Quetzal to Spud Llanos Well in October

- Quetzal to Spud Llanos Well in October

Tuesday, September 13, 2011
Quetzal Energy Ltd.

Quetzal provided the following update on operations:

Block 27, Llanos Basin

As previously announced, Quetzal completed a 220 square km 3D seismic survey of Block 27 in 1Q 2011 and then followed that up with an additional 54 square km survey in 2Q 2011. Merge, analysis and interpretation of this seismic has been completed and management has identified 4 drillable prospects on the block.

On August 10, 2011, Quetzal received its blanket environmental permit paving the way to proceed with the drilling of its first well on Block 27. Construction of the location began on August 29, 2011, and the Company expects to spud this first well with a rig contracted from Saxon Energy Services in the second half of October. Once drilling begins, management expects to reach target depth of 10,000 feet in 45 days.

Prospective targets include the oil bearing intervals in the Mirador and Une Formations, with the Carbonera formation representing a secondary target.

Quetzal pays 50% of cost and has a 45.275% revenue interest in this block before payout, and a 34.25% interest following payout.

Block 21, Llanos Basin

A 95 square kilometer 3D seismic program has been completed on Block 21, and management is near completion of its analysis and interpretation. Preliminary evaluation has identified 4 potential prospects of interest on Block 21 with further detailed analysis required.

On August 3, 2011, Quetzal filed for its environmental permit on Block 21 and is awaiting approval. Under contractual commitments to the ANH, and by the terms of its farm-in agreement, Quetzal and their partner, Brownstone Ventures, must drill two wells by September 12, 2012. Assuming environmental approval is received in a timely fashion, the Company expects to commence wellsite construction in 1Q 2012, and drill two wells in 2Q 2012.

Projected well depths at Block 21 are 8,000 feet.

Quetzal pays 50% of cost and has a 45.50% revenue interest in this block before payout, and a 35% interest following payout.

Canaguaro Block

A long term production test began on May 4, 2011 with an ESP set at approximately 6,000 feet depth, approximately 8,000 feet above the producing Mirador formation. Since that time, Quetzal has averaged approximately 400 barrels of oil per day and has witnessed the water cut go from and average of 18% in May to 33% in August. Initial reservoir pressure was registered at approximately 5,850 psia in May, and management has witnessed some decline in bottom hole flowing pressure since commencement of the long term test. In late August, Quetzal shut in the Canaguay 1 well for 6 days to conduct a pressure build up test. Over that short period, well pressure returned to within 100 psia of the May pressure indicating that reservoir pressure depletion is not significant. Given that the perforations are only 30 feet above the plug back depth, management believes that sand production is likely causing a restriction in flow, and reduced bottom hole flowing pressure. The Company and its partners now plan to service the well by conducting a cleanout of the well, replacing the ESP, and placing the new ESP at a deeper depth in the well closer to the producing zone. It is management's expectation that this will lead to increased fluid production and a resultant increase in oil production as well. This work is expected to be completed by November 1 and is budgeted at a net cost to Quetzal of $250,000.

Quetzal has a 25% working interest in the Canaguaro Block and is acting as operator of the well.

Block 36

The acquisition of 109 square kilometers of 3D seismic on Block 36 has been completed and analysis and interpretation continues. Drilling of one well is required by February 2012 and the Operator, Montecz continues to evaluate options to meet activity requirements of the ANH. Quetzal pays 20% of cost and has a 18.2% revenue interest in this block before payout, with a 14% interest following payout.

Guatemala Update

As part of Quetzal's ongoing strategy to maximize shareholder value, the Company continues to evaluate strategic alternatives. The Company is actively evaluating options including selling the Guatemalan assets or soliciting third party joint venture partners to assist in developing the Guatemala blocks.

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WesternGeco Kicks Off 3D Seismic Survey in Barents Sea

- WesternGeco Kicks Off 3D Seismic Survey in Barents Sea

Thursday, August 18, 2011
Schlumberger Ltd.

WesternGeco has begun acquisition of the Bjørnøya Phase I "Ice Bear" 3D multiclient survey in the highly prospective West Loppa area of the Barents Sea.

Following previous surveys in the area, the Ice Bear survey will extend the existing WesternGeco West Loppa datasets to the North and West.

"The study area is located on the rim of the Bjørnøya Basin, on the west flank of the Loppa High and includes a large downthrown terrace in the North together with other Jurassic faulted structures, all of which have potential," said Phil Davey, WesternGeco Europe & Africa GeoSolutions manager, "Other, separate, but still promising features are seen in the southwestern part of the survey area."

Building on previous 2D datasets, the Ice Bear survey will consist of approximately 2500 sq km of 3D seismic data, acquired using 10 X 7 km streamers. Advanced acquisition techniques coupled with demultiple processing using the WesternGeco 3D GSMP General Surface Multiple Prediction technology will provide high-quality 3D data.

Acquisition commenced on July 10, 2011, and the fast-track data will be available in November 2011 in time for nominations for the 22nd Norwegian Licensing Round. The final processed data will be available for licensing in March 2012 in advance of the applications for the 22nd Norwegian Offshore Licensing Round. Companies are invited to contact WesternGeco to discuss their interest in this program.

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Argos Reports Progress on Seismic Interpretation

- Argos Reports Progress on Seismic Interpretation

Tuesday, July 05, 2011
Argos Resources Ltd.

Argos Resources reported encouraging progress on the processing and interpretation of its recently acquired 3D seismic data over its 100% owned license PL001.

In April 2011, the Company announced the completion of the acquisition of 1,415 net square kilometers of 3D seismic data, including coverage over the entire license area, a halo outside the license boundaries and tie-ins to key wells. The 3D data covering the northeastern quarter of the license was prioritised to be processed on a fast-track basis. This processing was completed in May and interpretation of the data is now well advanced. The structural prospects Zeus and Demeter have been confirmed and are considered to be robust closures. In the Competent Person's Report of June 2010 these prospects were attributed Best Estimates of unrisked prospective resources of 258 mmb and 63 mmb of oil respectively, based on 2D seismic data. New stratigraphic prospects and leads have also been identified and are subject to ongoing detailed mapping.

One of the principal features of the northern part of the North Falkland Basin in the vicinity of licence PL001 is the presence of a major delta system that has prograded southwards across the license area, but does not appear to extend beyond the southern boundary of the license. This delta is at least age-equivalent to the organic rich oil source rock, the presence of which can be mapped with improved confidence across the license area. The 3D data quality over the delta is excellent and the Company is now using that data to identify new stratigraphic prospects in what is expected to be a sand-prone deltaic sequence

The fast track processing results have been so encouraging that the Company has commissioned similar fast track projects on the southeastern quarter and western half of its license, with results due for interpretation in July and August respectively. The final processed data for the entire survey area is due around year end.

Commenting on this progress, Ian Thomson, Chairman of Argos, said, "Through sharing costs and seismic acquisition with adjacent operators, and being able to tender for a larger seismic program as a consequence, we have been able to acquire more 3D data and at lower cost than was envisaged at the time of the flotation in July of last year. The 3D seismic we have obtained is the best quality data seen in the basin to date, allowing us to map prospects with confidence.

As expected, we are also seeing from this data new stratigraphic prospects and leads which were not evident on the old 2D data. This was one of the objectives in acquiring 3D seismic, so we are very encouraged that additional prospectivity is being identified in the license area and we can reasonably expect that further new prospects should be identified as the remainder of the 3D data is processed and interpreted.

By committing to fast track processing of the 3D data in the rest of the license we expect to gain at least three months on the schedule for the complete project. This will greatly assist in our objective to be ready to drill in late 2011/2012 in order to have the option to contract the Ocean Guardian drilling rig which is currently operating in the area."

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Seabird to Acquire Seismic in Bonaparte Basin

- Seabird to Acquire Seismic in Bonaparte Basin

Thursday, June 30, 2011
by Rigzone Staff

Octanex N.L. subsidiary Goldsborough Energy Pty Ltd. has awarded Seabird Exploration FZ LLC a contract for the acquisition of 3D and 2D marine seismic data within the areas of WA-422-P, WA-420-P, WA-407-P and WA-421-P, which lie offshore the northwest coast of Western Australia.

Octanex reports that no less than 600 sq km of 3D seismic and approximately 1,000 kms of 2D seismic will be acquired under the contract. The Octanex Group has now substantially completed the reprocessing of more than 11,000 line kilometers of good quality 2D seismic acquired by previous operators over its suite of South Bonaparte permits.

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Breitling Spuds Big Tex No. 1

- Breitling Spuds Big Tex No. 1

Thursday, June 30, 2011
Breitling Oil & Gas

Breitling Oil and Gas Corporation has spud the Breitling-Big Tex #1 on June 26, 2011 in Gaines County, Texas. The Breitling-Big Tex #1 is the first of three Big Tex prospect wells to be drilled.

The Breitling-Big Tex #1 is a 9,000-foot vertical well within the established Tex-Pac Field and is targeting Lower Clearfork Dolomite beneath 8,500 feet. Secondary objectives include the San Andres, Yates, Glorieta and Abo formations.

Breitling's 3-Well Breitling-Big Tex Prospect was developed after a 75-square-mile 3D seismic shoot was reprocessed and interpreted in 2010. The quality of the new data set after it was re-imaged using Breitling's proprietary Geo3D technology identified features that were not noticeable when the shoot first occurred. In essence the resultant seismic lines were much more detailed and refined, therefore capturing subsurface images not previously acknowledged.

Breitling Oil and Gas expects to recover reserves of 350,000-500,000 BO per well.

Management anticipates the first well will reach total depth in about 29 days. Well completion and testing should begin during the last week of July. Breitling Oil and Gas and its drilling partner Sandridge Energy plan to drill all three wells back-to-back using the same drilling rig.

Breitling Oil and Gas CEO Chris Faulkner stated, "We are excited to be working with Sandridge Energy on the Big Tex wells." Faulkner added, "We have great well control within the Tex-Pac field and great 3D seismic over the prospect."

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Tethys Petroleum: Kazakhstan Operations Update

Tethys Petroleum: Kazakhstan Operations Update

Monday, May 09, 2011
Tethys Petroleum Limited

Tethys Petroleum Limited today provided an update on the progress in its Kazakhstan oil appraisal and exploration activities.

The AKD04 (Dero) appraisal well has now reached total depth of 2,566 metres and electric logging has been carried out. This well is located on the separate Dero part of the structure to the east of the AKD01 Doris oil discovery and was designed to ascertain the potential in the Upper Jurassic carbonate zone and the edge of the Lower Cretaceous (Aptian) sandstone in this area. Interpretation of the well data shows both the Jurassic carbonate and the Aptian sand to be present in the well with both showing indications of hydrocarbons. These two horizons were the zones that tested oil in the AKD01 well. Preparations are currently being made to run casing which will be followed by an appropriate testing programme - following receipt of the usual consents from Kazakh authorities.

In the AKD05 Doris appraisal well, the 9 5/8" casing has been set and it is drilling ahead. This well is currently on prognosis and should reach planned total depth of 2,500 metres by the end of this month.

Further evaluation of the recently acquired 3D seismic dataset using state of the art processing and interpretation techniques is revealing the probable presence of sand fans in the Cretaceous sandstone sequence and these data are being integrated with the results of the well data to plan future appraisal well locations in the greater Doris area.

Testing of the AKD03 (Dione) exploration well continues after the successful test of a new sandstone zone in the Upper Jurassic, which flowed dry oil at over 400 barrels per day. The company believes that a significantly higher flow rate may be achieved with a horizontal or high angle completion, and will determine optimised well designs as part of the overall development plan following completion of the appraisal and exploration programme. The overlying Upper Jurassic carbonate has now been tested but no commercial oil flow was obtained. Testing will now be undertaken on the good quality potentially oil-bearing Cretaceous sandstone interval (which is similar to the main reservoir zone in the AKD01 well) and which shows the best reservoir properties of the zones being tested. The extent and potential of this Dione flank structure is currently being evaluated using the new 3D seismic dataset.

The KBD01 (Kalypso) wildcat exploration well is currently drilling at a depth of 2,498 metres. This well is being drilled on a large structure some 50 km to the north west of the Doris discovery with its primary target being at approximately 4,000 metres and with secondary targets above this. Seismic shows this prospect to have up to 400 metres of potential vertical closure. Hydrocarbon shows have been observed in the drilled section. It is expected that this well will reach total depth in July 2011.

Tethys is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republics of Tajikistan, Kazakhstan and Uzbekistan. This highly prolific oil and gas area is rapidly developing and Tethys believes that significant potential exists in both exploration and in discovered deposits.

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Desire Drills Duster at Ninky Well

Desire Drills Duster at Ninky Well

Monday, April 18, 2011
Desire Petroleum plc

Desire advised that the 14/15-3 well on the Ninky prospect has reached a total depth of 2,620 meters in the Barremian source rock interval.

Ninky Well Results

Based on drilling and wireline logging, the well encountered two sand-prone sections in the Upper and Middle F2 intervals, which were the primary targets (2323 meters to 2334 meters and 2365 meters to 2389 meters). The sands have a combined gross thickness of 35 meters and oil shows were encountered throughout both intervals while drilling. The reservoir quality is generally poor having only 5.6 meters of net reservoir with an average porosity of 13%. A thin interval of around 1.2 meters at the top of the Middle F2 zone is interpreted to be oil bearing from log analysis.

Wireline formation pressure measurements were attempted, but no valid pressures were obtained, indicating that the reservoirs are low permeability at this location. As a result no wireline sampling was attempted. The depositional model suggests these sands are sourced from the east and therefore better reservoir quality may be expected downdip. In addition, there are indications from seismic of further sands along strike on the Ninky structural high, which were not penetrated in this well. These opportunities will be evaluated with the new 3D seismic as part of Desire's prospect inventory update.

Operations on the Ninky well will now be completed and the well will be plugged and abandoned. The well was drilling using the Ocean Guardian drilling rig and will now return to Rockhopper. Rockhopper will drill a minimum of 3 additional wells using the Ocean Guardian drilling unit. Rockhopper's next well is planned to be located near to the 14/10-2 discovery well. Specialist flow test equipment is due to be in the Islands in early May and Rockhopper intends to flow test the well if appropriate using this equipment to obtain a greater understanding than was possible during the test of well 14/10-2.

3D Seismic Update

The 3D seismic operations are ongoing with the Polarcus Nadia vessel, in a joint program with Rockhopper. To date, approximately 1485 km2 of data have been acquired in the Desire operated part of the program. Desire anticipates that a further 195 km2 will be acquired to complete the operated program. The joint survey is expected to be completed during May. Processing of the new seismic data is in progress and initial indications are that data quality is good. Priority areas have been identified in the East Flank play between Ninky and Sea Lion, and over the Ann/Orca South prospect. The processed data from these priority areas is expected to be available in July. The full, merged data will be available later in the year, which will provide coverage over the southern part of the East Flank play and the Helen prospect.

Desire remains optimistic that existing prospects can be significantly de-risked using the new seismic data and that new prospects will be identified, particularly within the East Flank play which is widely developed within the Desire operated licenses.

Stephen Phipps, Chairman of Desire, commented, "On completion of the Ninky well Desire will have funds of circa $37 million which, while more than adequate for our share of rig and vessel demobilization, completion of our 3D seismic acquisition, processing and interpretation plus general working capital needs, is insufficient to drill further wells. Given our continuing confidence that oil will be discovered on Desire's acreage, further wells will need to be drilled and, therefore, once the results of the Ninky well and the 3D seismic have been analyzed, we will review all financing options available with the intention of rejoining the drilling campaign later in the year if possible."

Salamander Sees Gas Shows at Thai Well

Salamander Sees Gas Shows at Thai Well

Friday, April 15, 2011
Salamander Energy plc

Salamander provided the following update on its Thai drilling operations in Block L15/50, onshore Northeast Thailand, and Block B8/38, Gulf of Thailand.

Dao Ruang-2 well, Block L15/50

Dao Ruang-2 ("DR-2") drilling operations at the Dao Ruang-2 location have been completed. Following an openhole drill stem test ("DST") the well failed to flow at a sustained commercial rate and is in the process of being temporarily suspended for potential re-entry at a later date. Drilling now moves to the second location of the two well program, as originally planned, targeting an independent fault network in the structure.

The DR-2 well was drilled to a depth of 2,212 meters true vertical depth sub-sea ("m TVDSS") into the eastern flank of the Dao Ruang structure, targeting a swarm of faults and fractures identified from high resolution 3D seismic. The well intersected a number of fracture zones with associated gas shows and experienced gas influx associated with a fault system around 1,840 m TVDSS. Gas shows were seen all the way to TD, with no sign of water, demonstrating a significant gas column in the Dao Ruang structure.

An openhole DST was undertaken across an interval between 1,008 - 2,211 m TVDSS. The section was tested following an acid wash, however only sub-commercial flow rates were recorded, indicating very low permeability formation and a limited open, connected fracture network at the DR-2 location.

The MB Century 26 rig will now be mobilized to the Dao Ruang-3 ("DR-3") drilling location. The DR-3 well will target a separate fracture set on the northern flank of the Dao Ruang structure with a different orientation to those seen in DR-2, providing a greater chance of encountering an open fracture network and an opportunity to test at a commercial flow rate.

The DR-3 well will be drilled to a planned depth of 1,900 m TVDSS and is expected to spud within the next 8 days. The well is forecast to take 45 days to drill on a dry hole basis.

Salamander has a 50% interest in, and is operator of, Block L15/50.

James Menzies, Chief Executive Officer of Salamander Energy, said, "While it is disappointing that we did not encounter commercial gas at our first Dao Ruang location, it is clear from drilling that there is a significant gas column in the structure. The two well program was originally designed to target two independent fault networks in different orientations, and we expect to spud the second well in a matter of days."

Major Gas Find at Apache's Zola Well

Major Gas Find at Apache's Zola Well

Thursday, April 14, 2011
OMV

OMV announced Apache has discovered gas on the North West Shelf of Australia in the Zola-1 exploration well. This represents one of the largest gas discoveries by the company. Zola-1 is located in the WA-290-P exploration permit and is around 100 km from the Western Australian coast. The discovery well Zola-1 and the subsequently drilled sidetrack appraisal well Zola-1/ST-1 have confirmed the existence of sandstone layers with 130 m of net gas pay in an area south of the giant Gorgon gas field. New 3D seismic data will be acquired to further assess the potential of the discovery.

The sidetrack appraisal well to the original Zola-1 discovery well was drilled down to a total depth of 4,713 m (true vertical depth). An extensive wireline measurement and pressure testing program confirmed the presence of gas within several high quality sands of the target Triassic Mungaroo Formation. The well and sidetrack were drilled in a water depth of 285 m and encountered 130 m of net gas pay. Both will be plugged and abandoned as per plan.

In order to further assess the development potential of Zola, OMV and its partners in WA-290-P, Apache (operator), Santos, Nippon Oil Exploration and Tap Oil, have agreed to acquire a new high resolution 3D seismic survey over the permit, which is likely to commence mid 2011.

Jaap Huijskes, member of the OMV Executive Board responsible for Exploration and Production (E&P), stated, "Zola-1 is one of OMV's biggest gas discoveries and is the result of a successful and safely carried out exploration and appraisal drilling campaign. We are very
proud of OMV's exploration activities in Australia, which have culminated in this significant discovery on the North West Shelf. The next step will be to further appraise the gas discovery, including the acquisition of a new 3D seismic survey."
Balanced international E&P portfolio

In 2010, OMV's oil and gas production was 318,000 boe/d and its proven reserves were about 1.15 bn boe at year-end. In its core countries in Romania and Austria, OMV is focusing on reducing the natural decline and on enhancing the recovery rates from mature fields. Future growth is expected to come via new field developments, exploration and acquisitions internationally. OMV intends to grow the existing portfolio to and beyond critical mass, on a production per country basis, and is looking to find new growth areas within the Caspian, Middle East and North Africa regions where OMV can leverage on its existing E&P exposure.

WA-290-P Joint Venture

* OMV Australia: 20%
* Apache (operator): 30.25%
* Santos: 24.75%
* Nippon Oil Exploration: 15%
* Tap Oil: 10%

RAM to Test Productivity of Osage Play

RAM to Test Productivity of Osage Play

Monday, April 11, 2011
RAM Energy Resources Inc.

RAM updated on activity in its Mississippian oil play in Osage County, Oklahoma. Approximately $5.4 million, or 15%, of RAM's 2011 capital expenditure budget totaling $35 million is allocated to the company's 56,320 acre concession, a part of the broad Mississippi Chat / Mississippi Solid / Arbuckle oil play in the region. Interpretation of the first phase of 3-D seismic, acquired in 2010, and initial drilling results indicated that a substantial portion of the acreage surveyed could be prospective. Although the Mississippi Chat has been the company's primary objective to date, the company's practice is to drill through the Chat and through the Mississippi Lime formation in order to gather additional science for future development. The initial wells drilled have encountered Chat zones 40-70 feet thick and porosities ranging from 20% to 35%. Similarly, initial wells have drilled through Mississippi Lime zones of 100 feet, or more, in thickness with a porosity range similar to the 5% to 15% range of porosities experienced by other operators in the western portions of the play.

"We are encouraged with the initial results from our Osage concession and have allocated a large proportion of our capital budget to test the productivity of the area. The combination of rig availability, relatively low drilling cost per well and ample infrastructure in the area allows us to aggressively pursue the play in the coming year," said Larry Lee, CEO of RAM.
Stepped up Pace of Drilling Planned in Osage Mississippian Exploration Play

Following the drilling of the company's three initial vertical wells in the concession during 2010, the company drilled the Farmland #1 during the first quarter 2011, targeting the Mississippi Chat formation. Currently the company is evaluating cores taken from the well. Also during the first quarter 2011, the Surber #3-SWD, a salt water disposal well, was drilled to service existing and future producing wells in the area. In the Surber #2-Twin, drilled during the first quarter near the Surber #3 SWD, core samples have been taken and casing set. RAM is awaiting the evaluation of the core data prior to completing.

The Rickets #3 well and the Surber #1 well, which were drilled to the Mississippi Chat formation late in 2010, have been fracture stimulated in order to test the impact of the slick water frac technique on reservoir permeability, thus advancing the science and knowledge associated with completion techniques in the area. Completion of the salt water disposal well facilitated the ability to fracture these and other planned wells in the area. The company has spud the next well in the series, the Surber #2-27, approximately one section to the west of the Surber #2-Twin. This offset to the Surber #1 and Surber #2-Twin is an exploration well targeting the continuation of the Mississippi Chat formation through seismic identification and sample cuttings from a previously drilled well by another operator. In mid-April the Farmland #2-16, an exploratory well, is scheduled to spud, also targeting the Mississippi Chat. The well, located approximately 2 sections northwest of the Surber #2-Twin, has been permitted and the location built. Immediately following the drilling of this well, the rig is scheduled to move to the location of the Christiansen #3-2. This exploration well is scheduled for a spud date later in April. The well targets the Arbuckle formation and will evaluate the Mississippi Chat and Lime formations. Two wells initially planned for the fourth quarter, the Surber #1-35 and the Rickets #1-35, are now likely to be drilled late in the second quarter as a result of rig availability. The drilling permit application process is underway for both of these wells. The location of the wells is anticipated to be immediately south of the successful Surber #1 well drilled in late 2010 which recorded an initial production rate of 80 barrels of oil per day (BOPD) in the Mississippi Chat formation.

Subsequently, in the third quarter 2011, the company plans to drill the Farmland #1-20 exploration well located southwest of the Farmland #2-16. At the northern boundary of RAM's initial seismic survey, the company plans to drill three wells; the Kendrick #1-27, the Stuart #1-28 and the Jones #1-33. These three exploration wells are designed to test the productivity of the Mississippi Chat and Lime formations in this unexplored part of the concession. If commercial potential exists, then RAM is likely to also drill another salt water disposal well to service these and potentially other future wells in this area of the lease. Archeological studies are proceeding on these wells which are precursors of the drilling permitting process.

In May 2011 the company plans to initiate acquisition of a second round of 3-D seismic on its Osage concession adjoining that of its first round of seismic acquisition. This second phase of 3-D seismic acquisition is planned to cover an additional 19,840 acres in the company's concession and is anticipated to add additional drilling prospects principally for 2012 and beyond when interpreted, later in 2011.
Advantaged Revenue Stream

Within the broad Mississippian play, the portion of the area covering RAM's Osage concession appears to yield primarily oil. Accordingly, commercialization of the company's acreage could add significantly to RAM's already above-industry-average mix of oil and oil-price driven natural gas liquids (NGL) in its hydrocarbon mix. The proportion of crude and NGLs as a percent of total BOE produced rose to 66% in December 2010 (adjusted to exclude assets sold in December 2010). Similarly, based on RAM's proved reserves at year-end 2010, oil and NGLs accounted for 64 percent of total proved reserves.

Gran Tierra Ups 2011 Capital Spending to Develop S. American Assets

Gran Tierra Ups 2011 Capital Spending to Develop S. American Assets

Monday, April 11, 2011
Gran Tierra Energy Inc.

Gran Tierra announced capital spending plans on the recently acquired Petrolifera Petroleum Limited ("Petrolifera") assets.

Gran Tierra Energy intends to spend approximately $55 million on the newly acquired assets with approximately $25 million in Colombia, $14 million in Peru and $16 million in Argentina. Drilling and completion costs are expected to amount to $41 million, including $14 million in Colombia, $13 million in Peru and $14 in Argentina. Seismic costs total $12 million, mostly in Colombia and facilities costs total $2 million, mostly in Argentina.

This capital program is in addition to the $299 million 2011 capital program previously announced for Colombia, Peru, Brazil and Argentina by Gran Tierra Energy, which remains unchanged. This new combined capital program of approximately $355 million for 2011 is expected to be funded from existing cash reserves and cash flow.

"Our evaluation of the new assets under management indicates that there is significant potential to grow reserves and production in the coming years. With appropriate allocation of capital, we believe we can unlock significant value from these assets," said Dana Coffield, President and Chief Executive Officer of Gran Tierra Energy.

"In Colombia, Gran Tierra Energy intends to delineate a potential gas production platform in the Lower Magdalena basin, prepare for 2012 exploration drilling in Peru, and reverse production declines in Argentina where both oil and gas prices have consistently been rising."

Colombia

Gran Tierra Energy plans to spend approximately $14 million on drilling in Colombia, including one exploration well and one delineation well with the intention of evaluating a potential gas production platform in the Lower Magdalena Basin.

Sierra Nevada Block (100% working interest and operator)

Following Gran Tierra Energy's announcement of its offer to acquire Petrolifera, GLJ Petroleum Consultants Ltd. ("GLJ") independent resource evaluators, estimated 101.5 billion cubic feet ("BCF") of United States Securities and Exchange Commission ("SEC") compliant 3P natural gas reserves (15.6 BCF 1P and 34.3 BCF 2P) at the Brillante discovery well drilled in 2010. GLJ's estimate is effective December 31, 2010.

A delineation well in the Brillante discovery is planned for the third quarter of 2011 to further define the significant potential of this discovery. A regional gas market evaluation is underway, as well as an evaluation of transportation options in the area.

The La Pinta-1 well, drilled in 2010, encountered good oil shows while drilling in the Upper Porquero reservoirs. Gran Tierra Energy plans to re-enter this well and perforate this zone to test its oil potential in the third quarter of 2011.

Gran Tierra Energy also intends to acquire approximately 170 square kilometers of 3D seismic in preparation for future exploration and development drilling on the Sierra Nevada Block.

Magdelena Block (100% working interest and operator)

Testing operations on the San Angel-1 well continue and, contingent upon successful test results, Gran Tierra Energy may acquire approximately 150 square kilometers of 3D seismic in the area.

Turpial Block (50% working interest and operator)

One exploration well is planned for the Turpial Block to evaluate the heavy oil reservoirs encountered by stratigraphic drilling in the 1970's.

Peru

In 2011, Gran Tierra Energy intends to spend approximately $13 million in preparation for drilling in early 2012.

Block 107 (100% working interest and operator)

Gran Tierra Energy believes significant resource potential exists on Block 107 in Peru. One exploration well is planned for the second quarter of 2012, with 2011 spending dedicated to planning and purchase of long lead items in preparation for 2012 drilling.

Argentina

Capital spending in Argentina will initially focus on reversing production declines on properties in the Neuquen Basin. Gran Tierra Energy plans to spend $14 million on drilling and completions in Argentina.

Puesto Morales / Puesto Morales Este (100% working interest and operator)

Gran Tierra Energy plans to conduct work-over programs on approximately 16 wells, along with drilling approximately six development wells, including three producers and three new water injectors. Gran Tierra Energy believes it can improve recovery in the existing reservoirs by minimizing water channeling in the waterflood project through the use of polymer. The budgeted work program may be adjusted to accommodate results during implementation of the program.

Production and Reserves

Including the Petrolifera assets, Gran Tierra Energy anticipates average production in 2011 to range between 17,500 and 19,000 barrels of oil equivalent ("BOE") per day, net after royalty, weighted approximately 95% to oil.

Ophir to Take Reins of Block Offshore Tanzania

Ophir to Take Reins of Block Offshore Tanzania

Thursday, April 07, 2011

Ophir Energy plc

Ophir announced that a subsidiary has entered into agreement with Ras Al Khaimah Gas Tanzania Ltd (RAKGas) to acquire a 70% interest and Operatorship of a Production Sharing Agreement (PSA) over an area designated as the East Pande Block in Tanzania. Completion of this agreement is subject to standard Government consents.

The East Pande license lies in the coastal region of southern Tanzania covering an offshore and onshore area in excess of 7,500km2. The block lies immediately to the west of Blocks 1, 3 and 4 in which Ophir has a 40% interest. Ophir has recently drilled the first deepwater wells offshore Tanzania resulting in three significant gas discoveries. The maximum water depth in the East Pande block is approximately 2,000m. The PSA was awarded to RAKGas in 2006.

In late 2010 RAKGas acquired approximately 1,800 line kilometers of 2D seismic data in the offshore section of the block. The data indicates the continuous nature of the geology between East Pande and the prospective Ophir acreage to the east. Subject to partner and Government consent, Ophir intends to acquire a new 3D seismic survey in the offshore section of the block.

Under the terms of the farm in agreement, Ophir will fund 100% of the cost of the 3D seismic survey and will reimburse certain back-costs. In the event that Ophir elects to drill, RAKGas will be carried through the drilling of the first exploration well.

Ophir and RAKGas are also partners in the Berbera PSA in Somaliland.

Ophir's New Business Director Jonathan Taylor commented, "We are delighted to extend our partnership with RAKGas to the East Pande project and to further deepen our relationship with the Government of Tanzania. With our recent exploration discoveries in Blocks 1 and 4, immediately adjacent to East Pande, we are well placed to build on this success and undertake a fast-track exploration campaign to pursue the petroleum potential of this exciting project."

AED to Plug, Abandon Lempuyang Well

AED to Plug, Abandon Lempuyang Well

Thursday, April 07, 2011

AED Oil Ltd.

AED advised that the Lempuyang-1 well testing operations are now complete. Continued mechanical issues resulted in the testing program being curtailed, due to safety concerns associated with unintended gas flowing into the well from perforations and/or damaged casing. This is believed to be due to failure of the packer in the well and/or damage to the well casing above the packer. As a result, the Lempuyang-1 well will now be plugged and abandoned.

The Lempuyang-1 well intersected excellent quality reservoir sands, with gas being flowed to surface from two test intervals. Some thin gas sands were interpreted at the lower reservoir test interval (3077-3131.5 mMD – of which 24 meters were perforated). The upper
reservoir test interval (2849-2867.5 mMD – of which all 18 meters were perforated) flowed gas to surface before AED was forced to cease testing due to a down hole mechanical failure and as a result no gas flow rates could be established. The gas analysis from the
upper reservoir test shows higher levels of C1-C8s and lower CO2 compared to the lower reservoir gas sample (<0.5 mole% compared to approx. 5 mole%).

While the testing results are inconclusive, AED notes that the data obtained supports the Joint Venture's optimism in relation to the Lempuyang prospect and surrounding acreage. AED has obtained valuable information regarding the onshore geology of Brunei, within an overpressured environment. As such, the Lempuyang-1 drilling and testing results will be integrated and used for future exploration assessment of the updip area within the eastern part of Block L, where 3D seismic is currently being considered. Further appraisal and
exploration well locations will be identified for drilling in late 2011.

Further to the Company's release of April 1, 2011, the Joint Venture currently anticipates that the following exploration activity will occur at Block L in the near term:

• Seismic acquisition at West Jerudong. The Joint Venture plans to begin shooting 130km2 3D seismic over the Jerudong oil field in Q3 2011. This field was previously produced and was shut-in while still on production without being fully depleted. While the field was originally drilled on surface oil seeps and limited 2D seismic coverage; the Joint Venture intends to acquire 3D seismic to accurately map the known fault blocks and to identify additional potential oil prospects (having regard to current oil prices).
• A 3D seismic patch (13km2) and 2D seismic line (13km) east of the Lempuyang-1 well will be acquired to confirm potential structural rollover. Depending on results, an extension to the 3D seismic program of up to 150km2 could be undertaken.

The Block L Joint Venture comprises AED South East Asia Limited (50% operating interest), Kulczyk Oil Ventures (40%) and QAF Brunei (10%).

Marathon to Sell Stake in Niobrara Shale Play

Marathon to Sell Stake in Niobrara Shale Play

Wednesday, April 06, 2011
Marathon Oil Corp.

Marathon Oil has signed an agreement with Marubeni Denver Julesburg, a subsidiary of Marubeni Corp., under which Marathon will assign a portion of its interest in the Niobrara shale play within the DJ Basin of southeast Wyoming and northern Colorado. Under terms of the agreement, Marubeni will receive a 30 percent undivided working interest in Marathon's approximately 180,000 net acres in the DJ Basin for a total consideration of $270 million, or $5,000 per acre. The companies expect to close this transaction by April 28, 2011.

"Marathon is pleased to partner with Marubeni as we prepare to explore and evaluate the full potential of this emerging, liquids-rich resource play," said Dave Roberts, Marathon's executive vice president, Upstream. "Our significant acreage position in the DJ Basin reinforces our strategy of targeting unconventional, oil-focused resource plays in the U.S. that provide low-risk, scalable growth opportunities. It also allows us to apply expertise developed over the past several years in other unconventional shale plays such as the Bakken formation in North Dakota."

Marathon began leasing acreage in the DJ Basin in 2010. The Company is currently acquiring 2-D and 3-D seismic data and expects to participate in eight to 12 gross exploration wells by the end of the year. Marathon will be operator of the jointly owned leasehold.

Shell to Take Reins Offshore Sicily

Shell to Take Reins Offshore Sicily

Tuesday, April 05, 2011
Northern Petroleum plc

Northern announced that Northern Petroleum (UK) Limited ("NPUK") has applied to the Italian authorities for the transfer to Shell Italia E&P S.p.A ("Shell") the role of Rappresentante Unico ("Operator") for six permits offshore west of Sicily; G.R17.NP, G.R18.NP, G.R19.NP, G.R20.NP, G.R21.NP and G.R22.NP, located in the thrust and fold belt to the west of Sicily. The transfer would enable
Shell to progress work required to apply for drilling approvals in advance of the final decision as to whether an exploration well is to be drilled in the permits. The joint venture is currently finalizing the subsurface evaluation.

Northern has acted as Operator of the permits during the 2D and 3D seismic phases of the exploration program, the costs of which were met by Shell. Under the terms of the farm-in agreement Shell holds 55% in G.R17.NP, G.R18.NP, G.R19.NP and 70% in G.R20.NP, G.R21.NP and G.R22.NP, with NPUK holding the remaining equity interest in the permits.

Bowleven Agrees to Option Agreement Extension for Etinde Permit

Bowleven Agrees to Option Agreement Extension for Etinde Permit

Friday, April 01, 2011

BowLeven plc

Bowleven has agreed an extension to the option agreement with Vitol E&P Limited (Vitol) in respect of the Etinde Permit (Etinde) in exchange for Vitol agreeing to fund 50 percent of a planned high specification seismic program over the IE and IF fields.

Under the agreement, Vitol retains the option to acquire an additional 10 percent beneficial interest in block MLHP-7, Etinde, in return for funding an agreed $50 million gross appraisal work program. The option now expires on the earlier of (i) 1 month following delivery of the finalized dataset acquired under a planned 3D Four Component Ocean Bottom Cable (4C OBC) seismic program over IE and IF and (ii) 31 March 2012, subject to the continuation of the exploration phase of the Etinde PSC. The option arrangement excludes blocks MLHP-5 and MLHP-6, Etinde, where the Sapele-1ST and Sapele-2 appraisal wells are currently being drilled. Bowleven will retain operatorship of all three blocks.

Bowleven and Vitol currently have participating interests of 75 percent and 25 percent respectively in the Etinde Permit. However, as part of the agreement for the revised option exercise period, Vitol will fund 50 percent of the planned 4C OBC seismic program. Data acquisition is expected to commence in April 2011, subject to contract finalization and SNH approval.

The opportunity for the 4C OBC survey has arisen due to an in-country seismic crew becoming available at short notice. This will enable the joint venture to acquire high specification seismic over IE and IF in a fast timescale and on economically attractive terms.

The data is expected to provide enhanced imaging, with significant additional upfront benefits in planning appraisal activities and the possible facilitation of a fast track development on block MLHP-7. Final processed volumes are expected to be delivered Q3/Q4 2011.

The new option arrangement with Vitol also recognizes the requirement for further technical work to be completed prior to programming firm future appraisal and development activity for the IE and IF field areas. In this regard, work is continuing to integrate the results of the IE-3 appraisal well, including developing a dynamic reservoir model over IE, and in evaluating the 3D seismic acquired over the IF field area during 2010. Vitol have been actively involved in these joint venture activities.

With the exception of the agreed 50:50 sharing of the 4C OBC costs, each party continues to fund activities on the Permit in accordance with its participating interest. In the event of option exercise, Bowleven's beneficial interest in block MLHP-7 would be 65 percent with effect from the date of exercise, with its beneficial interest in blocks MLHP-5 and MLHP-6 remaining at 75 percent. All interests are expressed prior to the exercise of any state back-in rights.

Kevin Hart, Chief Executive of Bowleven commented, "This is an excellent opportunity to acquire high quality seismic as we progress towards our objective of converting resources to reserves. The new 4C OBC seismic over the IE and IF fields at this stage will augment ongoing appraisal activities and potentially assist a fast track development on the block."

AED Recommences Retesting Preps at Lempuyang Well

AED Recommences Retesting Preps at Lempuyang Well

Friday, April 01, 2011

AED Oil Ltd.

AED Oil updated on its current testing program at Brunei Block L and its forward plans for the Block. 

Testing Update – Lempuyang-1

During the last few days, AED recommenced work in preparation for retesting of the Lempuyang-1 well. During this process, we have continued to experience mechanical and equipment issues with the well and have shut in the well. We will continue to assess the situation and will update the market once further information is available.

Lempuyang Testing Analysis

While the test results have not allowed a complete assessment of the Lempuyang-1 well thus far, AED is still encouraged by the results to date, including:

• identification of mobile gas in the two target intervals;
• gas produced to surface; and
• interpretation of a drainage area consistent with geological mapping supporting the trap integrity and structural interpretation of the Lempuyang prospect. 

Phase-2 Exploration update 

AED remains optimistic that the southern area remains a significant exploration objective. A recent evaluation of the Vertical Seismic Profile (VSP) data from the Lempuyang-1 well has shown that two potential reservoir horizons below the Total Depth of the well have not been intersected and remain untested. The recently acquired aerial gravity and magnetic survey over Block L highlights potential updip prospectivity east of our current 3D seismic.

We intend to focus on acquiring seismic over the Jerudong Field with the potential for oil development.


Phase 2 Work Program, 2011

In addition to the current testing program, AED currently anticipates that the following exploration activity will occur at Block L in the near term:

• Seismic acquisition at West Jerudong. AED plans to capitalize on the current high oil prices by shooting 130km2 3D seismic over the Jerudong oil field. This field was previously produced and shut-in without being fully depleted. The area has only limited 2D seismic coverage and AED intends to acquire 3D seismic to delineate additional potential oil pools.
• A 3D seismic patch (13km2) and 2D seismic line (13km) east of the Lempuyang-1 well will be acquired to confirm structural rollover, as a precursor to a contingent extension to the 3D seismic program of up to 150km2.

The Block L Joint Venture is made up of AED SEA (50% operating interest), Kulczyk Oil Ventures (40%) and QAF Brunei (10%).

Bahamas Petroleum Contracts CGGVeritas for Seismic Services

Bahamas Petroleum Contracts CGGVeritas for Seismic Services

Friday, April 01, 2011
Bahamas Petroleum Co. plc

Bahamas Petroleum has signed a Letter of Award with CGGVeritas to carry out a minimum of 1500 km2 3D seismic survey across its Southern license area. The details of the contract are to be finalized in April 2011 with commencement of operations in May 2011. Bahamas Petroleum Company will engage the ship 'Veritas Viking' to acquire the seismic 3D survey. The Veritas Viking will use ten seismic streamers incorporating CGGVeritas' new BroadSeis technology for the first time in the Americas.

Paul Crevello, Chief Executive of Bahamas Petroleum Company, said, "I am very pleased to announce the award of this 3D seismic contract to CGGVeritas. CGGVeritas is one of the world's most proficient seismic survey providers and its BroadSeis technology is regarded as being one of the most advanced systems. We are looking forward to commencing operations in May 2011. Fast track interpretation of the data will follow with results to be announced thereafter. The Government of the Bahamas are fully supportive of this program and we are working closely with them to put regulations and protocols in place for further exploration."

Reef Reaches TD at Ausable Well

Reef Reaches TD at Ausable Well

Thursday, March 31, 2011
Reef Resources Ltd.

Reef Resources reported that drilling of its Ausable # 5 well reached total depth of 615 meters on March 29. A total of 4 cores were taken over a depth of 32 meters with overall good recoveries. Oil staining was observed on the core sample which is currently being analyzed with results to be released in the near future. Data from the core samples will provide information on cap rock integrity and will be utilized, in addition to existing 3D seismic data, to pinpoint further drilling targets for future horizontal wells in the Ausable pinnacle reef.

The Ausable # 5 wellbore is being logged to identify the intersected hydrocarbon zones in the Ausable reef at this location. Results will be analyzed and released as soon as it is available.

The Ausable reef is currently on production and is generating revenue from the initial Enhanced Oil Recovery Natural Gas Recycling program which commenced in 4th quarter 2010.

Executive Director of Solo, Neil Ritson commented, "The presence of oil on the cores is considerable encouragement that we will be able to commercially produce this well while we awaiting the further planned development of the EOR scheme by Reef later this year."

Chariot O&G In Talks to Farm-Out Blocks Offshore Namibia

Chariot O&G In Talks to Farm-Out Blocks Offshore Namibia

Thursday, March 31, 2011
Chariot O&G Ltd.

Chariot O&G provided an update on the farm-out process and progress with regard to drilling plans and further exploration work achieved across its license acreage offshore Namibia.

Chariot has been very encouraged with the offers that have been received to date and reported that it is at the advanced negotiation stage on several blocks in the farm-out process. Discussions continue and the Company looks forward to updating the market with further information shortly.

Chariot remains committed to drilling its first well in 4Q 2011 and is pleased to report that a contract has been signed with Senergy (GB) Ltd to provide drilling and support services for its planned wells on the Tapir North (Northern License) and Nimrod (Southern License) prospects. Chariot management and a team from Senergy recently visited Namibia as part of this process, meeting with government officials and local contractors. As previously stated, Chariot is planning to drill one well in 4Q 2011 with a second in 1Q 2012.

Chariot also reports that additional attribute analysis and mapping work has continued on the 3D seismic acquired in the Southern blocks. As a result it expects to release a further resource update following the completion of this work in the early part of the second quarter.

Paul Welch, CEO of Chariot commented, "Our farm-out efforts continue to be our main focus of activity and these discussions are progressing very well. Concurrent to these negotiations, we are very pleased with our developments in regard to moving our drilling efforts forward. This year is going to be one of significant progress for the Company and I look forward to providing updates in due course."