The Smallcap Oil & Gas round up.

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

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

Back again.  Tough to get this written up! Always struggle to get this out on time!

Chariot Oil & Gas (LON: CHAR)
Said this week that its wholly owned subsidiary, Chariot Brasil Petróleo e Gás Ltda, has signed a farm-out agreement with AziLat Limited through its local subsidiary AziBras Exploração de Petróleo e Gás Ltda. Following completion of this agreement, which is subject to the approval of the Brazilian authorities, AziLat will hold a 25% equity interest in Chariot’s BAR-M-292, BAR-M-293, BAR-M-313 and BAR-M-314 blocks in the Barreirinhas Basin, in return for paying 50% of the 3D seismic acquisition and processing costs to be incurred across these blocks. Chariot will remain Operator with a 75% equity interest. CHAR also said that it had raised approxi. £8.8 million from a placing of 58,596,038 new Ordinary Shares at 15p per share. Announced on 22 July 2014 and remains subject to fulfilment of the conditions within the Placing Agreement and admission of the Placing Shares to trading on AIM. It is now expected that the Placing Agreement will become unconditional and Admission will become effective no later than 08.00 on 29 August 2014. Following Admission the Company’s share capital will consist of 260,770,702 Ordinary Shares with a nominal value of 1p.

Falcon Oil & Gas (LON: FOG)
further to its press release of 2 May 2014, its 98% subsidiary, Falcon Oil & Gas Australia has completed its Farm-Out Agreement and Joint Operating Agreement with Origin Energy Resources, a subsidiary of Origin Energy and Sasol Petroleum Australia, a subsidiary of Sasol, each farming into 35% of Falcon’s Exploration Permits in the Beetaloo Basin, Australia. Key transaction details can be read by clicking HERE

Fastnet (LON: FAST)
Copies of the Annual Report for the year ended 31 March 2014 have today been sent to shareholders along with the Notice of Annual General Meeting. Copies are also available from the Company’s website.

Fortune Oil (LON: FTO)
Has increased its interest in China Gas Holdings through an acquisition of 13,252,000 shares. The shares were acquired from the China Petroleum & Chemical Corporation as part of a share placement. The shares were acquired at a price of HK$14.80, a 5.1% discount to the closing price on the date the acquisition was made on 13 August 2014. Due to logistical constraints on the date the acquisition was made, the Acquired Shares were allotted to First Level Holdings, a substantial shareholder of the Company and private company controlled and beneficially owned by Mr Daniel Chiu, a Director of the Company. The Board has acknowledged an arrangement between the Company and FLH, where FLH will transfer all the allotted shares at cost (i.e. no profit or loss) to the Company, at the earliest convenience. The Company will indemnify FLH against all costs associated with the acquisition, financing and transfer of any Acquired Shares. The transfer is expected to be executed in coming days. The acquisition represents approximately 0.26% of the issued capital of China Gas. Upon transfer from FLH, the Company’s interest in China Gas will be 934,745,463 shares, or approximately 18.62% of total issued shares of 5,021,048,561, per China Gas’ most recent disclosure. This includes 737,374,000 shares already held by China Gas Group, the joint venture company in which the Company has a 50% interest, and 184,119,463 shares already held directly by the Company.

Kea Petroleum (LON: KEA)
Puka-3 well is being plugged and abandoned after reaching a depth of 2,200mMDRT. Ashes to ashes dust to dust!

Leni Gas & Oil (LON: LGO)
More oil. Not long now before lift off. Announces that well GY-668, the fifth of its planned 30 new development wells at the Goudron Field in Trinidad, and the fourth well from this drill pad, has been successfully drilled to a depth 1,946 feet measured depth. Based on independent petrophysical analysis of the electric logging the well intersected 191 feet of net oil pay in the Goudron Sandstones.

Magnolia Petroleum (LON: MAGP)
Released a Reserves Report & Production Update today which sent their shares on a rocket ride. Up 67% at time of writing. MAGP received an independent Reserves Report covering its leases in proven formations such as the Woodford and Mississippi Lime, Oklahoma, and the Bakken and Three Forks Sanish, North
Dakota, as at 1 July 2014. In addition, the Company has received an independent production report which has demonstrated an increase in Magnolia’s net daily production to 257 boepd as at 1 July 2014, up from 150 boepd as at 1 April 2014.

Mosman Oil and Gas Limited Mosman Oil and Gas (LON: MSMN)
Lodged with the Australian Securities and Investments Commission the Bidder’s Statement in relation to an offer announced by Mosman on 2 July 2014 to acquire all of the issued shares of Trident Energy, an Australian unlisted public company with onshore and offshore oil interests in Australia.
Click HERE for the link to the full Bidder’s Statement:

Nighthawk Energy plc Nighthawk Energy (LON: HAWK)
Two bits of news this week from the US focused oiler. 1/ An update on production and development plans at its 100% controlled and operated Smoky Hill and Jolly Ranch projects in the Denver-Julesburg Basin, Colorado. Highlights; Average gross oil production from all wells in the calendar month of July 2014 was 2,007 bopd… Blackcomb 12-14 well at Arikaree Creek expected to commence production in August 2014… Cumulative gross oil production from the Arikaree Creek field has exceeded 700,000 barrels… Additional reserves at Arikaree Creek to be developed through horizontal drilling… 3D seismic and multi-well development program planned for Snow King discovery… Drilling rig currently on location at Jackson Hole 1-32 well. (Nighthawk has an average Net Revenue Interest of approximately 81.5% in the gross oil production) 2/ HAWK has secured a credit commitment from the Commonwealth Bank of Australia for a new US$100 million Reserve Based Loan. The RBL has a maturity of four years and an initial borrowing base and availability of US$35m. Nighthawk expects the addition of future reserves and production growth to add to the availability of the RBL. Interest rates will be at a competitive premium to US Libor rates and will enable the Company to substantially reduce its borrowing costs. Yes that’s right borrowing more money reduces your borrowing cost! What crock of shit!

Nostra Terra Oil & Gas (LON: NTOG)
The oil and gas exploration and production company with a growing portfolio of assets in the USA, announced the spudding of the 17th development well in which it has an interest in the Chisholm Trail Prospect, located in Oklahoma. The Wilson 3-8-5H well (CT-17) has spudded and is drilling forward. The well will be drilled to an approximate 11,700 foot measured depth, at a TVD of 6,500 feet, with a 4,200 foot lateral into the Hunton formation. Nostra Terra holds a 2.92% working interest in the well. The Wilson is an increased density offset well to the Jones (CT-8) which has been one of the best performing wells in the play. Both the Wilson and the Jones are operated by Stephens Production Company. Nostra Terra’s Chisholm Trail portfolio has varying size interests in 17 wells, 11 of which are producing with 6 in various stages of development, from permitting to fracking. All but two of the wells are in the prolific Hunton Limestone formation. Nostra Terra will make further announcements as the operations at CT-17 progress. Matt Lofgran, Chief Executive Officer of Nostra Terra commented: “The wells in the Chisholm Trail prospect are starting to reach payout. By participating in a portfolio of low-risk wells with other suitably qualified operators, we are able to both grow our revenue and also dedicate time to new assets where we’ll be the operator.”

Oilex LtdOilex (LON: OEX)
Said this week that Cambay-77H continues to produce light crude oil and gas as the well recovers frac water during clean-up. Cambay-77H crude oil recovered from flow-back operations is currently being transported to a nearby refinery for sale, where it attracts a price similar to Bonny Light Crude. Gas produced concurrently with crude oil during flow-back continues to be flared to ensure safety of all well-site personnel. Samples of the oil, gas and water have been shipped to facilities for analysis. Preliminary analyses of the recovered water have been received and confirm that the water is consistent with frac water and not formation water. Oilex is currently awaiting analysis results for the oil and gas samples.

PetroNeft (LON: PTR)
The oiler operating in the Tomsk Oblast, Russian Federation, is pleased to announce a number of significant actions following the completion of the Licence 61 Farmout to Oil India on 3 July 2014, in particular the re-commencement of drilling operations on Licence 61. All debt due to Macquarie and Arawak has been repaid; PetroNeft is now debt-free. Joint Venture Working Group has been established.. Work Programme and Budget for 2014 and 2015 finalised… Drilling crew mobilised to commence drilling of Tungolskoye No. 5 well within the next week… Second Drilling crew to re-commence production drilling at Arbuzovskoye will be mobilised shortly… The Sibkrayevskoye No. 373 delineation well will follow the Tungolskoye No. 5 well… Seismic acquisition crew mobilised to commence operations for the acquisition of 1,000 km of high resolution 2D seismic in Q1 2015… Following the completion of the Farmout of a 50% interest in Licence 61 to OIL on 3 July 2014 a number of significant activities have taken place.

Roxi Petroleum (LON: RXP)
The Central Asian oil and gas company with a focus on Kazakhstan, updated the market with news of the deep discovery at its flagship BNG asset together with progress at its BNG shallow Well 143 and at Well NK-31 at its Galaz Contract Area. Click HERE to read

Salamander Energy (LON: SMDR)
North Kendang-2 exploration well (“NK-2”) was plugged & abandoned this week as SMDR announced that first oil has been received in the tanks of the newly converted Suksan Salamander Floating Storage and Offtake Vessel at the Bualuang field in the Gulf of Thailand. This is the culmination of the planned upgrade to the field’s facilities which targets a reduction in operating costs of up to $25 million per annum. New power and processing modules were loaded out to the Bravo platform in the first half of the year. These have been operating smoothly since hook up and commissioning in May. The FSO arrived on location in July. Following hook up and commissioning the new FSO is now fully operational. As well as halving the day rate of the production vessel, these upgrades double water handling capacity, increase potential production rates and extend the productive life of the field. The Rubicon Vantage Floating Production, Storage and Offtake vessel will depart the field in the coming weeks. Salamander Chief Executive James Menzies commented: “We have upgraded production infrastructure in the Bualuang field on both time and budget. The new facilities enhance the value of the field, minimise the risk of future downtime and mean we are well positioned for the next phase in the field’s growth.”

San Leon Energy PLC San Leon Energy (LON: SLE)
An AIM listed company focused on oil and gas exploration in Europe and North Africa, provided an update this week. You can read it by clicking HERE San also

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