The Smallcap Oil & Gas round up.

Amerisur Resources LON:AMER
Begun the acquisition of a 59.42km 2D seismic survey in the southern part of the Fenix block, adjoining the Bonanza field which is owned and operated by ECOPETROL SA. The cost of the survey will be approximately US$2.2MM and satisfies the exploration commitment of Phase 4 of the contract. The seismic survey is aimed at defining two leads mapped on existing data which are of a similar style to the Bonanza structure. It is expected to complete the acquisition by end of December and processed results should be available in 1Q 2013. The Board of Amerisur has decided not to complete the farm out process previously announced, and maintain a 100% working interest in the Fenix block. As a result, all the prior discussions with PetroGranada regarding Fenix are now terminated.

Andes Energia LON:AEN
Has been awarded seven blocks in Colombia’s Agencia Nacional de Hidrocarborus 2012 Bidding Process. The blocks awarded are: Llanos 2, Llanos 12, Llanos 28, Llanos 49, Llanos 51, Llanos 79 and VMM 8. Andes has a 70% interest in the consortium, which also includes Integra Oil & Gas SAS, a private French company with operations in Venezuela and a 26.39% interest in Lagopetrol S.A. The consortium was the most successful bidder for Class 1 blocks in the bidding process and the second most successful bidder overall, after Ecopetrol and its affiliates. The terms of the bids by the consortium include the lowest royalty, in the range 9-15%, amongst the other successful bidders for Class 1 blocks. Six of the seven awarded blocks are located in the Llanos basin, the most prolific oil basin in Colombia. These blocks are surrounded by fields that are currently in production.

Bowleven LON:BLVN
Informed the market that it has submitted the formal Etinde Exploitation Authorisation Application to the Cameroon authorities as planned. This formal EEAA submission follows an earlier draft supplemented with in-country workshops with SNH to support the application. The submission represents a further step towards the delivery of the key requirements that will enable the final investment decision for the Etinde development, anticipated in H2 2013. The first stage of the ‘hub and spoke’ development scheme within the EEAA will focus on the development of the discoveries on block MLHP-7, with first production targeted to occur in 2016.

Egdon Resources LON:EDR
Was “pleased” to announce the resumption of production from the Ceres Gas Field where the Company holds a 10% interest. Production from the Ceres Gas Field was restarted on 11th November 2012 and has continued since.

Enegi Oil LON:ENEG
Released an update on its activities in the Clare Basin, onshore Ireland. Results of the work programme indicate that, given the maturity, thickness and buried depth of the shale, the whole area under the Option remains prospective for shale gas. The studies also highlighted an area within an existing seismic grid, consisting of 130 line kilometres of 2D seismic, as being particularly high grade, based on the thickness of the shale and lack of faulting present.Based on detailed analysis of the area within the seismic grid and comparison with the Marcellus and Woodford analogues, Fugro have provided the following preliminary resource estimates:… 3.62 trillion cubic feet of free gas initially in place within the seismic coverage, based on a most likely porosity of 7%, with 1.23 TCF of that being in the area identified as high grade…. 1.55 TCF GIIP within the seismic coverage for a minimum porosity case of 3%, of which 526.4 billion cubic feet falls within the high grade area…. Corresponding estimates for the entire Option area are 13.05 TCF GIIP (most likely) and 5.59 TCF (minimum case)…. Total recoverable resource estimates for the Option area of between 1.49 TCF and 3.86 TCF.

Falkland Oil & Gas LON:FOGL
Confirmed bad news this week. Its Scotia well has failed to make a commercial discovery. Shares in FOGL, which have endured a roller-coaster ride since the company began drilling in August, collapsed. Trading today at approx’30p FOGL is the operator of the Scotia well, holding a 40% interest, whilst Noble Energy Inc. holds a 35% interest and Edison International Spa, holds the remaining 25% interest. Under the terms of the farm-out agreements, FOGL is paying 15% of the costs of this well.

Kea Petroleum LON:KEA
Has started drilling the Puka 2 well onshore Taranaki, in New Zealand. The Puka 2 hole is expected to be drilled to a total depth of 1890m. Drilling is expected to be suspended after surface casing is run at approximately 400m to allow for the commencement of the 3D seismic programme over the area in mid-December and to be recommenced in mid-January. This will be completed by early February with testing to start later in February. Separately, at Kea’s AGM today, Gowrie-Smith said that January 2013 would see the beginning of an “energetic year of exploration activity” starting with Mauku 1 which is 50% funded by Methanex and negotiations to farm out an interest in Mauku are expected to be concluded shortly. Gowrie-Smith said that the imminent drilling of Mauku could be the greatest possible value changer for the company. “Our exploration programme is mapped out into 2014 and as the balance between production and exploration becomes more apparent I look forward to this being reflected in shareholder value,”

Leyshon Resources LON:LRL
Came back from their trading halt this week after the company released details of its latest well in China. Trading in the stock was suspended last week shortly after the price surged ahead of expected results from its ZJS5 well on the Zijinshan block located on the Eastern flank of China’s prolific Ordos Basin. The well was drilled without safety incident by Great Wall drilling Company to total a depth of 2,155 meters, then wire line logged and side wall core samples taken by contractor China Oilfield Services Limited.
Leyshon said that analysis of the logs and samples was ongoing however initial results have indicated that about 56.4 metres pay intervals have been encountered. In particular, around 30.8 metres of the 56.4 metres have exhibited relative high porosity measurements which indicate that these zones could have the potential to flow gas at commercial rates. Following the open hole logging program, a production casing string has been installed which will allow multiple opportunities to conduct flow tests on the potential pay zones. Management expects to conclude testing the first of the potential pay zones by the end of the year.

Magnolia Petroleum LON:MAG
Released an Operational Update this week copy’s of which can be viewed by clicking the link.

New World Oil & Gas LON:NEW
Will deviate its Blue Creek 2 well that is currently drilling in Belize, in order to test additional potential oil accumulations. New World said that following an analysis of recent open hole logging results and the conclusion of a petrophysical interpretation of the Y1, Y2, Y3 and Hill Bank formations at the B Crest prospect, live oil shows in the Y3 and Hill Bank reservoirs had been confirmed. A decision has now been made to drill a deviated well from the existing vertical well location to get up structure in the Y3 and Hill Bank formations to evaluate the trap potential in this part of the structure and to target additional potential oil accumulations. The decision was taken with the approval of the Government of Belize.

Nostra Terra Oil & Gas LON:NTOG
Good news came this week as Nostra reported early production volumes from its first horizontal well in the Chisholm Trail Prospect are ahead of expectations. Nostra Terra said the Oklahoma well had averaged 258 barrels of oil equivalent per day (boe/d) for the most recent ten days of production. The well has now been producing and selling oil for several weeks but is still in the process of being cleaned up and will continue to recover a mixture of fraccing fluid, oil and gas during this process, the company said. Nostra Terra also reported that hydraulic fracturing operations had been completed on both the second and third horizontal wells – CT2 and CT3. Production testing of those wells is expected to start imminently. Eyes on here!

Petro Matad LON:MATD
Board changes. Out goes Mr Douglas McGay “Retired” CEO with immediate effect. In comes the Company’s Exploration Manager Dr Ridvan Karpuz and Chief Financial Officer John Henriksen who will report directly to the Company’s board. It is anticipated that a successor as CEO will be recruited once the Company has finalised its exploration and work programme.

Sefton Resources LON;SER
Fantasy Island continued unabated this week as Desperately, seeking your cash, Sefton released an update on an updated update reiterated literally dozens upon dozens of time already over the last 2/3 years. A “report on the geologic model for Tapia Canyon oil field and oil production in California” More Rehashed guff released. Interesting to note that the BOPD figures for October just like September August July etc have now been corrected DOWNWARDS (BETTER LATE THAN NEVER) A quick check of the California DOGGR site reveals that contrary to what the company are telling people the BOPD WELL DATA is still not registered. Let’s hope Jimmy Liar hasn’t delayed the Oct bopd so that he can manipulate some November barrel-age into the figures!!!

Sound Oil LON:SOU
The Italian focused upstream oil and gas company, announced that approval has now been received from the Italian Ministry of Economic Development permitting the Company to commence operations at Rapagnano shortly. The Rapagnano gas field, located in the Fermo Province (Marche), onshore Italy, was discovered in 1952 and produced 4 Bscf gas from the Pliocene interval until 2001, when the well was shut in. Sound Oil intends to re-complete the lower reservoir which has produced gas with minimal water for over 40 years. This interval has an estimated 1.3 Bscf gas reserves (P50) remaining which is expected to be produced over a thirteen year field life.

Tangiers Petroleum LON:TPET
Announced this week that they have pulled out of a legacy onshore exploration project in Australia in favour of pursing its plans in Africa. The company has withdrawn from ATP 587 and relinquished its interest in this onshore Cooper-Eromanga Basin exploration permit in Queensland, where exploration had not been advanced significantly.

Victoria Oil & Gas LON:VOG,
Announced this week that a packaging company has become the latest customer to be commissioned to take gas and commenced gas consumption this week. From the existing six customers taking gas, the Company calculates a combined peak demand of 2.1mmscf/d and an average daily consumption of 1.4mmscf/d during a standard operating week. Since the last update on 14 November 2012, good progress continues to be made on contracted thermal customers with an additional four customers having signed thermal GSAs making a total of 25 contracted thermal customers. All contracts have been signed at $16 per million British thermal units.

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