SmallCapNews | Oil & Gas Round-Up: 22 May

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Geometric Drilling - UK Based onshore drilling contractor

Oil & Gas Round-Up: 22 May

22 May 2009

11 years after the only drilling campaign, so far, the Falkland Islands now has a gas discovery. Rockhopper Exploration (RKH) has received a Competent Persons Report from RPS Energy that has re-classified an exploration well, 14/5-1A, drilled by Shell in 1998, as a gas discovery. The CPR also contains eight oil prospects on Rockhopper acreage with a combined prospective resource of (unrisked) 1 billion barrels recoverable. The company also noted that rig rates were easing.

Circle Oil (COP) has discovered oil and gas with the Geyad-1X exploration well in the onshore North West Gemsa Concession in Egypt. The total calculated net thickness of the two pay zones is approximately 29 feet. The well is currently being completed as a potential producer with a view to early production.

Ascent Resources (AST) has started drilling the Gazzata-1 well near the city of Modena in Italy's Po Valley. The drilling is expected to take about three weeks to evaluate the primary target, a large gas prospect that is estimated to be at a depth of 2,100m. Otto Energy of Australia has a farm-in agreement with Ascent whereby it will earn a 50% working interest in the project through the funding of the well.

Petroceltic International (PCI) has commenced drilling operations on the first of 5-7 wells on the Isarene permit in Algeria.

Gold Oil (GOO) has completed the acquisition of 2,013 km of 2D data over Block Z-34 offshore Northern Peru.

Pan Andean Resources (PRE) expects a 200km seismic acquisition programme in northern section of Block 114 in the Ucayali jungle of central Peru to start in June, lasting until November.

Faroe Petroleum (FPM) has agreed a swap with DONG E&P Norge AS of its interest in the Trym development for a combination of cash and interests in the producing Glitne and Enoch oil fields.

Following much bulletin board debate on the definition of "mid-May" Nighthawk Energy (HAWK) has said that it expects to announce details and completion of the disposal of 10% of its interest in Jolly Ranch project, onshore US, on or before 29 May. That's a definite deadline then...

Ascent Resources (AST) has farmed out one half of its 80% participation in the Eastern Slovenian Exploration Project to Aspect Energy International. A 3-D seismic acquisition, as well as appraisal and exploration drilling is planned during the coming year.

Chariot Oil & Gas (CHAR) has agreed to farm-out a 50% interest in block 2714A, offshore southern Namibia, to Petrobras. Under the terms of the farm-out agreement Chariot will receive a cash payment of US$16.04m, plus, in the event of a commercial discovery, payment of a production bonus. A 1,500km² 3D seismic acquisition is expected to be undertaken on block 2714A later this year.

Plexus Holdings (POS) has won a contract extension with BP Egypt to supply its proprietary POS-GRIP 15,000 psi High Pressure/High Temperature wellhead systems, together with service and support for gas exploration in the Nile Delta concession. The value of the contract is estimated at £1.6 million.

UK oil and gas industry consultants, Hannon Westwood, said that in 2008, exploration and appraisal drilling in the UK offshore sector reached its highest level since 1997. Of the 77 wells spud, 41 were exploration and 36 were appraisals of previous discoveries. There were 18 exploration and 19 appraisal successes in 2008, together finding or progressing some 841 million barrels of oil equivalent of additional UK reserves against 1.08 billion produced in the year. The central North Sea was the most active area.