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Oil & Gas Round-Up: 17 April

17 April 2009

This Round-Up covers the last two weeks.

Ithaca Energy (IAE) has commenced oil production from the Jacky oilfield and restarted production from the Beatrice Bravo facility. Jacky and Beatrice production is expected to average approximately 10,000 bopd gross during 2009.

Valiant Petroleum (VPP) expects first production to be achieved from West Don during April, to be followed by first production from Don Southwest later in the quarter.

Global Petroleum (GBP) said that the second well on the Leighton Prospect, Tyler Ranch #1, onshore USA, is flowing oil and gas at the rate of approximately 420 boepd comprising some 260 bopd and 950 mcf of gas per day.

Circle Oil (COP) has spud the DRJ-6 well in the Sebou permit in the Rharb Basin, Morocco. The drilling had been delayed due to very severe flooding in the area over the past few months.

Northern Petroleum (NOP) has declared its Ottoland fracturing programme to be a success. Northern has now completed well workovers for production and hydraulic fracturing of the reservoir at the Brakel and Wijk en Aalburg gas fields as well as the Ottoland oil field. Similar operations are scheduled for the Geesbrug and Grolloo gas fields in the near future in preparation for placing all five fields into production.

Pantheon Resources (PANR) said the Jumonville #2 well had reached total depth and an electric logging operation discovered oil and gas in two intervals in the deep Cib Haz Formation. Both of these units are very thin-bedded to laminated sandstones, siltstones and shales and further analysis will be required.

Tower Resources (TRP) has contracted a rig from ASCOM to drill Iti-1, its first commitment well in Uganda Licence EA5. The current best estimate is that the rig will arrive at the well site in early May to commence drilling by mid-month. Global Petroleum (GBP) is earning up to a 50% interest in the EA5 Licence and Production Sharing Agreement by funding the cost of drilling Iti-1 and a second well at its discretion, currently expected to be Sambia-1, when the results of Iti-1 have been interpreted.

Rift Oil (RIFT) has received the final feasibility study for a gas export pipeline that shows that there are no technical impediments to the construction of field facilities and a 300km export pipeline from Rift's Douglas and Puk Puk discoveries to a pipeline end module in the Gulf of Papua, for connection to a Flex LNG production vessel.

BowLeven (BLVN) announced that its talks with an unnamed suitor about a possible offer had terminated.

Indago Petroleum (IPL) has received insurance settlement monies in full in relation to the underground blowout suffered at the Al Jariya well on the Jebel Hafit prospect in February of 2008, and as a result now has cash balances in the region of $38 million. Indago also announced that it had disposed of its Oman licences to RAK Petroleum the operator, and no longer had interests in Oman.

Matra Petroleum (MTA) has received a VAT refund of £520,000 from the Russian tax authorities. Matra added that it is continuing to have constructive discussions with potential funding and joint venture partners regarding financing of the next well on the Arkhangelovskoe licence.

Caza Oil & Gas (CAZA) and Endeavour International Corporation are to undertake a joint exploration and development program in the United States. Endeavour will fund the acquisition, exploration and appraisal activity costs attributable to Caza's existing interest in selected assets. In consideration, as well as a program fee of US$3 million per annum, Endeavour will earn a 75% participating interest in any interest then owned by Caza in any particular asset in which Endeavour elects to participate.

Aurelian Oil & Gas (AUL) has farmed out a 20% interest in the B Golitza and B1 Golitza licences in Bulgaria to Sorgenia E&P S.p.A.

Gasol (GAS) is now in a direct joint venture agreement with Sociedad Nacional de Gas, the national gas company of Equatorial Guinea, after African Gas Development Corporation Limited assigned its rights and obligations under the JVA to Gasol.

Europa Oil & Gas (EOG) has received an offer from Royal Bank of Scotland to renew, on modified terms, its existing £2 million debt facility.

Afren (AFR) raised £84.8 million for the Ebok field development in Nigeria through a placing of new shares at 32 pence per share.

And finally, its the UK Budget next week and the North Sea oil industry is hoping that the Chancellor will make some changes to assist with the continuing success of the North Sea. The industry wish list includes up front tax refunds for North Sea exploration even if the explorer has no taxable income to set expenditure against, a (tax) "value allowance" to help develop smaller fields that might not otherwise be developed. The former would be welcomed by the underfunded exploration community but would require near term cash outflow from Treasury coffers whereas the latter doesn't. I wonder which one, if any, will find more favour...