Leni Farms-In Trinidad Leases

- Leni Farms-In Trinidad Leases

Monday, July 25, 2011
Leni Gas & Oil plc

Leni Gas & Oil announced an agreement to farm-in to the Advance Oil Company (Trinidad) Limited ("Advance") North Moruga area leases. LGO plans to work-over existing producing wells and drill up to nine (9) new wells on the leases.

The Heads of Agreement with Advance sets out the framework for a full farm-in agreement and joint operating agreement by which LGO will:

• take over operatorship of the Advance leases,
• reactivate production from the existing wells on the leases,
• drill a minimum of three (3) exploration and up to six (6) development wells,
• obtain an immediate 33% interest in net production revenues,
• on conclusion of the farm-in work program, and depending on the number of wells drilled, earn between 33% and 49% interest in the Advance leases.

A signature bonus of TT$250,000 (US $39,000) has been paid to Advance and gives LGO exclusivity to conclude the definitive agreements and assignment of interests envisaged under the Heads of Agreement.

Advance, have held the North Moruga leases for a number of years, during which they have integrated all existing geological and production data and have already drilled three (3) exploration wells. Importantly, they have also acquired the environmental baseline data necessary to facilitate the permitting of further new wells. The leases cover an area of 1,223 acres and lie less than 5 kilometers east of the West Moruga Field which has produced 25 mmbbls of oil and 3.5 kilometers west of the Innis, Antilles and Trinity Fields which have produced approximately 15 mmbbls of oil.

Short-term production potential from the existing wells is estimated to be of the order of 120 bopd and LGO has agreed to spend up to TT$300,000 (US $47,000) during 2011 to raise the production to at least that level.

The definitive agreements require approval and a formal assignment of interests by the Trinidad and Tobago Ministry of Energy and Energy Affairs. These agreements are anticipated to take up to 90 days to obtain. The first new well will be drilled as soon as practical after interest assignment, likely to be in late 2011.

Neil Ritson, Chief Executive Officer commented, "This is the first of a number of new opportunities that LGO is negotiating in Trinidad as we seek to significantly increase our operations there. The Advance leases lie in a highly prospective, but under-explored, part of the Southern Basin and the combination of existing proven reserves and several undrilled structures is especially attractive."

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President Petroleum Farms-In to Argentina License

- President Petroleum Farms-In to Argentina License

Monday, June 27, 2011
President Petroleum Co. plc

President Petroleum announced the farm-in of a 50% working interest in the CNO-8 Puesto Guardian license in Salta Province, Argentina.

Highlights

• Entry into very prospective onshore license block with existing oil production, and material upside potential through exploitation of reserve base and further exploration
• Immediately increases net production to President by approximately 225 bopd
• Targeting net 1200 bopd from Argentina by end 2Q 2012 from an initial firm five well drilling program; with further production drilling in 2012 planned.
• Acquisition price $2.20 per 2P barrel
• Acquisition increases Company estimates of net 2P reserves by approximately 500 percent (estimate 2.1 million 1P and 6.6 million 2P barrels of oil, assuming license period extended to 2026), based on assessment performed by internationally recognized reserve auditors
• 2P reserves (net) valued by President at NPV10 US $60 million, assuming license extension to 2026, with material further upside from bringing in Possible reserves and exploration
• Consideration of US $1.5 million cash, 5,102,041 President shares (equivalent to approximately US $2 million at the closing middle share price on 24 June 2011 and an exchange rate of GBP1:US $1.60), a US $10.75 million carry (representing 50% of drilling costs on a US $21.5 million drilling program), plus 1 million warrants to purchase President shares at £0.50 per share
• Acquisition and work program expected to be funded from existing cash resources and current and anticipated production
• Creation of Latin American business unit, charged with managing the acquired business and expanding regional interests
• Energy pricing dynamic in Argentina undergoing positive structural change
• Completion of transaction July 1, 2011

Peter Levine, Chairman of President Petroleum Company Holdings BV commented, "This transaction reflects the determination of the new management of President to concentrate on acquiring producing assets with proved and probable reserves combined with realistic near term potential to materially increase production.

"This acquisition has a solid foundation around existing producing fields, and holds significant exploitation potential with the ability to materially grow production through a clearly thought out near term drilling and completion program. This production is complemented by our production assets in Louisiana, where as previously announced we are embarking on a series of PUD wells and workovers.

"President considers Argentina a very fertile location to build a major hydrocarbon producing business, making material investments in the local economy, engaging with well connected partners, training and growing a local workforce and benefiting the communities where the Company works. President expects to achieve rapid progress in the short to medium term in this regard."

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Sound Oil Farms-In to Montemarciano Permit

- Sound Oil Farms-In to Montemarciano Permit

Tuesday, June 07, 2011
Sound Oil plc

Sound Oil announced that, through its majority held subsidiary Apennine, it has concluded a Farm-In Agreement with Servizi & Assistenza Ricerche Petrolifere spa (SARP) to acquire an interest in the Montemarciano Permit located in Ancona Province, central Italy. The permit is currently operated by SARP with 100% working interest.

Under the terms of the Agreement, Apennine will pay SARP €215,000 ($290,000) as a contribution to past expenditures and fund the 100% cost of the Casa Tiberi-1 exploration well up to €800,000 ($1,080,000) to earn a 75% working interest in the permit and the Operatorship.

The well will be drilled to 700m to evaluate potential gas-bearing sands in the Lower Pliocene Cellino Formation. Fugro-Robertson Limited (FRL) has prepared a Competent Person's Report on the prospect and identify Base Case (P50) prospective resources of 5.7 Bscf, with High Case (P10) prospective resources of 14.9 Bscf. The geological chance of success is calculated at 35%. On a success case basis the potential value (NPV10) of the project is assessed to be $11.6 million for the Base Case and $37.1 million for the High Case.

All necessary approvals to drill the well from the relevant authorities have already been received by SARP. Work on the construction of the Casa Tiberi wellsite will commence as soon as land access is finalized. It is anticipated that the well will be drilled in 3Q-4Q this year.

Commenting on the above, Gerry Orbell, Chairman of Sound Oil said, "This deal gives us an early opportunity to drill a very low cost well to explore for gas resources which if successful in the P50 case should provide near term cash flow and in the high case will have a considerable impact on our assets base. The well will be drilled as an addition to the existing operations program, using funds previously raised by the Company earlier in 2011."

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Statoil Farms-In Blocks Offshore Indonesia

- Statoil Farms-In Blocks Offshore Indonesia

Tuesday, May 24, 2011
Statoil

Statoil has farmed in to three offshore exploration licenses in Indonesia, significantly expanding the presence in the country.

Statoil will acquire a 40% equity interest in a North Makassar Strait Production Sharing Contract (PSC) and a similar interest in two additional offshore PSCs (West Papua IV and Halmahera-Kofiau).

The three production sharing contracts (PSC) will be operated by Niko Resources Ltd.

Given exploration success, Statoil has the option to become the operator in the development and production phases.

"This is an early access opportunity that adds significant additional acreage to our portfolio," said Pål Haremo, senior vice president for Exploration.

"Our focus is to support Statoil's exploration strategy, by adding materiality to our existing portfolio in Indonesia and increasing Statoil's acreage position in general," he added.

The agreement signed includes one exploration well commitment for the North Makassar Strait PSC.

The agreement is effective from 1 January 2011, and is subject to governmental approval in Indonesia.

Statoil is already an operator in the Karama offshore PSC in Indonesia and partner in the neighboring Kuma PSC in the Makassar Straits.

Exploration drilling is planned for both these licenses in 2011.

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