Trapoil Acquires Reach O&G

- Trapoil Acquires Reach O&G

Monday, July 04, 2011
Trap Oil Group plc

Trapoil announced the acquisition of Reach Oil & Gas Limited ("Reach") for a total consideration of approximately £30 million (£20 million in cash and approximately £10 million in new ordinary shares to be issued at a deemed price of 43 pence per share). Reach's two wholly-owned subsidiaries, Reach Exploration (UK) Limited ("Reach UK") and Reach Petroleum Limited ("Reach Petroleum") (together, the "Reach Group"), currently hold mostly carried interests in a total of 14 exploration licenses governing 24 Blocks and part Blocks in the UK Continental Shelf ("UKCS").


Acquisition highlights

• The Reach Group's asset portfolio (the "Reach Portfolio") comprises largely of appraisal assets and exploration prospects (with a range of risk profiles) with a small amount of near term production in the UKCS.
• More than doubles the size of Trapoil's existing exploration portfolio and near term drilling activity, including increasing the Company's interest to 15% in the promising Orchid prospect to be drilled later in 2011.
• Expected to increase the number of near term wells to be drilled by three additional wells in 2012 and four additional wells in 2013, providing the Company with potential net risked resources of approximately 15mmboe (unaudited estimate by Trapoil's management).
• The Reach portfolio comprises predominantly carried interests in a total of 14 exploration licenses governing 24 Blocks and part Blocks in the UKNS covering, in aggregate, an area of approximately 2,000km2.
• Trapoil will benefit from Reach's existing carried interests with estimated carried drilling costs of approximately £17 million in respect of the eight initial wells currently expected to be drilled within the next two years.
• Provides opportunities for further asset management to broaden the portfolio and manage risks, with potential to farm-out working interests in some of the assets acquired and increase equity positions in others.

As part of the arrangements, Miles Newman, Exploration Director and co-vendor of Reach, will be appointed to the board of directors of Trapoil (the "Board") as a Non-Executive Director.

Mark Groves Gidney, Chief Executive Officer of Trapoil, commented, "I am delighted to announce our first corporate acquisition, which greatly strengthens our existing portfolio, delivers the drilling opportunities envisaged at the time of our IPO and positions Trapoil as one of the more active exploration and appraisal companies in the UK North Sea, with the possibility of drilling up to 8 wells a year in 2012 and beyond.

The acquisition offers multiple benefits for Trapoil, including an increased interest in the promising Orchid well, due to spud this autumn. In addition, the acquisition brings significant existing carried drilling costs, while we anticipate valuable cash flow generation from near term production and effective portfolio management.

Having successfully secured this attractive portfolio to augment our existing assets, the Company's focus will turn to identifying and acquiring producing assets in order to provide sufficient cash flows to support the group's planned drilling program with suitable tax synergies.

I welcome the appointment of Miles to the Board and I am delighted that he has agreed to accept a significant part of the purchase consideration in the form of new Trapoil shares, underlining his long-term commitment to the Company's future success."

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Iraq Parliament Starts Debate on Reviving National Oil Company

- Iraq Parliament Starts Debate on Reviving National Oil Company

Monday, July 04, 2011
Dow Jones Newswires
by Hassan Hafidh

The Iraqi parliament has held its first hearing session to pave the way for the debate on a controversial draft law to reestablish the Iraqi National Oil Company, which the former Iraqi leader Saddam Hussein's regime invalidated in the 1980s, officials said Monday.

The session was attended by the country's Oil Minister Abdul Kareem Luaibi, two former oil ministers Ibrahim Bahr al-Uloom and Thamer al-Ghadhban as well as the head and members of the parliament's oil and energy committee and several Iraqi oil experts.

Absent from the parliamentary hearing was deputy prime minister for energy affairs Hussein al-Shahristani, a key ally of prime minister Nouri al-Maliki.

A draft law of the long-awaited new national oil company, which would revive a company originally established in the 1960s and merged into the Iraqi oil ministry in 1987, was passed by the then cabinet in July 2009 but has been stalled in the parliament since.

Oil minister Luaibi told the hearing that creation of a new Iraqi National Oil Company is not essential and "it would add nothing to the Iraqi oil sector."

While speaker of the parliament Osama al-Nujaifi, head of the parliament oil and energy committee Adnan al-Janabi and Ghadhban who is also the current top energy advisor to Prime Minister al-Maliik, voiced their support for reviving the company.

The INOC, if restored, would act as the parent of the existing South Oil Co., Iraq's largest petroleum company, North Oil Co., Missan Oil Co. and Midland Oil Co.

According to its draft law, the INOC would spearhead national and local strategy. It would carry out all sorts of oil operations from exploration down to marketing. The firm would also partner with or even compete against foreign companies to develop Iraqi fields.

The INOC will be a cabinet-level organization led by a president with ministerial rank. The company's board will include officials from the ministries of oil, finance and planning and the Central Bank of Iraq.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Taqa Takes Operatorship Of N. Sea Otter Field from Total

- Taqa Takes Operatorship Of N. Sea Otter Field from Total

Monday, July 04, 201
LONDON
Dow Jones Newswires
by Alexis Flynn

Abu Dhabi National Energy, or Taqa, said Monday its U.K. unit has taken control of the Otter field, the first phase of a transaction agreed last year with French major Total to acquire its 81% stake in two North Sea blocks.

The field is located in blocks P.226 Block 210/15a and P.1021 Block 210/20d, adjacent to Taqa Bratani's existing North Sea interests purchased in 2008. Otter is linked to the Taqa Bratani-operated Eider platform, the firm said Monday.

"Becoming operator of the Otter field underlines Taqa Bratani Ltd.'s long-term commitment to the North Sea," said Leo Koot, managing director of Taqa Bratani.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Providence Wraps Up Seismic Acquisition Offshore Ireland

- Providence Wraps Up Seismic Acquisition Offshore Ireland

Monday, July 04, 2011
Providence Resources plc

Providence has, on behalf of itself and its partners, successfully completed the 3D seismic acquisition project over the Barryroe oil discovery ("Barryroe") in the North Celtic Sea, offshore Ireland. The partners believe that modern 3D seismic data, in tandem with modern well completions in the current high oil price environment, will be key components to unlocking value at Barryroe. This survey forms part of the planned pre-development drilling program on the Barryroe, where drilling is scheduled to commence in September utilizing the already contracted semi-submersible rig, the GSF ARCTIC III.

Providence operates Barryroe (50%) with partners San Leon Energy (30%) and Lansdowne Oil & Gas (20%).

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New World O&G to Take Oil Concessions in Denmark

- New World O&G to Take Oil Concessions in Denmark

Monday, July 04, 2011
New World O&G plc

New World O&G has signed a non-binding letter of intent with Danica Jutland ApS, granting the Company a 65-day exclusivity period in which to undertake due diligence on two oil concessions totaling 4,107 sq km, located in the productive Jutland on-shore area in South Western Denmark ('the LOI'). Any potential investment by the Company would be in accordance with its investing policy as set out in its Admission Document.

Overview

• The LOI provides a 65-day exclusivity period to conduct due diligence on two concessions - License No. 1/09 and License No. 2/09, located on-shore in Southern Denmark ('the Licenses').
• The Company has engaged RPS Energy to undertake a Competent Person's Report in the form of a letter of opinion ('CPR') to assist New World in determining the prospectivity of the Licenses.
• Upon completion of the CPR and subject to the satisfactory completion of due diligence, it is intended that definitive transaction documents will be agreed in the form of a Farm-out and Operating Agreement with the Company being named as Operator, followed by New World being named on the Licenses for both concessions.
• The LOI contemplates (subject to due diligence including the CPR being satisfactory) a staged investment in 2D seismic, initially of US $2.5 million, followed by the right to acquire further interests on the basis of an agreed drilling program if the Company then decides to take the opportunity further. At completion of the initial stage, a 12.5% working interest in each of the Licenses would be transferred to the Company. Upon full completion of the earn-in work program, the Company has the option to obtain up to an 80% working interest in the project.

New World CEO William Kelleher said, "We are continuing to deliver on our previously stated investing policy, by bringing quality projects to the table. This region in Southern Denmark is relatively under-explored but is located at the center of the Southern Permian Basin with significant production in the immediate region. Our policy envisaged Europe to be part of the longer term strategy, however a good investment opportunity has arisen now, and the Board believes that the time is right to take advantage of the region's significant opportunities, with stable governments, and generally favorable investment regimes."

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Samson O&G to Participate in Chesapeake Drilling

- Samson O&G to Participate in Chesapeake Drilling

Monday, July 04, 2011
Samson O&G Ltd.

Samson O&G has elected to participate in the drilling of the State 24-63 #10-1H well with Chesapeake Energy (operator) for its 25% working interest. The State 24-63 #10-1H well is located in Township 24N, Range 63W, Section 10 in Goshen County, WY. The well will be drilled as an 11,447' measured depth horizontal well in the Codell Sandstone (which lies directly beneath the Niobrara Formation). Upon completion of the well in the Codell sandstone, the fracture stimulation job is expected to fracture the Niobrara Formation.

Samson Oil & Gas Limited has also elected to participate in the drilling of the State 24-63 #14-1H well with Chesapeake Energy (operator) for its 12.5% working interest. The State 24-63 #14-1H well is located in Township 24N, Range 63W, Section 14 in Goshen County, WY. The well will be drilled as an 11,272’' measured depth horizontal well in the Codell sandstone. Upon completion of the well in the Codell sandstone, the fracture stimulation job is expected to fracture the Niobrara Formation.

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Ithaca Restores Production at Jacky Field

- Ithaca Restores Production at Jacky Field

Monday, July 04, 2011
Ithaca Energy Inc.

Ithaca announced that stable production from the Jacky field has been restored in the J01 well at approximately 3,120 barrels of oil per day ("bopd")(1,482 bopd net to Ithaca).

Production has been restored to this level through the replacement of a dual ESP system with slightly larger pumps providing greater operational flexibility and prolonged run life. The well was producing at approximately 2,800 bopd (1,300 bopd net to Ithaca) before the loss of pump assisted flow, as previously announced.

Jacky Joint Venture Partners are Ithaca (Operator, 47.5%), Dyas UK Ltd (42.5%), North Sea Energy (UK) Limited (10%).
Athena Project Update

The engineering and modifications associated with the dry dock works in Dubai to extend the Floating Production Storage and Offloading vessel, 'BW Athena' by 65 feet and install a turret docking system have been completed. The vessel has now been re-floated ready for installation of the new power generation and water injection modules during July 2011. This is another critical milestone accomplished towards achieving first oil in 4Q 2011.

Athena Joint Venture Partners are Ithaca (operator, 22.5%), Dyas UK Ltd (47.5%), EWE Aktiengesellschaft (20%) and Zeus Petroleum Limited (10%).

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Max Petroleum Updates Kazakh Ops

- Max Petroleum Updates Kazakh Ops

Monday, July 04, 2011
Max Petroleum plc

Max Petroleum announced an update of its operations in the Blocks A&E license area in the Republic of Kazakhstan.

Extension of Trial Production Project for Zhana Makat Field

The Kazakh government has approved an extension of the trial production project for the Zhana Makat field until 15 December 2011, while the Company seeks final regulatory approval to convert Zhana Makat to full field development ("FFD") status under its Blocks A&E exploration and production contract (the "Contract"). FFD approval will allow the Company to develop and produce the field for up to 25 years, as well as grant the Company a right to sell 80% of its crude oil production on the export market under the terms of the Contract.

Sales and Production Update

Following correspondence and recent discussions with local regulatory authorities, Max Petroleum will sell 100% of its crude oil production on the domestic market pending FFD approval, which is projected to be in place during the fourth quarter of 2011. Current oil sales into the domestic market are generating after-tax net proceeds that are approximately $15-$17 per barrel lower than comparable export sales. The Company does not anticipate any material adverse impact to its financial condition or its ability to implement its ongoing post-salt and pre-salt drilling programs as a result of selling domestically during this period.

The Company is currently producing approximately 2,200 barrels of oil per day ("bopd"), generating approximately $3.5 million in net proceeds per month from domestic oil sales. The Company expects daily production to increase to more than 3,000 bopd during the third quarter of 2011 as four additional wells are brought onto production, including the ZMA-ET1 and ZMA-ET2 wells recently drilled in Zhana Makat, the BOR-3 well in the Borkyldakty Field, and the ASK-1 well in the Asanketken Field.

Drilling Update

The BOR-3 appraisal well in the Borkyldakty Field has reached a total depth of 1,688 meters, with electric logs indicating 28 meters of net oil pay in five Triassic sandstone reservoirs at depths ranging between 1,366 and 1,556 meters. Reservoir quality appears excellent with porosities ranging from 18% to 25%. The Company is running production casing in the well, which will be completed using a workover rig and placed on production in July 2011 under the terms of the trial production project ("TPP") for the Borkyldakty Field.

Following BOR-3, the rig will move on to drill the KZIE-1 exploration well on the East Kyzylzhar 1 prospect followed by the SAG-1 exploration well on the Sagiz West prospect, both of which are located in Block E. A second shallow rig is on location at the Uytas Field and is expected to begin drilling the first of three appraisal wells in early July 2011. When the rig has finished drilling all three Uytas appraisal wells it will move on to drill the ZLGS-1 exploration well on the Zhalgyz South prospect in Block A.

The Company has tendered for a third shallow drilling rig to drill the ASK-2 well in the Asanketken Field to accelerate the drilling of Max Petroleum's shallow exploration, appraisal and development program. The Company expects to spud the ASK-2 well in mid-August 2011. Furthermore, the Company is on plan to begin drilling the pre-salt NUR-1 well in the Emba B prospect on Block E in the latter half of the third quarter of 2011.

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Aker Solutions Secures Drilling Riser Contract

- Aker Solutions Secures Drilling Riser Contract

Monday, July 04, 2011
Aker Solutions ASA

Aker Solutions has been awarded a contract for the delivery of a deepwater drilling riser system to the DSME shipyard in South Korea. The riser package will be delivered to offshore drilling company Atwood Oceanics' drill ship. The contract value is approximately USD 50 million and includes an option for another two units.

The 10 000 ft deepwater drilling riser system will be manufactured and delivered out of Aker Solutions' manufacturing plant in Port Klang, Malaysia. Delivery of the first drilling riser system is scheduled for June 2013.

"We are very pleased that DSME once again decided to purchase an Aker Solutions CLIP riser system," said Thor Arne Håverstad, executive vice president of Aker Solutions' drilling technologies business. "This is the sixth drilling riser contract we are signing with DSME and we are very pleased to continue the good relationship with them."

Aker Solutions currently has 15 drilling riser systems in operation, of which six complete drilling riser systems have been delivered this year.

"I am pleased to see that we are able to deliver another deepwater CLIP riser to our returning customers. These achievements are the results of the CLIP risers' operational advantages, our technology expertise and service offering in the deepwater drilling market," says Tom Munkejord, president of Aker Solutions' drilling riser business.

Aker Solutions offers complete drilling equipment packages, including project management, conceptual design, detailed engineering and procurement. We provide the full range of topside drilling equipment and systems, and worldwide customer support through our global drilling life-cycle services organization.

The contract has been signed and booked as order intake in 2Q 2011.

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