Elixir to Farm-Out Stake at N. Sea Tiger Prospect

- Elixir to Farm-Out Stake at N. Sea Tiger Prospect

Monday, July 11, 2011
Elixir Petroleum Ltd.

Elixir announced the conditional farm-out of an interest in Block 211/12b located in the Northern Sector of the UK North Sea.

Background

Elixir is currently 100% interest holder and operator of the Block 211/12b. Through the use of 3D seismic data analysis and Fluid Inclusion Stratigraphy studies, a significant Upper Jurassic aged oil prospect named Tiger has been identified in the Block.

The Tiger prospect is situated close to prolific fields including the BP operated, 900 million barrel Magnus Field, the Shell operated Penguin cluster, and the more recently developed Don West field. Each of these fields could provide existing local infrastructure for the export of hydrocarbons in the event of exploration success at Tiger.

The Tiger prospect is a direct analogue to the Magnus Field, which is located 5 kilometers to the West. All of the play components, being source, migration, trap, seal and reservoir have been demonstrated to work at Magnus. The most likely, unrisked recoverable resource for Tiger is estimated to be approximately 90 million barrels.

Farmout Terms

Elixir has executed a farmout agreement with a privately owned oil and gas explorer to acquire an 85% interest in the license and operatorship in consideration for carrying Elixir's 15% interest on a partially promoted basis through the drilling of a firm exploration well, and a contingent appraisal well.

The Exploration Carry also includes all costs associated with logging and flow testing, and should it be necessary, plugging and abandonment. The repayment of the non-promoted part of the Exploration Carry is recoverable by the Farminee from Elixir's share of oil production receipts from Tiger. The total cost of the firm and contingent wells and, in the event of a discovery, the expected testing program, is estimated to be approximately £30 million.

On completion of the farmout, the Farminee has also undertaken to pay to Elixir a substantial cash contribution towards back costs.

The Farminee is obliged to complete the drilling of the firm exploration well by no later than November 30, 2012. In the event this deadline is not achieved, Elixir will be entitled to the reassignment of the Farminee's interest in the licence and operatorship.

Optional Development Carry

Under the terms of the Farmout Agreement, Elixir has also been granted an option by the Farminee to be fully carried through the development phase of the project. If a commercially developable discovery is made, Elixir will be able to exercise the option to be
carried and will not be required to contribute towards the costs of the development of the field through to the commencement of production.

The cost to Elixir of exercising this option will involve the repayment of the costs carried, the reimbursement of the Farminee's financing costs and a premium calculated as a percentage of the carried costs. At Elixir's election, the Development Carry can either be repaid directly at the time of first oil, or can be recovered by the Farminee from Elixir's share of oil production receipts (in which instance an increased premium will be levied by the Farminee). The size of the development carry given a most likely development outcome would be in the order of £50 million.

Farminee and Conditions Precedent

The Farminee is a private company owned and run by a group of experienced oil and gas professionals and financiers who have previously owned and operated oil and gas assets. The Farminee is a new entrant to the UK North Sea, and therefore is required to obtain approval as a licensee and as an operator from the UK Secretary of State for Energy and Climate Change (DECC). The receipt of the approval of DECC to the assignment of the licence interest and the transfer of the operatorship to the Farminee are the only two conditions precedent to completion of the farmout.

An initial meeting between the Farminee and DECC has been held. The Farminee will be required to demonstrate to DECC technical and financial capability in order to secure DECC's approval. DECC guidelines indicate that the approval process is likely to take approximately three months to complete. Assuming DECC approvals are received, it is anticipated the Tiger exploration well will be spudded in the first half of 2012.

Comment

We are delighted to have secured a farmout of Tiger on compelling terms which will see Elixir carried on two wells, and in the event of a discovery, with the option of a full development carry through to first oil. This transaction will be the catalyst for near term drilling activity at Tiger, one of the largest as yet undrilled exploration targets in the UK North Sea, and provides Elixir with exposure to the possibility of a significant oil development project on a low risk, essentially fully carried basis.

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Antrim to Farm-Out N. Sea Erne Prospect

- Antrim to Farm-Out N. Sea Erne Prospect

Thursday, July 07, 2011
Antrim Energy Inc.

Antrim has signed a Heads Of Agreement (HOA) to farm out a portion of its Erne Prospect located in the Greater Fyne Area in the Central North Sea.

Premier Oil UK Limited (Premier) has agreed to earn a 50% working interest in Antrim's 100% owned License P1875 by funding a promoted share of the costs to drill a well on the Erne Prospect on Block 21/29d. The well is expected to commence drilling in the third quarter of 2011 as part of the Greater Fyne Area drilling program announced by Antrim on March 28, 2011. A contract has been signed with AGR Well Management Limited to provide well project management and drilling services, including the provision of the WilPhoenix semi-submersible drilling rig, and a site survey has been completed.

The Erne Prospect is an Eocene Tay Formation oil prospect located between the Fyne and Guillemot NW fields at a drilling depth of approximately 6,000 feet. Erne is analogous to the Guillemot NW Field, which produces oil from the Eocene Tay Formation.

The Erne farmout is part of Antrim's strategy of managing risk and reducing cost while maintaining significant interest in its North Seas properties.

Assignment of the license interest to Premier will be subject to approval by the UK Department of Energy and Climate Change (DECC).

As previously announced on April 04, 2011, Antrim and Premier, along with First Oil Expro Limited, will also collaborate on the drilling of an appraisal well on the eastern flank of the Fyne Field, License P077 Block 21/28a. The East Fyne well is anticipated to be spud in 4Q 2011.

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Petroamerica to Farm-Out Los Ocarros Block

- Petroamerica to Farm-Out Los Ocarros Block

Petroamerica has entered into a farm-in agreement with Parex Resources Colombia Ltd. Sucursal ("Parex") to farm-out 50% of its working interest in the Los Ocarros block (the "Farmout"). Petroamerica's 50% working interest in the Los Ocarros block is derived from a farmout with Talisman (Colombia) Oil & Gas Ltd. ("Talisman"), which was announced on January 4, 2011.

As a consequence of the Farmout, Petroamerica and Parex have agreed to fund an exclusive operation to drill a sidetrack well to the Las Maracas-2 exploration well. The Farmout requires that Parex pay the first US $7.0 million of costs associated with the sidetrack well, after which Parex and Petroamerica will each bear 50% of any additional costs relating to the exclusive operation. Petroamerica and Parex will share equally any of the non-consenting party's working interest that becomes available as a result of the exclusive operation.

The Las Maracas-2 well reached a total depth of 13,100 feet and was found to be on the edge of structural closure with minor hydrocarbon shows encountered in the Mirador and Gacheta reservoirs. Petroamerica interprets a transition zone from oil to water on wireline logs in the uppermost part of the Mirador reservoir. The deeper part of the well has been plugged back and the well is currently being sidetracked to test the closure in a structurally higher position, at an estimated true vertical depth of around 11,000 feet for the Mirador reservoir.

Nelson Navarrete, CEO and President of Petroamerica commented "given Parex's operational experience in the immediate vicinity on Block LLA-16 and the Kona Field, this is a very positive development to have them as a partner with Petroamerica in this exclusive operation".

The transfer of Petroamerica's 50% working interest pursuant to the Talisman farmout remains subject to approval by the Colombian National Hydrocarbon Regulatory Authority (the "ANH"), and the subsequent transfer of 50% of such working interest (net 25%) to Parex is subject to approval by both the ANH and the operator of the block.

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Salamander to Farm-Out Stake Offshore Vietnam

- Salamander to Farm-Out Stake Offshore Vietnam

Tuesday, May 31, 2011
Salamander Energy plc
by SubseaIQ

Salamander has executed an agreement to farm-out a 20% interest in Block 101-100/04, Offshore Northern Vietnam to JX Nippon Oil & Gas Exploration Corporation ("JX-NOEX"). Block 101-100/04 is operated by Salamander and contains the Cat Ba oil prospect that will be tested with the CB-1X well in Q3 2011.

JX-NOEX will earn a 20% working interest in Block 101-100/04 from Salamander through funding a promoted cost of the CB-1X well.

The Cat Ba oil prospect has oil potential in both basement and in the overlying clastics, and has a mean prospective resource of c. 100 MMbo. It is an analogue to the neighboring Ham Rong oil field, declared commercial by Petronas in 2010. The prospect will be tested by the CB-1X exploration well, to be drilled in July 2011, using the Aquamarine Driller jack-up drilling unit.

Completion of the transaction is subject to host government approval.

Commenting on the transaction, James Menzies, CEO of Salamander said, "Bringing in a partner like JX-NOEX demonstrates the industry interest in this emerging oil play and highlights the attractions of the Cat Ba prospect. This transaction reduces Salamander's financial exposure to the drilling of the CB-1X well, while we remain highly leveraged to the upside in the event of success at Cat Ba."

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Vast Exploration Closes Putumayo Farm-Out

- Vast Exploration Closes Putumayo Farm-Out

Tuesday, May 17, 2011
Vast Exploration Inc.

Vast Exploration has closed its previously announced farm-out of a 90% interest in the Putumayo Basin of Colombia Block (the "Block") to a wholly-owned subsidiary of Sagres Energy Inc. ("Sagres") in consideration for the Company retaining a 10% carried interest during the first exploration phase (the "Carried Interest").

The Block has an area of 148,000 acres (gross) and is located in the Putumayo Basin of Colombia. The Block offers exploration upside on a structural trend with existing discoveries, and is situated strategically between two blocks (CAG-6 and PUT-09) awarded to Pacific Rubiales and Talisman Energy, respectively. The Block carries a royalty of 7% payable to the Government of Colombia in addition to the basic royalty scheme established under Colombia Law, being 8% for up to 5,000 bopd and increasing to 25% for a 600,000 bopd field. All other terms of the contract are standard to the model Colombian E&P Contract. Sagres will have an option to acquire the Company's Carried Interest in the Block over the next twelve months at a price to be mutually agreed.

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Amerisur to Farm-Out Fenix Contract

Amerisur to Farm-Out Fenix Contract

Tuesday, April 12, 2011
Amerisur Resources plc

Amerisur has entered into a Commercial Agreement with Reto Petroleum Limited Colombian Branch (Reto) under which Reto has the right to acquire a working interest in the Fenix Exploration and Production contract (100% owned and operated by Amerisur) in exchange for completing certain work programs and investments.

Phase 1 of the agreement contemplates the drilling of 10 wells to appraise and develop the Isabel structure. These wells will be funded 100% by Reto. Once this work program is completed to Amerisur's satisfaction, the Company will cede a 20% undivided working interest in the Fenix contract to Reto, subject to regulatory approvals.

The drilling operations associated with Phase 1 must be completed within 18 months of the effective date of the agreement.

Phase 2 of the Commercial Agreement gives Reto the right, subject to satisfactory completion of Phase 1, to earn an additional 10% undivided working interest in the Fenix block in exchange for the funding (100%) of the acquisition and processing of a seismic program of at least 75 line kilometers within the Fenix contract area. In the event that Reto does not exercise this right, they will fund 20% of this seismic program.

Amerisur Exploracion Colombia, the Company branch established in Colombia will remain the operator of the contract. The effective date of the agreement is April 6, 2011.

John Wardle, CEO, said, "I am very pleased to welcome Reto, whose principals have enjoyed great success in the Colombian E&P sector in the past and who bring a wealth of experience and background understanding to the Fenix contract. Your board believes this is a strong win-win deal for both parties, which will expose us to significant activity in the Fenix block without impacting upon progress or taking our focus away from our principal challenge this year, the development of the Platanillo asset. The terms of the agreement may also cover off our exploration commitments in the Fenix contract for the next two phases, which begin on April 22. Naturally this agreement also demonstrates the level of industry interest in Fenix, which we continue to believe has very significant potential. These work programs will go a long way to defining and accessing that potential."

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

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

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

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

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

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

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

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