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Oil & Gas Round-Up: 29 May

29 May 2009

Ithaca Energy (IAE) has started operating the downhole pump on the Jacky field in the North Sea, increasing gross production rates to approximately 10,000 barrels of dry oil per day. This rate is significantly above the levels expected from the field with both the well and the reservoir performing strongly.

Providence Resources (PVR) has re-completed the A7 well at its Vermillion 60 field in Louisiana, in which it holds a 50% working interest. The new zone is currently flowing at c. 5 MMSCFGD gross.

Europa Oil & Gas (EOG) said that a sequence of experimental production runs at the West Firsby oilfield has demonstrated that the field has been underperforming and the wells can produce at much higher levels. The field is currently producing from one of the two available wells and plans are afoot to bring both wells up to a combined rate of 170bopd.

Gulfsands Petroleum (GPX) has commenced drilling operations at the Khurbet East No.10 development well, the second of three development wells programmed for 2009, in Block 26 Syria.

Tower Resources (TRP) and Global Petroleum (GBP) have spud the Iti-1 exploration well in Exploration Area 5, Uganda. The well is being drilled to an estimated depth of 650 metres and operations should take two to three weeks.

Amerisur Resources (AMER) has completed a surface geochemical sampling programme in the San Pedro contract in Paraguay. Initial results from the samples will be available during early June and final analysis will be completed during July 2009.

Island Gas Resources (IGAS) has commenced electricity generation from domestic coal bed methane at its Doe Green site in Cheshire, UK. During the commercial test phase electricity was successfully produced and transferred to the National Grid. First commercial sales are planned to commence shortly.

Stratic Energy (SE.) expects to spud the Bowmore appraisal well in the North Sea in June. Stratic Energy is also in discussions with bidders for some or all of its interests in Italy and Turkey and the Breagh gas discovery in the UK, to raise capital for reinvestment and to reduce debt levels. Production from the West Don field is expected to build to gross peak of 25,000 bopd (4,300 bopd net Stratic) in 3Q 2009.

Hallin Marine (HMS) has been awarded a US$5 million contract extension for additional saturation diving equipment for an offshore support company based in Singapore. The equipment is scheduled for delivery in Q1 2010.

Offshore Hydrocarbon Mapping (OHM) is to conduct a CSEM survey over Nautical Petroleum's (NPE) Kraken field in the North Sea. The survey represents the first full commercial use of OHM's WISE (Well Integration with Seismic and Electromagnetics) technology which uses available seismic and well data to underpin CSEM survey design for use in technically challenging areas.

Kentz Group (KENZ) has been awarded a multi-million dollar contract by Qatargas Operating Company Limited. The project includes the electrical, instrumentation and telecommunications work on the new Phase 6, liquefied natural gas storage and loading facility in Ras Laffan Industrial City located on the Northeast coast of Qatar.

Chariot Oil & Gas (CHAR) said its joint venture partner in Peru, Jindal Steel and Power Limited, has decided to withdraw from licence applications provisionally awarded in 2008, and, rather than fund 100% of the exploration programme itself, Chariot has also withdrawn from these blocks.

Cadogan Petroleum (CAD) has uncovered evidence of potential irregular payments of US$5-7 million surrounding the procurement of certain assets and services. Investigations are continuing.

Valiant Petroleum (VPP) has completed the acquisition of Nor Energy (UK) Limited whose principal asset is a 10.50% interest in the Causeway Field. The acquisition increases Valiant Petroleum's stake in Causeway to 24.5%.

Gasol (GAS) has raised £1 million to fund its general business development activities through a placing of shares with two of its principal shareholders, African Gas Development Corporation Limited and Afren (AFR).

Existing non-executive Director, Kevin Lyon is to become Chairman of Valiant Petroleum (VPP) following the AGM next week. Gordon Stollery, who lives in Canada, will step back from Chairman to a non-executive role on the Board.

And finally, the Falkland Islands remain topical. Last week Falkland Oil & Gas (FOGL) raised £7.6 million while Rockhopper Exploration (RKH) reclassified a well drilled in 1998 by Shell as a gas discovery. This week, Borders and Southern (BOR) said its extensive technical programme has defined a robust, high value prospect inventory and now intends seeking partners for its South Falkland Basin licenses. Not to be outdone, next week, its the Desire Petroleum (DES) AGM.