Quiet week in the Smallcaps oil underverse.
Bowleven (LON:BLVN)
Are preparing to test the IM-5 well offshore Cameroon after it encountered liquids-rich hydrocarbon-bearing pay in the Middle and the Intra Isongo targets. The well was designed to appraise the reservoir and fluid properties of the Middle Isongo and to explore the additional potential of the Intra Isongo. In the Middle Isongo, the well intersected a log evaluated gross hydrocarbon interval of approx’ 33 metres. The net pay is estimated to be approx’ 25 metres. Log evaluation indicates that a HWC has been encountered at approx’ 3,360 metres MD, extending and deepening the hydrocarbon column encountered at the IM-3 well by 93 metres. A further 20 metres of reservoir quality sands were encountered beneath the HWC and the well was still in sand at TD. The Intra Isongo discovery intersected a log evaluated gross hydrocarbon interval of approximately 80 metres in reservoir sands which correspond to the seismic event identified pre-drill. The net pay is estimated to be approximately 70 metres. Updated volumetrics for the Middle and Intra Isongo will be generated following completion of the well and the integration and evaluation of well and seismic data. Based on preliminary analysis an increase in both the P90 and P50 volumes is anticipated.
Cadogan Petroleum (LON:CAD)
Announced the re-evaluation of its assets should be complete within the next three months. Cadogan said that the deep and challenging exploration targets in the Eastern Lower Carboniferous play were unsuccessful since the discovered reservoirs lacked adequate petrophysical properties for successful production. In Pokrovska, seismic reprocessing has helped to identify three shallow depth prospects, two mid-depth prospects and 3 deep prospects. In West Ukraine, three shallow depth leads have also been identified within the Debeslavetska licence. While it awaits the results of the asset review Cadogan has undertaken marginal, low risk and low capex activities to enhance production and support the incremental provision of information to the Company’s asset review. On the Monastereska licence in Western Ukraine a sucker rod pump was installed in the Blazhiv 1 well, which is showing positive results. The re-entry of another two existing wells is under evaluation. An intervention in the Borynya 3 well (Bitlyanska), in order to perform a long production test on the shallower reservoirs (interval from 2,000 m down to 3,200 m) and eventually start-up early production, is ongoing. This program is due to commence by mid-2013. In Zag 3 an intervention to open the V19 level to production will be concluded by the end of February. An extension of the upper V18 interval was also performed. InSAR technology (radar wave measurements from satellites) may be deployed to monitor shallow gas fields’ depletion through time with the first test likely to be in the Debeslavetska area. The company also expects to apply micro-seismic technology to the Bitlyanska area to further evaluate future gas production and its relative impact in the area.
Chariot Oil & Gas (LON:CHAR)
Disappointed the market with news that there won’t be any drilling until 2014 at the earliest and that the Tapir trend has been dropped from the Namibian prospect inventory. In its interims last September there were indications that the company would have another crack at drilling offshore Namibia this year. However, new CEO Larry Bottomley has insisted that the mass of data derived from a handful of unsuccessful wells last year means the company needs more time to de-risk potential drilling locations. Partner programmes for exploration wells in Namibia are being launched this year while wells on Chariot’s assets in Mauritania and Morocco will wait until 2015 and 2016 respectively.Chariot has $68.3 million cash and said that all contractual licence commitments are fully funded through to the end of 2014.
Circle Oil (LON:COP)
Plans to drill six wells in Morocco, four wells in Egypt and two in Tunisia
Enegi Oil (LON:ENEG)
Has applied to the Irish Government to convert its licensing option in the Clare Basin to a full exploration licence ahead of plans for further work to prove up a resource that it currently estimated to contain 3.62 trillion cubic feet of free gas initially in place.
Fastnet Oil & Gas (LON:FAST)
Has agreed an exclusive option with PSE Kinsale Energy Limited to farm into the ‘Deep Kinsale Prospect’ beneath the producing Kinsale Head gas field. The deal involves acquiring a minimum of 500 sq km 3D seismic in 2013 with the potential to drill in 2014 to earn a 60% working interest subject to back-in rights. Click HERE to view.
Jubilant Energy (LON: JUB)
Announces the spudding of well KPL-3E-7 on 18 February 2013. This is the first of the planned six well Phase-III-Extension development drilling campaign in the oil producing Kharsang Field, Arunachal Pradesh. The Phase-III-Extension campaign was approved by the Management Committee of the Kharsang Field in January, 2013 after the conclusion of a successful seven well Phase-III drilling campaign undertaken between July, 2011 and August, 2012. Six of the seven wells in the Phase-III campaign have been put into production and currently contribute approximately 700 barrels of oil per day. One further well tested positively for gas and has been held for future gas production, as it is commercially viable.
Europa Oil & Gas (LON: EOG)
Released a First Half Production and Revenues rns this week. UK production and revenues generated during the six month period ending 31 January 2013 is in line with expectations. The Company currently has three producing assets in the UK, all located onshore in the East Midlands, with a 100% working interest in the West Firsby and Crosby Warren fields and a 65% working interest in the Whisby 4 well.
Gulf Keystone Petroleum (LON:GKP)
Announced that its Bakrman-1 well on the Akri-Bijeel Block in Kurdistan had made a new Triassic discovery. Bakrman-1 is the company’s first exploration well to target the Bakrman structure and represents the second discovery on the block following the Bijell discovery in 2010. The latest well took nine months to drill, with testing work expected to be completed in April. The company also updated on its ongoing court litigation with Excalibur Ventures which is due to finish later this month or early March. However, because of the size of the case, completion of the judgment may take in excess of three months. In the meantime, Excalibur has been ordered to make additional payments totalling £4.7 million within 21 days as additional security for the costs of Gulf Keystone and two of its subsidiaries of defending the legal action.
Lochard Energy (LON: LHD)
Advises that the letter to all CDI holders regarding the delisting process on ASX has been despatched today.
Max Petroleum (LON:MAX)
Said its ZMA-A20 development well in the Zhana Makat Field had encountered hydrocarbons in Necomian and Jurassic sandstone reservoirs in line with expectations. The company plans to complete the well and put it on production as soon as possible.
Mediterranean Oil & Gas (LON: MOG)
Noted the official website of the Italian Ministry of Environment indicating that the EIA Commission, charged by the Ministry to rule on the Ombrina Mare oil and gas field development EIA, has ruled positively in favour of MOG’s submission. This represents a significant step towards the final approval, by Ministerial Decree, of the Ombrina Mare EIA that was submitted by the Company in support of the application for the award of a Production Concession in 2009. Award of the Production Concession will enable the Company to progress the development of the Ombrina Mare oil and gas field, which will start with the drilling of a pilot development well.
Northcote Energy (LON:NCT)
Has reported that fracking work on its Horizon project is due to start within weeks. It has also elected to participate in the deepening of the Burkhart #1 well on the project acreage, which will give it exposure to additional potential pay zones. Northcote has also acquired a 3.125% working interest in the Bird Creek Prospect in Osage County, where two wells are scheduled to drill in the first half of 2013.
Range Resources (LON:RRL)
Have agreed outline terms on a coalbed methane deal in Georgia. Following a disappointing drilling programme in 2011 and 2012, the partners reviewed the licence interests and opted to explore low cost shallow appraisal drilling of the contingent resources around the Tkibuli-Shaori coal deposit. The latest move will see the partners launch a JV with a new partner called the Georgian Industrial Group. The new venture will start with feasibility and technical studies, followed by an initial three or four well pilot project.
Regal Petroleum (LON: RPT)
Announced the spudding this week, of the SV-59 well at its 100% owned and operated Mekhediviska-Golotvshinska (MEX-GOL) and Svyrydivske (SV) gas and condensate fields in Ukraine. The well has a target depth of 5,470 metres, with drilling operations scheduled to be completed in December 2013 and, subject to successful testing, production hook-up by the end of the first quarter of 2014. The well is targeting the Visean reservoirs (“B-Sands”).
Sound Oil (LON:SOU)
Confirmed this week that a recent farm-in offer for its Badile prospect had come from an Italian oil and gas major. However, the company has rejected the proposed deal because the terms did not reflect its view of the valuation. Instead, Sound Oil said it would press ahead with the permitting process ahead of a planned 2014 well on Badile. It will also be recruiting a technical team with the capabilities to manage the drilling work.
Salamander Energy (LON: SMDR)
Said that the first four wells of the current sixteen well development drilling programme on the Bualuang oil field, Gulf of Thailand are now in production and have been performing ahead of pre-drill expectations. The wells are all being drilled from the Bravo platform using the Atwood Mako rig. Wells completed to date are the BB-01H, BB-04H, BB-06H and BB-10H wells. All the wells have been drilled horizontally into the T4 Miocene sandstone reservoir, encountering between 495 m to 530 m of pay, with excellent reservoir properties of 27% – 33% porosities and 85% – 99% net to gross ratios. The wells have been completed using standalone screens and electric submersible pumps. The average time for drilling, completion and production handover for each well has been 21 days.Year to date production for the Bualuang field has averaged 10,531 barrels of oil per day. Average daily production in 2012 was 7,200 bopd and the full year production rate in 2013 is forecast to be between 11,000 and 14,000 bopd, representing a minimum of a 50% increase in productionyear on year.
Trapoil (LON: TRAP)
Confirmed earlier this week that operations have commenced on the Scotney exploration prospect (“Scotney”). The partners in Licence P.1658 are Suncor Energy UK Limited (28.75%, operator), Norwegian Energy Company UK Limited (43.75%), First Oil and Gas Limited (15%.) and Trap Oil Limited (12.5%. carried interest). Scotney is mapped as a four-way dip closure at the Base Cretaceous Unconformity level with Late Jurassic Tweedsmuir sands as the reservoir objective and best estimate gross prospective resources for the entire prospect of approximately 57 million barrels of oil equivalent (approx’ 7.1 mmboe net to Trapoil, unaudited estimate by Trapoil’s management). The well is being drilled using the Awilco WilHunter rig and well operations are currently anticipated to last approximately 36 days in the dry hole case. The well will be drilled to an estimated target depth of 10,690 feet Measured Depth Below Rotary Table or 10,580 feet True Vertical Depth Sub Sea.
