The Smallcapcap Oil & Gas round Up.

The famous, witty BMD smallcap oil & gas round up!

The famous, witty BMD smallcap oil & gas round up!

Busy week for me personally next week. We head back to the Royal Courts of Justice. Watch this space. Great on-going story developing.

Eland Oil & Gas (LON: ELA)
An oil & gas development and exploration company operating in West Africa with an initial focus on Nigeria, announces that Elcrest Exploration and Production Nigeria Ltd, Eland’s joint venture company, has received approval of a five year tax exemption on the OML 40 licence. On 13 March 2014, the Company announced that Elcrest was in discussions with relevant government departments in Nigeria regarding its tax status. These discussions have now been concluded successfully and Elcrest has received approval of the five year tax holiday on its OML 40 development. This five year period begins immediately through to Q2 2019.

Global Energy Development (LON: GED)
Updated on the fracturing of the Catalina #1 Simiti formation in the Company’s Bolivar Association Contract located in the northern section of the Magdalena Valley in Colombia, South America. Steve Voss, Global’s Managing Director, commented, “The Company is pleased with the favourable reservoir information confirmed during the preliminary water flow back stage of our Simiti stimulation project. We are still flowing back the extensive amount of injection water used in the hydraulic fracturing operation. The flow back is anticipated to be affected by the degree of reservoir connectivity which will affect how deeply the stimulation water has penetrated the reservoir. To accelerate the process, we are planning to install a hydraulic jet pump capable of lifting up to 3,000 barrels of fluid per day to remove the stimulation water from the Simiti formation in order to produce the available oil. After a period of testing, the Company estimates that it will have further information available prior to the end of July. We continue to be pleased with the project.”  The Simiti Hydraulic Stimulation Project has been managed in several segments including Planning, Logistics, Stimulation Operations, Flow back Operations and Production Testing. The Company is providing a detailed update which can be read by clicking HERE

Jubilant Energy (LON: JUB)
Two operating subsidiary companies in India entered into funding arrangements with Tower Promoters Private Limited for unsecured loan facilities aggregating to INR 57,00,00,000 (Rupees Fifty seven Crores) equivalent to approximately USD 9.5 Million. The Loan has a tenor of one year and an interest rate of 15.5% per annum. These funds will be used for funding the operations of the Group including debt repayments and servicing. The Loan is deemed to be a related party transaction pursuant to AIM Rule 13. The Independent Directors of the Company, having consulted with its nominated adviser, consider that the terms of the Loan are fair and reasonable insofar as its shareholders are concerned.

Leni Gas & Oil (LON: LGO)
More good news this week from Mr Marmite. Well GY-666 has been successfully drilled to a total depth of 3,357 feet measured depth and that analysis of the electric logs has indicated the presence of a total of at least 394 feet of net oil pay; with 185 feet of net oil pay in the Goudron Sandstone, as previously announced, and a further 209 feet of net oil pay in the Gros Morne Sandstone.

Madagascar Oil (LON: MOIL)
Released their full year results for the year ended 31 December 2013 with an operational update. Much too lengthy for the smallcap oil & gas round up. Click HERE to read it.

Max Petroleum (LON: MXP)
Has commissioned a new oil pipeline, and associated Makat oil terminal facility, connecting its Zhana Makat field with the regional oil export pipeline approx. 10km away. It is now possible to deliver oil directly from the Zhana Makat Central Processing Facility to the national Kazakh pipeline network enabling direct delivery of both domestic and export oil sales. Oil produced at the Zhana Makat, Borkyldakty, Sagiz West and East Kyzylzhar I fields can now be transported to end users using this pipeline at a transport cost saving of approximately US$4.0/ barrel. Asanketken field production will continue to be transported to a terminal closer to that field. The quantity of oil being delivered via the pipeline is now ramping up to a total of approximately 3,400 barrels of oil per day, being the total volume that is currently available to be transported via this route. It is expected that there will be an annualised transport cost saving of approximately US$4.9 million once this ramp-up is complete. The volume of oil being transported via the pipeline is expected to increase further as production is increased from Sagiz West and East Kyzylzhar I once continuous Trial Production commences from these fields, expected in 2015.

Mosman Oil & Gas (LON: MSMN)
Careful here campers. With money burning a hole in the Mosman pocket; MSMN has entered into a binding Bid Implementation Agreement pursuant to which it is proposing to acquire all of the issued shares in Trident Energy, an Australian unlisted public company with onshore and offshore oil interests in Australia The Company released another “weekly” progress on its drilling programme at the Petroleum Creek Project, New Zealand. The Drill Force Rig #1 crew is moving the rig to the Crestal-1 location and drilling on this well will start in a few days. Anticipated activity this week is to drill to total depth of 250 m, complete wireline logs, and then suspend the well for future testing. (How big are these discoveries? No word from Mosman.) Mosman has started to acquire the additional seismic required to rank the following prospects, to select the best locations in order to drill a further four wells during 2014: Crestal-2, Blair Road, Big Rock, Killeen, Molloy’s Creek, Bells Gully, Pipers Creek and Onganui (a new prospect resulting from further SRK work on the seismic data base). Geological and geophysical work continues. (How big are these discoveries? No word from Mosman.) This foundation work is essential to ensure the sensible exploration of the permit. Seismic data obtained in the next few months will be incorporated in models, and decisions on which wells to drill next will be made in October, with the next phase of drilling expected to commence in November 2014. (Once again. How big are these discoveries? No word from Mosman.) (Sorry yes there was. Another “weekly report” but still no word on just how big these discoveries are…..)

New World Oil & Gas (LON: NEW)
An oil and gas operating company, currently focused on Belize and Denmark, released its final audited results for the year ended 31 December 2013. The audited accounts are being sent to shareholders on or around 1 July 2014 and are available on the Company’s website:

Northcote (LON: NCT)
Provided its final results for the year ended 31 December 2013. In addition, the Company gives notice that its Annual General Meeting will be held at 10.00am on Thursday 10 July 2014 at the offices of Kerman & Co LLP, 200 Strand, London, WC2R 1DJ. The Notice of AGM will be posted to shareholders and will be available on the Company’s website today at where the full Report and Accounts for the period under review can also be found.

Northern Petroleum (LON: NOP)
The AIM quoted oil company focusing on production led growth, released an operations and production update on the Virgo redevelopment project in north west Alberta, Canada. Click HERE to read it.

Oilex (LON: OEX)
Announces that a Stage 1 fracture stimulation has been successfully completed. Subsequently, Cambay-77H started unaided flowback with indications of gas at surface within 24 hours while other operations were ongoing.

Petrel Resources (LON: PET)
The Company announces it has posted the Annual Report and Accounts for the year ended 31 December 2013 to shareholders, together with Notice of the Annual General Meeting to be held at 11am on 31 July 2014 in The Westbury Hotel, Grafton Street, Dublin 2. Copies of the Annual Report are available on the Company’s website at

Petro Matad (LON: MATD)
Final Results. Click HERE to read them

PetroNeft (LON: PTR)
Updates on the Licence 61 Farmout to Oil India Limited. All Russian Regulatory Approvals received. Completion of transaction expected in the coming days. All debt to be repaid. Drilling to re-commence at Licence 61. On 30 June 2014 Russian Regulatory Approval was granted in respect of the Licence 61 Farmout. Formal completion of the transaction and receipt of funds is expected in the coming days, with all debt due to Macquarie and Arawak repaid from the initial proceeds of US$35 million due at completion. PET expect to commence drilling at Tungolskoye in mid-July. The T-5 well will be the first horizontal well drilled by the Company and is expected to take approximately 60 days to drill. Dennis Francis, CEO, commented: “I’m delighted to confirm that all of the conditions precedent on the Licence 61 Farmout are now fully satisfied and I look forward to formally confirming to shareholders that the transaction has been completed and all funds received. We will re-commence drilling at Licence 61 shortly and I look forward to updating shareholders with the results of this exciting programme.”

Providence Resources (LON: PVR)
3D seismic surveying operations have commenced on its Drombeg oil exploration prospect in the southern Porcupine Basin, offshore south-west Ireland. The Drombeg prospect, which is situated in Frontier Exploration Licence (FEL) 2/14, is a significant Lower Cretaceous stratigraphic amplitude/AVO supported exploration target. The prospect is located in c. 2,500 metre water depth and is c. 220 kilometres off the west coast of Ireland. FEL 2/14 is operated by Providence (80%) on behalf of its partner Sosina Exploration (20%). Providence has agreed to licence c. 1,100 km2 of 3D seismic data over Drombeg, which is being acquired by Polarcus MC Limited as part of a minimum c. 4,300 km2 non-exclusive multi-client survey. This is one of the largest ever 3D seismic surveys to have been acquired offshore Ireland and is utilising the M/V Polarcus Amani, which is an ultra-modern, super high ice-class, next generation seismic vessel that is one of the most advanced in the world.

Salamander Energy (LON: SMDR)
Has spud the North Kendang-2 exploration well, a re-drill of the North Kendang-1 well in the South East Sangatta PSC. Salamander has a 75% operated interest in the South East Sangatta PSC. NK-2 will be drilled to a depth of approximately 2,878 m total vertical depth sub-sea in order to evaluate the Upper Miocene section. The Ocean General semi-submersible rig, which has now been fitted with managed pressure drilling equipment to enable it to manage the anticipated pressure regime, will be used to drill the NK-2 well. NK-1 was drilled to 2,535 m TVDSS when it encountered a high pressure wet gas kick in the Upper Miocene, which led to it being plugged and abandoned on 13th April 2013. Costs related to the NK-1 well control incident, and to drilling the NK-2 well to this same depth, are covered under the Company’s insurance policies.

San Leon Energy (LON: SLE)
The AIM listed company focused on oil and gas exploration in Europe and North Africa, released its audited final results for the year ended 31 December 2013. Click HERE to view them. SLE has signed a joint venture agreement with Palomar Natural Resources across seven Concessions in Poland’s Permian Basin initially focused on developing the discovered, unproduced Siekierki and Rawicz gas fields. In return for a 65% working interest in the Southern Permian Basin and Northern Permian Basin Concessions, PNR has paid upfront to San Leon $5 million and $15 million, respectively, in cash and will carry San Leon for a defined initial work programme aimed at bringing the Rawicz and Siekierki fields into production as soon as possible. PNR will become the operator of all of the Concessions.

Sirius Petroleum (LON: SRSP)
Final Results Click HERE to read them.

UK Oil & Gas Investments (LON: UKOG)
Announced a 230% increase in oil production from the conventional Lidsey Oil Field, near Bognor Regis south of London, from 34 barrels of oil per day in May 2014 to a current rate of 113 bopd of 34 API oil after a successful recompletion programme on the Lidsey-1 well. David Lenigas, UKOG’s Chairman commented: “This is an excellent result for Lidsey. Each phase of well workovers on the Lidsey-1 well has been successful since the workover programmes started on the field at the end of last year. UKOG looks forward to the drilling of the proposed new Lidsey-2 well later this year, which is designed to access the crest of the Greater Oolite reservoir and the majority of Lidsey’s Oil in-Place. UKOG (DOR, SOLO, STG,) also look forward to a very active programme over the coming 6 months with our partners Angus Energy here in the UK, especially with the drilling of the Horse Hill-1 well near Gatwick later this month and the drilling of the proposed Brockham side-track well in the same geographical area once final approvals have been granted.” The Lidsey Oil Field is a long standing producing oil field in the Weald Basin near Bognor Regis, and is held under United Kingdom Production Licence PL 241. Lidsey has a fully permitted and operation 2,000-barrel storage facility and its oil is regularly trucked and sold to the Perenco Oil Refinery. On 13 March 2014, UKOG announced the conclusions of the independent reserve and resource reports (“CPRs”) prepared by RPS Energy Consultants Limited (“RPS”) for both the Lidsey and Brockham Fields in the Weald Basin, a copy of which is available from the Company’s website at

Xcite Energy (LON: XEL)
Announces that its 100% subsidiary, Xcite Energy Resources, has entered into a Memorandum of Understanding with Aibel AS, which sets out the principles for executing the Engineering, Procurement and Construction of the Ove Arup & Partners designed self-installing ACE platform selected for the Bentley field. Aibel will work with AMEC, the international engineering and project management company, acting as XER’s Project Management Contractor, to deliver the ACE platform. XER believes that the combination of the AMEC, Arup and Aibel project management, engineering, and construction experience will deliver a quality and cost effective asset.

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