Smallcaps Oil & Gas round-up with a sprinkling of Miners

Oil & Gas round-up 22/April/2011

Argos Resources;

Completed the acquisition of 3D seismic data over the entire area of its PL001 licence. A high priority area has been carved out and is being processed on a fast-track basis to be ready for interpretation and prospect mapping by July 2011. Argos hopes to be ready to drill exploration wells in late 2011 early 2012 in order to have the option to use the Ocean Guardian drilling rig currently operating in the area.

Aurelian Oil & Gas;Announced that it is to side track the Trzek-2, Siekierki Multi Fracced Horizontal Well after mechanical issues restricted flow in six of the ten well bore sleeves. Test production was restricted to 3mmscf/d due to the mechanical issues. Trzek-2 to be sidetracked and fracced in Q4 2011 at a cost of €6 million to achieve a targeted stabilised flow rate of 8 mmscf/d.

Beacon Hill;

The AIM listed resource company,which, through its subsidiary Minas Moatize Limitada, owns the only producing coal mine in the Tete province of Mozambique, announces a proposed cash placing to raise approximately US$20 million (approximately £12.3 million*) through a placing of new ordinary shares of 0.25p each (‘Placing Shares’) (‘the Placing’).  These funds will be used to strengthen the Company’s balance sheet as it looks to take advantage of its first mover position in the globally significant coking coal region of Tete, and in particular, take opportunities to strengthen its logistics chain ahead of its maiden export of coal from its 100% owned Minas Moatize mine in Q2 2011.

Circle Oil;

Announced that it is rigging up the rig to drill the Geyad-3C appraisal/development well on the NW Gemsa Concession. The main objective for the well is to appraise and bring into production the oil bearing Shagar and Rahmi sandstones of the Kareem Formation. After the drilling of Geyad-3C, further intensive exploration, appraisal and development drilling is planned over the next eighteen months. A programme of water injection wells will be drilled, as and when required, to support oil production in both the Al Amir SE and Geyad fields.

Coastal Energy;

Announced that Bernard de Combret and Forrest Wylie have resigned as Non-executive Chairman and Non-executive director respectively, to concentrate on other business commitments. Lloyd Barnaby Smith has assumed the position of Non-executive Chairman on an interim basis. William Phelps, Chief Financial Officer, has also been appointed as a Board Member.

Desire Petroleum;

Hit dust yet again as their  Ninky exploration well in the North Falkland Basin is plugged and abandoned after finding only oil shows while drilling.

EnCore Oil;

The punters favourite confirmed plans to hive off its exploration assets off in a new listed AIM company, XEO Exploration. Shareholders have the opportunity to participate in a placing on the same terms as institutional investors. EnCore’s future focus is now to be directed towards its two main assets, Catcher and Cladhan.

Falkland Oil & Gas;

Raised £32 million in a placing of new shares at 70 pence per share. The placing is conditional on signing a firm rig contract by 1 June. A heads of agreement outlining the terms of a rig sharing agreement has been signed with Borders and Southern. Borders and Southern has contracted the Eirik Raude harsh environment semi-submersible for two firm and three option wells. FOGL anticipates taking the first option well slot and, subject to finding a farm-in partner possibly the second option slot too.

Gold Oil;

raised £10 million in a placing of new shares at a price of 4 pence per share. The net amount raised will be used to accelerate Gold Oil’s exploration programme which includes the acquisition of new 3D seismic on Block Z34, located in the offshore Talara Basin, Peru and for drilling the La Vega East well on the Azar block, onshore Colombia, planned for Q3 2011. The proceeds will also be used for further development activity on the Nancy, Burdine, and Maxine fields, onshore Colombia including the drilling of the Nancy 2 well and for general working capital purposes.

Heritage OiL;

Informed the markets that it had secured a rig for a multi-well exploration and appraisal drilling campaign on the Miran Block in the Kurdistan Region of Iraq. The first well will be the Miran West-3 well, spudding in July. Heritage also announced that Tullow Oil had filed a claim in the High Court for $313 million as a result of Heritage’s refusal to reimburse Tullow in relation to a recent payment made by Tullow to the Uganda Revenue Agency. The claim is being contested vigorously by Heritage.

Ithaca Energy;

Announced that both downhole electrical submersible pumps in the Jacky production well, J01, have developed electrical faults under routine operations und will have to be replaced. The well be free flowed at reduced rates until a workover can be completed in late May or early June. At Beatrice, the third workover well, A28, is currently free flowing at approx’ 130 bopd gross and will have an ESP retro-fitted; following completion of the A21 well workover operations.

Jubilant Energy;

Informed that P-16-1 well in the Golaghat Block, India, reached a total depth of 1625 metres but did not encounter hydrocarbons. The well is to be plugged and abandoned. The execution of the remaining work program comprising of six additional exploratory wells will be finalised after obtaining forestry land approval.

Mediterranean Oil and Gas;

Announced that it had solved financial difficulties through a proposed capital reorganisation featuring a fundraising of £20 million through the issuance of New Ordinary Shares at 6p each, settlement of its bank facility and conversion of its Convertible Bonds and Convertible Loan Notes.

Rockhopper Exploration;

Are initiating a three well drilling programme, the first well of which will be will be an appraisal well near the Sea Lion discovery well.

President Petroleum;

Announced that their Northumberland 2 well in Australia has been drilled. Wire-line logs and the results of the drill stem test did not indicate moveable hydrocarbons in commercial amounts. President added that whilst Northumberland 2 has not made a commercial discovery, the clear identification of hydrocarbons in the system with a significantly thicker than expected reservoir sand, has given them encouragement and impetus to move forward with further work on this licence.

Providence Resources;

Signed-up the semi-submersible rig GSF ARCTIC III for its well programme in the Celtic Sea during the summer of 2011. The primary objective of the drilling programme will be to further appraise the Barryroe oil accumulation. Based on the current rig schedule, the spud date is expected to be late August 2011.

Solo Oil;

Announced that its Joint Venture partner Reef Resources will carry out flow testing in the recently drilled Ausable #5 well, in South Western Ontario, the well is expected to be on production within six weeks. Reef will also prepare for the drilling of four additional wells in order to advance the development of the long term Enhanced Oil Recovery and Natural Gas Liquids Program.

Trapoil;

Will farm-in to a 10% interest on Summit Petroleum’s Orchid exploration block 29/1c in the North Sea. An exploration well is scheduled for the third quarter of 2011. In addition, Trapoil has increased its stake in part blocks 14/14b, 14/18c and 14/19c from a 10% carried interest to a 6% carried and an additional 40% working interest. A 3D seismic programme is expected to begin in May. An exploration well over the Crazy Horse prospect in block 14/13 is anticipated to be drilled in 2012 and Trapoil has added a 17% working interest to its existing 5%  interest.

Sterling Energy;

Accident prone Sterling announced it is looking for a new Finance Director following the resignation of Jonathan Cooper who is joining Lamprell the oil services company.