SmallCapNews | Oil & Gas Round-Up: 31 October

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Oil & Gas Round-Up: 31 October

31 October 2008

Global Petroleum (GBP) has tested oil and gas at an unstablised rate of approximately 400 barrels of oil equivalent per day from the first well, Peeler #1, on the Leighton prospect in Texas. The operator is planning to drill a second well and possibly further wells on the Leighton prospect as soon as possible.

Aminex (AEX) said the first phase of a testing programme at the Sunny Ernst-2 well in Texas has materially exceeded expectations. The well is expected to transform Aminex's existing US production and to make a material and immediate contribution to cashflow.

Oilex (OEX) has tested the Miocene MBS reservoir in the Cambay-74 appraisal well at a constrained rate of more than 500 bopd. The well will be completed as an oil producer on conclusion of the test program.

EnCore Oil (EO.) has confirmed that drilling of the Esmond gas storage evaluation well recommenced this morning. The well has been delayed due to a fire on the rig two weeks ago. With only ten metres to go before hitting the reservoir it will be a nailbiting weekend for EnCore watchers!

Pantheon Resources (PANR) expects to re-enter the 2005 drilled Acosta #1 well, in Texas, this week. Pantheon said the re-entry offers a low cost and low risk opportunity to add potentially new production from the same reservoirs currently producing 700 barrels per day at Jumonville #1.

Valiant Petroleum (VPP) expects production from the West Don field in the North Sea to commence in 1Q 2009 with Don Southwest coming on stream in 2Q 2009. Valiant has assigned its rights to the Stena Spey drilling rig to the Don joint venture in order to facilitate the acceleration of development drilling in preference to using the rig for 2009 exploration. Analysts expect Valiant to produce 8,000-9,000 barrels of oil per day in 2009.

Ithaca Energy (IAE) has agreed to sell to Dyas UK Limited 25.25% of its interests in all of its North Sea oil and gas licences for £40 million. The transaction provides Ithaca with the resources to complete the leasing of the Beatrice oilfield, the restoration of production from Beatrice Bravo and completion of the development of the Jacky field.

In addition, Dyas will provide Ithaca with a senior secured loan with which to redeem in full the fully drawn Royal Bank of Scotland US$60 million Predevelopment Facility.

Frontera Resources Corporation (FRR) has received a favourable ruling in its arbitration with GAC Energy Company and GAC International Holdings Ltd. The arbitrator found that GAC failed to complete its obligations under a farmout agreement and rejected GAC's claims for either an interest in Block 12 or $19 million in restitution. The arbitrator also directed GAC to pay Frontera's arbitration costs of approximately $85,000.

Victoria Oil & Gas (VOG) has agreed a 12 month option to acquire the entire share capital of Falcon Petroleum Limited, a Cypriot company with substantial exploration prospects in Ethiopia and Mali.

Serica Energy (SQZ) has appointed Peter Sadler as Chief Operating Officer.

And finally, electromagnetic remote sensing specialist, Offshore Hydrocarbon Mapping (OHM) has revealed that it is in talks that may lead to a takeover of the company.