Despite the horrible markets, companies in the SmallCapNews universe still managed to knock out some good well results and other bits and bobs of news to keep us interested.
Max Petroleum’s (MXP) KZIE-1 exploration well in the East Kyzylzhar I prospect in Kazakhstan has discovered 17 metres of net oil pay in two Jurassic sandstone reservoirs. Production casing is being run in the well, which is expected to be completed and placed on test production in approximately 60-90 days.
Max Petroleum also announced that the UTS-2 confirmation well in the Uytas Field has encountered 12 metres of net oil pay in the Cretaceous section and six metres of net oil pay in Jurassic reservoirs. The well will be completed and tested using a workover rig.
Nautical Petroleum (NPE) said the Kraken 9/02b-5 pilot well, located in UKCS North Sea Block 9/2b, has successfully encountered oil in the Heimdal III sandstone interval. The co-venturers will now commence the drilling of a horizontal sidetrack of up to 600m, which will be completed with a gravel pack and tested using an Electric Submersible Pump.
Gulfsands Petroleum’s (GPX) Khurbet East 19H (“KHE-19H”) well has achieved a flow rate of 5516 barrels of oil per day on production test with an oil gravity of approximately 26 degrees API, similar in quality to the oil produced in the central portion of the Khurbet East Field. The oil flow rate is the highest yet measured from any well within the Khurbet East field.
Range Resources (RRL) has successfully drilled MD 247, the first of 21 development wells on the Morne Diablo Block, Trinidad. Open hole logs indicate the presence of roughly 145 ft. of net oil pay in the shallow Forest Formation, an established producing horizon on the block. The well is being prepared for production testing next week.
Rockhopper Exploration (RKH) said the latest Sea Lion appraisal well has come in at the upper end of expectations, confirming the Sea Lion main fan is full to spill and that the field is commercially viable. Well 14/10-6 was designed to investigate reservoir and hydrocarbon presence within the mid-case Sea Lion mapped area.
President Petroleum (PPC) announced that the first two re-completions of the 2011 Louisiana programme are producing overall results ahead of expectations. The K2 well is currently producing at a steady rate of over 50 bopd net to President, and Well 51, whilst still cleaning up, initial rates of some 300 boepd are being produced (90% of which is good quality oil).
Bowleven (BLVN) has spud the Sapele-3 well in the Douala Basin, offshore Cameroon, with the Sapphire Driller jack-up rig. The Sapele-3 well, located around sixteen kilometres North West of the Sapele-1 location, is targeting the Tertiary interval and is to be drilled to an estimated target depth of circa 3,550 metres in water depths of around 30 metres.
Kea Petroleum (KEA) has terminated the production test at Wingrove-2 in the Taranaki Basin, New Zealand. Production during testing was compromised by excessive water flow and other issues. A total of 347 barrels of oil were produced during the test with average production rates of approximately 20 barrels of oil per day. “Although the Board is deeply disappointed that Kea could not get Wingrove-2 to achieve commercial production, the Directors are in no way disheartened about the area’s prospectivity.”
Tethys Petroleum (TPL) has opened its Doris oil production facilities in Kazakhstan. Oil is currently being trucked from this location at a rate of approximately 1,500 barrels of oil per day, which will increase to 2-2,500 bopd with the new production facilities. With the opening of the new rail-loading facility in Q4 of this year, which will reduce the trucking distance by half, Tethys to increase production to 4,000 bopd.
Plexus Holdings (POS) has announced £2 million worth of contracts for its POS-GRIP wellhead systems in the UK North Sea. One contract is with Gaz de France Suez for two exploration wells and the other is with Dana Petroleum for one exploration well.
Rock Solid Images (RSI) the independent geoscience consulting firm has been awarded its fourth project this year by clients active in the US unconventional shale plays. Revenues from shale play projects now exceed $1.1 million and span a diverse range of stratigraphy including Eagle Ford, Waynesburg and Marcellus shales.
GETECH, the oil services business specialising in the provision of exploration data and petroleum systems studies and evaluations, said that it will report a record level of revenue, and a trading profit which exceeds market expectations.
BP is to farm-in to Chariot Oil & Gas’ (CHAR) Southern Block 2714A licence, offshore Namibia. BP will take a 25% interest in the licence and has committed to cover Chariot’s 25% cost of drilling the first exploration well, as well as past costs incurred. Chariot has also farmed out a 10% interest in its Central blocks to PGS in return for PGS funding 50% of a 3D “GeoStreamer” seismic programme. Chariot will retain a 90% equity ownership of the licence.
Antrim Energy (AEY) and Valiant Petroleum (VPP) have agreed to the early completion of the purchase by Valiant of an Antrim Energy subsidiary holding a 30% interest in the Causeway Field. Antrim will retain a 35.5% interest in Causeway and under the deal will receive a US$21.75 million contribution to it’s share of costs of developing the field. The transaction was originally conditional on final approval of the Field Development Plan by DECC.
Petrel Resources (PET) has announced that it applied to participate in the 4th Oil Licencing Round in Iraq, but has not been pre-qualified. Petrel Resources added that no juniors or smaller Independent Oil Companies have been qualified for the bid rounds.
In Italy, the Ministry of Economic Development has withdrawn Sound Oil’s (SOU) Assigned Permits d148 DR-CS and d150 DR-CS from the application process to full permit status. This is in compliance with the environmental decree 128/1210 enacted in June 2010 which prevents oil and gas activity within 5 nautical miles of the Italian coast.
Nostra Terra Oil and Gas (NTOG) has disposed of its 2% interest in the Austin Chalk re-entry well in Lee County, Texas for $18,600.
Paul Crevello has resigned as CEO of Bahamas Petroleum (BPC) with immediate effect for personal reasons. Until a replacement is appointed, Steve Weyel, a Non-Executive Director will provide support to Chief Operating Officer, Paul Gucwa.
Europa Oil & Gas (EOG) has appointed Hugh Mackay as Chief Executive Officer. A geologist, Hugh Mackay spent eight years at BP in a variety of roles in the UK, the Oman and Egypt, ten at Enterprise Oil. Most recently he was Chairman and founder of Avannaa Resources.
Salamander Energy (SMDR) has appointed Dr Jonathan Copus as Chief Financial Officer. Jonathan Copus, 39, has worked as an oil and gas equity research analyst for over 10 years, most recently as a Director of Deutsche Bank’s Oil and Gas Equity Research team.
Circle Oil (COP) has appointed Nicholas Clayton as a Non-Executive Director. Nick Clayton has provided strategic and corporate finance advice to a number of public and private oil and gas companies since January 2007. He is also a Non-Executive Director at Sterling Energy (SEY).
