Smallcap Oil & Gas round up.

Doesn’t time fly? Here we are yet again at the end of another torrid week in the Oil & Gas smallcap Underverse! It’s been a tough year on the whole as the powers that be failed (and continue to fail) to get to grips with the European sovereign debt crisis. They’ve Breakfasted, Lunched, Wined, Dined & Gorged their glutinous body’s on Michelin starred food as they lurch from the farce to the farcical!  It’s one crisis meeting after another the only positive agreement is that there’s NO agreement. It’s the end of 2011 & it can’t come quick enough for me personally as I hope to finally launch the new BMD site Jan’ 2012! Where of course you are all welcome! (Don’t forget that the London Stock Exchange closes at 12.30pm today.)

***And it just leaves me to say a Very Merry Xmas to all those who visit the Blog whether you be a supporter or not you are all welcome here. Have a very good Xmas and seasons greetings to all.***

Daniel  (BMD) The original!

Aminex;

Announces that the Ntorya-1 well spudded on 22 December at 19:00 local time in the Ruvuma Basin onshore in Tanzania. Ntorya-1 is located 14 kilometres south of the Likonde-1 well, drilled in 2010, which proved the presence of an active petroleum system.   The Ntorya-1 well targets the same high quality Basal Tertiary and Upper Cretaceous sands encountered in the Likonde-1 well.  Aminex estimates that the Ntorya Prospect has a probability of success of around 20%, with mean recoverable resource potential of 100 million barrels of oil equivalent.

Antrim Energy;

Today announced preliminary results from drilling operations of Antrim-operated well 21/29d-11Z, a sidetrack of the Erne discovery well 21/29d-11 (Antrim working interest 50%) in the UK Central North Sea. The 21/29d-11Z sidetrack well, designed to appraise a separate culmination from the Erne oil discovery (as reported 30 Nov. 2011) in the Eocene Tay Formation, was drilled up-dip of the discovery location to a total measured well depth of 5,409 feet. The inclined sidetrack drilled approximately 24 true vertical feet of net oil pay and 14 TV feet of net gas pay in a high quality sandstone reservoir with porosity values measured in excess of 32% and corresponding high permeability. The Tay Sandstone was intersected at a structural elevation 106 TV feet higher than the original penetration in the discovery well 21/29d-11. Initial interpretation is that the 21/29d-11Z sidetrack has penetrated a separate accumulation from the original 21/29d- 11 well penetration, but further work is necessary to confirm this. Well 21/29d-11Z will now be suspended for potential future re-entry and use in the development of the Erne discovery.

Cadogan Petroleum;

Announced that following a resolution approved by its shareholders at the General Meeting on 22 November 2011, the Company’s listing category was transferred from “Premium Listing” to “Standard Listing” on 20 December 2011.

Egdon Resources;

Reports that it has reached agreement with Nautical Petroleum AG, a wholly owned subsidiary of Nautical Petroleum plc (“Nautical”), to sell 15% interests in onshore UK Petroleum Exploration and Development Licences (“PEDLs”) PEDL118 and PEDL203 located in Nottinghamshire. The consideration comprises a cash sum payable on completion of £200,000 and the payment of £150,000 towards Egdon’s costs of the next well to be drilled on PEDL118 or PEDL203.  The effective date of the transaction is 31 December 2011.

Empyrean Energy;

Released news this week (Trading Statement/Operations Update) that the cash received from its US production assets between June and November 2011 had increased by 55% on the previous six months. Empyrean’s US operations include the Texas-based Sugarloaf Project, Hercules Project and Riverbend Project. In the most recent reporting period, cash from production increased to US$1,676,388. The Sugarloaf Project is now firmly into a development phase and this upwards trend in revenue is expected to continue as further wells are brought into production. There are 24 wells on production that Empyrean has an interest in, including 6 farmout wells. Gross total production from the Sugarloaf Project was 230,973 boe in November which comprises 135,064 bbls oil and 34,527 bbls Non Gas Liquids (“NGLs”) and 368.3 MMcf gas by volume.  The liquids rich nature of the acreage results in approximately 80% of production being derived from oil and NGL’s by volume. Production figures have been influenced by a number of wells being shut in for the installation of production tubing during November; the figures this month do not reflect field production capacity.

Enegi Oil;

Announced that it has received formal approval from the Newfoundland and Labrador Department of Natural Resources to proceed with the next stage of the workover at the Garden Hill South property.  Enegi can now commence operations with 24 hours’ notice to the DNR, and has been in contact with Schlumberger and Dragon Lance Management Corporation with regard to scheduling of activities. GHS is an onshore oil discovery that is 100% owned and operated by PDI Production Inc. the Company’s 100% owned Canadian operating subsidiary.  To date, approximately 30,000 barrels of high quality crude with a gravity of approximately 51° API has been produced from GHS which was discovered in 1995 by the Port au Port 1 well, even though this well was initially drilled to test the structural concept for a larger offshore lead.  The well produced at up to 1,742 bopd before being shut in.  This flow rate was achieved despite heavy invasion and mud losses into the target formation during drilling, however the well proved the structure and presence of hydrocarbons within the Port au Port play.

Gold Oil;

Has now received the processing results from the Erika North and South 3D seismic surveys acquired in Block Z34, offshore Peru. The main improvement in the data quality between the 2D seismic acquired in 2009 and the 3D acquired this year is that the 3D provides a volume of closely spaced or contiguous data which will significantly reduce the risk in mapping of prospects for drilling. The 3D allows the data to be better focused compared to 2D and also correctly positioned to allow enhanced prospect definition. Gold Oil’s initial assessment of the Erika South 3D has shown that the general closure of leads identified on the 2D is present on the 3D seismic and, whilst interpretation will be ongoing through Q1 2012, it bodes well for the presence of drillable fault block targets identified. The improved definition of faults on the 3D seismic data is expected to result in more numerous fault block prospects, which will be better defined and thus lower risk. In the north, initial examination of the data by the Company has shown that there are a number of robust structural anticlines including the Francesca, Francesca North and Cuy leads with apparent additional subordinate anticlines along trend. Further work on the processing of the Erika 3D surveys is ongoing and final full volume data is expected to be available at the end of December. Interpretation of the 3D is in progress and it is anticipated that it will culminate in a complete inventory of prospects which will be available at the end of March 2012.  Some indicative seismic lines and maps will be available on the Company’s website at www.goldoilplc.com  In parallel with the seismic interpretation, the Company expects to commence a farm out process of Block Z34 in early February 2012, with a data room opened for the industry to undertake their due diligence on the block.  Expressions of interest from farminees are expected in April 2012.

Gulf Keystone Petroleum;

It’s been a very busy week for GKP. The company had to come  out this week to scotch rumours of an 800pence takeover bid. Later on in the week GKP announced the spudding of the Shaikan-6 appraisal well on the Shaikan block in the Kurdistan Region of Iraq on 16^th December 2011. Shaikan-6 is the fourth deep appraisal well to be drilled on the Company’s major oil discovery with independently audited gross oil-in-place volumes of between 8 billion barrels and 13.4 billion barrels calculated on the P90 to P10 basis with a mean value of 10.5 billion barrels. Shaikan-6 is being drilled 9 km to the east of the Shaikan-2 appraisal well to an estimated total depth of 3,800 metres subject to technical conditions. Shaikan-6, the last appraisal well to be drilled as part of the Shaikan appraisal programme, will target prospective intervals in the Jurassic and Triassic. Shaikan-6 will be followed by the Shaikan-7 exploration well in 2012, which will target potential untapped resources in the lower Triassic and the Permian, the Company’s deepest undrilled horizon to date. Gulf Keystone is the Operator of the Shaikan block with a working interest of 75 per cent and is partnered with Kalegran Ltd. (a 100 per cent subsidiary of MOL Hungarian Oil and Gas Plc.) and Texas Keystone Inc., which have working interests of 20 per cent and 5 per cent respectively.

Independent Resources;

Finally announced that it has received formal communication from Italy’s Ministry of Environment regarding its Rivara gas storage project in Northern Italy, for which it is currently seeking environmental and consequent mineral title approvals ahead of planned development. The Ministry’s Technical Commission for Environmental Impact Verification, a decision-making body within the Ministry, has voted to allow the project to proceed by explicitly re-confirming the environmental compatibility of the project’s so-called appraisal phase, which is designed to definitively confirm the project’s technical characteristics and therefore both its safety and feasibility. The Company expects to receive the signed decree early in 2012 following the upcoming holiday season.

Max Petroleum;

AnnounceD that the KZIE-2 appraisal well in the East Kyzylzhar I Field has reached a total depth of 1,294 metres, with electric logs indicating seven metres of net oil pay, including two metres in the Cretaceous Neocomian reservoir at depths from 627 to 629 metres, and five metres in the Jurassic reservoir at depths from 1,214 to 1,220 metres. Reservoir quality appears excellent with porosities ranging from 25% to 30%. The Company will run production casing in the well, which will be completed and placed on test production after obtaining the requisite governmental approvals. The ZJ-20 drilling rig will next move on to drill the SAGW-3 appraisal well in the Sagiz West Field.

Mediterranean Oil & Gas;

Failed to move investors as the company announced an operational update: copys of the report can be viewed by clicking this link.

www.medoilgas.com

Nautical Petroleum;

Also failed to impress as the Tudor Rose well 14/30a-5 in Central North Sea Block 14/30a reached Total Measured Depth of 3,590 feet. The well encountered a 22 feet net oil column within the target Beauly Formation and Oil Water Contact at 3,236 feet Total Vertical Depth Subsea.  Wireline sampling and pressure testing of the oil bearing zone has been undertaken and preliminary wellsite analysis suggests a very heavy crude, with a viscosity of 600-800 Centipoise, which is unlikely to be commercially exploitable. Further onshore analysis will be required before this provisional evaluation can be confirmed.  The well will now be plugged and abandoned.

New World Oil and Gas;

A company focused on making investments in the oil and gas sector, said that it has received written acceptance by the Danish Energy Agency of it being named Operator of Licence 1/09 and 2/09, totalling 4,107 sq km, located in the productive Jutland on-shore area in South Western Denmark.  Additionally, the DEA has approved the transfer of the 80% interest in the Licences held by Danica Jutland ApS’ to New World, on completion of the earn-in work programme.

Northern Petroleum;

Announced that it has completed an extended well test of the Ottoland oil discovery in the Netherlands, which was originally drilled in 2007 and hydraulically fractured in 2009. Permission was received to conduct the test utilising a “jet pump” to assist the flow of oil. Northern said its analysis of the test results would provide a determination of predictable oil and gas production rates. Production facilities would then be designed to meet the potential for both oil and associated gas. Work will also be undertaken on an oil marketing plan. It’s currently projected that production could be achieved in 2012 or 2013, subject to “required statutory approvals”.

Parkmead Group;

Informed the market that it has agreed a deal to acquire four stakes of 20% interest each in blocks in the UK Southern North Sea. The four blocks contain the 47/10-8 gas discovery as well as the large Pharos gas prospect and several significant additional exploration targets. The acquisition comes on the back of Parkmead’s recent Platypus & Possum gas prospect deal, both nearby in the Southern Gas Basin. The company said the move highlighted its strategy of investing in North Sea fields and blocks where its technical and commercial teams have an extensive working knowledge of the assets. The stakes in Blocks 47/4d, 47/5d, 47/10c and 48/6c are being acquired from Sorgenia E&P (UK) Ltd. They are located in a prolific part of the Southern North Sea, between the producing Amethyst, Ravenspurn, West Sole and Hyde Fields.

Petroceltic International;

The upstream oil and gas exploration and production company focused on North Africa, the Middle East and the Mediterranean, announced the approval by the Council of Ministers in Algeria of its sale of an 18.375% interest in the Isarene PSC to Enel Trade SpA. This is the final stage of the approval process relating to the transaction between Petroceltic and Enel, announced in April, and paves the way for completion of the transaction within 5 days and the settlement of all amounts outstanding within 30 days thereafter.

Range Resources;

Released an INDEPENDENT RESERVES, RESOURCES AND VALUATION REPORT/Trinidad & Texas Reserves & Valuation Report today. Copies of the report can be viewed by clicking this link. http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail.html?announcementId=11071966

Roxi Petroleum;

The Central Asian oil and gas company with a focus on Kazakhstan, informed the market that the BNG well 136 on the North Yelemes structure was spudded on 16 December 2011. Drilling is expected to take approximately 40 days and the well is planned to drill to a total depth of 2950 metres.  This exploration well is targeted to encounter Jurassic Bajocian sands at a depth of 2550 metres and a secondary objective in the Triassic sands at a depth of 2840 metres. Roxi also announced that the NK-10 well spudded on 28 November 2011 reached a total depth of 1505 metres on 18 December 2011. The preliminary interpretation of wireline logging indicates that the well encountered oil bearing upper Jurassic sands at a depth of 1288 metres Measured Depth.  Upon final interpretation of wireline logging data, perforation interval will be selected and testing will be carried out. The rig is currently setting the casing, and will be released after cementing the casing.

San Leon Energy;

Has signed an agreement with Providence Resources to exchange its working interest in Standard Exploration Licence 1/11 in the Celtic Sea, Ireland, for a Net Profit Interest. San Leon will assign its 30% working interest in the Licence to Providence in exchange for a 4.5% NPI on the full field. San Leon Energy will not pay any further appraisal or development costs on the Licence and is not paying any costs towards the 48/24-10 well, which is currently being drilled.

Sefton Resources;

Has completed drilling three of four new wells planned at its Tapia Canyon project. The last well, Hartje #20, will be drilled once the relevant documentation has been approved by the Los Angeles County Planning office, which is now expected in the New Year. The drilling of the wells, Yule #9RD, Yule #12, and Hartje #19, have been completed with a gravel packed stainless steel wire-wrapped screen liner inserted across the oil zone. Approximately 40 feet of Yule oil zone was encountered in the Hartje #19 well. During the drilling process of the Hartje #19 well, 30 feet of oil sand was cored from which approximately 27 feet was recovered. That core is currently being analysed by CoreLab in Bakersfield, California, along with the core collected in the Yule #12 well in November. It will be used by Petrel Robertson Consulting to upgrade the geologic model for input into in the steam flood modelling being undertaken by Dr Farouk Ali, a specialist in reservoir engineering, oil recovery and simulation.

Silvermere;

The independent oil and gas company, focusing principally on exploration, appraisal and production opportunities in the US, announces a delay in production plans for the I-1 Well on its Mustang Island asset located in Kleberg County, Texas waters in the Gulf of Mexico. In-line with the announcement made on 6 December 2011, platform construction was completed with load-out operations then scheduled to get underway in Galveston.  However, the operator, Dominion Production Company, has decided, after consultation with the Company, to suspend installation until after the end of March 2012 due to adverse weather conditions and the significant financial costs likely to be incurred.

Solo Oil;

Today announces that the Ntorya-1 well was spudded on 22 December at 19:00 hours local time in the Ruvuma Basin onshore in Tanzania.

Sound Oil;

Confirmed that Despite some delays caused by heavy rainfall, operations on the Cataka-1 well continue and rigging-up of the ETP Rig No.2 on the site has commenced.  The well is scheduled to take 21 days to drill.  Cataka-1 will be drilled as a deviated well to a total measured depth of 6995 ft (2132 m) to target P50 gross prospective resources of 470 Bscf.  Immediately after Cataka the rig will move to drill the Jatayu and Geulis prospects. Bangkanai PSC (Sound Oil 5% carried) The operator, Salamander Energy, has informed Sound Oil that an upgrade of the Drillco No.1 rig for high temperature/high pressure operations is underway with the rig now expected to mobilise to Kalimantan in January and drilling expected to commence in April 2012.  The development of the Kerendan gas field, however, remains on target.

Victoria Oil & Gas;

Has successfully installed and commissioned production facilities and a gas pipeline network in Douala, near to its Logbaba gas project in Cameroon. Victoria’s local subsidiary Rodeo Development, made its first delivery of gas to customers on the Magzi Industrial Estate on the 17 December 2011.