As the great economic depression gets deeper, EnCore Oil has succumbed to the charms of Premier Oil while Cove Energy pops up with more good news in Mozambique.
Cove Energy (COV) has reported that the Camarão E&A well in the Rovuma Basin Area 1 block, Offshore Mozambique has found significant additional resources. The appraisal objective, in Oligocene fan systems, encountered approximately 240 net feet of natural gas pay in excellent-quality reservoir sands, pressure data confirms static connectivity with the partnership’s previously announced Windjammer and Lagosta discoveries which are some 15 miles apart. The exploration section of the well encountered 140 net feet of natural gas pay in shallower Miocene and Oligocene sand packages not encountered in previous wells. The operator Anadarko estimates a substantial increase in recoverable resources to at least 10TCF (142 million BOE net to Cove Energy).
Coastal Energy (CEO) said that the Bua Ban North A-07 appraisal well encountered 48 feet of net pay sands in the primary Upper Miocene objective with 26% average porosity. Pressure data indicate that the A-07 well is in communication with the A-05 well. Coastal plans to drill two to three more wells at Bua Ban North A before production facilities arrive on location in late October.
Solo Oil (SOLO) has announced that at the Ausable Field in South Western Ontario, the operator has completed production testing of its Ausable well #1 using hydraulic venturi downhole pump technology. The computed average daily production rate over the test period was 103 bopd compared to the previous beam pump production of 5-10 bopd. Permanent venturi pumping equipment is being installed in Ausable well #1.
In Algeria, Petroceltic International’s (PCI) AT-8 well located in the north of the Ain Tsila field tested three zones without fracture stimulation at a cumulative maximum rate of 15.4 mmscf/d. The AT-8 well is now being prepared for fracture stimulation in the Upper zone. Petroceltic added that the results confirm the potential for good productivity towards the north of the field, are likely to have a positive impact on estimates of recoverable gas reserves and are very encouraging for the ultimate commercial development of Ain Tsila.
In Tunisia, Gulfsands Petroleum (GPX) said the Sidi Dhaher-1 exploration well has identified a potential oil column based on formation pressure data, and oil along with drilling mud and mud filtrate has been recovered from the reservoir via wireline sampling methods. The well will be suspended and a production testing operation will be undertaken after completion of programme design and mobilisation of the required equipment to the site. In the event that testing operations indicate a commercial oil discovery, Gulfsands has the option to become operator of the development.
Still with Gulfsands Petroleum, in Syria, the company has been required to reduce Block 26 production in line with reduced availability of crude storage capacity within the country. Production operations on Block 26 have consequently been impacted such that average gross production during the month of September was 14,547 bopd versus the average for the month of August of 24,112 bopd. As of October 3rd daily gross production had been reduced further and is currently steady at approximately 6,000 bopd.
Providence Resources (PVR) has completed a seismic inversion study over the Dragon gas discovery in the St George’s Channel Basin, offshore south east Ireland. The study which was carried out by IKON Geoscience, involved the modeling of historical well and seismic data and indicates that the Dragon gas accumulation may extend further into Irish waters than had been previously been mapped, with a potential resource base of up to c.300 BSCF and a c. 75:25 resource split between Ireland and the UK.
GETECH, (GTC) the oil services business specialising in the provision of exploration data and petroleum systems studies and evaluations, has announced a further sale worth more than $550,000 of its Russian potential field (gravity and magnetic) products.
Leni Gas & Oil (LGO) has agreed to acquire Goudron E&P, a company which holds exclusive rights to acquire the Incremental Production Service Contract for the Petroleum Company of Trinidad owned Goudron Field in onshore south-eastern Trinidad. The field has had very little investment over the last 25 years, and the existing production comes from about 30 wells, of which 12 are on production with beam pumps and the others flow naturally or are periodically swabbed. Leni Gas & Oil reckons an initial $4 million, 12-18 month, work-over programme on up to 50 existing wells could raise production from 100-200 bopd to 450-500 bopd.
Lochard Energy Group (LHD) has received the A$2 million first tranche of the earn out payment due from the sale of its fluids business in April this year. Lochard has also received an additional sum of A$754,422 which represents the final working capital adjustment on the sale. The first tranche of the earn out will be used towards funding Lochard’s share of the Athena development costs which is due to start oil production later this year.
Lochard Energy is also looking for farm in partners for the Thunderball prospect on UK North Sea block 14/26b. Lochard has a 90% interest in this block. Interpretation of recently acquired seismic data has identified most likely recoverable prospective resources of 620 BCF of gas in the Scapa sands (c.50% on block) and most likely recoverable prospective resources of 74mmbbl of oil in the Buzzard sand member (c.90 % on block).
Gulfsands Petroleum (GPX) has completed the sale for $6.0 million of oil & gas properties located in the shallow water shelf area of the Gulf of Mexico, as part of an ongoing effort to rationalize the oil and gas property portfolio.
Dominion Petroleum (DPL) has agreed to farm-out a 20% working interest in Block 7, deepwater Tanzania to a subsidiary of Mubadala Oil & Gas. Following the completion of the transaction Dominion will hold an 80% working interest and operatorship in the Block. Mubadala will pay Dominion a $20 million cash consideration on closing and carry Dominion’s remaining 80% working interest in a new seismic programme expected to commence prior to year-end up to a cap of US$2.4 million.
EnCore Oil (EO.) has recommended that shareholders accept a 70 pence per share offer from Premier Oil (PMO) valuing the company at £221 million. EnCore shareholders can also elect to receive 0.2067 Premier shares for each EnCore share held instead of part or all of the cash consideration. EnCore said that the deal de-risks it’s development portfolio of assets and also gives shareholders the option of retaining exposure to EnCore’s assets within Premier Oil’s enlarged portfolio via the share alternative.
In Kazakhstan, Max Petroleum (MXP) has lost a final appeal to review a tax claim previously brought against the company. Max had fully settled the Tax Claim in June 2011 and the loss of the appeal has no impact on the it’s financial condition or ability to fund its exploration, appraisal and development drilling programme.
And finally, Sterling Energy (SEY) has appointed Dr Philip Frank as Exploration Director in place of Andrew Grosse who will be leaving the company. Philip Frank was instrumental in Emerald Energy’s exploration successes in Colombia and Syria, prior to that company’s acquisition by Sinochem Resources in 2009.
