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Geometric Drilling - UK Based onshore drilling contractor

Oil & Gas Round-Up: 6 March

06 March 2009

Frontera Resources Corporation (FRR) has discovered a new, undeveloped extension of the Mirzaani Field within its Shallow Fields Production Unit, Block 12, in the country of Georgia. The Mirzaani #2 well encountered multiple hydrocarbon bearing intervals within an extension of the field that had been identified as undeveloped based on new field mapping completed in 2008.

Ithaca Energy (IAE) has discovered gas in the Carna well in North Sea block 42/21b.The well is being completed for testing. Net pay is estimated from preliminary log interpretation to be 127 feet.

GeoPark Holdings (GPK) has discovered more gas with the Yagan 1 well on its 100% owned Fell Block in Chile. The well tested at an initial production rate exceeding 10 million cubic feet per day of gas. The gas will be sold to the large methanol plant located adjacent to the Fell Block.

Gulf Keystone Petroleum (GKP) announced that the RM-2 appraisal well on the Hassi Ba Hamou Perimeter ('HBH Permit') was water bearing. The well will be plugged and abandoned.

Dominion Petroleum's (DPL) Mihambia-1 exploration well in the Mandawa Production Sharing Agreement area, Tanzania, has been plugged and abandoned. The potential reservoir rocks in the targeted Middle Jurassic Mihambia formation, were poorly developed and water-bearing.

Leed Petroleum (LDP) has recompleted the Eugene Island A-6 well as a long term producer from the well's primary zone. Following a clean-up period, the well has consistently flowed to sales at a stable restricted rate of 1,750 boepd. Field production is currently stable at 6,000 boepd gross with all three recently drilled wells contributing significantly. Leni Gas and Oil (LGO) has an interest in the Eugene Island field.

Forum Energy (FEP) said production resumed at the Galoc field on 25 February 2009 following operational difficulties which had suspended production on 16 December 2008.

Empyrean Energy (EME) now has production from all three horizontal wells on the Sugarloaf Prospect, Block A, Texas, with two vertical wells undergoing further testing.

Circle Oil (COP) has commenced initial production in the Al Amir Development Lease area in the NW Gemsa Permit in Egypt. Production commenced at approximately 1450 BOPD and is expected to reach a daily average rate of approximately 3000 BOPD in the short term.
Amerisur Resources (AMER) has completed its long term testing programme on Alea-1R and Platanillo-2 in Colombia and memory gauges have been removed for data analysis. Amerisur expects to present the final technical and economic report to ANH by the end of May 2009.

Drilling operations have started at Emerald Energy’s (EEN) Jacinto No.1 exploration well in the Jacaranda block in the Llanos basin in Colombia. Emerald has a 100% working interest in theJacaranda contract.

Circle Oil (COP) has completed a 2D marine seismic acquisition programme in the Mahdia Permit offshore Tunisia. A total of 500.75 kilometres of infill full fold 2D seismic data has been acquired and will now be sent for processing.

Chariot Oil & Gas (CHAR) has completed its 2D and 3D seismic acquisition programmes across its licence areas offshore Namibia. 3,000 km of 2D and 1,500km2 of 3D were acquired to target key areas of interest.

Chariot added that a number of major oil companies have expressed interest in farming into the licence areas, subject to review of the recently acquired 3D seismic.

Desire Petroleum (DES) has submitted an Environmental Impact Assessment prepared by RPS Energy over its North Falkland Basin licences to the Falkland Islands Government. Approval is expected in July 2009.

Valiant Petroleum (VPP) has acquired from Dana Petroleum its 50% stake in North Sea licences containing the Helena and Banquo discoveries. Valiant is operator and following completion will own 100% of the blocks. Valiant added that it expects first production from the West Don field before the end of March.

Nighthawk Energy (HAWK) has taken control of the Williams 10-27 well at no cost to the partnership. The well, which is in land already leased by Nighthawk and Running Foxes in the south of the Jolly Ranch area, had been abandoned by the previous operator. The well will be re-entered and the Cherokee and Marmaton zones stimulated for production.

Pan Andean Resources (PRE) is in discussions with potential farm-in partners to drill its Antorcha block in Colombia.

Faroe Petroleum (FPM) has agreed to farm-out a 15% share in Norwegian licences PL405 and PL405B to Spring Energy in exchange for Spring Energy carrying Faroe's costs of the first exploration well drilled on these licenses. Faroe Petroleum will retain 15% equity in both licences.

Indago Petroleum (IPL) has settled its insurance claim in relation to the underground blowout suffered at the Al Jariya well on the Jebel Hafit prospect in February 2008.

Elixir Petroleum (ELP) has received a notice of arbitration over a $9.3 million (disputed) invoice issued by TGS-NOPEC, the seismic contractor who acquired 3D seismic over Block SL-4, located offshore Sierra Leone during the course of 2008. Elixir says it intends to vigorously defend its position.

Elixir Petroleum has also decided to cancel the admission of its ordinary shares to trading on AIM with effect from 31 March 2009.

Max Petroleum (MXP) has received undertakings from holders representing US$60.5 million of its US$75 million 6.75% convertible bonds due 2011 to defer the next coupon payment which is due on 8 March 2009, until 8 September 2009.

Max Petroleum has also amended its senior credit facility with Macquarie Bank Limited, increasing the potential borrowing base available under the Credit Facility from $50 million to $100 million.