Afren : AFR
Heavily tipped amongst Private Investors Afren yet again came up with the oily goods. The Simrit-2 exploration well in the Kurdistan region of Iraq has been drilled to a depth of 3,800 metres and the total net oil pay has increased to 460 metres. In addition, a cumulative flow rate of 13,584 bopd has been achieved from three out of 12 zones to be tested. Having previously encountered an estimated 409 metres of net oil pay throughout Cretaceous, Jurassic and Triassic reservoirs down to the initially planned total depth of 3,700 metres, Afren and operator Hunt Oil Middle East subsequently elected to deepen the well and continue drilling to a revised total depth of 3,800 metres in order to test additional prospectivity. Analysis of data collected indicates the continual presence of light oil shows throughout the deepened section of the well, extending the estimated net pay encountered by the well to 460 metres. No oil water contact has been established in the target reservoirs.
Borders & Southern Petroleum : BOR
Has released the details of what it called “disappointing” results from its Stebbing well. Well 61/25-1 was drilled to a total measured depth of 3060m (true vertical depth of 3011m). The well penetrated the upper Tertiary target on prognosis but was unable to reach lower targets due to anomalous pressure conditions. The lower targets remain unevaluated.
Egdon Resources : EDR
Has been granted permission for an exploratory borehole near the village of Westerdale in onshore Petroleum Exploration and Production Licence PEDL068, where Egdon is operator with a 40% interest. The Westerdale-2 well is planned to evaluate the Ralph Cross/Westerdale gas discovery in an area up-dip of the Ralph Cross-1 well, drilled in 1966, which flowed gas from fractured limestone of the Permian age Brotherton Formation at a depth of 1040 metres below surface. Company evaluations have indicated the potential for between 5 and 38 billion cubic feet of gas in place, with a most likely case of around 18 Bcf. The Company had previously drilled a well in the Westerdale area in 2006. This well did not find commercial gas reserves and the site was subsequently restored to farmland. Holders in PEDL068 are as follows: Egdon Resources U.K. (operator) 40.00%. Sterling Resources (UK) 47.00%. Yorkshire Exploration/8.00%. Montrose Industries/5.00%.
Gulf Keystone Petroleum : GKP
Cheered share-holders this week with another major upgrade of the gross oil-in-place volumes for the Shaikan field in the Kurdistan Region of Iraq. The revised gross oil-in-place volumes for the Shaikan field, as calculated by independent consultants Dynamic Global Advisors (DGA), are a P90 value of 12.4 billion barrels to a P10 value of 15 billion barrels of oil-in-place, with a mean value of 13.7 billion barrels. Gulf Keystone described the upgrade as “very significant” against the previous range estimate of 8.0 to 13.4 billion barrels of gross oil-in-place with a mean value of 10.5 billion barrels. The upgrade is based on data acquired since the last resource evaluation of the Shaikan discovery by DGA issued in November 2011 and is the fourth successive upward revision by DGA since the Shaikan discovery was announced in August 2009.
Leni Gas & Oil : LGO
Signed a deal to sell its Spanish assets for €8 million in cash. A €200,000 non-refundable deposit against the consideration has been paid by the buyer to obtain exclusivity to complete the transaction by the 27 July 2012. Proceeds from the transaction will be used in the company’s existing operations, notably in Trinidad where an active work programme on the Goudron Field is now underway and additional work is also planned in Moruga North and in the Cedros Peninsula.
Northern Petroleum : NOP
Has confirmed that the Stena Drillmax ICE drillship has begun work on the second well on the Guyane Maritime permit. The new well, GM-ES-2, follows the Zaedyus oil discovery in late 2011, which encountered 72 metres of net oil pay in two turbidite sand systems successfully proving that the Jubilee play, offshore Ghana, is mirrored across the Atlantic from West Africa.
Providence Resources : PVR
And its partners are preparing to begin appraisal drilling on the Spanish Point gas condensate discovery, offshore Ireland. The Upper Jurassic Spanish Point discovery lies in Frontier Exploration Licence (FEL) 2/04, which also contains the Lower Cretaceous Burren oil discovery. Is situated in the Main Porcupine Basin, approximately 200 km off the west coast of Ireland in 400 metres of water. Under the terms of a 2008 farm-out agreement, Chrysaor elected to exercise its option to drill up to two appraisal wells on the Spanish Point discovery. In return for committing to such a significant work programme, Chrysaor’s equity participation in FEL 2/04, and the adjacent FEL4/08, increased from 30% to 60%, with Providence and Sosina retaining 32% and 8%, respectively. As part of the agreement, Chrysaor provided a financial cap on Providence’s and Sosina’s financial exposure to the appraisal drilling costs.
Sound Oil : SOU
Has agreed a private placement through Astin Capital Management and is planning to make an open offer to existing shareholders. The placement involves Sound issuing 774,341,464 new ordinary shares of 0.1 pence each immediately in exchange for 7,143,300 redeemable subscription notes at a par value of £1 per note. The notes are unsecured and non interest bearing. They will be redeemed in seven equal amounts for a cash consideration at the end of seven separate trading periods, commencing 25th July 2012 and finishing in February 2013.
