from Exxon.

Cadogan Petroleum (LON: CAD)
Following the Company’s announcement dated 15 May 2014 stating that 3 new drillable prospects had been identified in Debeslavetska, the Company is pleased to report that a fourth drillable prospect, comprising 3 different levels down to a depth of approximately 350m, has since been identified. This fourth prospect has now been selected for drilling to commence at the end of September. Drilling is expected to take up to 10 days followed by testing and eventual completion approximately 3 weeks thereafter. Expected producible resources for this new prospect are in the range of 4 billion cubic feet.

Caza Oil & Gas (LON: CAZA)
It’s been a fantastic month for Caza share-holders. Well done.
Another excellent result for the Company’s Bone Spring program with the initial test well on its Gramma Ridge Property in Lea County, New Mexico. read the full RNS HERE The Gramma Ridge 27 State #1H horizontal Bone Spring test well reached the intended total measured depth of approx. 15,496 feet in the 3rd Bone Spring Sand interval and was subsequently fracture stimulated beginning on May 13, 2014. Under controlled flowback the producing rates have steadily increased, and the well produced at a peak 24 hour gross rate of 830 barrels of oil & 4.63 million cubic feet of natural gas, which equates to 1,602 bbls of oil equivalent, on May 27, 2014. The well was producing on a 24/64ths adjustable choke at 2,390 pounds per square inch flowing casing pressure. Oil is already being sold, & the Company expects to have natural gas flowing to sales in the near future.

Europa Oil & Gas (LON: EOG)
Has been notified by Egdon Resources, the operator of Licence PEDL 180 in Lincolnshire that the Wressle-1 conventional exploration well on the Licence is expected to spud in July 2014, once construction of the drill site and rig mobilisation has been completed.

Faroe Petroleum (LON: FPM)
Announced completion of a successful initial side-track appraisal well on the Pil oil and gas discovery (Faroe 25%) in the Norwegian Sea. The Pil side-track well (6406/12-3 B), to appraise for additional hydrocarbons along the Pil structure and down-dip from the initial discovery well, has reached a total depth of 3,996 metres below sea level. The well has encountered oil in reservoir sands with a very high net to gross ratio. Preliminary data indicate a gross hydrocarbon-bearing reservoir section with approximately 80 metres of oil in the Upper Jurassic reservoir of the Rogn Formation. The oil-bearing interval in the side-track well was found to be at a similar pressure level to the oil bearing interval in the initial discovery well. As announced on 6 March 2014, the Pil discovery well (6406/12‐3S) encountered a gross hydrocarbon-bearing reservoir section with approximately 135 metres of oil and 91 metres of gas in the Upper Jurassic reservoir of the of the Rogn Formation. A subsequent drill stem test generated a stable flow rate of 6,710 bopd of 37° API oil from a 56/64″ choke, providing clear evidence of a prolific reservoir. A second side-track well is planned to commence in the coming days to test the separate Bue prospect, which has the potential to add further volumes to the Pil discovery. The Pil discovery is located within tie-back distance some 33 kilometres to the south east of the Njord platform in which the Company holds a 7.5% working interest.

Leni Gas & Oil (LON: LGO)
It’s all hands on deck for the man David Lenigas. Lot of back-ground noises. The Well Services Rig 20 has now been moved from the well GY-664 drill site and the Company’s application has been approved by Petrotrin for the completion and production of well GY-664. It’s anticipated that the well will be put on production by the end of this week. A total of 278 feet of oil pay has been selected in the Gros Morne formation for completion and production. The work-over rig Altech-2 is being moved into position to carry out the completion operations. The well will be perforated using tubing conveyed perforating guns at a shot density of six shots per foot. Completion is being performed with 11.2 pounds per gallon brine and will be at an underbalance at the formation of approximately 500 psi. LGO also announces that the second of its Goudron development wells, GY-665, was successfully spudded and is now drilling ahead. Good Luck LGO!

Magnolia Petroleum (LON: MAGP)
These RNS epistles must be costing a fortune. Rita maid meter updated us all on “its portfolio of interests in proven US onshore formations including the Bakken, North Dakota and Woodford and Mississippi Lime, Oklahoma. This update is in line with the Company’s strategy to rapidly build production through drilling and prove up the reserves on its leases.” If you want to read this guff Click HERE

Mosman Oil & Gas (LON: MSMN)
Confirmed the third well in its drilling programme, which will be named Crestal-2, located approximately 800 m south of Crestal-1. Mosman proposes to drill to basement estimated to be c 300m. It is located to the east of and close to several old wells drilled with oil shows and flows. The intention is to drill this well after Cross Roads-1 and Crestal-1 in June 2014. At Petroleum Creek, Drill Force equipment has now arrived on site and drill preparation continues for the commencement of drilling in the next 10 days. As part of its strategic planning, PCL has contracted to lease a 10 acre property adjacent to Crestal-2 location (with an option to purchase). The infrastructure located on the site will initially be used as office accommodation and the location used for storage. In addition, management are also in discussions regarding land access in relation to a contingent fourth well location. John W Barr, Executive Chairman of Mosman commented: “As we continue to build out the drilling programme at Petroleum Creek, we are delighted to confirm Crestal-2 as the third planned well and are working to firm up on a contingent fourth well as part of the broader development of this asset.”

Ophir Energy (LON: OPHR)
The Affanga Deep-1 well in the Gnondo Block offshore Gabon. Ophir has a 100%* operated interest in the Block. The well encountered thinner than expected sandstone sections with poor reservoir characteristics. Gas and indications of liquids were encountered during drilling but significant hydrocarbon shows were not encountered in the target formations. Say it! Say it! Duster!

Max Petroleum (LON: MXP)
The corporate option troughers have completed drilling the KZIE-3 appraisal well in the East Kyzylzhar I Field to a vertical depth of 1,315 metres without encountering sufficient hydrocarbons to be commercial and it will be plugged and abandoned. The Zhanros ZJ-30 rig will next move to the Zhana Makat Field to drill the ZMA-E7 development well.

Petroceltic International (LON: PCI)
Update on its operations in the Kurdistan Region of Iraq, Romania and Egypt. Click HERE

President Energy (LON: PPC)
Updated on the Pirity Concession and its drilling operations in Paraguay. Pirity Concession Farm-in. President has now achieved its full Participating Interest in the Pirity Concession pursuant to its farm-in, resulting in the Company now having a 59% beneficial Participating Interest. All 3 wells in the 2014 drilling programme are targeting prospects located within the Pirity Concession. Operational Progress. The drilling rig has now arrived at the Jacaranda well site, being the location for the first exploration well of the 2014 programme. Rigging up is in process with over 70% complete and, weather willing, it is anticipated that President will be able to announce spudding of the well within the next 14 days.

Range announces (LON: RRL)
Rories’ stories continued this week. The boy has issued yet more stock  (some for  debt) 67,666,667 and further to the previously announced (some for cash) US$12 million financing with Abraham Ltd the full Subscription proceeds of US$12 million have been received by the Company. Based on the applicable exchange rate for the first tranche of US$6 million, the Investor will subscribe for 356,188,780 Shares which will be issued on or around 28 May 2014 and admission to trading on AIM is expected on or around 6 June 2014. SHARE CONSOLIDATION ON THE WAY!

San Leon (LON: SLE)
Confirms that it is currently in discussions with a further two potential partners in relation to a possible farm-in for the Permian/SW Carboniferous Basin of Poland and expects to make further announcements once these discussions have been finalised.

Sound Oil (LON: SOU)
The Italian focused upstream oil and gas company, announced that civil works at the Casa Tiberi gas field are now complete, the production skid has arrived on site and the Company has secured all necessary permissions to install the skid and commence commissioning. James Parsons, Sound Oil’s Chief Executive Officer, commented: That freaking BMD has got spies every where! oops he actually said; “We are pleased to report continued operational progress in Italy and expect first gas from Casa Tiberi by the end of June.” Hooray!

Tangiers Petroleum (LON: TPET)
Has raised $4 million, before costs, through the placement of 25 million shares at 16c each to specified wholesale, institutional and sophisticated investors in Australia. (Not that sophisticated if they fell for the recent lies punted out via marketing) The raising is in addition to an initial $5 million share placement, also at 16c a share, announced by Tangiers earlier this month. At the time of the initial placement the Company had planned to raise up to $10 million. Cautious investor demand following Tangiers’ prolonged period of suspension from share market trading resulted in the Company raising only $5 million.

TomCo Energy (LON: TOM)
Released their interim results for the six months ended 31 March 2014. To read them. Click HERE

Trapoil (LON: TRAP)
The independent oil and gas exploration, appraisal and production company focused on the UK Continental Shelf (“UKCS”) region of the North Sea, is pleased to provide a corporate and operational update. Trap oil’s management is in the process of determining how best to create value from the group’s existing cash reserves and assets while minimising risk for shareholders. Following extensive discussions both with existing and potential new partners, the Company announces certain initiatives which it believes will significantly strengthen Trap oil’s position in the North Sea. Click HERE to read it.

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