SmallCapNews | Oil & Gas Round-Up: 8 Jan

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Oil & Gas Round-Up: 8 Jan

08 January 2010

Northern Petroleum (NOP) and its partners have commenced production from the Geesbrug gas field in the Netherlands. Geesbrug is the second of four gas and two oil fields in the onshore development programme being undertaken by Northern and its partners. The gas from Geesbrug is being delivered via a dedicated pipeline to the NAM operated Coevorden-17 facilities.

In Kurdistan, Sterling Energy (SEY) has said that due to unseasonal heavy rain in the Sangaw area, the start of drilling for the Sangaw North exploration well is likely to be delayed to the end of January 2010.

Victoria Oil & Gas (VOG) said that Well La-105 at the Logbaba gas and condensate project in Douala, Cameroon, had reached a total depth having encountered over 300 feet of gross pay and was currently being logged prior to its completion as a development well.

Mediterranean Oil & Gas (MOG) has announced that the Ministry of Economic Development in Italy has now awarded the production concession for the Guendalina gas field. Mediterranean Oil & Gas expects ENI to start development activities on the Guendalina gas field in January or February 2010.

President Petroleum (PPC) is planning to drill three wells on licence PEL 82 in South Australia. Drilling rig availability in Australia is limited, which will impact on the start date for drilling operations, but the company is looking to secure an appropriate contract for a rig within the first quarter of 2010.

Empyrean Energy (EME) expects its Kowalik-1H well in Texas to be flowed to production during the next two weeks following the partial completion of a fracture stimulation on the well. Pumping operations on the well started at the end of December with the first stage comprising four phases targeting the horizontal 3,800 ft of slotted liner. After 22 hours of continuous pumping and during the fourth phase of the stimulation program an anomalous pressure drop was noted and operations were suspended to allow further investigation.

ViaLogy (VIY), which claims its QuantumRD hydrocarbon reservoir discovery and characterization product is gaining traction with exploration companies, has reported a loss for the six months to 30 September 2009 of £2.6 million on reduced revenue of £11,266.

Rheochem's (RHEP) 50% owned subsidiary Zeus Petroleum has been granted a 12 month extension to the initial term of its North Sea licence P1289 over Block 14/11. The initial term of the licence now runs to December 21, 2010, during which Zeus will have to drill a well in order to qualify for any further extension. Zeus has a 100% interest in the licence and is currently looking for farm in partners to drill a well.

Cove Energy (COV) has been given approval by the Mozambique Government for its farm-in deal with Maurel & Prom to buy a 10% stake from Artumas Group in the Exploration and Production Concession Contract in the Rovuma Onshore Area of Mozambique. The Belford Dolphin drillship began a four well deep-water programme in the Rovuma Offshore 1 in December 2009 and is currently drilling on the Windjammer prospect.
San Leon Energy's (SLE) wholly owned Polish subsidiary Vabush Energy Sp. z.o.o has been awarded a 100% interest in the Nida Concession for oil and gas reconnaissance and exploration and the mining usufruct agreement. The Concession, totalling 1,167.7 km2, is located within the Malpolska Block, in southern Poland, across licence blocks 353, 354, 373, 374, and 393.

Serica Energy (SE.) has agreed to farm-out to Premier Oil a 50% interest in UK North Sea Block 22/19c, which contains the Oates and Bowers Palaeocene prospects and in which Serica presently holds a 100% interest. An exploration well on the Oates prospect, funded and operated by Premier is planned to be drilled in the middle of 2010. Serica will retain the remaining 50% interest.

Serica Energy has also announced that it is in the final stages of negotiating a farm-out of its Conan prospect in the East Irish Sea. Serica will farm out a 35% interest in the licence for which the farminee will contribute 70% of the costs of the well. Serica will remain as operator and will retain a 65% interest.

San Leon Energy (SLE) has agreed a joint venture deal with Al Meinaa Oil Services that could see the two sides working on developing projects in Iraq. Under the terms of the joint venture, once a potential project is identified by one party, the other party has a 60-day right of first refusal to evaluate that project.

Range Resources (RRL) has announced plans to raise around A$7.0 million (£4.0 million) in a rights issue. Under the terms of the deal, shareholders will be entitled to acquire one new ordinary Range share for every four existing Range shares held at an issue price of A$0.05 per share.

Petroceltic International (PCI) has appointed Dr. Robert J Arnott as a non-executive director with immediate effect. Rob Arnott is a Geologist and Energy Economist with over 25 years experience of working in the Oil Industry.

The UK Department of Energy & Climate Change has refused to consent to the proposed transfer to a wholly owned subsidiary of Velo Energy, interests in the Caledonia, Sheryl and Catcher blocks in UK North Sea. Velo Energy is run by Art Milholland, formerly of Oilexco.

And finally, another former Oilexco manager, David Marshall, has turned up as CEO of newly renamed DEO Petroleum (DEO) (formerly known as Microcap Equities) bringing a £200,000 cash injection to the otherwise shell company. The share price has increased by 1,020% this week despite an announcement by the company on Tuesday saying it didn't know why the share price had gone up.