The Winners are? MCFC v MUFC

Caza Oil & Gas;

Began drilling work on a new well in New Mexico following an acreage swap deal involving the Bradley 29 Prospect in Eddy County. Caza recently completed the acreage swap with Mewbourne Oil Company, whereby Caza exchanged acreage in its Lynch Property in Lea County, New Mexico, for a position in Mewbourne’s Bradley 29 and Two Mesas Properties in Eddy County. The trade covered the Bone Spring formation only, and sets up twelve horizontal Bone Spring locations to be drilled in 2012 and 2013. Under the trade, it was agreed that Mewbourne, one of the foremost operators in the Bone Spring play, would operate the wells.

Desire Petroleum;

Provided an update on the economic assessment of the contingent resources established by the 14/15-4a discovery this week. These are based on a high-level development concept and economic review by Senergy (GB) Limited. Desire share of Sea Lion (unrisked) at $85/bbl (NPV 10%) is estimated at $173 million….Assuming Desire share of Sea Lion unit is 4%….Assuming 320 MMstb full-field case….Desire share of adjacent discoveries (unrisked) at 85$/bbl (NPV 10%) is estimated at $727 million….Assuming Casper and Casper South (Shona) development….Based on net Desire 2C resources from Senergy April 2012 CPR update….Desire is currently evaluating the new 3D seismic data and when this is complete later in the year, a full CPR update will be published based on all prospects and discoveries.  Initial indications for new prospectivity in the East Flank play fairway are encouraging, with confirmation of the potential of the Elaine fan and a major new fan system identified (Isobel).  This confirms our view that there remains significant exploration potential in the basin. A technical and financial update presentation is available on the website on www.desireplc.co.uk.

Gulf Keystone Petroleum;

Came out fighting this week in the wake of malicious bulletin Board bashing. The £1.6bn oil and gas group operating in Iraq and Algeria, has been forced to respond to what it described as “continued and unfounded speculation on various bulletin boards and other social media sites regarding an alleged planned placing of the company’s shares at 160p per share.” (And we all know who they are!) The company conceded that while it did not normally comment on “unfounded speculation” it had been compelled to act on the “damaging and misleading nature of these various comments which have been posted on bulletin boards and other social media sites during the past 24 hours”. Gulf Keystone confirmed categorically that it had no current intention of undertaking an institutional fundraising. GKP also confirmed that the process regarding the sale of its 20% stake in the Akri-Bijeel block in the Kurdistan Region of Iraq, was continuing and negotiations were ongoing with several interested bidders. GKP is understood to be taking legal advice with regard the speculation and warned that it would be taking all available legal action to prevent further repetition of similar speculative comments on bulletin boards and other social media sites. Todd Kozel, Gulf keystone’s executive chairman and chief executive, said: “We are working hard to create shareholder value via the continuing 2012/2013 exploration and appraisal programme on our world-class assets in the Kurdistan Region of Iraq. We will not tolerate malicious attempts to damage the company’s reputation and share price. We have instructed the company’s lawyers to use all means necessary to protect our shareholders from this malicious and unfounded attack.” Well done Todd unmask them! Gulf Keystone also announced today that the Bakrman-1 exploration well spudded on the Akri-Bijeel block in the Kurdistan Region of Iraq on 7 May 2012. Bakrman-1, the third exploration well to be drilled on the Akri-Bijeel block, is located 32 km to the north-west of the Bijell-1 discovery well and 25 km to the north-west of the Aqra-1 appraisal well, which is currently being drilled to appraise the Bijell discovery.

Matra Petroleum;

The oil and gas exploration and production company with operations in Russia, said this week that production had started from Well A-13 on its Sokolovskoe oil field in Orenburg. Matra said that on 26 March, production of naturally flowing oil had commenced from Well A-13 and, as planned and following the end of the thaw season in Orenburg, a workover rig had now completed the installation of a downhole electrical submersible pump (ESP) in that well. The ESP is currently being commissioned onsite. Once it is commissioned, the well will be cleaned up but Matra said it was likely to take some days before stable production rates could be achieved. Yesterday that James William Guest, Non-Executive Director, bought 555,555 ordinary shares of 0.1 pence each in the share capital of Matra at a price of 2.664p per share. Following this transaction, Mr Guest now holds 555,555 Ordinary Shares.

Mediterranean Oil & Gas;

Announced that the Italian Ministry for Economic Development has granted a three year extension until 5 May 2015 to the exploration permit BR269 GC, held by the Company’s subsidiary Medoilgas Italia SpA. The Ombrina Mare oil and gas field is located in permit BR269 GC, which is offshore Central Adriatic.

Nostra Terra;

It’s a case of De Ja Vu as Matt Lofgan announces that they have entered into “another” loan facility of up to US $3 million, with YA Global Master SPV Ltd , an investment fund managed by Yorkville Advisors LLC. Still NO word from the company on their BOPD.

Oilex;

Bad news for Oilex THIS WEEK THE SP SANK LIKE A STONE. As previously announced, Oilex has been conducting operations to recover and replace damaged drill pipe and recovering milling assemblies from down hole. During these operations while attempting to pull out of the well with the milling assembly the drill pipe has parted on three separate occasions at 282 metres (corrected from 600 metres as previously reported), 2,294 metres and, most recently, at 977 metres. Prior to the last run in hole, the drill pipe was inspected at site in accordance with American Petroleum Institute Guidelines using non-destructive testing techniques and the drill pipe that was last run in hole was therefore understood to have good integrity. However, the latest failure at 977 metres brings into question the fundamental condition of the drill pipe. As a direct consequence of the apparently poor integrity of the drill pipe and the potentially adverse consequences of continuing to use this equipment, the Joint Venture has decided to suspend operations until a better understanding is reached and the condition of the well bore is reviewed. An investigation including laboratory testing of drill pipe material is being undertaken to determine the cause of these failures.

President Petroleum;

Announced the successful testing and immediate placement on commercial production of Well DP 1001 at the Dos Puntitas field, Puesto Guardian concession, Argentina (President 50% working interest). This is the first new well of President to be commissioned as a producer since its July 2011 purchase of its interest at Puesto Guardian.  The oil will be sold through existing arrangements, where President and its partner are receiving approximately US$ 72 per barrel, as compared to the US$ 56 per barrel received in July 2011. These drilling and test results support President’s group production target of 1300-1500 bopd around end Q3 2012.

Providence Resources;

The Irish oil and gas exploration and production company, said today that new seismic data had revealed a significant reservoir potential on the Barryroe oil discovery in the North Celtic Sea Basin, offshore Ireland.

Range Resources;

It’s all going wrong for RRL as the company share-price continued its plummet to earth. A strategic review of the current operations in Georgia HAS NOW BEEN ANNOUNCED. The Company, along with its partners, Strait Oil & Gas and Red Emperor Resources, is to embark on a revised exploration and appraisal strategy for Blocks VIa and VIb in Georgia RE’ Appraisal of Coal Bed Methane Potential. Yes but what about the oil? IT DOESN’T LOOK HEALTHY HERE.

Serica Energy;

An oil and gas exploration and production company, today announced its financial results for the three months ended 31 March 2012.  The results and associated Management Discussion and Analysis copies are available at www.serica-energy.com

Silvermere Energy;

Further to the announcement made on 3 May 2012, Laredo’s yard in Galveston which is contracted by Dominion, has advised that an alternative lift-boat from within its own fleet has now been secured. The replacement lift-boat is expected to come off its existing contract in about 30 days and then to complete the piling and installation of the platform at Mustang Island for the re-entry of the I-1 well.

Sound Oil;

Has formally applied to the Italian authorities for the San Lorenzo Production Concession, with the target to develop and produce the Casa Tiberi gas discovery. The proposed development plan contemplates an initial gas production phase followed by the generation of electricity for the local network. Once awarded the first phase of development requires the fast-track installation of a processing plant which will utilise a number of the Marciano production facilities. The gas will be exported to the local grid network with a connection to the low pressure (4 bar) flowline located close to the site. Overall the phased development is designed to maximise the recovery of gas reserves.

And finally Xcite Energy announced that drilling of the 9/3b-7 well on the Bentley field is progressing satisfactorily, having reached a total depth of 6684ft. (Yes but what about the ailing sp?) The 17½” section has been drilled, 13⅜”casing set, cemented and pressure tested. The 12¼” hole has been drilled. After the 10¾” x 9⅝” liner has been set, cemented and pressure tested, drilling to the reservoir section will follow. Following the announcement on 14 December 2011, the Company’s 100% subsidiary, Xcite Energy Resources Limited, has now signed a time charter contract with Teekay Navion Offshore Loading Pte.  for the provision of the dynamically positioned “Scott Spirit” shuttle tanker vessel. The Scott Spirit is planned to be used as the in-field storage and offtake facility for Bentley crude oil during the Phase 1A of the Bentley field development programme now being undertaken. XER has also now concluded a contract with Ocean Installer AS for the installation of the oil export pipeline of 1.8 km between the Rowan Norway jack-up rig and the Scott Spirit.  The load out on the installation vessel “Polar Prince” is currently taking place in Peterhead in preparation for the work programme