Here we go yet again. Another week passes with more toil & trouble in the Smallcaps Oil & Gas underverse.
Falkland Oil & Gas (LON: FOGL)
The oil and gas exploration company with an extensive licence interest in the Falkland Islands, released its Final Results for the year ended 31 December 2012. Telling the market that they were in a “Strong financial position” You can read them by clicking HERE
Fastnet Oil & Gas (LON: FAST)
Said today that it has been notified by the Irish Department of Communications, Energy and Natural Resources that it has been awarded licensing option 13/3 over part blocks 56/6, 56/7, 56/8, 56/9, 56/11, 56/12, 56/13 and 56/14 in the Mizzen Basin and the western end of the North Celtic Sea Basin, offshore Ireland. The newly named East Mizzen Licensing Option is valid from 1 May 2013 until 30 September 2014. It covers an area of 1,155 sq. km., and is contiguous with and extending eastwards from the previously awarded Mizzen Licensing Option 12/3, announced on 12 June 2012. Fastnet is the designated operator and has a 100% working interest in the East Mizzen Licensing Option.
Genel Energy (LON: GENL)
Signed a drilling rig contract with Noble Corporation for its African offshore drilling programme. The Noble Paul Romano deepwater, semi-submersible rig will be used to deliver a high impact drilling campaign over a 2 year period, starting in the last quarter of 2013. The rig, which is currently undergoing a special 5 year class survey in Valletta, Malta, has a rated water depth of up to 1,800 metres and a drilling depth of approximately 7,500 metres.
Gulf Keystone Petroleum (LON: GKP)
Provided an update on its four blocks in the Kurdistan Region of Iraq, including the “world class” discoveries at Shaikan and Sheikh Adi, as well as Akri-Bijeel and Ber Bahr. If you want to read it click HERE
Ithaca Energy. (LON: IAE)
Announces that the Storbarden exploration well on PL 506S in Norway has not encountered hydrocarbons and the well is to be plugged and abandoned. The costs of this and the other committed exploration and appraisal wells transferred to Ithaca as a result of the acquisition of Valiant Petroleum were accounted for in the price paid for the company, with no success assumed. Well that’s ok then! So you bought them with “No success assumed” then surely you didn’t pay for them? Maybe Itchy could scratchy their heads & clarify this?
Leni Gas & Oil (LON: LENI)
Hit the news this week as they announced that Meridian SEZC and LGO have entered into a definitive agreement through which Meridian will provide up to USD$50 million of debt with a first draw down scheduled to be $20 million. Now that’s an awful lot of money! This securitised commercial debt will be repayable on a straight line basis over 5 years. The arrangement does not require LGO to issue any new equity. [Some ones confident] The deal is subject to final documentation and regulatory approvals and is expected to be completed shortly. Neil Ritson, Chief Executive of LGO commented: “This represents a very significant step forward for the Company and will provide the funds needed for the development of our existing reserve base in Trinidad and Spain, and will additionally accelerate our plans for production growth in Trinidad.” Leni also released their 2012 Annual report & Accounts click HERE to read
Northcote Energy (LON: NCT)
Has entered into a letter of intent to acquire a 100% working interest in leases covering an additional 960 acres contiguous to the Company’s 50.15% owned Horizon Project which, if completed, would significantly increase its acreage position in the producing Mississippi Lime formation in Osage County, Oklahoma to 2,865 acres.
Nostra Terra Oil & Gas (LON: NTOG)
Announced the acquisition of additional acreage, the Company is now exposed to 21 potential drilling locations at the highly productive Chisholm Trail Prospect. During drilling, an on-going leasing program has been underway to expand the Prospect holdings. The latest update from the Company’s partner in the Prospect, Ward Petroleum, has confirmed that the partners own varying interests in 21 half sections, five of which have been drilled and in which NTOG has participated. Sixteen more half-sections remain to be drilled targeting the same geological formation as Gastar Exploration Ltd. (NYSE: GST). The Board believes this is a low-risk, high-return play and will prepare reserve estimates later in the year. The Company’s fifth well on the Prospect (CT5), in which it has a 2.2% working interest, has reached total depth and is being prepared for completion. Nostra Terra is also announced that it has raised £502,750 SEDA with Yorkville through the issue of 123,546,296 new ordinary shares at an average price of 0.407p per share. The majority of the proceeds have been deployed to acquire additional leases and expand the Prospect, along with developing further opportunities.
Rialto Energy (LON: RIA)
A truly shocking announcement from the Company this week. RIA has entered into an agreement with Vantage Drilling Company regarding payment terms in relation to the early termination of the rig contract regarding the Vantage Sapphire Drilling. Rialto will pay Vantage US$12.375 million in aggregate. The original contract value being US$17.325 million. The Company has already paid US$4.95 million under the terms of the rig contract leaving a final payment of US$7.425 million, which will be paid in two tranches; the first tranche of US$5.425 million has been paid and the second payment of US$2 million on the earlier of 90 days from today or 5 business days from the completion by Rialto of an equity capital raising. The second payment is subject to a promissory note that attracts interest at an annualised rate of 6% should the second payment not be made on the aforementioned dates. After making the first tranche payment to Vantage, the Company’s cash balance is approximately US$9.4 million. They’ve just pissed over $12 million dollars away. Why would any sane investor give this lot more money? SACK THE WHOLE BOARD. Stay well away from this company SHOCKING! Rialto’s Managing Director, Mr Rob Shepherd said: “Whilst we are disappointed to have had to make the difficult decision to terminate the Rig contract, it was made to ensure that Rialto and Vitol had sufficient time to finalise matters around our recently announced deal and to work together on a robust technical programme in Block CI-202. We are continuing to work with Vitol on finalising the transaction and are doing everything possible to bring this to a swift conclusion.” What he should have said was this “I have tendered my resignation”
San Leon Energy (LON: SLE)
Has been awarded two new exploration licences in Spain. The two new licences, Aquiles and Cronos, have been granted to Frontera Energy, San Leon’s wholly owned subsidiary, by the Spanish Council of Ministers. The Aquiles Licence, which is located in the Zaragoza and Navarro regions, covers 252,927 acres of the Zaragoza Basin. The Cronos Licence, which is situated in the Soria and Guadalajara regions, covers 239,596 acres in the Almazan Basin. Both Licences contain unconventional Paleozoic resource potential where the Company is targeting Permian, Carboniferous, Silurian and Devonian shales. Historical well data and geochemical data from nearby outcrops show the potential for a world-class unconventional play. As Tom Winnifrith says “Yadda, yadda, yadda”
Sirius Petroleum (LON: SRSP)
Announced today that they have entered into an Exclusivity Off-take Agreement with Glencore Energy which includes provision for a conditional pre-financing facility of up to $65 million, which will be netted against the initial sales of crude oil production, for the development of the Company’s near term production assets located off-shore Nigeria. Under the terms of the agreement, Sirius has the right to deliver up to 60,000 barrels of crude oil per day to Glencore who have exclusivity to market the crude oil on behalf of the Company for a period of 3 years. Sirius will be entitled to draw-down funds for the development of its oil assets after satisfactory approval from the technical team of Glencore, who will work together with Sirius to bring the fields into production in the near term.
