Vanoil Wraps Up Seismic Program in Kenya Block

- Vanoil Wraps Up Seismic Program in Kenya Block

Tuesday, September 13, 2011
Vanoil Energy Ltd.

Vanoil has completed its 2011 2D seismic program on Block 3B in Kenya. Vanoil's 100% owned Blocks 3A and 3B in Kenya cover approximately 24,000 square kilometers and are part of the vastly under-explored prolific Cretaceous Central African Rift Basin System in Kenya.

Vanoil's 2011 seismic program in Block 3B covered approximately 398 line-km and was completed on budget and schedule. The program was designed to cover several leads previously identified on the re-processed 1975 Chevron and the 2010 Vanoil seismic data in Block 3B. The 2011 seismic data is high quality with location, time and amplitude content having been jointly assessed and controlled by the contractors; Bureau Geophysical Prospecting (BGP) and RPS. This premium data has been gathered to further image some specific structural leads and as a reconnaissance program to identify more new leads in Block 3B. In addition, the 2011 seismic program was also designed to enable Vanoil to improve on the geologic model in the Lamu Basin, one of the three basins identified on the Vanoil Blocks.

The 2011 2D seismic program in Block 3B consisted of 398 kilometers of additional seismic bringing the cumulative total to 845 kilometers of 2D seismic coverage completed by Vanoil to date on Blocks 3A and 3B in 2010/2011.

The 2011 Vanoil 2D seismic program data will now be sent to Statcom in Calgary Alberta for processing, following which, the data will be interpreted and integrated with the reprocessed and interpreted 1975 Chevron and 2010 Vanoil data. With the newly acquired data, the Company expects to add significantly to the resource assessment incorporated in the previously announced Sproule 51 101 report.

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Salamander Farms Into Gulf of Thailand Block

- Salamander Farms Into Gulf of Thailand Block

Friday, September 09, 2011
Salamander Energy

Salamander Energy plc announced that its fully owned subsidiary, Salamander Energy (Bualuang) Ltd has agreed to farm-in to Block G4/50 in the Gulf of Thailand, earning equity in the acreage from Mitsui Oil Exploration Co Ltd (“MOECO”). Following the completion of the transaction, Salamander will hold a 100% working interest in and operatorship of the acreage, while MOECO will retain certain commercial options in the case of a future discovery. Block G4/50 is located in the western Gulf of Thailand and surrounds the Company’s B8/38 licence that contains the Bualuang oil field and Bualuang East Terrace oil discovery. The farm-in is subject to Thai government and regulatory approval.

Key Points:

G4/50, at over 11,650 sq km, is one of the largest blocks of prospective acreage offshore Thailand. The block surrounds the Salamander-operated B8/38 licence in the western Gulf of Thailand

It consolidates Salamander’s acreage position in an area where it has extensive operating experience and geological knowledge

Major programme of 3D seismic in 2H 2011 will be followed by a multiple well exploration programme

As part of the farm-in agreement MOECO will retain certain commercial options in the case of a future discovery

Exploration expenditures incurred in G4/50 are deductible against tax payable on production revenue from the Bualuang oil field in B8/38

James Menzies, Chief Executive, Salamander Energy, said:

“We are delighted to secure a very substantial area of prospective acreage surrounding our Bualuang operations. Block G4/50 has been of growing interest to Salamander as our geological and subsurface understanding of the immediate play has developed. The region remains under-explored to date and we are looking forward to implementing our work programme, starting with an extensive 3D seismic campaign of over 2,900 sq. km on G4/50 in the fourth quarter of this year.”

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ROC Pumps Oil at Zhanghai Block Offshore China

- ROC Pumps Oil at Zhanghai Block Offshore China

Thursday, August 25, 2011
Roc Oil Co. Ltd.
by SubseaIQ

Roc Oil (Bohai) Company, a wholly owned subsidiary of ROC, advised that production has commenced from the first appraisal well drilled in the new Zhanghai block – one of two adjoining blocks added to ROC's existing Zhao Dong Block Contract in March 2011 with the aim of commercializing previous near field discoveries in the area and encouraging further appraisal activity.

The appraisal well (ZD CP2N-H-1) commenced drilling from the Zhao Dong C4 platform on July 15 and intersected 310 meters of horizontal reservoir section. The well was completed and production through existing C4 facilities has commenced at an initial rate of 3,546 BOPD. PetroChina exercised its rights under the PSC to participate with a 51% interest in the new Zhao Dong blocks on the commencement of completion activities and commercial development of the well, effective August 12. The interests in the two new additional blocks are now PetroChina 51%, ROC 39.2% and Sinochem 9.8%.

ROC is now planning to drill a second appraisal well (ROC 80% cost obligation on dry hole basis) during 2012.

Commenting on the success of the well, ROC's Chief Executive Officer, Alan Linn, stated, "One element of ROC's strategy is to generate future growth by commercializing near field opportunities through existing infrastructure. Extension of the Zhao Dong block provides an opportunity to incrementally develop a number of existing discoveries through existing Zhao Dong facilities in parallel with ongoing development drilling activities. Exploration opportunities within this acreage could also impact the future profitability and recovery life of the existing assets.

"Production from the first appraisal well in the additional Zhao Dong blocks is a positive outcome for all joint venture partners and represents the achievement of another of ROC's key strategic objectives for 2011: to deliver a new production or pre-development opportunity in China."

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PetroMagdalena Discovers New Oilfield in Cubiro Block

- PetroMagdalena Discovers New Oilfield in Cubiro Block

Tuesday, August 23, 2011
PetroMagdalena Energy Corp.

PetroMagdalena has discovered a new light oilfield with the Petirojo-1 discovery well, with the well currently producing 1,545 bopd of 40 degrees API light oil after 13 hours of initial production test. This represents 1,080 bopd gross working interest share for the Company, which is just under half of the Company's current production.

Luciano Biondi, Chief Executive Officer of PetroMagdalena stated, "We are extremely pleased to commence our exploration program with such positive drilling results in our core block in Colombia, coming as it does in conjunction with the spudding of the Copa-B exploration well, which provides more momentum to our business plan."

Located in Cubiro Block B, the Petirojo-1 well, in which the Company holds a 70% working interest, was spudded on July 14, 2011 and directionally drilled to a total depth of 6,399 feet measured depth ("MD"). The C7 Carbonera reservoir was found at a depth of 5,636 feet (MD) and well logs indicate a net oil pay of 32 feet with porosities averaging 29%. After perforating 17 feet in three intervals in the C7 Carbonera sand and after installing an electric submersible pump ("ESP"), the well produced 370 barrels of 40.8 degrees API oil over the latest 4.0 hour period at an average rate of 1,545 bopd and a downhole flowing pressure of 1,850 psi, a 21% drawdown, with an average BS&W of 21.7%. The well testing program is ongoing and final results will be provided.

Based on seismic interpretations, the accumulation discovered by Petirojo-1 is a 2.0 kilometer long structure with a closure of 190 acres, corresponding to the typical exploration play in the Llanos Basin, and on trend with the Palmarito Field to the north, which shows a cumulative production in excess of 12 million barrels.

PetroMagdalena and its partner have agreed to drill two additional wells as part of this year's drilling program: (i) an exploration well north of Petirojo to test a separate structure located between Petirojo-1 and the Palmarito Field within the same trend, and (ii) one appraisal/development well offsetting the Petirojo-1 discovery well.

In Cubiro Block C, the Company is currently drilling the Copa-B exploration well and today is at 2,870 feet (MD) with a target total depth of 6,992 feet (MD). Copa-B will test a seismically defined structure 4.4 kilometers south and on trend with the Copa Field, discovered last year where two wells in the C7 Carbonera sand averaged an initial production rate of 1,400 bopd.

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TomCo Awards Development Contracts for Utah Holliday Block

- TomCo Awards Development Contracts for Utah Holliday Block

Tuesday, August 23, 2011
TomCo Energy plc

TomCo, the AIM listed company with oil shale assets in the State of Utah, USA, has awarded a number of key contracts intended to provide some of the baseline environmental and operational information necessary for the formulation of a comprehensive development plan for the Holliday Block. As previously reported, TomCo's Holliday Block asset contains 123 MM bbl of recoverable oil, classified by SRK Consultants as an Indicated Resource under the JORC Code. TomCo intends to produce oil from this large resource using the EcoShaleTM In-Capsule Process developed by Red Leaf Resources Inc.

The contracts awarded are as follows:

• An Engineering Service Agreement signed with Rocky Mountain Power Inc (RMP), the main electric supplier in the State of Utah, under which RMP will evaluate various alternative routes and options for the provision of high voltage line power to the Holliday Block site, with a target of approximately 27 months for the supply of the electricity to commence oil production.
• A Roads and Access Study, to be undertaken by Epic Engineering of Heber City, Utah. This project will evaluate the existing network of dirt roads in this part of the Uintah Basin, the projected loadings implied by the development of a 9,500 bopd EcoShaleTM facility at Holliday Block, and develop plans and recommendations for road development and/or upgrading for consideration by Uintah County authorities.
• A high-resolution airborne topographic survey of the TomCo lease, combined with a detailed ground survey co-ordinated by Epic Engineering, in order to further refine the geological model and up-grade the resource assessments for the lease.
• A Water Resources Inventory to be undertaken by Epic Engineering, to provide data on drainage patterns, storm water predictions, seeps, springs etc in the Holliday Block area. As well as providing necessary baseline data required for environmental studies and future development permit applications, this project will help determine any additional water supply requirements for the planned TomCo development.
• Norwest Corporation, a large mining engineering consultancy based in Canada and the USA, has been engaged to develop a detailed, and fully costed, Mine Plan for TomCo's Holliday Block development. Norwest have been working closely with Red Leaf Resources on the Mine Plan for the nearby Seep Ridge EcoShaleTM project, and will bring this experience to bear directly on the Holliday Block. The Mine Plan will be based on the detailed geological model developed by SRK Consultants from the Company's corehole drilling on the Block, and will be the principal input into the development of Feasibility Economics for the project.

The Company is also in the advanced stages of discussions with a number of Environmental Contractors on the initiation of baseline Soil and Vegetation, Biological Resources, Cultural Resources and Air Quality studies which will be required for a future development permit applications. Some of these studies are expected to begin in Q4 2011, while others will be done in the spring of 2012; further announcements will be made when specific contracts are awarded.

Stephen Komlosy, CEO of TomCo Energy, commented, "We are delighted to have engaged the services of Rocky Mountain Power, Epic Engineering and Norwest Corporation as consultancy partners in our Holliday Block development project, and we expect to see some real progress over the next several months. These are all companies with enormous experience in the Uintah Basin, and in the challenges presented by oil shale projects, and the projects being initiated are all necessary for the upgrading of project Resources to Reserves as we move towards development of our Holliday Block asset."

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SacOil: Work Program to Commence at Congo Block III

- SacOil: Work Program to Commence at Congo Block III

Monday, August 15, 2011
SacOil Holdings Ltd.

SacOil provided an operational update on the Block III oil concession ("Block III"), Albertine Graben in the Democratic Republic of Congo ('DRC'), in which SacOil has an effective 12.5 percent interest.

As announced on March 4, 2011, Semliki Energy SPRL ("Semliki"), a 50 percent owned subsidiary of SacOil, successfully concluded a farm-in agreement in March 2011 with Total E&P RDC ("Total") pursuant to which Total acquired an effective 60 percent undivided interest in, and became the operator of, Block III. The Government of DRC holds an effective 15 percent interest and DIG Oil holds an effective 12.5 percent interest respectively in Block III.

Work Program

SacOil announced the establishment of the Block III Operations Committee ("Committee") for the management of Block III joint venture operations. The Committee consists of members from SacOil, Total, DIG and a representative of the Government. The first meeting took place in Kinshasa in June 2011 and further meetings are scheduled to take place on a bi-annual basis to monitor and report back on the execution of the work program.

The work planned and agreed on Block III includes an airborne gravity and magnetic survey over the license area, the results of which are expected in 4Q of 2011. This will form the basis for the next stage of the program which will include the acquisition of a targeted 2D seismic survey. The performance of the work program is subject to first obtaining the relevant ministerial authorization.

Bradley Cerff, Vice President Commercial of SacOil commented, "I am pleased with the progress we are making at Block III with our partners Total. Work will shortly commence on carrying out the preliminary aeromagnetic surveys which is the precursor to targeted seismic surveys. The Block III project in the DRC has an exceptional postcode in terms of recent neighboring discoveries in Uganda. We look forward to updating shareholders on further work programs as we move towards drilling a maiden well on Block III during the first phase of the exploration period."

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Chariot Sells Stake in Namibia Block to BP

- Chariot Sells Stake in Namibia Block to BP

Monday, August 08, 2011
Chariot O&G Ltd.

Chariot announced that its wholly-owned subsidiary, Enigma Oil & Gas Exploration (Pty) Limited, has entered into a farm-out agreement with BP, whereby BP will acquire a 50% share of Chariot's equity interest in Southern Block 2714A (License 20). As announced on June 28, 2011, Petrobras has elected to take up operatorship and retains a 50% stake in the block.

Under the terms of the agreement, BP has committed to cover Chariot's cost of drilling the first exploration well, as well as past costs incurred.

Block 2714A is located in the Orange Basin offshore Namibia and covers an area of 5,481km². The Nimrod prospect is situated within this license and is the largest of Chariot's prospects. With this farm-out, Chariot will continue to pursue its drilling campaign within this license area whilst sharing in the costs, risks and rewards of exploration. Funds received and retained through this deal will be used in further exploration and appraisal work.

This agreement remains subject to the full approval of the Ministry of Mines and Energy in Namibia. It includes standard representations and warranties given by both parties and other conditions precedent.

Paul Welch, Chief Executive of Chariot, said, "We are delighted to enter into this farm-out agreement with BP whose global expertise of deep water exploration and related petroleum systems is exceptional and whose contribution to our campaign going forward will be invaluable. It is a pleasure to welcome another major oil company as a partner.

"It has been a key strategic objective for us to farm down our assets in order to facilitate exploration drilling, retain capital and mitigate risk; we are very pleased to have made progress towards this. We look forward to proving up the potential of our assets alongside our partners, as we seek to deliver long-term value to our shareholder."

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BPMigas: ExxonMobil, Partners Need $1.3B to Develop Cepu Block

- BPMigas: ExxonMobil, Partners Need $1.3B to Develop Cepu Block

Friday, August 05, 2011
Dow Jones Newswires
JAKARTA
by Deden Sudrajat

ExxonMobil and its partners will need to invest around $1.3 billion to fully develop their oil production facility in the Cepu Block in Java, the head of the Indonesian oil and gas sector watchdog said Friday.

Raden Priyono, the chairman of upstream oil and gas regulator BPMigas, estimated production at the Banyu Urip oil field can reach 165,000 barrels of crude a day at full capacity, compared with the current 20,000 barrels a day.

Exxon has picked a consortium of Samsung Engineering and PT Triparta as a partner for one of its five engineering, procurement and construction contracts in Banyu Urip. The $746.3 million contract was the biggest and the first to be signed. BPMigas' Priyono expects the remaining contracts to be signed later this year.

Mobil Cepu and Ampolex (Cepu) Pte. Ltd., both subsidiaries of Exxon Mobil, have a combined 45% stake in the block, while Pertamina EP Cepu owns 45% and the Cepu Block Cooperation Body, or BKS, holds the remaining 10%.

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

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La Cortez Updates Ops at Putumayo Block

- La Cortez Updates Ops at Putumayo Block

Thursday, August 04, 2011
La Cortez Energy Inc.

La Cortez provided the following operational update on the Company's Putumayo-4 block located in the Putumayo Basin in southwestern Colombia:

Putumayo-4 Block

Social Activity

As previously disclosed, at the end of November 2010, the local community consultation process was suspended pending appoint of a new contractor to act on behalf of the Ministry of Interior. During July 2011, consultations were reinitiated, and significant progress has been made in the northern part of the block with two communities consulted to date. One agreement is ready for signature by the community and Petroleos del Norte S.A. (PetroNorte), operator of the Block; a second agreement is under discussion, with final approval currently expected within a month. Community consultations in the southern part of the block are proceeding more slowly, and while the negotiations continue in earnest, it has been agreed to focus all initial seismic activity in the northern area of the block in order to fulfill the commitments to the ANH (Agencia Nacional de Hidrocarburos).

Operational Activity

Assuming completion of the community consultation process under the timeline indicated above, the near-term operational objective is to shoot 104.8 km of 2D seismic over the block during October 2011. The seismic acquisition is a contractual obligation of the parties under the terms of our agreement with the ANH. The results of the seismic acquisition program will allow PetroNorte and us to finalize the selection of the drilling location for the first exploration well to be drilled on the Putumayo-4 block.

Bid specification for the seismic acquisition is expected to be complete by the end of August 2011, awarded in September, and initiated in October 2011. We anticipate that we will have the seismic volume interpretation from the acquired seismic by early 2012. In addition, once the community consultations are finalized, we will commence work on the Environmental Impact Study, which is required to secure the environmental license. Subject to completion of permitting and civil works at the drill-site, we and PetroNorte anticipate spudding the exploratory well (which is a commitment obligation under the contract with the ANH) during the second quarter of 2012.

Andres Gutierrez, President and CEO of La Cortez, commented on the announcement, "We are very pleased to announce the community consultation process is underway once again, and eagerly anticipate the increased level of activity over the coming months. We remain very optimistic about the exploration potential of the Putumayo-4 block and are encouraged that our views are shared by others who have recently approached us regarding their potential interest in partnering with us on future exploration and development activity."

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Simba Granted PSC for Kenya Block

- Simba Granted PSC for Kenya Block

Wednesday, August 03, 2011
Simba Energy Inc.

Simba has been granted a Production Sharing Contract (PSC) by the Ministry of Energy, Republic of Kenya for Block 2A, comprising 7,801.72 square kilometers in northeast Kenya.

"We are delighted in having been awarded this PSC from the Republic of Kenya's Energy Ministry. This is a major achievement for the Company and further supports our strategy to pursue underexplored and overlooked onshore basins in Africa. While we remain very close to finalizing other PSC applications elsewhere, Block 2A's PSC provides our shareholders a very significant boost in near term upside exploration potential for the Company. It has been a lot of work to get to this point so we are extremely pleased," remarks Robert Dinning, President & CEO.

Block 2A overlies the southern tip of the Mandera Basin while the southwest corner of the block extends into the Anza Basin. Block 2A also has excellent potential for significant oil and gas discoveries as evidenced by the following evaluation highlights:

• The Mandera Basin is Permo-Triassic to Tertiary in age with a sediment thickness of 10,000 meters. Potential source rock interval is mid Jurassic-Lower Cretaceous and comparable with the larger Mandera-Lugh basin in Ethiopia and Somalia
• Only four wells have been drilled in the Mandera basin with oil shows encountered at 40-44m in the Tarbaj stratigraphic well drilled by Total
• In the Anza basin lower Cretaceous reef structures have been mapped with a potential reservoir thickness of 300m-500m. Source rock is likely Lower Cretaceous. The eleven wells drilled in the Anza Basin have encountered oil shows and/or gas shows
• Present 2D seismic coverage, although regional in nature, identified numerous structures and a major stratigraphic pinch-out. The limited seismic coverage available indicates a stable stratigraphic sequence with some very good exploration leads
• Remaining of exploration interest to the Company is the flank of the basement high structure where two AMOCO wells drilled in 1987 (ELGAL#1 to 1,280 meters in Permian Karroo and ELGAL#2 to 1,908 meters in Triassic Karroo) were plugged and abandoned as no reservoir rocks were encountered
• The area of the block overlying the Mandera basin is of particular interest as the analysis of the oil from the seeps at Tarbaj although severely biodegraded indicate a source rock maturity for the Mandera basin which is well within the oil window

The Company will immediately begin re-interpretation of all available existing data, as well as initiate baseline environmental work, to support the design and planning of a new seismic acquisition program.

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Dominion Petroleum Picks Up Block Offshore Kenya

- Dominion Petroleum Picks Up Block Offshore Kenya

Monday, August 01, 2011
Dominion Petroleum Ltd.

Dominion Petroleum announced the award of Block L15 of the Lamu Basin, offshore Kenya. This new award follows Dominion having secured Block L9, offshore Kenya, in March 2011.

The Company concluded negotiations with the Government of the Republic of Kenya by executing heads of agreement ("HoA") which define the terms for Block L15, with Dominion serving as operator with a 100% working interest.

The award of L15 is subject only to the signature of a Production Sharing Contract ("PSC") by Dominion and Kenya's Ministry of Energy; currently scheduled to take place in the coming weeks in Nairobi.

With Block L15 now added to its portfolio of exploration assets in offshore East Africa, Dominion holds a leading exploration portfolio in the deepwater East African margin by now operating 3 blocks in Tanzania and Kenya. The directors anticipate that the expanded, combined portfolio may gain even more industry interest going forward. The Company can now adopt a partnering strategy for the assets in terms of moving toward the drilling of this expanded portfolio.

Block L15 lies immediately to the north of Block L8, where the reportedly 1 billion barrel Mbawa prospect shall likely be drilled in mid 2012. Dominion's new Block is on the Davy-Walu structural trend, as is Block L9. The only well in Block L15 is Kofia-1, which was drilled by Union Oil in 1985 and encountered good oil shows in the Palaeogene and Upper Cretaceous intervals. Planned drilling by other operators along the Davy-Walu trend over the next 12 months may serve to de-risk the prospectivity in both L9 and L15 before firm drilling commitments are made in either PSC.

Following signature, the Initial Exploration Period of the PSC will last for two years. During this time, a gross minimum work commitment of $2.85m inclusive of the acquisition of 250 square kilometres of 3D seismic data is required.

Following the Initial Exploration Period, there is an option to relinquish the PSC or commit to another two year exploration period with the obligation to drill one well in that period.

The terms and the commitments for L15 defined in the HoA compare very favorably to other countries in the region relative to the potential resource the block represents.

Andrew Cochran, Chief Executive of Dominion Petroleum, commented, "We are delighted to add Block L15 to Dominion's East Africa deepwater exploration portfolio, one of the most sought after addresses in the exploration industry these days. The region is seeing both growing attention from, and accelerated activity by, major players with Kenya now due for deepwater drilling within the next year following the last year's successes in Tanzania and Mozambique.

"Dominion's new award represents a material expansion of an already enviable deepwater East African portfolio. We can now focus our attentions on the business of exploring these blocks, realizing their true value and embarking on substantive discussions with potential partners to establish plans for drilling."

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Afren Increases Stake in Madagascar Block

- Afren Increases Stake in Madagascar Block

Monday, July 25, 2011
Afren plc

Afren announced that Government approvals have been received for Afren to assume operatorship and increase its interest in Block 1101, onshore Madagascar, to 90 percent. and a revised work program agreed.

Highlights

• Afren interest increased to 90 percent. from 40 percent. (reassignment of 50 percent. from Candax Energy to Afren)
• Afren assumes operatorship
• Work program of first two exploration phases now combined, with an additional 150 km of 2D seismic to be acquired
• Undertaken to drill one commitment exploration well; drilling now planned in 2012

Block overview

Block 1101 is located on the Eastern flank of the Ambilobe basin in Northern Madagascar. The Block encompasses an area of approximately 14,900 km2 onshore and lies adjacent to ExxonMobil's Ampasindava Block. The formation of the Ambilobe basin and the corresponding stratigraphic suites are closely related to the break-up of Gondwanaland and the later separation of eastern Gondwana. There are proven, large heavy oil accumulations in the Isalo formation in Central Madagascar (Bermolanga and Tsimiroro) which attest to the prospectivity of the region.

Some 220 km of 2D seismic was acquired over the block in 2008, identifying three major structures each close to existing wells with recorded oil shows. A working hydrocarbon system on the block is further evidenced by surface oil seeps.

Terms of reassignment and work program

Under the agreed terms of reassignment, Afren has increased its overall participation in Block 1101 to a 90 percent. operated interest through the reassignment of a 50 percent. interest previously held by Candax Energy, who remain partners on the block with a 10 percent. interest. Government approvals for the reassignment have been received and a revised work program agreed with OMNIS, the state oil and gas agency. The agreed work program has combined the first two exploration phases on the block and requires the drilling of one exploration well to a minimum depth of 1,600 meters. The partners have also agreed to acquire an additional 150 km of new 2D seismic. Under the revised ownership structure and work program, it is expected that drilling will now commence in 2012.

Osman Shahenshah, Chief Executive of Afren plc commented, "We see tremendous prospectivity in Madagascar and now, as operator, are keen to explore our high potential acreage. We are grateful to OMNIS and the Malagasy authorities for their endorsement and approval of this transaction and extended work program. We look forward to collaborating with our hosts and partner Candax in the ongoing exploration at Block 1101, and to further establishing Afren's long term commitment to this exciting exploration play."

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Inpex to Sell Stake in Masela Block

- Inpex to Sell Stake in Masela Block

Friday, July 22, 2011
Inpex Corp.

Inpex announced that its affiliate Inpex Masela has signed an agreement with Shell Upstream Overseas Services (I) Limited a subsidiary of Royal Dutch Shell plc (Shell), to transfer a 30% participating interest in the Masela Block, the Arafura Sea, Indonesia (Abadi Project). This transaction is subject to approval of the Indonesian Government and satisfaction of certain other conditions.

Inpex Masela is the operator with a 90% participating interest in the Masela Block, which measures 3,221km2 in a water depth ranging from 300m to 1,000m. The Abadi gas field was discovered in 2000, and the subsequent six appraisal wells and the study results confirmed the sufficient gas reserves for LNG development. In December 2010, the plan of development was approved by the Indonesian Government that the Abadi gas field will be developed in phases and a Floating LNG (FLNG) plant will be constructed and utilized for an annual production of 2.5 million tonnes for the first phase development.

Inpex Masela is currently preparing to award Front-End Engineering and Design (FEED) contracts, which is scheduled for the 1st half of 2012.

Based on the technical characteristics of the Abadi Project, which is a large-scale offshore LNG project, Inpex considers it vital to invite a strategic partner among major oil companies, which has sufficient expertise and experiences of LNG business and, in particular, of large scale offshore gas development activities. As a result, Inpex decided to invite Shell as the strategic partner for Abadi Project. Shell is a world leader of LNG projects and has a particular capability in FLNG technology which will be very valuable to the Abadi Project. In particular, Shell has just demonstrated its leadership and delivery in FLNG activities by reaching a final investment decision on the Prelude FLNG project made in May 2011, the first FLNG project globally to reach development level.

While Inpex Masela will continue to be the Operator of the Abadi Project holding a 60% participating interest, it is expected that the participation of Shell with its extensive expertise and experiences in offshore production, gas liquefaction, LNG shipping and, in particular, its FLNG experiences will help ensure the timely delivery of the Abadi project. It will also contributes largely to promote a wider collaborative relationship between Inpex and Shell on the Abadi project and other projects.

Inpex continues to seek support from the Indonesian Government and other stakeholders for a successful commercial production from the Abadi project.

Inpex has a 50% working interest in the Offshore Mahakam Block with the largest gas production in Indonesia. Inpex will be expanding its exploration and development activities in Indonesia as one of the company’s core business areas.

• Participating Interests
  • Inpex Masela (Operator) : 60%
  • Shell Upstream Overseas Services Limited : 30%
  • PT EMP Energi Indonesia(EMPI) : 10%
• Planned Schedule
  • FEED: Planned to start by the 1st half of 2012
  • Abadi Project FLNG

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Far East Energy Notes 66% Increase in Shouyang Block

- Far East Energy Notes 66% Increase in Shouyang Block

Friday, July 22, 2011
Far East Energy Corp.

Far East Energy announced the results of an independent report prepared by Netherland, Sewell & Associates, Inc. ("NSAI") evaluating, as of June 30, 2011, the net contingent gas resources and Net Present Value at 10% Discount ("NPV10") of the net contingent cash flow for the three target coal seams in Far East Energy's 485,000 acre (1960 square kilometers) Shouyang Block, situated in Shanxi Province, China.

The report, which is subject to certain limitations and assumptions described therein, gives a Best Estimate of NPV10 of $1.23 billion, which reflects a 66% increase over the previously prepared NSAI report as of December 2010; a High Estimate of $2.11 billion, which reflects a 44% increase; and a Low Estimate of $319.30 million, which reflects a 143% increase.

"Obviously, this is an exhilarating report. It reflects the great potential of the Shouyang Block project," said Michael R. McElwrath, CEO and President of Far East. "These estimates not only reinforce the belief we have had in this project since the beginning, but it also better defines the economic potential of the Shouyang Block. As you may recall when we released the December 2010 NSAI report we stated that it was our hope and belief that the numbers then reported by NSAI, were just the beginning indicators of the Shouyang Block's vast resource potential. Now, with the receipt of the latest NSAI report, a mere six months later, this is being borne out. As the Company continues its development of the Shouyang Block project, with operations now under the oversight of David Minor, Executive Director of Operations, we believe we are well positioned to enter the next development phase and expect to see increased well-by-well gas rates coupled with sustainability."

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Statoil Gets Green Light to Drill N. Sea Block 15/8

- Statoil Gets Green Light to Drill N. Sea Block 15/8

Thursday, July 21, 2011
Petroleum Safety Authority Norway

Statoil has secured consent to conduct exploration drilling in the central part of the North Sea using the COSLPioneer mobile facility.

The consent relates to the drilling of exploration well 15/8-2 in production license 303. The well is located about 250 kilometers southwest of Stavanger. The consent also covers the drilling of a potential sidetrack.

The well has the following geographical coordinates: N 58° 24' 55.08", E 01° 32' 49.89" Water depth at the site is approx. 119 meters.

Drilling is scheduled to start in late July/early August 2011. The expected duration of the activity is about 79-124 days, depending on potential discoveries.

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Melrose Commences Drilling at Bulgaria Block

- Melrose Commences Drilling at Bulgaria Block

Thursday, July 21, 2011
Melrose Resources plc

Melrose provided an update on its exploration activities.

Highlights 

• the Company is pursuing a number of high potential exploration initiatives and plans to allocate approximately 40 percent of its capital expenditure to drilling and seismic work programs over the next three years.
• the exploration program includes projects in proven hydrocarbon basins offshore Bulgaria and Romania, as well as new frontier exploration plays in northern and southern Egypt, Turkey and offshore France.
• the Company expects to complete three exploration wells in the second half of 2011, in Turkey (on its South Mardin acreage), Bulgaria (on the Galata block) and Egypt (on the South East Mansoura concession).
• the 2011 drilling program is targeting net unrisked prospective resources of 43 MMbbl of oil and 59 Bcf of gas and two of the wells are potentially new exploration play openers with significant follow-on opportunities.
• seismic surveys acquired in early 2011 on the Mesaha concession in southern Egypt and the Rhône Maritime block offshore France will help define the longer term exploration potential in these untested frontier areas.
• seismic data will be acquired later in the year offshore Bulgaria, where the Company hopes to extend the existing proven gas play to the north of the Galata-Kaliakra field trend.

Exploration Update

Bulgaria

In Bulgaria, the Company has received formal Government notification that the Galata block exploration permit has been extended to 4 February 2013 with a work program commitment including 3D seismic acquisition and one firm well.

Following receipt of the notification, the Kaliakra East exploration well was spudded on July 20 in the Galata block. The well is targeting a structure containing net prospective resources of 59 Bcf (P50 basis) with a chance of success of 34 percent and should take approximately one month to complete.

The Company is also moving forward with its plans to acquire 500 square kilometers of 3D seismic data within the Galata block to the north of the Galata-Kaliakra field trend. This area of the concession is thought to be on the gas migration path and contains a number of leads identified on the existing 2D seismic data. The 3D acquisition contract has been tendered and the survey is expected to commence in September this year.

Turkey

Drilling operations continue on the South West Kanun well on the Company's South Mardin acreage in southern Turkey. This well has dual objectives in the Cretaceous and Ordovician formations and is targeting net prospective resources of 37 MMbbl of oil with an average chance of success of 19 percent. Intermediate casing has been set at 3,814 feet and the well is currently drilling ahead at a depth of 5,910 feet. The well has experienced some minor operational delays associated with equipment procurement and is expected to complete in mid to late August.

Egypt

The processing and interpretation of the 3D seismic data recently acquired over the Cretaceous oil play in the South East Mansoura concession has been completed. The interpretation has confirmed the presence of multiple prospects and leads with combined unrisked prospective resources of 54 MMbbl. One prospect, called Al Hajarisah, has been selected for drilling in the fourth quarter 2011 and this has prospective resources of 6 MMbbl (working interest basis) and a chance of success of 21 percent.

On the Mesaha frontier exploration concession, the 2011 2D seismic survey has been completed with a total of 1844 kilometers of data acquired. The quality of the new seismic data is superior to the 2010 2D survey and has significantly improved the definition of the sedimentary basin. Based on this encouragement, the scope of the 2011 survey was expanded as compared to the original plan (which was to acquire 700 kilometers of data) and the processing and interpretation will complete around year end. The first well is expected to be drilled on the block in the second half of 2012.

Well flow testing operations have recently been completed on the West Zahayra-1 well which was a Qawasim formation discovery made in 2008, seven kilometers west of the West Dikirnis field. Prior to testing the original well was sidetracked by approximately 114 feet and the new wellbore encountered 39 feet of net oil pay with an average porosity of 16 percent.

During testing the well flowed good quality black oil (44 degree gravity) with only small amounts of gas. The well was produced for a period of 4 days but had an unstable flow regime with oil rates fluctuating between 80 and 280 bopd. The Company is currently evaluating whether, with an improved completion design, the well may be placed on commercial production and in parallel is reviewing the field appraisal options.

France

Preliminary interpretation of the 7,500 kilometers of 2D seismic data acquired on the Rhône Maritime block earlier this year has confirmed the presence of some significant structures on the block and detailed analysis is ongoing to ascertain whether the data exhibit any direct hydrocarbon indicators. The interpretation is due to be completed late in the fourth quarter.

Romania

Melrose is planning to acquire seismic data over the Muridava and East Cobalcescu blocks offshore Romania in 2012 during the summer. A provision of $17.8 million for these surveys was included as a contingent item in the Company's 2011 capital budget and this will be rephrased in the Company's next financial forecast.

Commenting on today's announcement, David Thomas, Chief Executive, said, "This is a key period in the Company's evolution as we transition from predominantly production and development related investments to place more emphasis on our exploration portfolio. We are looking forward to seeing the results from our exploration wells in Turkey and Bulgaria, both of which represent an important part of the Company's broader exploration program. The results of the West Zahayra flow test in Egypt are also encouraging since they have extended the oil productive area of the Mansoura concession and we will be reviewing the geologic interpretation of this region in parallel with our appraisal studies on the discovery."

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Lukoil Takes Stake in Block Offshore Sierra Leone

- Lukoil Takes Stake in Block Offshore Sierra Leone

Wednesday, July 20, 2011
OAO Lukoil Holdings

Lukoil has acquired from the private company Oranto Petroleum Ltd. a 49% stake in the Petroleum Agreement for SL-5-11 Offshore Block in the Republic of Sierra Leone (West Africa).

The mandatory exploration program within the framework of the Agreement provides for the drilling of one exploration well before 2013.

The SL-5-11 offshore block with an area of 4,022 sq. km is located in the territorial waters of the Republic of Sierra Leone on the shelf and continental slope of the Atlantic Ocean. The water depth within the Block territory varies from 100 m to 3.3 km. 2D and 3D seismic surveys have been conducted at the block, revealing several promising structures. The block is part of the Sierra Leone - Liberia geological basin, where a number of major oil fields have been discovered during the last two years, thus proving its potential productivity.

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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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Production at Block S-1 in Yemen Back Online

- Production at Block S-1 in Yemen Back Online

Monday, July 18, 2011
TransGlobe Energy Corporation

TransGlobe Energy Corporation announced the repair of the Yemen export pipeline to the Red Sea and resumption of production at Block S-1.

Block S-1, Yemen (25% non-operated working interest)

TransGlobe was advised on July 16th that the export pipeline from Marib to the Ras Issa facility on the Red Sea was repaired on July 15th. The operator of Block S-1 began shipping sales crude oil on July 16th and commenced production from the An Nagyah field. The operator is currently ramping up production from the field and is producing approximately 8,300 Bopd Gross (2,075 Bopd to TransGlobe) this morning. Block S-1 produces a high quality (43 API) sweet crude oil and typically receives Brent pricing.

Block S-1 production (approximately 2,300 Bopd to TransGlobe) was shut in since March 17th, 2011 due to damage to the export pipeline.

The Company will provide updated Guidance for 2011 with the second Quarter financial results which are scheduled for release on Monday, August 8th.

TransGlobe Energy Corporation is a Calgary-based, growth-oriented oil and gas exploration and development company focused on the Middle East/North Africa region with production operations in the Arab Republic of Egypt and the Republic of Yemen. TransGlobe's common shares trade on the Toronto Stock Exchange under the symbol TGL and on the NASDAQ Exchange under the symbol TGA.

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PetroLatina Farms-Out Colombia Block to Shell

- PetroLatina Farms-Out Colombia Block to Shell

Friday, July 15, 2011
PetroLatina Energy plc

PetroLatina has entered into a farm-out agreement with Shell E&P Colombia, effective July 12, 2011. Under the terms of the agreement, Shell E&P Colombia will acquire an 85% participating interest in the Company's VMM-28 Exploration and Production contract, subject to the approval of the ANH. The VMM-28 block is currently wholly owned and operated by Petroleos del Norte (PDN), PetroLatina's Colombian operating subsidiary.

PDN and the ANH signed the formal E&P Contract in March 2011, for the exploration, development and production of hydrocarbons in the area known as the VMM-28 block. The block covers an area of 54,552 hectares (approximately 136,390 acres) and lies to the west of, and immediately adjacent to, the Company's existing La Paloma block containing the Company's producing Colon field. Preliminary analysis of the available historic 2D seismic data suggests that the type of structure which has proven to be oil productive on the La Paloma block may also potentially hold commercial oil reserves on the VMM-28 block. The current carrying value of the Company's interest in the VMM-28 block is approximately US $4.64 million.

In accordance with the terms of the farm-out agreement, which remains subject to regulatory approval from the ANH, Shell E&P Colombia has agreed to pay a fee of US $15 million in cash to PetroLatina, of which US $3 million is payable on execution of the agreement and the balance of US $12 million is payable on receipt of the requisite ANH approval. Shell E&P Colombia will be appointed as operator of the contract and will take responsibility for the work program. In the event that ANH approval is not forthcoming by 30 September 2011, Shell E&P Colombia has the right to terminate the agreement and require any payments made by it to PetroLatina to be repaid.

The VMM-28 E&P Contract comprises two 3 year exploration periods ("Phase 1" and "Phase 2") followed by a 24 year production phase. In accordance with the E&P Contract in place with the ANH, work obligations for the VMM-28 block include the acquisition of 2D seismic and one exploratory well during Phase 1 (the first 3 year exploration phase), and either two wells without relinquishment of any acreage or one well with 50% relinquishment during Phase 2 (the second 3 year exploration phase). Under the terms of the farm-out agreement, PetroLatina has granted Shell E&P Colombia a six year period of operational exclusivity. During this Exclusivity Period, Shell E&P Colombia will pay for 100% of the costs, expenses and liabilities associated with the work program and shall be entitled to all rights in relation to the block.

Shell E&P Colombia will make available to PetroLatina all data acquired by it in relation to the contract area and ensure that the license area remains in good standing and will comply with all applicable laws, regulations and orders of Colombia.

Under the agreement, Shell E&P Colombia will obtain an 85% participating interest in the block. PDN will retain a 15% legal interest with an option to participate in the block upon expiration of the Exclusivity Period. Under the terms of the farm-out agreement, PetroLatina shall pay its share of the costs, expenses and liabilities associated with the block and shall pay Shell E&P Colombia for its share of Shell E&P Colombia's total sunk costs incurred to such date, out of PetroLatina's share of production within the block. Operations on the VMM-28 block would thereafter be governed by a joint operating agreement.

In the event that Shell E&P Colombia decides to withdraw from the farm-out agreement, the Company has the option to request that Shell E&P Colombia transfers its prevailing interest in the block back to PetroLatina.

Following the receipt of ANH approval, the Company intends to use the proceeds from the farm-out agreement to assist with the part funding of its planned ongoing drilling program and development commitments in respect of the remainder of its Colombian asset portfolio and for general working capital purposes.

Luc Gerard, Executive Chairman of PetroLatina, commented, "I am extremely pleased to welcome Shell E&P Colombia as our partner in respect of the VMM-28 contract, who's deep and complex drilling capability and experience in conventional and non-conventional reservoirs will be invaluable. The farm-out agreement provides us with exposure to exploration activity on the VMM-28 block, including the technology and expertise of Shell, whilst enabling us to focus our resources on the development of the other promising assets in our Colombian portfolio, including the Putumayo-4 E&P block.

The funds received, following the receipt of ANH approval, will assist with the financing of our ongoing Colombian work program whilst we maintain the flexibility of exercising an option to participate in the promising VMM-28 block in the future. This agreement serves to demonstrate the level of industry interest in VMM-28 and more generally in Colombia. We continue to believe in the potential of both our asset portfolio and Colombia and look forward to demonstrating and realizing such potential as our work program progresses."

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