Gulf Keystone All Smiles over Shaikan Appraisal Program

- Gulf Keystone All Smiles over Shaikan Appraisal Program

Monday, September 05, 2011
Gulf Keystone Petroleum Ltd.

Gulf Keystone provided an update on its ongoing exploration and appraisal program for the Shaikan block in the Kurdistan Region of Iraq. Shaikan is a major discovery with independently audited gross oil-in-place volumes of between 4.9 billion barrels to 10.8 billion barrels calculated on the P90 to P10 basis with a mean value of 7.5 billion barrels.

Shaikan-2 Well Test Update

Further to the announcement on the new Triassic discovery with the Shaikan-2 Appraisal Well, the Company has completed a flow test in the lower section of the Kurre Chine B zone in the Upper Triassic zone of the Shaikan-2 Appraisal Well drilled approximately nine km to the south-east of the Shaikan-1 discovery well.

The Kurre Chine B flow test in Shaikan-2 achieved flow rates of 2,600 barrels of 40 degree API oil per day with associated gas of 5.4 MMcf per day through a 48/64"choke.

So far, the Company has conducted three wells tests on Shaikan-2 with the maximum aggregate flow rate in excess of 15,000 barrels of oil per day ("bopd") with up to five additional tests still to be performed as part of the ongoing Shaikan-2 testing program in the Triassic and Jurassic. The next test will be conducted on the upper section of the Kurre Chine B.

Shaikan-4 Drilling Update

The Shaikan-4 Appraisal Well, drilled six km to the west of the Shaikan-1 discovery well, is currently drilling ahead at a measured depth (MD) of 2,580 meters. Preliminary well logs through the upper Jurassic (down to the top of the Butmah formation) indicate that the net pay count on this well for the upper Jurassic reservoirs is significantly better than those achieved with either Shaikan-1 or Shaikan-2.

John Gerstenlauer, Gulf Keystone's Chief Operating Officer commented, "This latest in a series of successful Shaikan-2 well tests follows the announcement of the new Triassic discovery made with this well earlier this month. Together with the progress in the Shaikan-4 drilling operations and the oncoming spudding of Shaikan-5, it is a confirmation of Gulf Keystone's success in both drilling and proving the value of the giant Shaikan field, which is our immediate focus".

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Max Petroleum Begins Drilling Kazakh UTS-4 Appraisal

- Max Petroleum Begins Drilling Kazakh UTS-4 Appraisal

Monday, September 05, 2011
Max Petroleum plc


Max Petroleum has commenced drilling the UTS-4 appraisal well on the Uytas prospect in Block A, Kazakhstan. The total depth of the well will be approximately 800 meters, targeting potential Cretaceous and Jurassic reservoirs.


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Lundin Extends Avaldsnes Field with Second Appraisal Well

- Lundin Extends Avaldsnes Field with Second Appraisal Well

Wednesday, August 31, 2011
Lundin Petroleum AB

Lundin announced that the second appraisal well, 16/2-7, has confirmed the extension of the Avaldsnes field approximately 5.5 kilometers south of the 16/2-6 discovery well and 4.5 kilometers south-west of the first appraisal well 16/3-4. The Avaldsnes field is located in license PL501 on the Norwegian Continental Shelf and is in communication with the recently announced Aldous Major South discovery in PL265 to the west.

The second Avaldsnes appraisal well encountered a gross reservoir column of excellent quality Upper Jurassic age sandstone of approximately 35 meters of which seven meters was above the oil water contact. A comprehensive coring and logging program has been performed which has confirmed excellent quality reservoir characteristics.

The appraisal well will now be sidetracked to obtain further reservoir information. The sidetrack will be completed by mid September. The well was drilled to a total depth of 2,500 meters MD and in a water depth of 113 meters.

Lundin Petroleum is using the semi submersible drilling rig Bredford Dolphin to drill the well.

Ashley Heppenstall, President and CEO of Lundin Petroleum commented, "The second Avaldsnes appraisal well results have confirmed the extension of the field to the south. We will, following the sidetrack, incorporate the results of the two well appraisal program and Statoil's Aldous Major South well in PL265 into our geotechnical models. We will then release a revised resource range from the previously announced 100 - 400 million barrels of recoverable of oil equivalent contained within PL501. The Avaldsnes /Aldous Major South discovery is already the largest discovery on the Norwegian Continental Shelf since the mid 1980s and I am confident has the potential to grow as the field is appraised. It is likely that a third appraisal well will be drilled on Avaldsnes during the fourth quarter of 2011."

Lundin Norway AS is the operator of PL501 with a 40 percent interest. Partners are Statoil Petroleum AS with 40 percent interest and Maersk Oil Norway with 20 percent interest.

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Gulf Keystone Unlocks Discovery at Shaikan-2 Appraisal

- Gulf Keystone Unlocks Discovery at Shaikan-2 Appraisal

Thursday, August 18, 2011
Gulf Keystone Petroleum Ltd.

Gulf Keystone has made a new Triassic discovery with the Shaikan-2 Appraisal Well, drilled approximately nine km to the south-east of the Shaikan-1 discovery well in the Kurdistan Region of Iraq.

Gulf Keystone has completed drilling of the Shaikan-2 Appraisal Well to a TD (total depth) of 3,300 meters in the middle Triassic, following which a flow test has been performed in the newly discovered Kurre Chine C zone over a 80 meter interval (3,195m to 3,275m). This new zone is highly pressured and correlates with the high pressure zone penetrated at the bottom of Shaikan-1.

The Kurre Chine C flow test in Shaikan-2 has achieved variable flow rates up to a maximum recorded rate of 4,450 barrels of 36 degree API oil per day with associated gas of 813,000 scf per day through a 36/64" choke.

After success with this first test, the Company plans to continue with its program of Shaikan-2 testing in the Triassic and Jurassic.

The Company has a 75 percent working interest in the Shaikan block and is partnered with the MOL subsidiary, Kalegran Ltd., and Texas Keystone Inc. which have the remaining 20 and 5 percent working interests respectively.

John Gerstenlauer, Gulf Keystone's Chief Operating Officer commented, "The new Triassic discovery is yet another chapter in our Shaikan success story. As a result of these successful Shaikan-2 well test results, oil volumes that will eventually be attributed to this zone, will be in addition to the already impressive 4.86 to 10.8 billion barrels of gross oil-in-place already discovered in the Shaikan field."

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Max Petroleum Begins Drilling at Uytas Appraisal Well

- Max Petroleum Begins Drilling at Uytas Appraisal Well

Monday, August 15, 2011
Max Petroleum plc

Max Petroleum has commenced drilling the UTS-3 appraisal well on the Uytas prospect in Block A. The total depth of the well will be approximately 800 meters, targeting potential Cretaceous and Jurassic reservoirs.

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OGX Intensifies Appraisal Campaign; Posts 2Q Loss

- OGX Intensifies Appraisal Campaign; Posts 2Q Loss

Thursday, August 11, 2011
OGX S.A.

OGX announced its results for the second quarter of 2011. The financial and operating data is presented on a consolidated basis in accordance with the international financial reporting standards (IFRS) issued by the International Accounting Standards Board (IASB), and in Reais, except where otherwise indicated.

"We remain focused on executing our business plan, which has advanced significantly as we have intensified our appraisal campaign and performed additional drill-stem tests, all of which are essential in converting our resources into reserves. With the recent bond issuance as well as the significant progress made in the past three months, we are not only technically but financially prepared to proceed towards production," commented Mr. Paulo Mendonça, General Executive Officer and Exploration Officer for OGX.

From the perspective of our drilling campaign, highlights of the second quarter include the drilling of 11 appraisal wells in the Campos Basin and 2 in the Parnaíba Basin, two successful drill-stem tests performed in horizontal wells in the Campos Basin and the declaration of commerciality for two fields in the Parnaíba basin, confirming our projections and attesting to the excellent execution of our business plan. In addition, we drilled wildcat wells that continue to demonstrate the great potential of our portfolio.

With respect to the commencement of production, important steps have been achieved in the past three months including the arrival of the newly built vessel Aker Wayfarer which will be used throughout the system installation, as well as the final stage of commissioning for the FPSO OSX -1. In addition, the construction of the turret, a disconnectable buoy which is part of the OSX-1 mooring system, has been completed and is already in the mobilization process to Brazil.

Second Quarter Highlights and Subsequent Events:

• Intensification of the appraisal campaign in Waimea (OGX-50D, OGX-53D and OGX-55HP), Waikiki (OGX-41D, OGX-44HP and OGX-45D), Pipeline (OGX-39HP, OGX-40D, OGX-42D and OGX-48D), Illimani (OGX-43D) and Fuji (OGX-54D and OGX-56D) accumulations located in the Campos Basin;
• Declaration of commerciality for the California and Fazenda São José accumulations in the Parnaíba Basin, for which the newly designations are Gavião Azul and Gavião Real Fields;
• Performance of drill-stem test for the first horizontal well (OGX-44HP) in the Waikiki accumulation, with excellent results;
• Important discoveries in the Parnaíba basin through the drilling of wells OGX-38 and OGX-46D;
• Significant discoveries in the Santos basin through the drilling of wells OGX-30 and OGX-47;
• Performance of a drill-stem test for the first horizontal well (OGX-39HP) in the Pipeline accumulation with very good results;
• Initiated drilling of well OGX-55HP, the second horizontal well in the Waimea accumulation;
• Raised US $2.563 billion through a bond issuance; and
• Announcement of the Company's business plan for discoveries in the Campos and Parnaíba Basins.

Campos Basin

Among the activities performed in the second quarter of 2011 in Campos Basin we can highlight the intensification of the successful appraisal campaign, the results of drill-stem tests in Waikiki and Pipeline accumulations, the drilling of wildcat wells, and the arrival and preparation of equipment for the start-up of production. On June 6, we formally announced our business plan relating to discoveries made in the basin.

During the quarter we intensified our appraisal campaign in the Waimea, Waikiki, Pipeline, Illimani and Fuji accumulations. In Waimea, we concluded the drilling of well OGX-50D encountering a hydrocarbon zone with 52 meters of net pay in the Albian section. In addition, we initiated the drilling of wells OGX-53D and OGX-55HP, which are still ongoing. In the Waikiki accumulation, we have concluded the OGX-41D, OGX-44HP and OGX-45D wells. The directional well OGX-41D found a net pay of 92 meters in the Albian section and was the pilot well for OGX-44HP, which was horizontally drilled for more than 1,000 meters in Albian-Cenomanian reservoirs. The well OGX-45D, which was intended to test the limits of the Waikiki accumulation, discovered hydrocarbons only in the Maastrichtian section, indicating an additional potential in sandstone reservoirs which extend towards the Ingá-Peró Complex. In the Pipeline accumulation, wells OGX-39HP, OGX-40D, OGX-42D and OGX-48 were drilled, identifying the presence of hydrocarbons in the Albian section with net pays of more than 1,000 (horizontal column), 107, 82 and 12 meters, respectively. In the Illimani accumulation, we have concluded well OGX-43D which confirmed the extent of the reservoirs in the Albian section and identified a net pay of 50 meters. Finally, we began the drilling of wells OGX-54D and OGX-56D in the Fuji accumulation, both of which are still in progress.

Additionally, we obtained the results of the drill-stem tests in horizontal wells OGX-39HP and OGX-44HP in the Pipeline and Waikiki accumulations, respectively. The test in well OGX-39HP, which is the first horizontal well in the Pipeline accumulation, indicated good reservoir conditions, implying a production capacity of around 10,000 barrels per day and oil of approximately 19° API. The test in well OGX-44HP identified oil of approximately 23° API and a production potential of 40,000 barrels per day, which will be limited to a flow rate of 15,000 to 20,000 barrels per day per well to optimize oil recovery from the reservoir.

Continuing with our wildcat drilling campaign, well OGX-33 was drilled in the Chimborazo accumulation and identified a net pay of 42 meters in the Albian section. We have also drilled well OGX-52 in the Tambora accumulation, which has identified a net pay of 96 meters in the Albian section and we have initiated OGX-58DP well also in this accumulation that is still ongoing.

The commencement of OGX's production is scheduled for October/November this year in the Campos Basin. The first project in the Waimea Complex will take place through an Extended Well Test (EWT) and will have an anticipated production of up to 20,000 barrels per day from well OGX-26HP.

All of the critical equipment for the start-up of production has been secured. The wet christmas tree and the electric submersible pumping system are already installed and other equipment such as flexible lines, moorings and piles (which are part of the FPSO mooring system) and the installation vessel have already been delivered. The FPSO OSX-1 is ready in the shipyard in Singapore and the turret (a buoy, part of the mooring system) is in the mobilization process to Brazil.

Parnaíba Basin

During this quarter, we made important discoveries in this basin and presented to the ANP declarations of commerciality for the Gavião Azul and Gavião Real fields. The development plans for these fields have already been submitted by OGX, who are still in the process of analyzing them.

We concluded the drilling of four wells, including two wildcat wells, OGX-34 and OGX-46D, and two appraisal wells, OGX-38 and OGX-51DP, which identified net pays of 23, 15, 43 and 8 meters, respectively, in the Devonian section. We also started the drilling of wildcat well, OGX-49, and appraisal well, OGX-57, which are still in progress.

Following the seismic campaign in this basin, we engaged a second seismic team during the quarter to focus on the southern blocks, while the first team remains focused on seismic in the northern blocks.

The Gavião Azul and Gavião Real fields will be the first natural gas fields developed by OGX. We expect that gas production in this basin will start in the second half of 2012, as announced in our business plan for the discoveries made in this basin. We estimate that these fields will reach a production level of 5.7 million m3/day in 2013, which corresponds to total production of 1.1 Tcf of gas. Natural gas produced in the region is expected to be the supply source for thermoelectric power plants to be built by MPX Energia SA, an EBX Group company, in association with Petra Energia SA, both of which are partners with OGX in this basin.

MPX has entered into a term sheet with Bertin Energia e Participações to acquire two projects, which are still awaiting ANEEL's approval, that have the authorization for the construction of thermoelectric power plants with a total capacity of 660 MW. MPX intends to transfer these licenses acquired in the A-5 auction in 2008 to the Parnaíba Thermoelectric Complex, where it already has a prior installation license to implement 3,722 MW. This acquisition represents an important step in the integration of natural gas production provided by OGX Maranhão, to power generation in the Parnaíba Basin.

We have recently approved the leasing agreement of two additional onshore drilling rigs for the production development plan in Parnaíba Basin.

Santos Basin

In the second quarter of 2011, we continued our exploratory campaign and achieved important results testing classic targets and new geological models. We have concluded the drilling of well OGX-30, which confirmed a new play in fractured carbonates in the Albian age, showing a significant gas column and a large structured area. This discovery enabled us to confirm this new geological model for the region so that we can begin the appraisal campaign.

The recent discovery in sandstones in the Santonian age in well OGX-47, in the Maceió accumulation, contributed significantly to the development of our assets in this region and, when combined with the discoveries already made in the basin, will generate greater economies of scale and cost-effectiveness. We intend to focus on the appraisal campaign and proceed with the development of the production model for the region.

OGX currently has nine rigs at its disposal, including six semi-submersible rigs, two onshore rigs and one jack-up for drilling in the Campos, Santos, Parnaíba and Pará-Maranhão basins. Eight rigs are in operation and one is currently being mobilized.

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Sentry Updates Appraisal Work at AU Wells

- Sentry Updates Appraisal Work at AU Wells

Tuesday, August 09, 2011
Sentry Petroleum Ltd.

Sentry provided the following update on its drilling exploration and appraisal work on ATP 862 and ATP 864 in Queensland Australia.

Sentry Petroleum has now completed the drilling of two Coal Seam Gas wells on ATP 862. The wells, Talundilly_CSG1 and Albilbah_CSG1 reached depths of 1,430 feet and 1,555 feet, respectively. In Talundilly_CSG1, 833 feet of core were cut, out of which 51 feet of coal and carbonaceous rock were canistered for gas desorption in 21 samples. Gas desorption is still ongoing as gas was found in all the canistered core samples. The Company expects this process to be completed for the Talundilly_CSG1 during the coming week. The Company further advises that isotherms will be obtained on selected coal and shale samples.

In Albilbah_CSG1, 472 feet of core were cut, out of which 35 feet of gaseous coal and carbonaceous rock were sealed in 20 canisters for desorption measurement. In addition, the lower Winton Sandstones were found to contain free gas and 20 feet of these cores were also canistered and evolved gas is being measured. Once these measurements are completed during the coming weeks the cores will be sealed and sent to a laboratory for routine core analysis to measure porosity, permeability and residual fluid saturation. The wireline logs from the previously drilled Albilbah-1 also indicate the presence of gas in these sands over a 128 feet interval starting beneath the last coal.

The Company's coalbed gas content measurements are using the direct method which is the preferred method in coalbed methane and gas shale resource assessment. The direct method physically measures the volume of gas released over time from a core sample sealed into a desorption canister—termed the measured gas content. Adjustments are made to the measured gas content to account for gas lost prior to the core being placed in the desorption canister and for residual gas remaining in the core at the completion of the desorption period. The process of acquiring the measured gas content generally requires four to five weeks. Upon completion of the gas desorption results will be forwarded for independent certification.

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Jubilant Posts Test Results of Appraisal Well DDE-APP-1 in India

- Jubilant Posts Test Results of Appraisal Well DDE-APP-1 in India

Tuesday, August 09, 2011
Jubilant Energy N.V.

Jubilant announced the results of Appraisal Well DDE-APP-1 in the Deen Dayal East Field in the KG Block, which was spudded on the January 1, 2011.

The well was drilled by the operator (GSPC), with the objective of appraising the hydrocarbon bearing sands of the KG-16 discovery well and, in the process, to test the Cretaceous and Jurassic Rift Fill and younger sandstones that were found to be productive in other wells on the Deen Dayal structural complex. The well was drilled to 5,621 meters measured depth and encountered basement at 5,530 meters measured depth.

Two Drill Stem Tests ("DST") were undertaken after electric logging of the lower section of the well. DST-1 was undertaken in the rift fill section with perforation between 4,957 to 4,970 meters measured depth. This test flowed water at an average rate of 1500 bwpd and carbon dioxide ranging 20% to 28% was found in the well stream. DST-2A was undertaken in a shallower section with perforation between 4,774 to 4,786.5 meters measured depth and 4,789-4,799.5 meters measured depth. This flowed gas at 0.73 mmscfd with condensate at 60 bcpd from a 12/64 inch choke; 6% constant carbon dioxide was observed during the test.

The authorized cost to drill and test the well was approximately USD 75 million (USD 7.5 million net to Jubilant), the actual cost to date is approximately USD 69 million (USD 6.9 million net to Jubilant). The rig is currently waiting for a suitable weather window to move to the Well Head Platform.

Jubilant holds a 10% participating interest in this block through its subsidiary Jubilant Offshore Drilling Private Limited in India. Gujarat State Petroleum Corporation Limited, with an 80% participating interest, is the operator for the block. Geo Global Resources holds 10%.

Ajay Khandelwal, CEO of the Company commented, "The results of this well are not as expected and the operator is undertaking a full evaluation of the results. Any impact on 2C resources for DDE will be declared following a detailed evaluation by the operator and independent reserves consultants. Any evaluation will also take into account the possible upside of 2C resources from 20.5 square kilometer development area extension, as previously announced. Furthermore, the ongoing development of DDW (2P reserves area) is currently ahead of schedule with first gas expected in 2013."

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Entek Updates Ops in Niobrara Shale Oil Proj. Appraisal Program

- Entek Updates Ops in Niobrara Shale Oil Proj. Appraisal Program

Friday, August 05, 2011
Entek Energy Ltd.

Entek provided an update on the Niobrara Shale Oil Project Appraisal Program in the Green River Basin.

Battle Mountain 14-10L

The well has reached its total depth of 7,500 ft. Wire-line logs have been run and the well has been successfully cased and cemented ready for completion.

Preliminary interpretation of wire-line logs and correlation to offset wells show that the Niobrara section in this well contains significant potential pay zones (benches), as expected. In addition the Frontier Sandstone exhibits hydrocarbon saturation and is also being considered as a pay zone for fracture stimulation and completion.

The fracture stimulation program is currently being designed with Halliburton and is expected to start in August 2011.

The rig has been released and is currently mobilizing to the next location as the completion and fracture stimulation program is being designed for the Battle Mountain 14-10L well. Entek holds a 55% interest in the Green River Basin Joint Venture (GRBJV) with Emerald Oil & Gas NL holding 45%. Entek is the Operator. The GRBJV now controls close to 80,000 gross acres, approximately 60,000 net acres, covering the Niobrara Shale Oil Play.

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Lundin Spuds Avaldsnes Appraisal Well

- Lundin Spuds Avaldsnes Appraisal Well

Wednesday, July 20, 2011
Lundin Petroleum AB

Lundin announced that drilling of the appraisal well 16/2-7 on the Avaldsnes discovery located in the North Sea sector of the Norwegian Continental Shelf (NCS), has commenced.

The planned depth is approximately 2,275 meters below mean sea level and the well will be drilled using the semisubmersible drilling rig Bredford Dolphin. The drilling operation is expected to take approximately 55 days.

The objective of the well is to appraise the Avaldsnes discovery following the 16/2-6 discovery well in 2010 and the recent successful appraisal well 16/3-4 with side-track 16/3-4A.

Lundin Petroleum is the operator of PL501 with 40 percent interest. Partners are Statoil Petroleum AS with 40 percent and Maersk Oil Norway with 20 percent interest.

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Jubilant Kicks Off Appraisal Ops at India Block

- Jubilant Kicks Off Appraisal Ops at India Block

Tuesday, July 19, 2011
Jubilant Energy N.V.

Jubilant has spudded the Srikantabari well (S-1) on July 18, 2011 in the Tripura block. This is the first well to appraise the Kathachari-1 (K-1) discovery. The well is located 4 kms north east and up-dip from K-1 and 3 kms south west and down dip of the ONGC's discovery in TMD-1 well (flowed approximately 1.7 mmscfd). The well will be deviated by 650 meters to the south west and will be drilled to a total depth of 3100 meters true vertical depth subsea. The well, which is being drilled by Quippo Oil & Gas Infrastructure Limited, is estimated to take 65 days to drill and will cost approximately USD 11 million on gross basis, excluding the testing cost.

The well will be drilled using managed pressure drilling due to high pressure in the region. This well will test the Middle Bhuban Sands encountered in the K-1 well, one zone of which had flowed 5.2 mmscfd. These sands are expected to be encountered approximately 800 meters up-dip of the K-1 sands. The well is the first deviated well to be drilled by Jubilant and is the fourth well to be drilled on the block.

Management's best estimate of gross un-risked prospective resources is 800 bcf for a deviated well compared to previous estimate of 480 bcf for drilling S-1 as a vertical well, as in the deviated well it is expected to encounter an additional sand package.

Further, as part of the Katharchari-1 appraisal program (which was approved by The Director General of Hydrocarbons in February 2011), Jubilant has completed seismic data acquisition of 160 lkm prior to the onset of the rainy season. The remainder of the survey will commence after the rainy season and will be completed by September 2011. This work was carried out in the southern part of the block, in and around the Katharchari-1 discovery well. Pursuant to the initial work program, the total seismic survey length was 137 lkm, which was later extended to 180 lkm.

Jubilant is the operator of this block and holds a 20% participating interest, through its wholly owned subsidiary Jubilant Oil and Gas Private Limited in India.

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Statoil Spuds Appraisal Offshore Norway

- Statoil Spuds Appraisal Offshore Norway

Tuesday, July 19, 2011
Lundin Petroleum AB

Lundin announced that drilling of appraisal/exploration well 16/2-8 on the Aldous Major South structure has commenced. The well is located in license PL265 in the Norwegian North Sea.

The Aldous Major South structure is believed to be the western continuation of the Lundin Petroleum operated PL501 Avaldsnes discovery into PL265, with primary target in sandstone of Upper and Middle Jurassic age. Secondary targets are the Cretaceous Shetland Group chalk and the Triassic Skagerrak Formation.

The planned total depth is 2,085 meters below mean sea level. The well will be drilled with the drilling rig Transocean Leader and the duration is expected to be 45 days.

Lundin Petroleum holds 10 percent interest in PL265. Partners are Statoil Petroleum AS (operator) with 40 percent interest, Petoro (30 percent) and Det norske oljeselskap ASA (20 percent).

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Rockhopper Spuds Sea Lion Appraisal Well

- Rockhopper Spuds Sea Lion Appraisal Well

Monday, July 18, 2011
Rockhopper Exploration

Rockhopper Exploration plc, the North Falkland Basin oil and gas exploration company, announced that the 14/10-6 appraisal well was spudded at 2125 hrs BST on 15 July 2011. The Well is situated on Licence PL032, which is 100% owned and operated by Rockhopper, and is the third appraisal well to be drilled on the Sea Lion feature since Rockhopper’s oil discovery in May 2010.

The Well is located some 4.1km to the west of the 14/10-2 discovery well, on the western side of the structural low at top reservoir, and 2.3km to the south-west and 14m updip from the 14/10-4 appraisal well. The Well is designed to investigate reservoir and hydrocarbon presence outside what the Company considers the minimum case area. Both Sea Lion Main and Lower fan intervals are targets, with all the Sea Lion Main fan expected to be above the Oil-Water Contact established by the 14/10-4 appraisal well, and with reservoir expected to be thinner than encountered in previous wells on the Sea Lion feature.

Drilling operations are expected to take approximately 38 days and a further announcement will be made once drilling is completed.

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Max Petroleum Begins Testing Kazakh Appraisal

- Max Petroleum Begins Testing Kazakh Appraisal

Monday, July 11, 2011
Max Petroleum plc

Max Petroleum has begun testing of the ZMA-ET1 appraisal well in the Zhana Makat Field, successfully flowing 47 degree API oil at an equivalent rate of approximately 1,200 barrels of oil per day ("bopd") from perforations in a Triassic reservoir from depths of 1,282 to 1,288 meters during a five hour flow-back period. The well, located in Kazakhstan, will be connected to temporary production facilities later this week and brought onto production. The Company expects the well to produce at a stabilized rate between 500 and 1,000 bopd.

Completion and testing of the ZMA-ET2 well is expected to begin shortly, with production beginning in the next few weeks. Both wells will initially be placed on test production pending confirmation of reserves necessary for future inclusion in Zhana Makat's full field development program.

Michael B. Young, President and CFO, commented, "This is the best test rate we have seen in any well we have drilled to date and further confirmation of the potential of the Triassic reservoirs on Blocks A&E. We will continue to increase production this month as we bring on the ZMA-ET2 and BOR-3 wells, followed by the ASK-1 Jurassic well in August. We are also looking forward to drilling other Triassic prospects in our portfolio this quarter, including Sagiz West, Zhalgyz South, and Asanketken."

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Rockhopper Adds Additional Appraisal on Semisub

- Rockhopper Adds Additional Appraisal on Semisub

Thursday, July 07, 2011
Rockhopper Exploration plc

Rockhopper has entered into a further assignment agreement to secure an additional well slot on the Ocean Guardian drilling rig. Rockhopper will shortly drill well 14/10-6, its third appraisal well on the Sea Lion feature, followed by an additional three wells in succession.

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Nautical Spuds Kraken Appraisal Well

- Nautical Spuds Kraken Appraisal Well

Wednesday, July 06, 2011
Nautical Petroleum plc

Nautical announced that the drilling of the 9/02b-5 well has commenced on the Kraken discovery located on North Sea Block 9/2b.

The appraisal well spudded at 13-30 hrs this afternoon. The well is being drilled approximately one kilometer to the south west of the 9/02-1a discovery well, to further appraise the core area of the field and establish a commercial flow rate.

Initially a pilot well will be drilled, cored and logged. This will be followed by a horizontal sidetrack of up to 600 meters. A Logging Whilst Drilling (LWD) suite will be run over the horizontal section to provide further understanding of the reservoir quality and distribution. The horizontal sidetrack will be completed with a gravel pack and tested using an Electric Submersible Pump (ESP). Upon completion of the drilling program the well will be suspended to be used as a future development well.

The drilling is being performed by the semi-submersible rig the Wilhunter and is expected to take approximately 60 days in total, subject to weather and any operational downtime. The initial pilot well is expected to take 20 days.

Nautical has a 50% interest in North Sea Block 9/2b and is the operator. The other participants are Celtic Oil Limited, a fully owned subsidiary of First Oil Expro Limited (30%) and Canamens Energy North Sea Limited (20%).

Commenting on this announcement Steve Jenkins, Chief Executive Officer of Nautical said, "We are delighted to commence this key activity, which is aimed at confirming Kraken's commerciality. Assuming success, it is our intention to submit a preliminary Field Development Plan (FDP) for the first phase of the development to the Government by September 2011, with a target for full FDP approval by June 2012. Success will represent a significant step towards the commercialization of Kraken."

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Drilling Commences at Barquentine Appraisal

- Drilling Commences at Barquentine Appraisal

Monday, June 27, 2011
Cove Energy plc

Cove issued the following operational update.

• Mozambique Rovuma Offshore Area 1 ("Rovuma Offshore")
  • Appraisal Drilling Commences. The Belford Dolphin drillship has commenced appraisal drilling in the Barquentine gas discovery area. Currently the rig is top setting the upper casing strings on Barquentine 3 after which it which it will drill Barquentine 2, located approximately 4kms SE of the discovery well and then return to finish Barquentine 3. This initial appraisal program which will include flow testing and core analysis is to focus on proving sufficient resources in the Oligocene gas reservoirs of the Windjammer/Barquentine discovery area in order to lay the foundations for the first LNG train.
  • New 3D Acquisition Completed. Acquisition of the new 3D seismic survey of approximately 4,448 km2over the southern and northern section of Rovuma Offshore block is now complete. This data is now being processed and will be integrated with reprocessed existing 3D data to obtain a consistent subsurface image across the entire deepwater hydrocarbon fairway. Final results are expected in Q4 this year.
  • Liquefied Natural Gas (LNG) Project. As sufficient volumes for an LNG project were encountered in the Windjammer, Barquentine and Lagosta wells the operator, Anadarko, has mobilized, in an extremely short time, a full team to pursue the LNG project such that a Final Investment Decision (FID) can be taken in 2013. Progress to date includes the identification of coastal land sites for the LNG facilities and a preliminary gas development plan.
• Kenya Deepwater Offshore.
  • Blocks L5, L7, L11A, L11B & L12. Encouraged by the interpretation of the 2010 2D seismic the partnership has elected to accelerate the work program with the acquisition of over 3,500sq kms of new 3D seismic split in to two surveys centered on L7 and straddling L11A & B.
  • Blocks L10A & L10B. Preliminary interpretation by the operator B G Group has identified a number of leads. A 3D seismic survey over the eastern part of the blocks is planned later this year.

John Craven CEO of Cove commented, "We are very pleased with the significant progress on our East Africa portfolio. The beginning of appraisal drilling offshore Mozambique is another important milestone and is the start of a continuous sequence of exploration and appraisal wells scheduled to be drilled over the coming two years complimented by a second deepwater rig arriving later this year. The new and reprocessed 3D will ensure that we are equipped to optimally evaluate the numerous oil and gas prospects on the block.

"We are also delighted with the significant progress made by the operator in pursuit of the LNG project which is running concurrently with the appraisal drilling activity.

"Our Kenya offshore blocks are also showing considerable promise which fully justifies the extensive 3D seismic that will be acquired this year."

Commenting on progress over the last year Michael Blaha, Executive Chairman of Cove said, "Looking back over the past year Cove has gone through a transformation. After the Windjammer gas discovery, offshore Mozambique, followed by three additional gas discoveries, Cove has evolved from a small exploration company to a company with significant market value participating in a world class LNG project. Current activities focus on the appraisal of the existing discoveries to enable early certification of gas reserves. This work stream is being undertaken simultaneously with the development of LNG market (sales contracts), front end engineering, environmental impact studies, the establishing of financial, commercial and legal frameworks for the project.

"After the initial Mozambique success Cove acquired equity positions in seven deep water blocks offshore Kenya. These blocks cover most of Kenya's deep water potential where extensive new 3D seismic will be acquired this year.

"Cove will continue to expand its portfolio by seeking high potential opportunities in keeping with our strategy of exploration/appraisal and monetization at the appropriate time."

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Rockhopper Tests Flow Rates of 5508 bpd at Sea Lion Appraisal

- Rockhopper Tests Flow Rates of 5508 bpd at Sea Lion Appraisal

Monday, June 27, 2011
Rockhopper Exploration plc

Rockhopper provided the following update on the flow test carried out at well 14/10-5.

• Well flowed at commercially viable rates
• Well flowed at stabilized rates of 5508 stb/d
• Well achieved a maximum stabilized flow rate of 9036 stb/d

A total section of 86m, incorporating 79m of reservoir, was perforated between 2379m and 2465m (md) over the Sea Lion Main Fan Complex. No lower fan sands were perforated on this flow test.

The well flowed for a main 48 hour flow period at a stabilized rate of 5508 stb/d and 940 mscf/d of gas with a flowing well head pressure (WHP) of 783 psi on a 48/64 inch choke. The gas oil ratio (GOR) was 170 scf/stb over the 48 hour period. The well was flowed through a separator under artificial lift by means of a downhole electric submersible pump (ESP). The flowing wellhead temperature was 62 degrees C. This temperature is significantly higher than that achieved during the test of well 14/10-2 and demonstrates the highly effective nature of the Vacuum Insulated Tubing (VIT) used during the test at 14/10-5. It was not necessary to use any wax inhibitors or pour point suppressants and no water or H2S were produced during the test.

The well was flowed for a second main flow during which the final maximum flow rate of 9036 stb/d was achieved with a flowing WHP of 625 psi on a fixed 1 inch choke over a 2 hour period before shutting the well in for a final build up and injectivity tests. The GOR during the maximum rate flow period was 153 scf/stb.

During the test down hole pressures were recorded and both surface and downhole crude oil samples were collected and will now be analyzed by the Company.

Downhole mini DSTs (Drill Stem Test) were also performed on two of the three sands making up the 14m of net pay encountered in the well, which form part of the lower fan. These 2 sands had net pay of 8m and 4.5m. Interpretation of the results of the mini DST indicate that these 2 sands could have contributed an additional 800 stb/d flow rate using the same flow test techniques (artificial lift by ESP and thermal insulation by VIT) as used during the main DST performed on the upper fan in well 14/10-5.

The Board views the flow rates achieved as being commercially viable. Further appraisal drilling is being progressed over the coming months to continue to define the extent of the Sea Lion resource.

The Ocean Guardian drilling unit will now drill well 14/10-6, which will be the third appraisal well within the Sea Lion discovery area. 14/10-6 is located some 4.5km to the west of well 14/10-5 and is located within the Company's currently mapped mid-case area.

Sam Moody, Chief Executive of Rockhopper, commented, "This very positive well test result is another key milestone in establishing Sea Lion commerciality. We will now review the wealth of data gathered during the testing process and continue our preparations for the next appraisal well on the field."

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Max Petroleum Spuds Kazakh Appraisal Well

- Max Petroleum Spuds Kazakh Appraisal Well

Monday, June 13, 2011
Max Petroleum plc

Max Petroleum has commenced drilling the BOR-3 appraisal well in the Borkyldakty Field. The total depth of the well will be approximately 1,800 meters, targeting Triassic reservoirs.

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Coastal Touts Success at Bua Ban North Appraisal

- Coastal Touts Success at Bua Ban North Appraisal

Monday, June 06, 2011
Coastal Energy Co.

Coastal Energy announced the successful results of the Bua Ban North B-04 appraisal well.

The Bua Ban North B-04 well was drilled to 6,000 feet TVD and encountered 64 feet of net pay in the Miocene objective with average porosity of 27%. The B-04 confirms the discovery made by the B-02 well, which encountered 62 feet of net pay in the Miocene with 26% porosity. The B-04 well is currently being cased and will then be suspended pending the arrival of production equipment. The Company plans to drill a water disposal well before mobilizing the rig to its next planned location.

Randy Bartley, Chief Executive Officer of Coastal Energy, commented, "We are pleased with the continued success in the Miocene trend at Bua Ban North B. Drilling is expected to be complete by mid-June and the Mobile Offshore Production Unit is scheduled to arrive in late June. A hydraulic unit will be used for completion operations and production testing is anticipated to begin in mid-July.

"The B-04 well further confirmed the Miocene trend at Bua Ban North B and the potential of the Miocene play across the Songkhla basin. Following Bua Ban North B, the rig will be mobilized to the Songkhla H prospect, which is in the middle of the basin between Songkhla A and Bua Ban. An exploration well will be drilled to test the Miocene and deeper zones at this location."

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