La Cortez Boosts Net Production on Mirto-1

- La Cortez Boosts Net Production on Mirto-1

Monday, September 12, 2011
La Cortez Energy, Inc.

La Cortez Energy, Inc. on Monday provided the following operational update on the work-over activity conducted on the Mirto-1 well.

Maranta Block – Mirto Field

As previously announced, the work-over on the Mirto-1 well was initiated on August 8th, 2011, with the objective to initiate a long-term production test on the Villeta N sand, which is the same zone that is producing in the Mirto-2 well. The work-over operation was completed on August 23rd, and the well was immediately put on production with the following initial results during the period from August 23rd to September 10th: Average gross production before royalties was 334 bopd of 15 degree API oil, with an average Base Sediment and Water (BS&W) of 1.5%. The well is producing by Electro Submersible Pump (ESP), and is stabilizing at 820 psi (flowing pressure at the ESP inlet) which is the expected pressure needed to maintain current production levels. Production on September 10th increased to 343 bopd (gross before royalties) with an average (BS&W) of 0.5%, indicating a continuous reduction in the water cut as expected for this particular reservoir. The well will be placed on long-term production testing with the purpose of monitoring production behavior as well as to gather additional technical data.

The Mirto-2 well continues producing with an average rate of 484 bopd for the year (gross before royalties), and with an average BS&W of 0.7%. The well continues producing from the Villeta N sand with flow pressure stable at 1065 psi, indicating the potential to increase the ESP frequency in order to maintain production levels closer to 500 bopd.

Current production from the Mirto-1 and Mirto-2 wells is 756 bopd gross before royalties, or 151 bopd net (before royalties) to the company, an increase of more than 50% over the year to date average.

Andres Gutierrez, President and CEO of La Cortez, commented on the announcement, "We are very pleased with the initial results obtained from the work-over on the Mirto-1 N sand. The additional production represents a significant increase in net production to the company, and will give us the opportunity to further assess the results of the work-over, and work closely with Emerald Energy Plc. (the operator of the block) to finalize plans for future exploration activity on the block as well as to determine the production potential from the Villeta formation - U sand in the Mirto field."

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DNR Secretary Spotlights 3rd Possible Shale Play in La.

- DNR Secretary Spotlights 3rd Possible Shale Play in La.

Wednesday, August 31, 2011
Louisiana Department of Natural Resources

Louisiana Department of Natural Resources (DNR) Secretary Scott Angelle said Wednesday that the energy exploration industry has begun work on developing yet another new oil and natural gas shale play in Louisiana – giving the state one proven and producing shale formation and two that are being watched closely as the early stages of activity begin.

The potential new interest area, spanning portions of North Louisiana and southern Arkansas, is referred to as the "Brown Dense" or the "Lower Smackover," and is believed to be a layer of limestone at the base of the Smackover Formation – which itself is a well-known formation that has long been a source for traditionally produced oil and natural gas in North Louisiana.

The "Brown Dense" joins the Tuscaloosa Marine Shale as the second half of Louisiana's duo of dense rock plays believed to have the kind of production potential that has made shale plays such as Louisiana's Haynesville and the Barnett and Eagle Ford Shales of Texas the new normal in energy exploration. The Tuscaloosa Marine Shale is believed to underlie much of Central Louisiana, with potential productive areas currently being explored from Vernon Parish to East Feliciana Parish.

The energy industry is watching the development of the Tuscaloosa Marine Shale and the Brown Dense closely, as both are believed to have the potential to contain oil reserves, in addition to natural gas. New processes and technology have led to rapid gains in domestic oil and natural gas reserves, making them recoverable from ultra-dense formations once thought uneconomical to produce.

"We in Louisiana have a long and distinguished history of providing the energy that fuels this nation, and I am bullish on the future of energy production in this state and the role it will play in providing jobs and economic strength," Angelle said. "We are seeing that exploration companies and investors share that optimism and belief in Louisiana's natural resources as they seek new domestic reserves of oil and natural gas. The development of the Haynesville Shale natural gas play, the top-producing natural gas play in the nation, has helped give them that confidence."

Initial development of the Brown Dense formation, generally believed to underlie northern Claiborne, Union and Morehouse parishes in North Louisiana, has barely begun – with Southwestern Energy having begun the process of drilling its first well in Arkansas and having announced that it will seek a permit to begin drilling for a Brown Dense well in Claiborne Parish before the end of 2011.

Southwestern Energy has also announced that it has invested $150 million in leasing mineral rights for 460,000 acres to develop the play. Southwestern Energy recently applied to the Louisiana Office of Conservation for approval of an area of the Lower Smackover formation in Claiborne Parish near the Arkansas border as a designated unit for drilling.

Devon Energy has also announced that is has secured 40,000 acres in mineral leases for the Brown Dense and that the company intends to drill a test well for the play. Devon has already received a permit for a well targeting the deeper section of the Smackover in Morehouse Parish.

Devon is also active in the Tuscaloosa Marine Shale, where the company has secured 250,000 acres of mineral leases and is in the process of drilling two wells in the shale. About half a dozen wells targeting the Tuscaloosa Marine Shale – long thought to contain substantial reserves, but considered uneconomical to reach through previous methods – are currently in the process of permitting or drilling.

"New exploration methods have changed the game for development of energy prospects in Louisiana and the nation, as we saw firsthand with the incredible upswing investment and economic activity in North Louisiana in 2008," said Angelle. "This is yet another opportunity for Louisiana to show that we can be an inviting and exciting province to do the business of finding and providing new sources of domestic energy that provide economic strength and opportunity for our state and our nation."

"With that exploration of the denser formations will come the need for water for hydraulic fracturing," said state Conservation Commissioner Jim Welsh.

Welsh said that companies drilling for the Brown Dense formation have informed the Office of Conservation they intend to use surface water and recycled water for their overall project needs, in conformance with guidelines and advisories issued in nearby areas experiencing stressed ground water conditions.

The anticipated Brown Dense area of development in Louisiana underlies the Sparta Aquifer, which is currently experiencing improved water levels after combined state and local efforts to manage ground water use in the area.

"We are still discouraging new high-volume users from using ground water in that area, and giving guidance on alternative sources for water," Welsh said.

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EGPI Negotiating for East Texas, La. Properties

- EGPI Negotiating for East Texas, La. Properties

Tuesday, August 30, 2011
EGPI Firecreek Inc.

EGPI Firecreek, Inc. (EGPI) is in the final stages of negotiations for a binding agreement to acquire multiple leases for oil and gas production currently servicing East Texas and Louisiana through the current leaseholder (The company).

The company has been in business for over 15 years as an oil and gas production company with approximately 10 to 12 producing wells at depths of 2,200 to 2,400 feet. They currently employ approximately 18 people and own all servicing equipment to maintain its well operations.

Negotiations for the acquisition have been ongoing and are estimated to include acquiring 100% working interests and 80% of the corresponding net revenues of the properties which encompass approximately 2000 acres in East Texas and Louisiana.

EGPI’s Board of Directors have given permission to move into the final stages of negotiations in order to execute a formal binding agreement.

Dennis Alexander, EGPI's CEO, stated, "We believe this target acquisition meets our criteria in assisting EGPI’s continued growth plans for the integration of assets and revenue stream for our Oil & Gas division. We are working diligently in order to finalize this agreement within a reasonably short period of time.”

About EGPI Firecreek, Inc.

EGPI Firecreek, Inc.'s business and acquisition strategy is focused on oil and gas production with an emphasis on acquiring existing fields with proven reserves, the rehabilitation of potentially high throughput oilfields, resource properties and inventories, through its wholly owned subsidiary Energy Producers, Inc. (Energy Producers) and for oil and gas servicing business through its wholly owned subsidiary Chanwest Resources, LLC. EGPI Firecreek, Inc. is also looking to expand into alternative energy sources as well as industries in the energy field.

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PetroQuest Cheers LA Gas Find

- PetroQuest Cheers LA Gas Find

Monday, August 29, 2011
JGC Corp.

JGC announced that a large gas column has been discovered in the first exploratory well in Louisiana, USA, in which JGC holds an interest through its wholly-owned American subsidiary JGC Energy Development (USA) Inc. (JEDI). JGC joined in the exploration of the assets in November of 2010.

The well is located in a marsh area to the south of Vermilion Parish , Louisiana. The well was drilled to a total depth of 19,079 ft., with the gas column extending for 248 ft. in total.

Through JEDI, JGC hold an 9.5% share in the assets. The operator of the assets is PetroQuest Energy, Inc. (USA).

The well is scheduled to start gas production in early 2012. During the first quarter of 2012, a delineation well will be drilled to further investigate the extent of the gas reservoir.

This discovery of gas follows JGC's acquisition of an interest in the Eagle Ford shale oil assets in Texas and can be seen as a major step in the advancement of JGC's E&P business, which the company plans to further expand by increasing oil and gas assets in the future.

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Bering to Participate in La. Prospect

- Bering to Participate in La. Prospect

Monday, August 01, 2011
Bering Exploration Inc.

Bering has entered into an agreement to participate in a prospect in southeast Louisiana. The initial well in the prospect will be drilled to a depth of approximately 7,500 feet to test the prospective zones in the Wilcox formation. This prospect has the potential for multiple wells and potential gross reserves of 500,000 barrels of oil. Bering will have a 10% working interest in this prospect.

"We are happy to be participating in a new prospect that has great upside potential and is expected to be drilled in the next two months," stated Steven Plumb, VP of Finance of Bering. "This prospect meets our criteria of participating in projects which provide the company the maximum amount of value with a minimal amount of risk, and if successful, will increase our shareholder value."

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Breitling Begins Drilling Well in La.

- Breitling Begins Drilling Well in La.

Tuesday, June 14, 2011
Breitling O&G Corp.

Breitling has spud the Breitling-Sandy Run #1 prospect in St. Helena Parish, Louisiana on June 12, 2011.

The Breitling-Sandy Run #1 is a 3800' well and is targeting Miocene Sands which showed seismic amplitude anomalies on a recently acquired 3D data set.

The Sandy Run Prospect is regionally located on the Gulf Coastal Plain with structural dip predominantly in a south to southwest direction. Sandy Run is on strike with numerous Frio gas fields found to the northwest in Amite Co., Mississippi. These Frio fields were found using seismic that identified the reservoirs by a similar amplitude anomaly.

Breitling Oil and Gas expects to recover reserves of 6 to 9 BCF of natural gas.

Management anticipates the well will reach total depth in about 7 days. Well completion and testing should begin during the first week of July.

Breitling Oil and Gas CEO Chris Faulkner stated, "I am pretty bullish on natural gas pricing over the next 18 months so it's the perfect time to drill the Breitling Sandy Run." Faulkner added, "We have great well control and 3D over the prospect and the reserves could be sizable."

An additional 3 wells can be drilled if commercial production is found in the initial test well. Breitling has current oil and gas exploration projects all over the United States.

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Linc Expands US Acreage with Tx., La. Acquisitions

- Linc Expands US Acreage with Tx., La. Acquisitions

Monday, June 06, 2011
Linc Energy Ltd.

Linc announced that its wholly-owned subsidiary, Linc Gulf Coast Petroleum Inc., has acquired 14 producing oil fields (consisting of 156 leases covering approximately 13,400 acres) from ERG Resources LLC., for a price of US $236 million. The acquisition secures immediate oil production of approximately 3,300 barrels per day (BOPD), and a significant CO2 enhanced oil recovery (EOR) opportunity.

The 14 oil fields purchased from ERG Resources are located in Texas and Louisiana and are within the Gulf Coast Onshore and Inland Waters Regions and include all related infrastructure such as pipelines, tank batteries and processing facilities. All of the fields are either salt domes or faulted four-way closures related to deep-seated salt movement. Independent reports commissioned by Linc Energy indicate that the fields have the potential to increase recoverable oil by up to 24 million barrels by optimisation of current production and additional drilling operations.

Cumulative production for the 14 fields is estimated to be over 700 million barrels of oil to date with a regional recovery factor of approximately 40%, indicating a significant potential to achieve substantial increases in production from Enhanced Oil Recovery (CO2 flooding).

All of the acquired fields in the asset package are 100% operated by ERG Resources, with ERG Resources also holding 100% of the working interest in the majority of the fields.

A significant factor regarding this acquisition is that ERG Resources has to date only advanced significant development into one area, the Barbers Hill salt dome, achieving some excellent results. There are 6 more salt domes in the asset package that Linc Energy can assess to drill and expand with similar techniques to those that ERG Resources has utilized on the Barbers Hill field.

Texas oil fields

12 of the fields are located along the Texas Gulf Coast and Texas inland waters areas. The majority of the value at this stage is attributed to 5 of the 12 fields, being Barbers Hill, High Island, Port Neches, Atkinson Island and Cedar Point. Linc Energy anticipates additional value being attributed to the remaining assets once further evaluation has been completed.

Louisiana oil fields

Portions of the Leeville Field and the Black Bayou fields are part of the ERG Resources assets in Louisiana. The majority of the immediate opportunity in Louisiana is in the 100% owned and operated Black Bayou field. This field is one area that Linc Energy plans to aggressively drill in the coming 12 to 24 months to build production.

Key terms of the Agreement

The key terms of the Asset Purchase Agreement between Linc Energy and ERG Resources are as follows:

• The purchase price of the assets is US $236 million (subject to completion adjustments and necessary consents from parties holding a "first right of refusal" over approximately 4,300 acres of the acquired oil fields).
• The assets purchased consist primarily of oil & gas leases, property interests (including all related infrastructure such as pipelines, tank batteries and processing facilities) and 410 wells upon the Texas and Louisiana oil fields which are held directly by ERG Resources or by three wholly-owned subsidiaries of ERG Resources. Linc Energy will acquire the assets held by ERG Resources and will acquire 100% of the equity interests in the ERG Resources subsidiaries.
• The total area of these leases is approximately 13,400 acres held across 156 oil & gas leases with 410 wells of which 177 wells are currently producing.
• Completion of the transaction and operational handover is scheduled for 1 August 2011.

To support this acquisition and future expansion plans in the USA Gulf Coast region, Linc Energy will be opening a new office in Houston, Texas prior to the transaction completion date. At completion, Linc Energy will become the employer of most of the experienced team of professionals (approximately 25 staff), covering both field and office operations, who are currently employed by ERG Resources. These arrangements will ensure continuity of operations on the oil fields immediately on handover.

Funding

While Linc Energy can fund this acquisition from cash, the Company has mandated RBS (The Royal Bank of Scotland) to complete the financing to support both the ERG Resources asset acquisition and the first year of capital expenditure upon the ERG Resources (Gulf Coast) and the Rancher (Wyoming) assets to support Linc Energy's development plans. This debt financing will have minimal recourse to Linc Energy and the financing process is well underway. Under the current financing proposal, Linc Energy will provide approximately 25% of the capital.

Peter Bond, Chief Executive Officer of Linc Energy, said, "This acquisition is the next big necessary step that Linc Energy has taken to meet its two key business targets over the coming 12 to 18 months. The first of these targets is to achieve in excess of 20,000 barrels per day of oil production by the end of 2012, with at least 10,000 barrels of production by the end of 2011. The second key target for the Company, supported directly by achieving this first target, is to develop very profitable, solid cash flows from operations."

"Linc Energy has a number of excellent assets and will continue to acquire more. These assets will be systematically developed over the coming years, but to support the Company's long-term strategic plans, Linc Energy needs to focus on developing strong operational revenues that can support our growth. The reality is, Linc Energy can gain a permit to drill an oil well in days or at most a few weeks; we can then drill those oil wells similarly within weeks, meaning the time difference from project commitment to cash flow can literally be a few months. If I dare compare that timetable with the years of effort it takes to gain a permit on a coal mine or a GTL facility, you get the picture pretty quickly why it's necessary for the Company to be dynamic in its approach and to focus upon our immediate entrepreneurial targets and produce strong cash flows."

"Linc Energy's strategic plans have resulted in the Company gradually re-focusing its energies over the past several months, shifting its long term focus into three distinct areas covering our short, medium and long term goals. We are building the Company on 3 distinct fronts in Oil & Gas, Coal & Clean Coal and Clean Fuel & Clean Energy. On the Oil & Gas front, we are pursuing oil production assets that yield immediate revenue and profits. We are targeting assets that have the potential to increase production initially with aggressive drilling and workover campaigns, whilst also providing excellent long term opportunity to multiply our returns with Enhanced Oil Recovery from CO2 flooding that in some cases can last 10 to 20 years. This philosophy positions Linc Energy to obtain solid cash returns in the short term and yet keep those assets profitable and growing for many years to come."

"This ERG Resources asset package is a great example of what I'm saying. First, we already have good daily oil production of approximately 3,300 barrels per day, which is currently cash flow positive. Secondly there is a clear drilling and workover plan in place which is anticipated to effectively double this production to over 6,300 barrels per day in the next 12 to 18 months, improving cash flows and increasing the value of the assets."

"Finally, Linc Energy expects to use about 75% debt funding to purchase the ERG Resources assets. I've always run Linc Energy as a low to no debt company. However, my philosophy with ERG Resources and assets like them is that you borrow on cash flow positive assets that have the capability to comfortably pay their own debt down, minimizing the risk, whilst leveraging the upside opportunity. Simply put, because Linc Energy is buying cash flow positive oil production assets which we believe can easily cover their respective debt arrangements; and because we expect to increase oil production in the short-term from these oil assets, we can lower real cost and risk of funding. Combine all of this with the strong Australian dollar and suddenly it makes perfect sense to debt fund these assets."

"Personally, I strongly believe that Linc Energy can grow to greater than 100,000 barrels of oil per day production within the next 5 years, and I'm pleased to say this ERG Resources acquisition is the first BIG step towards that very goal, whilst also ticking another Linc Energy milestone. As always I look forward to updating you on the journey ahead. There will be a lot to keep up with, because there is now a lot of traction in the business," Mr Bond said.

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Apache Northwest Reaches TD at La Rocca Well

- Apache Northwest Reaches TD at La Rocca Well

Wednesday, May 25, 2011
Oilex Ltd.

Oilex has been advised by the Operator that the La Rocca-1 exploration well has reached total depth of 4,864 meters after drilling through the Intra Mungaroo Formation channel sandstone primary objective. There are no indications of gas in the LWD and mud log data and
final wireline logs will now be run.

The participating interests in the WA-388-P permit after satisfaction of the requirements of the farm- in agreement and amendment, are set out below:

Joint Venture Party/ Participating Interest

• Oilex Ltd 8.4%
• Apache Northwest Pty Ltd (Operator) 40%
• Sasol Petroleum Australia Ltd 18%
• Videocon Industries Ltd 8.4%
• Gujarat State Petroleum Corporation Ltd 8.4%
• Bharat PetroResources Limited 8.4%
• Hindustan Petroleum Corp. Ltd 8.4%

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Apache Northwest Drills Ahead at La Rocca Well

- Apache Northwest Drills Ahead at La Rocca Well

Monday, May 23, 2011
Oilex Ltd.

Oilex has been advised by the Operator that as at 0600 hours on May 22, 2011, the La Rocca-1 well has drilled to a depth of
3,579 meters and is drilling ahead. It is anticipated that the objectives could be intersected within the next few days.

• tatus: Drilling ahead below 3.579
• Past Week's Operations:
  • Drilled 311 mm (12 ¼") hole to 3,478 meters and ran 244 mm (9 ?") casing
  • Cemented and tested casing
  • Drilled 216 mm (8 ½") hole from 3,478 meters to 3,579.0 meters
• Water depth: 401 meters
• Objectives: Intra Mungaroo channel zone
• Planned total depth (TD): Approximately 5,100 meters
• Days to TD: 41 days on a trouble free basis

he La Rocca-1 well, the first exploration well in the permit, is drilling the La Rocca prospect in the Intra Mungaroo channel zone. The well, in the south-western part of the permit, was spudded on 30 April 2011 and is being drilled with the Ocean Patriot drilling rig. The well is operated by Apache Northwest Pty Ltd ("Apache").

Oilex secured funding for the cost of drilling and testing the well under the terms of a previously announced farm-out and subsequently modified agreement with Apache.

The participating interests in the WA-388-P permit after satisfaction of the requirements of the farm- in agreement and amendment, are set out below:

• Oilex Ltd 8.4%
• Apache Northwest Pty Ltd (Operator) 40%
• Sasol Petroleum Australia Ltd 18%
• Videocon Industries Ltd 8.4%
• Gujarat State Petroleum Corporation Ltd 8.4%
• Bharat PetroResources Limited 8.4%
• Hindustan Petroleum Corp. Ltd 8.4%

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