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Oil & Gas Round-Up: 4 December

04 December 2009

Amerisur Resources (AMER) has recovered 35°API oil at surface, together with associated gas, from a test of the first of nine sand intervals to be tested at the Iguasa-1 well in the Fenix block in Colombia. Amerisur has decided to release the Petrex PTX-22 drilling rig in order to mobilise a smaller rig more suited to the ongoing testing operation.

GeoPark (GPK) has scored seven out of seven successful wells in 2009 with the successful drilling and testing of a new development gas well - Pampa Larga 15 - on the Fell Block in Chile. GeoPark operates and has a 100% working interest in the Fell Block. The well is flowing from a nine metre perforated interval in the Springhill formation at a depth of 2,805 metres. So far, the flowrate has been approximately 4.0 million cubic feet per day of gas, 0.5 barrels per day of condensate and 18 bpd of water.

Europa Oil & Gas (EOG) said that the Hykeham-1 exploration well in Lincolnshire has encountered encouraging oil shows from 18m gross thickness of Basal Sandstone reservoir.Wireline log analysis indicates that approximately 4m net thickness of Basal Sandstone is oil-bearing and the well will be completed in preparation for production testing.

Ascent Resources' (AST) PEN-105 well in Hungary has tested gas at 2.75 million standard cubic feet per day, and production is expected to start in February 2010. At PEN-104AA the well is showing signs of being potentially gas bearing but has experienced substantial losses whilst drilling and further testing is necessary to understand its potential.

Chariot Oil & Gas (CHAR) said that a second 3D seismic acquisition programme has commenced in the Northern blocks, 1811 A&B offshore Namibia. The programme will cover 600 km², focusing on an area of specific interest over the previously identified Zamba prospect. The work is being undertaken by CGG Veritas. The programme is expected to be completed by the end of December.

Sterling Energy (SEY) expects to spud an exploration well in the Sangaw North block (53.33% WI),in Kurdistan in the second half of December. The planned total depth of the well is 3,660m, with an option to drill to 4,160m.

TXO (TXO) has seen a sharp decline in oil production in the six months to 30 September 2009 to 13,221 barrels compared to 18,530 barrels for the preceding six month period to 31 March 2009. The decline in production was a direct consequence of the sharp fall in oil prices at the end of 2008 and the start of 2009. This resulted in a number of wells that had become uneconomic at these low oil prices being shut down.

Valiant Petroleum (VPP) and Petrofac (PFC) are to drill a sidetrack to the Area 22 well on the Don Southwest field in the North Sea. Based on the information gathered during the test period on well 22 it appears that the well has been drilled in and along the main northern bounding fault to the Area 22 compartment which may lead to oil flow problems over time.

Mediterranean Oil & Gas (MOG) hopes to receive environmental approvals for the development of the Ombrina Mare Oil & Gas Field in the central Adriatic Sea by the third quarter of 2010. At the Guendalina Gas Field, Mediterraneam expects field development activities to begin in January 2010.

Offshore Hydrocarbon Mapping's (OHM) subsidiary, Rock Solid Images, has been awarded one of its largest rock physics and seismic inversion projects to date, with an order value approaching $1 million for a client operating in West Africa. Work on the project is expected to commence in January 2010. Since the start of calendar year 2009, RSI has been awarded approximately $3.5 million of seismic inversion project work in the region.

Sterling Energy (SEY) has completed the sale of its USA business to the Atinum Group from Korea for a net consideration of $78.9 million. All of Sterling's outstanding bank debt of US$71.6 million has been repaid. Sterling's cash balance is currently $73.4 million.

Nostra Terra Oil & Gas (NTOG) has raised £3.2 million in a 1p per share placing in order to fund development work on its Bloom property in the US and fund further acquisitions.

Ithaca Energy (IAE) is planning to drill an appraisal well on its Stella discovery in the North Sea before the end of December after completing a deal that gives it operatorship of the project. Ithaca has paid Maersk Oil US$10 million for an extra 33.33% working interest in Stella and the undeveloped satellite discovery Harrier and 50% working interest in Hurricane. In a connected agreement Ithaca has now sold on a 31.67% interest in Stella to Dyas in return for US$8.7 million.

Meridian Petroleum has raised £6.9 million to re-launch the company under a new strategy and new name, President Petroleum Company (PPC). The majority of the new cash – £5.6 million – is coming from Levine Capital Management, the investment fund run by Peter Levine, the founder and former chairman of Imperial Energy Corp.

Sound Oil's (SOU) talks about a potential acquisition of a company with assets in West Africa have collapsed. The target company was connected with Frank Timis, of Regal Petroleum fame. Regal Petroleum was recently fined £600,000 by London Stock Exchange for issuing misleading statements to the market.

Aurelian Oil and Gas (AUL) has appointed Christopher Brown as exploration manager from March 1, 2010. Brown, aged 53, is joining from Suncor Energy, where he was exploration director for North Africa and the Near East. Previously, he was with Enterprise Oil, holding various posts involving several central European projects.