A fairly quiet week in the SmallCapNews universe, no blockbuster discoveries or crushing disappointments to report this week.
Petro Matad (MATD) has completed the analysis of initial test results for the Davsan Tolgoi 4 well in Mongolia and is designing a stimulation program and contracting stimulation services for final completion of the well. Swabbing of the primary test objective recovered 2 litres of 42.5º API oil with no water, with an indicated un-stimulated flow rate of 2 barrels of oil per day. No formation fluid was recovered from the deeper secondary test interval. Testing is ongoing at DT-8 to be followed by DT-11. DT-11, the last well in the 2011 drilling programme, has now been drilled, logged, cased and cemented.
San Leon Energy (SLE) has completed the drilling and evaluation its first conventional exploration well in the Nida Concession in southern Poland. The well has been plugged as a dry hole at a total estimated well cost of 700,000 Euros. The next well in the programe is the Belvedere-1 well which is targeting a four-way closure within the Cretaceous and Jurassic horizons.
Caza Oil & Gas (CAZA) reported mixed news from its operations onshore US at the San Jacinto, Bongo, Windham and Hite Offset properties. Caza said that it had increased net daily production by 88% in the second quarter to 374 barrels of oil equivalent. However, concerns about the extent of the reservoir and high levels of water production at Bongo, have increased the risks on that project. Caza has five additional proven undeveloped locations to drill on San Jacinto, and plans to drill the next two wells in the fourth quarter.
Mediterranean Oil & Gas (MOG) said that the field development works on the Guendalina gas field, offshore Italy, have been completed on schedule and that since 26th September 2011 the field has been ready to commence gas production. However, the operator ENI that production start up on Guendalina will be delayed by approximately four weeks to late October because of a technical problem relating to ENI’s transportation facilities.
Max Petroleum (MXP) has begun testing the ASK-1 exploration well in the Asanketken Field, Kazakhstan, successfully producing 35 degree API oil at a stable rate of 672 barrels of oil per day from perforations in a Jurassic reservoir from depths of 1,281 to 1,287 metres during a 12 hour period. The well has been connected to temporary production facilities and will be placed on long-term test production. With the addition of ASK-1, Max’s current daily production is 3,671 bopd.
San Leon Energy (SLE) said the Lewino 1G2 well on Gdansk-W concession has spud. The well is targeting unconventional shale gas in the Lower Silurian, Ordovician and Upper Cambrian in the Baltic Basin in Poland. This is the first of a three well program in the Baltic Basin with wells to be drilled in the Braniewo and Szczawno concessions following Lewino 1G2.
Rockhopper Exploration (RKH) has spud the 14/10-8 exploration well. The well is located approximately 4.1km to the south-south-east of the 14/10-2 discovery well, outside of the Sea Lion Discovery Area. The well is designed to investigate reservoir and hydrocarbon presence within the Sea Lion Main Complex in an area of relatively low amplitudes and is also an exploration well on both the Casper and Kermit oil prospects.
In Peru, Gold Oil (GOO) has completed a marine 3D seismic survey over Block Z34 southern and northern areas. A contract for the data processing has been awarded to CGGVeritas and it is anticipated that initial fast track results should be available in nine weeks and full results in twelve to fourteen weeks. Gold Oil hopes to begin discussions with potential farm-in candidates towards the end of the fourth quarter.
Europa Oil & Gas (EOG) is to appeal against a €730,000 VAT bill from the Romanian authorities in respect of the sale of the Bilca field in 2007. A 2D seismic acquisition programme is underway on its Brodina and Cuejdiu blocks in Romania. In addition, the Voitinel-2 (to be named Horodnic-1) appraisal well is due to spud in the very near future. Europa added that it is close to securing a farm-in partner for the Brates Licence in Romania where it plans to deepen Barchiz-1, which was drilled in late 2010 but failed to reach the primary target.
President Petroleum (PPC) announced that Well A49 East White Lake, Louisiana has identified potential oil reserves at least 50% higher than expected. Preliminary analysis indicates that 37 feet of what is considered to be oil pay was identified at about 9,490 feet MD. After drilling on, a further 60 feet of potential oil pay was unexpectedly encountered in the Y2 Sands at about 9,700 feet. A new “twin” well will be drilled as soon as possible. Electric logs will then be run on all identified and further possible pay zones, and then the new well will be completed as a producer.
Victoria Oil & Gas (VOG) has completed of new shares at a price of 3.25 pence per share raising £9.5 million before expenses. The funds raised will be used to complete the development of the Logbaba gas and gas condensate project in Cameroon following the increase in the company’s working interest in the project to 95%. It will also fund the final payment to acquire a one third interest in Cameroon Holdings.
Range Resources (RRL) has completed a US$15 million strategic placement to Socius CG II, an investment group and a wholly-owned subsidiary of Socius Capital Group. The placement consisted of 83,563,829 Shares at A$0.1815 together with 41,781,915 unlisted 5 year options with an exercise price of A$0.1898. The share placement price represented a 10% premium to the prevailing share price. The proceeds will allow Range Resources to fast track plans to commence a proposed 4 well drilling programme to test identified Herrera prospects.
Sound Oil (SOU) has been awarded the Costa Del Sole Permit, onshore Sicily. Costa Del Sole is located in the southwest coastal region of Sicily in an area of known heavy oil discoveries and producing fields. The permit contains the Manfria-1bis oil discovery which flowed at a rate of 150 bopd and produced a cumulative 6,000 barrels during testing. An un-drilled prospect (Cielo) is adjacent to the discovery.
Cadogan Petroleum (CAD) has appointed Chicco Testa as a non-executive Director. Chicco Testa (59) is an Italian national with a long and varied background in the energy market.
