The Smallcap Oil & Gas Round-up.

Doesn’t time fly? It’s been another traumatic week in the small caps Underverse. Xcite Energy finally coughed to what those in the know already knew namely funding problems coupled with developmental concerns. So now we all know why the sp has been trending down. Of course the Board will tell you that the downward spiral over the last few months was a coincidence and that the integrity of this price sensitive information never leaked to market top table bean crunchers. If you believe that then you should be on medication!

On a more positive note good old Matra Petroleum has begun its rally back up from the depths of despair! Viva! La Matra!

Antrim Energy;

Released preliminary results of drilling operations at its Erne exploration well 21/29d-11 in the UK Central North Sea, where it has a 50% working interest. The well was drilled to a total depth of 5,562 feet. Early estimates indicate that a thick gross hydrocarbon column in excess of 50 feet was encountered in the Eocene Upper Tay Sandstone, including 20 feet of net oil pay and a separate ten feet of net gas pay with average porosity exceeding 30% and average hydrocarbon saturation of approximately 80%. No flow test will be performed on this well. However, Antrim and partner Premier Oil have agreed to drill a sidetrack well from the pilot hole to further delineate the reservoir.

Argos Resources;

Reports that it has decided not to participate in the current drilling campaign in the area with the Ocean Guardian rig, which is now likely to end in December 2011. The weak capital markets combined with the planned departure of the rig will not allow a meaningful multi-well exploration drilling programme within the Company’s licence area to be undertaken at the present time.

Aurelian Oil & Gas;

Announced that it has entered into a Relationship and Area of Mutual Interest Agreement with Kulczyk Investments S.A. (“KI”) for joint co-operation in Oil and Gas activities in Poland. KI, a 13.77% shareholder in Aurelian, is a large industrial group with interests in a broad range of sectors in Poland, including Integrated Energy which it is seeking to grow further through increased investment in the Polish upstream sector. The R&AMI will establish a strategic partnership with KI to jointly originate and invest in upstream oil and gas opportunities in Poland and to co-operate in gas marketing, procurement of oilfield services and, in time, the procurement of midstream processing and production infrastructure. As part of the R&AMI, and where operatorship is available, Aurelian will operate all licences that the partnership co-invests into, with KI bringing significant capital and strong downstream and gas commercialisation capabilities to the venture.

Chariot Oil & Gas;

Tanked on news this week as it announced that it will not be drilling an exploration well on its Tapir South prospect, offshore Namibia, before the end of this year after failing to get its hands on a suitable rig. Chariot’s Tapir South prospect in its Northern licence area is drill ready – all long lead items have been delivered, all service contracts signed, the support base secured and the drill permit granted. However, the rig anticipated to be available for the Q4 2011 spud has been contracted by another operator for a longer programme. As a result of this change in programme the rig will no longer be coming into the area in the requisite time-frame.

Cove Energy;

Delighted Investors as it provided an update of the results of the Barquentine-3 appraisal well and consequent gas resource range upgrade in the Rovuma Basin Area 1 block, Offshore Mozambique. Cove described the report as a “Major appraisal success” with gas resource figures of 15/30 Trillion cubic feet. Copies of the press release can be found by clicking the link; http://www.cove-energy.com/index.php/news_and_media/rns_releases/major_appraisal_success_and_resource_upgrade

Desire Petroleum;

The exploration company wholly focused on the North Falkland Basin noted the announcement made today by Rockhopper Exploration regarding the spud of the 14/15-4 farm-in well on Licence PL004b on Monday November 28. Following the completion of this well Desire will have a 40% interest in the Licence, with Rockhopper having the balance.

Enegi Oil;

Provided an update on its work programme relating to the Onshore Petroleum Licensing Option, covering areas of interest within the Clare Basin in Southern Ireland. Following the award of the Option, a preliminary field trip was undertaken (commencing Phase 1 of the work programme), during which outcrops of interest for further study were identified and initial investigations into the overburden and burial history through geological time were undertaken.  Results and observations from that exercise have been analysed and used as a basis for the development of a more detailed prospecting programme for the region.  The Company has also been in discussions with, and is close to reaching agreements with, various qualified contractors who will undertake the detailed programme of laboratory studies and analysis of the samples that will be required. Enegi are now in a position to proceed with Phase 2.  This will  commence with a further field study within the Option area and is a more focussed field trip which will revisit outcrops identified to the north of the area before the end of December 2011.  The trip will involve detailed sampling and stratigraphic logging of outcrops of interest and will also identify further outcrops around the basin to increase data coverage.  A similar study is planned for the south of the area in early 2012. Samples collected during the field studies will be submitted for analysis and it is anticipated that the laboratory study and analysis programme will be completed within the first half of 2012.  During this time, the Company will also continue with a detailed review of previous seismic data for the area, in preparation for basin modelling that will be undertaken once the results of the sample analysis are available.

Gold Oil;

Provided the following operational update on its operations on Block XXI, onshore Peru. Vale and Gold Oil have signed a contract with the geotechnical company Fugro Airborne Surveys Corp. for the acquisition and processing of 8,050 line km of an airborne FALCON® gravity and magnetic survey over Block XXI. This planned approach of applying high-resolution ‘FALCON®’ geophysical data with established 2D seismic techniques will allow Vale and Gold Oil to more effectively delineate targets for exploration drilling. The programme is expected to commence in late December 2011 with data acquisition expected to take 3-5 weeks depending on weather.  Processing is expected to be completed early March 2012, followed by interpretation.  This work programme will meet the licence obligations for the block for its current phase which is required by April 2012.

Ithaca Energy;

Good news came this week from Ithaca as the Crathes exploration well, 21/13a-5, encountered a 52ft light oil column in excellent quality reservoir sands. The well is currently undergoing wireline logging, before drilling ahead to intersect the Moon prospect. The recent corporate acquisition of Challenger Minerals (North Sea) Limited by Ithaca included a dual target exploration opportunity in Block 21/13a alongside the Scolty and Torphins undeveloped discoveries. The primary exploration target is the Crathes prospect which lies within the Palaeocene section. The secondary target is the Moon prospect within the deeper Upper Jurassic section.

Leni Gas & Oil;

Announces plans for additional drilling at the Eugene Island Field in the US Gulf of Mexico. ( The news comes two days after the company raised £1,510,000 gross proceeds through the issue of 302,000,000 new ordinary shares of 0.05p each in the Company at a price of 0.5 pence per share to investors) Leni has approved the first of a number of projects designed to tap into undeveloped reserves within the Eugene Island-184 leases operated by Marlin Energy LLC where LGO holds a 7.25% working interest. A program of two sidetracks targeting reserves in the Tex-X2 and Tex-X3 reservoirs has been proposed by Marlin, commencing with a sidetrack of the A#2 well to the Cranberry Creek prospect.  This will be followed by a sidetrack to a separate proven undeveloped attic oil reserve in the Tex-X3 reservoir which will most likely be conducted from the A#3 well.  Work will start almost immediately with preparatory operations in the A#2 well to abandon the existing well below 7,600 feet ahead of the arrival of a drilling rig, Ocean Columbia. The rig is scheduled to be on site by early January 2012.

Nostra Terra;

Announced that it has commenced the development of its own plays within an established hydrocarbon region in Oklahoma. The Company told Investors that it has identified areas within several Oklahoma counties which it believes to be highly prospective for oil and liquids-rich gas in a number of geological formations.  Several experienced geologists and petroleum landsmen have been engaged to identify attractive targets throughout the area.  This has resulted in the Company pursuing leases under several drilling prospects in the first of the project areas. Leasing and pre-drilling activities will continue through 2012.  The Company plans for the first wells to be drilled in the fourth quarter of 2012.

President Petroleum;

Informed Investors yesterday that the license for its Argentine concession, Puesto Guardian, has been extended by ten years, up to 24th August 2026. In addition, President today announces that the first well of the five production well programme has now spud with a projected completion time of approximately forty days.

Rockhopper Exploration;  Read Desire post.

Roxi Petroleum;

Announced that, following the successful drilling of the NK-9 well, the NK-10 well was spudded on 28 November 2011. The well is planned to drill to a total depth of 1500 metres to appraise the Arskum discovery and the Upper Jurassic formation in the south channel of the Galaz block.  Drilling operations are being coordinated by our operating partners LGI and are expected to take approximately 30 days, after which a further announcement will be made.

Solo Oil;

Has entered into a binding Heads of Agreement with Obtala Resources to acquire, subject to title and legal due diligence, Ilakon Limited a wholly owned Obtala subsidiary which holds the rights to the Mina El Carmen block  in Argentina. A binding heads of agreement has been signed with Obtala in an all shares transaction valuing the Block at US$750,000. Solo will acquire Ilakon and its Argentinean subsidiary, Spinell Sociedad Anomima ,which holds a 100% interest of the 25 claims which make up the Block.

Sound Oil;

Announces the completion of a private placement through Astin Capital Management Limited.  The private placement is structured across two tranches and involves a target new equity investment of £4 million with the potential for this investment to be increased up to a total of £10 million.

Tower Resources;

It’s goodbye from executive chairman Peter Kingston as Tower confirmed that he will step down in March 2012. Kingston will continue as CEO of Tower until that time and continue to oversee the company’s ongoing operations, with particular emphasis on the completion of the current phase of the EA5 license work programme in Uganda, which is scheduled to conclude during March 2012. As a first step towards a longer-term separation of Tower’s chairman and CEO roles, non-executive director Jeremy Asher has assumed the role of chairman on an interim basis.

Victoria Oil & Gas;

Announced that is on course to begin production from its Logbaba gas project in Cameroon by the end of the year. Production facilities at the Logbaba site, which will treat the gas from the wellheads and separate the condensate, are now mechanically complete. Pre-commissioning of the facilities has begun and approximately 80 percent of all instrumentation loops have been tested. All power circuits are in place and have been tested. Other successful tests completed include the La-105 and La-106 hydraulic valves control, two de-sander units, the 10,000 psi high pressure pipework from the production valves on the christmas trees to the adjustable chokes, the high pressure coolers, the firewater water pumps and the plant back-up diesel generator.

Wessex Exploration;

Sneaked in a placing this week raising £12 million, before expenses. Frederik Dekker, Managing Director, commented: “We are delighted to announce the Placing which will provide the Company with the funds required to participate fully in the anticipated Guyane forward work programme and to develop the Company’s other projects.  Wessex is very pleased to be associated with the highly skilled and professional team of partners on the Guyane project and looks forward to sharing in any further success.”

Xcite Energy;

It’s been a miserable few weeks for holders of Xcite stock as the Company notes the recent publication of the Addendum to the Bentley Environmental Statement, which will be available on the Company’s website and on www.sedar.com. More delays and cash-flow concerns continued to undermine the sp eventually Xcite coughed up and released thus; In response to feedback from the Department of Energy and Climate Change on the Bentley field development plan, the Company has re-configured its approach to the first phase of development of Bentley to provide a more financially efficient outcome. This re-configuration has allowed the Company to maintain the first oil date in 2012, while enabling the completion of a more cost-effective field development plan.  The principal elements of this plan are Phase 1A with first oil planned for 2012, Phase 1B planned for 2013 and Phase 2 estimated to commence in 2016. The Company understands that the plan is in the final stages of DECC approval.

If DECC approval is obtained, the financial resources to commence Phase 1A are available. The Company continues to make good progress with respect to securing additional sources of funding, including project finance from commercial lending banks. Whilst adopting this more financially efficient approach to Phase 1, the Company intends to pre-invest substantially in Phase 1B and Phase 2, with the objective of  lowering the unit cost of oil produced and, thus, maximizing the commercial industry value of the Bentley asset in advance of Phase 1B. Management considers that this re-configuration of the Phase 1 production and financial plans for the Bentley field should maximise shareholder value. Further announcements will be made to the market as soon as practicable.

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  1. Rnsr80 says:

    Dan,

    Can you find out anything about TCG ahead of the prelim figures coming out in the next couple of weeks?

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