The Smallcap Oil & Gas Round up.

The Smallcap Oil & Gas round up!Lot of angst among UK Retail Investors this week over placings.

When will these CEO’s learn to manage these highly dilutive events with integrity? Sneaking around the City of London with their finger against their lips saying sssshhh! Isn’t the way to behave. Take note David Lenigas!

UKOG shot themselves in the foot this week!



Caza Oil & Gas (LON: CAZA)
Talk about over egging the pudding! Caza is pleased to announce another excellent result for the second 3rd Bone Spring well drilled on its West Copperline Property, and to provide an update on drilling activities at Gramma Ridge and Broadcaster properties, all of which are located in Lea County, New Mexico. Click here to read the full RNS

Chariot Oil & Gas (LON: CHAR)
The Atlantic margins focused oil and gas exploration company, is pleased to announce that, following the launch of a proposed placing on 21 July 2014, it has successfully placed 58,596,038 new Ordinary Shares at a price of 15 pence per share to raise gross proceeds of US$15 million (approx. £8.8 million). The Placing Proceeds will be (Pissed away again!) used to further the Company’s 2014/15 portfolio development activities, facilitate the acceleration and completion of its 3D seismic work commitment in Brazil and add an additional new venture opportunity in a current country of operation to increase option value and sustain the growth potential of its portfolio.

Egdon Resources (LON: EDR)
Has commenced drilling operations at the Wressle-1 conventional oil exploration well in Lincolnshire Licence PEDL180 located to the East of Scunthorpe. Drilling operations are expected to take around 38 days. The planned well will be drilled as a deviated well to a total depth of about 2,300 metres (ca. 1,850 metres TVDSS). It has been designed to intersect a number of prospective Upper Carboniferous age sandstone reservoirs in a structurally favourable position near the crest of the Wressle structure. The Prospect is located on trend with the producing Crosby Warren oil field and the Broughton-B1 oil discovery, both to the immediate northwest, and the Brigg-1 oil discovery to the immediate southeast. All contain oil in various different sandstone reservoirs within the Upper Carboniferous succession. The gross mean Prospective Resources at Wressle, as calculated by Egdon, are estimated to be 2.1 million barrels of oil. The interests in PEDL180 and the Wressle-1 well are: Egdon Resources 25.00% (Operator). Celtique Energie Petroleum 33.33% Europa Oil & Gas (LON: EOG)33.34%. Union Jack Oil (LON: UJO) 8.33%

Empyrean Energy PLC  Empryrean Energy (LON: EME)
If any one ever wanted to learn about some of the various ways underhanded Boards grant themselves massive options that make them millionaires then you only have to CLICK HERE!

Faroe Petroleum (LON: FPM)
Announces that production has recommenced at the Njord and Hyme fields (Faroe 7.5%) in the Norwegian Sea.

Frontier Resources (LON: FRI)
Released an operational update on its activities in Namibia, this week. Frontier’s Blocks 1717 and 1817, located in the Owambo Basin in northern Namibia, cover an area of approx. 18,933 square kilometres. Frontier are operator with a 90% working interest while NAMCOR, the Namibian National Oil Company, has a 10% carried interest in the licence. The Company recently retained the services of Earthfield Technology of Houston, Texas to undertake a study to evaluate the depth to magnetic basement of aeromagnetic data purchased from the Geological Survey of Namibia. As part of the study Werner Deconvolution depth profiles were generated every 2 kilometres across the Blocks. Werner Deconvolution is an automated function for determining the depth to magnetic rocks in the subsurface, including the basement, from carefully processed magnetic data.Mapping of the depth to basement solutions shows a deep basin with sediment thickness up to 10 kilometres (~33,000 feet) in the central and northern part of the licence area, and shallow basement overprinted with near surface volcanic intrusives in the southern part of the license area. Interpretation of the data has revealed several deep seated basement structures. The mapped positions of these structures will serve as a guide to optimally locate the focus areas of the continuing exploration program which will include an additional geochemical soil gas survey to be integrated with the encouraging results of the 2013 survey, followed by the acquisition of 2D seismic data.

Ithaca Energy (LON: IAE)
The Tullow Oil Norge AS Tullow operated exploration well 31/10-1 on the “Lupus” prospect in licence PL507 in the Norwegian North Sea did not encounter hydrocarbons. Just say it! ‘Plugged & Abandoned’ drillingoil

Jubilant Energy (LON: JUB)
Announced an upward revision in its Reserves, Contingent Resources and Prospective Resources for the Kharsang Field in Arunachal Pradesh. The Reserves and Resources Estimation for the Kharsang Field, prepared by Gaffney Cline & Associates (“GCA”) in June 2014, gives the update as of 30 September 2013. Click here to read it.

Kea Petroleum (LON: KEA)
Commenced drilling of the Puka-3 well using the Drill Force Rig 6. Puka-3 is targeting Mt Messenger formation sands at about 1,580m True Vertical Depth which have been interpreted from the recent 50 square km 3D seismic reflection survey carried out in the south western part of PEP 51153. The drilling of Puka-3, from the same well pad as the producing Puka-1 and Puka-2 wells, is the major component of Phase 1 of the farm-out agreement with MEO New Zealand Pty Limited.

Leni Gas & Oil (LON: LGO)
Well GY-667, the 4TH of its planned 30 new development wells at the Goudron Field in Trinidad, and the third well from this drill pad, has intersected 187 feet of net oil pay in the Goudron sandstones based on analysis of the electric logging. The well has now been cased to a depth 1,905 feet in order to isolate the Goudron Sandstone and the high pressure Upper Gros Morne gas intervals and is now drilling ahead to the primary Gros Morne Sandstone oil target which is expected at approximately 2,180 feet true-vertical depth. Well GY-667 has a planned total depth of 3,600 feet TVD which is equivalent to 3,840 feet measured depth at a bottom-hole location that is approximately 590 feet south east of the surface location. The well will also investigate the presence of reservoir potential of the Lower Cruse at this location. Once TD is reached the well will be logged and cased ready for completion as a production well. The fourth well from the current pad, GY-668, will be drilled immediately following the end of drilling operations on GY-667. Further information will be provided once the well has reached TD. Looking very good for a massive spike on production data from not 1 but 4 wells!

Maple Energy plcMaple Energy (LON: MPLE)
Has received an approach which may or may not lead to a cash offer to acquire the entire issued and to be issued share capital of the Company. Shareholders should note that the approach is highly conditional and preliminary in nature. Accordingly, no assurances can be given that a formal offer will be forthcoming or that any transaction will occur. Further announcements will be made as appropriate.

Max Petroleum PLC Max Petroleum (LON: MXP)
Announces that it is launching a review of strategic options open to the Company with the intention of maximising value for shareholders. (It’s firesale! Max are in debt up to their eyeballs and are more than likely to go bust!) The review of strategic options may include a corporate transaction such as a merger with, acquisition of or subscription for the Company’s securities by a third party, a sale of the business or a farm down or disposal of assets. Discussions in relation to a merger with a third party or a sale of the Company will take place within the context of a “formal sale process” in accordance with Note 2 on Rule 2.6 of the City Code on Takeovers and Mergers, such that the Board of Max Petroleum is able to have discussions with third parties interested in such a transaction on a confidential basis.

Northern Petroleum (LON: NOP)
The firesale has started at cash strapped NOP. They’ve signed a sale and purchase agreements to sell the Company’s interests in all of its UK licences and assets for £1.5 million to UK Oil & Gas (LON: UKOG). Completion of the sale is subject to the approval of UKOG becoming an operator for certain licences by the DECC and the completion of an intra group transfer of certain asset interests within Northern Petroleum on or before 31st October 2014. The UK assets and licences comprise the 10 & 5 five per cent minority interests in the Horndean and Avington producing fields respectively, 50% interests in the Markwells Wood and Baxters Copse discoveries, and a 65% interest in a licence offshore the Isle of Wight. Net production to the Company during 2013 averaged approximately 20 barrels of oil per day and contributed €591,000 of revenue and €345,000 of gross profit to the Company for the 12 months ended 31 December 2013. The book value of the UK assets in the consolidated accounts for the Group as at 31 December 2013 was €300,000 and stated proven and probable reserves were 60,000 barrels of oil. The consideration from the sale will be reinvested in Northern Petroleum’s production and redevelopment project in north west Alberta, Canada.

Oilex (LON: OEX)
Announced that following successful mill-out operations the Cambay-77H well has commenced controlled flow-back of frac fluids with light oil/condensate being recovered to surface and separated for sale along with associated reservoir gas. Gas associated with the well flow-back is currently being flared to ensure safety of all well-site personnel. After carefully monitoring well flow-back operations under controlled conditions Cambay-77H continues to exhibit characteristics of a high performance multistage frac’d horizontal well. The well is currently cleaning up and Oilex will advise the market of a stabilized flow rate via a production test once frac fluid return and clean-up operations have been completed. The recovery of ~API 50 light crude during flow-back operations has been particularly encouraging indicating higher than expected liquid hydrocarbon production. Measuring these liquids will provide valuable information regarding the quality of the 8 fracture stimulations and the deliverability of the reservoir.

Rose Petroleum PLC Rose Petroleum (LON: ROSE)
Director Richard Needham sold (flogged) 1,900,000 ordinary shares of 0.1 pence each in the Company at a price of 3.92 pence per Ordinary Share as part of restructuring his SIPP to allow a drawdown. (Pull the other one it’s got bells on!) Following this transaction, Richard Needham holds 2,096,666 Ordinary Shares in the Company representing 0.16% of the current issued share capital of the Company.

Sirius Petroleum (LON: SRSP)
Has conditionally raised gross proceeds of up to US$20,000,000 by way of a placing and a subscription. Conditional Placing of 63,530,215 Ordinary Shares and Subscription of up to 326,333,333 new Ordinary Shares, being an aggregate of up to 389,863,548 new Ordinary Shares at 3 pence per share to raise up to £11,695,906 (approx. US$20,000,000) before expenses.

Sound Oil PLCSound Oil (LON: SOU)
The Mediterranean focused upstream oil and gas company, announces the issue of shares in respect of the final equity tranche of the £14 million institutional funding first announced by the Company on 25 April 2014. The Company has issued a total of 64,287,500 new ordinary shares in the Company to Metano Capital S.A. The issue of the New Ordinary Shares represents the final of two tranches of the £7 million equity issue associated with the institutional funding. The remaining debt tranche, totaling a further £5.5 million, is expected to complete shortly. Application has been made for the 64,287,500 New Ordinary Shares to be admitted to trading on AIM and it is expected that dealings will commence on 28 July 2014. Following the issue of the New Ordinary Shares, the Company will have 415,300,815 ordinary shares in issue. As a result of the issue of the New Ordinary Shares, Metano Capital S.A., a wholly-owned subsidiary of Continental Investment Partners S.A., is now interested in 64,287,500 share or 15.48%. of the Company’s issued share capital. Marco Fumagalli, a director of the Company, is Managing Partner of, and a 25% shareholder in, Continental Investment Partners S.A. (Looking good here for some form of M+A in the not too distant future)

United Kingdom Oil & Gas (LON: UKOG)
Raised GBP2,000,000 before expenses by way of a Company arranged placing of 200,000,000 new ordinary shares of 0.01p each in the Company at a placing price of 1 pence per Placing Share to institutional and other investors. The proceeds of the Placing will be used to make further investments in accordance with the Company’s investing policy and provide further working capital. As announced yesterday, UKOG has conditionally agreed to acquire Northern Petroleum’s UK production and exploration oil and gas interests for a total consideration of GBP1.5 million. Following completion of the Placing the Company will no longer elect to issue the Consideration Shares but will satisfy the consideration wholly in cash. The Company will therefore have 1,293,230,175 Ordinary Shares in issue with voting rights and admitted to trading on AIM. This figure may be used by shareholders in the Company as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Service Authority’s Disclosure and Transparency Rules. David Lenigas, the Company’s Chairman commented: “The Placing significantly enhances the Company’s balance sheet and enables the Company to continue to pursue further investments in the conventional onshore and offshore oil and gas in the UK.”

Urals Energy (LON: UEN)
On 21 July 2014 the Moscow arbitration court dismissed the claim of UEN Cyprus Limited in respect of a case to recover the sum of US$41,652,000 from Urals Energy on jurisdictional grounds. The Claim was dismissed on jurisdictional grounds, it being between two Cypriot companies, the Board anticipates that it is likely that an appeal will be made and also that a new claim will be launched in Cyprus. Urals Energy reiterates that it does not believe that the copy of a purported debt repayment agreement received by the Company to be a genuine document, and therefore does not accept that the Company could be bound by its terms. The Board will continue to pursue all appropriate actions necessary to defend the Company, including possible legal action in all applicable jurisdictions. Further announcements on this on-going process will be made when appropriate.

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