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Oil & Gas Round-Up: 11 September

11 September 2009

Regal Petroleum (RPT) has spud development well SV-61 in Ukraine. The objective is to develop proven reserves in the Carboniferous, Visean Age reservoir and to also extend the well deeper into Tournasian Age horizons, also in the Carboniferous, with the aim of appraising further gas potential. It is expected to take approximately six months to drill.

Pantheon Resources (PANR) said the operator, Vision Resources LLC, has recommended that the Vision Rice University #1 well be plugged and abandoned solely for mechanical reasons. This decision was taken after the high pressure snubbing unit was unsuccessful in retrieving the stuck coiled tubing from the wellbore. Despite this decision, Pantheon Resorces reckons the overall prospectivity of the project remains undiminished. During the limited testing operations conducted, the VRU#1 well flowed natural gas, condensate and black oil. This has confirmed an extension of the adjacent Anadarko/Ergon field.

Coastal Energy (CEO) and Salamander Energy (SMDR) announced that the operator has suspended the Phu Kheng-1 exploration well in the L27/43 concession, Northeast Thailand, ahead of a fracturing, completion and testing programme.

Gulfsands Petroleum (GPX) said that production at the Khurbet East Early Production Facility in Syria has now passed four million barrels of oil, with negligible associated formation water content.

Leed Petroleum (LDP) announced that installation of a gas lift supply line in the non-operated Main Pass 64/65 Field (Leed:25%) has been completed and placed in service. Field oil production has nearly doubled to 650 BOPD (gross).

Ithaca Energy (IAE) announced that the Ensco 80 drilling rig has been mobilised to the Jacky Field to drill a water injection well. The drilling and completion of the well is scheduled to last approximately 55 days.

Amerisur Resources (AMER) expects to spud the first exploration well Iguasa-1 in the Fenix block, Colombia, in the first week of October. The well is expected to take approximately 30 days to drill and log.

Tower Resources (TRP) has received consent from the Namibian authorities to enter the First Renewal Exploration Period of two years under the terms of the Licence 0010 Production Sharing Agreement. The work commitment is now a 3D seismic programme amounting to no less than 1000 square kilometres rather than the exploration well commitment when the PSA was signed. The variation allows time for gathering and interpreting further seismic data ahead of drilling. A 1,500 sq km 3D survey is expected to start by March 2010 at the latest.

Desire Petroleum (DES) has exchanged a letter of intent with Diamond Offshore Drilling for the drilling unit the Ocean Guardian to undertake a four well minimum drilling campaign in the North Falkland Basin. Projected arrival in Falkland waters from the North Sea is early February 2010. Desire has options to drill a further four wells for itself and or its partners.

Hallin Marine Subsea International (HMS) has been awarded a $20 million subsea Inspection, Repair and Maintenance contract by a subsidiary of Indonesia's state owned energy company. The contract will see Hallin's flagship subsea operations vessel "SOV Ullswater" engaged in the Java Sea, Indonesia.

Rockhopper Exploration (RKH) has announced that it has agreed terms with a third party energy company for a farm-in to one of the Company's licences in the North Falkland Basin. The farminee has agreed to contribute, at a promote, to the costs of drilling one well on the licence and to certain back costs. A Letter of Intent to farm in has been signed and discussions continue to progress the agreement into a fully binding joint venture.

Ramco Energy (ROS) is to exit the oil business and become a pure-play offshore wind company called SeaEnergy plc.

Shareholders in Offshore Hydrocarbon Mapping (OHM), nodded through a number of resolutions at a General Meeting. The most significant was the conversion of future CSEM vessel charter liabilities of approximately $45 million for equity. The vessel owner Seatrans accepted $5 million in new equity priced at 21.52 pence per share as consideration for the vessel charter amendments. In addition, OHM raised raised £2.6 million in a placing of new shares at 21.52 pence per share.

Sterling Energy (SEY) confirmed Board changes. Richard Stabbins has stepped down as Non-Executive Chairman, but remains a Non-Executive Director, Alastair Beardsall has been appointed an Executive Director and Chairman of the Board and Keith Henry has been appointed as a Non-Executive Director.

Aurelian Oil & Gas (AUL) has appointed Mark Reid (41) to the Board as Chief Financial Officer of Aurelian. The appointment will take effect from 21 September 2009. Mark Reid has over twenty years of experience in investment banking and financial services. He joins Aurelian from the London office of BNP Paribas Fortis where he was Head of Oil and Gas.

And finally, our friends at North Sea Reporter reckon that now is an opportune time for North Sea operators to contract jack-up rigs. Rig market data compiled by North Sea Reporter indicates the utilisation rate for North Sea jack-ups has remained at 83% for the third consecutive month and may be close to bottoming out. Of the 35 jack-ups based in the North Sea, six are either in port or stacked, four of which are classed as being available for hire, while two are using the lull in demand to undergo repairs and upgrades. Dayrate information from more than one contractor provides evidence that the jack-up benchmark range of between $200,000 and $225,000 which existed for much of 2008 has moved lower. The latest data indicates a new benchmark range of $110,000 to $160,000 is developing, although with other jack-ups coming off contract, there could still be some fluidity in this range too.