Another week of turmoil in the global markets, however we still have some good and a little not so good news in the SmallCapNews universe.
Trapoil (TRAP) announced that testing operations have recently been concluded on the Lybster well in the North Sea. The well flow tested at rates up to 1,900 barrels of oil per day of 38 degree API oil through a variable choke set at 36/64th. The well has now been shut-in pending completion of surface facilities prior to commencing production, which is currently anticipated in early 2012. Trapoil holds a 35% carried interest in the. From the date of first production and until development and operating costs related to the carry have been fully recovered, Trapoil will receive approximately 20% of net petroleum revenues attributable to its carried interest in Lybster.
In Kazakhstan, Tethys Petroleum’s (TPL) appraisal programme on the Doris oil discovery and further exploration on the Akkulka and Kul-Bas block is continuing apace. The Kalypso (KBD01) wildcat exploration well is currently at a depth of 4,128 metres. Some oil and gas indications have been observed but the significance of these cannot be ascertained until electric logs have been run and further evaluation carried out. The planned total depth of this well is approximately 4,300 metres. The Doris (AKD06) appraisal well is estimated to be completed by October 2011.
Meanwhile in Tajikistan, Tethys said the East Olimtoi (EOL09) exploration well has reached total depth and electric logs are currently being run. Following a full analysis of the Bukhara interval, a testing programme will commence. The Persea 1 exploration well is drilling ahead with TD being reached by October. Tethys has also commenced a gravity, gradiometry and magnetic aerial survey over the entire 35,000 km2 Bokhtar Production Sharing Contract Area.
President Petroleum (PPE) reported that Well 50 East White Lake, Louisiana, has now been successfully re-completed and the initial results are considered very good with steady state rates of approximately 100 boepd, of which some 40% is good quality oil. Elsewhere drilling has commenced on the first of two wells targeting proven undeveloped reserves at East White Lake. Additionally the side track of the McKerall 1 well is still on track to commence in September.
Matra Petroleum (MTA) has shut in well-12 at its Sokolovskoe field in Russia after the well ceased to flow following a build-up of wax in the tubing and an increase in water cut to 70%. A work-over rig has been sourced to pull and clean the production tubing and then to artificially place the well into temporary production, using nitrogen. This will provide the best opportunity to identify the source of the water production. Well-13 is also shut in pending a decision to install an electrical submersible pump and surface production facilities at the site. Matra added that it needs to raise $7 million to undertake seismic over the field and drill Well-14.
Global Petroleum (GBP) said that, in Texas, the latest Leighton Olmos vertical production well, Peeler #3, has begun to flow oil and gas at the combined rate of 370 boepd from the Olmos reservoir (comprising 325 bopd and 268 mcfgpd). This is the ninth well targeting the Olmos reservoir in which Global has a 15% working interest (11.25% net revenue interest). The well will be connected for production in the next two weeks.
Max Petroleum (MXP) has commenced drilling the UTS-3 appraisal well on the Uytas prospect in Block A. The total depth of the well will be approximately 800 metres, targeting potential Cretaceous and Jurassic reservoirs.
Rockhopper Exploration (RKH) said the initial interpretation of fast track new seismic data in PL032 and PL033 has been completed and shows the Sea Lion Main Complex (“SLMC”) to extend to the south and new high case area to extend over 90km2. In addition two new fan prospects Casper and Kermit have been identified within the new seismic. Internal estimates of oil in place suggest a mid case size of 1,086 million barrels and a high case of a whopping 1,279 million barrels. Rockhopper reckons a 30%-40% recovery rate is achievable. These oil in place numbers are within Rockhopper’s 100% owned acreage and there could be another 10% sitting in the Desire Petroleum operated block next door in which Rockhopper has a 7.5% working interest.
Rockhopper has the Ocean Guardian rig signed up for three more wells and is looking into adding more wells to the programme.
Unsurprisingly, Desire Petroleum (DES) welcomed the update from Rockhopper, in particular its statement that the Sea Lion Main Complex is believed to extend into licence PL004 (Tranche D), in which Desire has a 92.5% interest.
Nostra Terra Oil & Gas (NTOG) said that the initial well in the Verde Prospect in south-eastern Colorado, has been drilled and will be completed for production. NTOG has a 16.25% working interest (WI) in the Verde prospect. Following evaluation of testing and potential production of the initial well, two or three further development wells could be drilled, in which Nostra Terra also has the right to participate.
In its first update since March, Pantheon Resources (PANR) said that site works have been completed in preparation for the drilling of Kara Farms #1H in Tyler County, Texas. A rig has not yet been secured to drill the well.
Range Resources (RRL) and Red Emperor (RMP) announced that Africa Oil, the PSA operator, has contracted a drilling rig to drill two exploration wells in Puntland, Somalia. The spud of the first well is expected during the fourth quarter of this year. The first prospect, Shabeel-1, is targeting Prospective Resources of in excess of 300 million barrels of oil.
Rock Solid Images (RSI) has been awarded a follow-on seismic reservoir characterization project worth almost $0.4 million to de-risk interpreted prospects offshore Equatorial Guinea. The project is currently underway and delivery of the results is expected in September 2011. Following the conclusion of this assignment RSI will have applied its proprietary seismic conditioning enhancement routines and advanced reservoir characterization workflows to more than 15,000 square kilometers of seismic data offshore Africa from the Ibhubesi Basin in South Africa to Mauritania, West Africa.
GETECH (GTC) announced a further $500,000 sale of the Iraq aeromagnetic dataset, following the signing of an exclusive marketing agreement with the Geological Survey of Iraq in December 2010.
And finally, Bluebird Energy, (BBE) which only joined AIM in July, has announced a strategic and operational review of it’s US assets with a view to recommending proposals which they believe will represent the best course of action for shareholders.
