Ascent Gets OK for License Extension Offshore Netherlands

- Ascent Gets OK for License Extension Offshore Netherlands

Tuesday, September 13, 2011
Ascent Resources plc

Ascent Resources has received confirmation of the extension of its M10/M11 block licenses ('the Project') located offshore Netherlands in the southern North Sea until June 30, 2013.

The M10/M11 appraisal project is in the shallow waters off the north coast of the Netherlands. In the license area there are three structures, all of which contain gas discovery wells with the gas present in the Slochteren unit of the Rotligendes sandstones. A conceptual development plan has been prepared and a final appraisal well is being planned for H2 2012 to confirm reservoir parameters for the detail project design. This well will be an appraisal well for the Terschelling Noord discovery, which is in a structure that lies partly within the M10/M11 license area and partly to the area to the south. The well would be expected to then become a production well for the development.

ARN holds a 54% interest in the Project. Other partners in the Project are Energie Beheer Nederland B.V with 40% and GTO Limited with 6%.

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ADX Wins Offshore Italty License

- ADX Wins Offshore Italty License

Monday, July 18, 2011
ADX Energy Ltd.

ADX Energy Ltd is pleased to announce that the award process for the offshore exploration permit d 364 C.R-.AX in Italian waters has been completed. The adjacent permit d 363 C.R-.AX is under application by ADX.

The awarded permit is contiguous to ADX’s offshore Tunisian Kerkouane permit which contains the Dougga gas condensate discovery and the Lambouka gas discovery. ADX is the operator of the permit and holds a 100% interest.

Previous exploration work within the Pantelleria and Kerkouane permits has identified a number of prospects and leads as well as prospective hydrocarbon fairways which have previously remained undetected. Recently acquired geophysical data has confirmed this interpretation.

These highly prospective fairways trend into the offshore areas covered by the new permit. The permit has not seen modern seismic techniques but success in the area has attracted the recent interest of majors such as Shell and Repsol.

High prospectivity combined with the excellent fiscal terms in Italy represents ADX’s ongoing strategy of focusing its resources on core areas which offer proven prospectivity, materiality and potential for quick commercialization.

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EnCore, Partners Acquire North Sea License

- EnCore, Partners Acquire North Sea License

Friday, July 01, 2011
EnCore Oil plc

EnCore Oil and its P1655 (Block 15/21g) partners, Nautical Petroleum and Serica (the P1655 group), have agreed terms to acquire a 70 percent interest in a part of adjoining License P218 (Block 15/21a). P218 is currently operated by DEO Petroleum with co-venturers, Faroe Petroleum plc, Maersk Oil UK Ltd and Atlantic Petroleum (the P218 group). The area in P218 to be acquired includes the 15/21a-38z Spaniards/Gamma discovery well, drilled in 1989 by Amerada Hess, which flowed 2,600 bbls/day of 26 API oil on test. In consideration, the P1655 group have agreed to assign the P218 group a 30 percent interest in P1655, and have agreed to fund the cost of the first well to appraise the Spaniards/Gamma discovery. It has also been agreed that a subsequent appraisal well, if deemed necessary and approved by the partnership, would be funded on promoted terms by the current P218 partners as shown in the table below, after which funding for any further wells would be by equity share.

The first well, is expected to commence drilling in Q2 2012, subject to suitable rig availability and receipt of the necessary permitting and site survey approvals.
Blocks 15/21d (P1870), 13/28b (P1866), 22/5 (P1876)

EnCore has also, subject to necessary DECC approvals, acquired a 50 percent interest in the above mentioned 26th Round Promote licenses under the terms of a pre-existing option agreement between EnCore and Echo Exploration Limited for a nominal sum. Echo Exploration is a 100 percent owned subsidiary of North Sea Energy Inc..

Block 15/21d contains the 15/21-50 Beehive discovery well, drilled by Amerada Hess in 1993 which flowed 5,700 bbls/day of 28 API oil on test.

Alan Booth, Chief Executive of EnCore commented, "We are especially pleased to have reached agreement with the P218 group to progress the further evaluation of the Spaniards/Gamma discovery. Although not without risk, if successfully appraised, Spaniards/Gamma has significant upside potential but also a relatively low commerciality threshold, given both the proximity of the Scott Field and the potential for synergies with the prospective development of the nearby Perth Field. Block 15/21 is a prolific block, containing a number of previously developed fields and having had 56 exploration and appraisal wells drilled in it to date, the last well, 15/21-56, being drilled some 14 years ago. We believe that the time is now right for further evaluation of these undeveloped discoveries."

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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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PetroNeft Spies Oil Pay at License 61

- PetroNeft Spies Oil Pay at License 61

Wednesday, June 22, 2011
PetroNeft Resources plc

PetroNeft, owner and operator of Licenses 61 and 67, Tomsk Oblast, Russian Federation, provided an update on its operations.

Highlights

• Production currently averaging about 2,500 bopd, primarily from 7 wells
• Autumn production enhancement program planned to re-frac, with larger frac sizes, existing wells on Pad 1 and new wells on Pad 2
• Planned number of wells required from Pad 3 to be reduced recognizing thinner oil pays
• Extension of Lineynoye oil field north of Pad 2 with thicker pay zones expected in the longer term to compensate for reserve and production reductions from Pad 3
• 1Q 2012 production target has been revised to between 4,000 to 5,000 bopd and 2Q 2013 to between 7,000 to 9,000 bopd
• Kondrashevskoye No. 2 sidetrack well progressing, result expected shortly
• Exploration wells at Sibkrayevskaya and Cheremshanskaya, the largest prospects in the 2011 program totaling over 100 million barrels to spud in early July and August respectively

2011 License 61 Development program - Lineynoye oil field

Production drilling continues with one additional well successfully drilled from Pad 3. Preliminary log and survey data for well 336 indicate net oil pay of 1.4 meters with an additional possible oil pay of 5.6 meters which we will need to test to confirm.

License 61 Production

Production is currently about 2,500 bopd with the primary contribution coming from 7 of the 9 wells drilled in 2010. As anticipated the wells have been slowly declining since they were fracture stimulated earlier this year. We have begun water injection/pressure maintenance in the field using the Lineynoye No. 6 well as an injection well; this will help maintain production levels.

We are pleased with the post frac performance of the wells particularly those with the larger size fracs. The initial fracture stimulation program incorporated a range of fracture sizes depending on the individual reservoir characteristics at each well. Without exception, the larger volume fracture stimulations have shown better and more sustained results than the small or mid-sized fracs. We consequently plan to re-frac some existing wells to boost production.

We anticipate a significant production contribution from the new Pad 2 wells following fracture stimulation; a contract has been signed to conduct this operation in late September/early October. Our next production update will be made following this work.

The positive results from Pad 2 wells have shown that the northern part of the Lineynoye field has thicker pay and extends further than originally anticipated and this has potentially very positive implications for the ability of structures north of West Lineynoye to be oil bearing. The western portion of the field, particularly in the Pad 3 area, is lower structurally and has thinner pays. As a result we will increase the number of wells drilled from Pad 2 and reduce the number of wells drilled from Pad 3. This will mean fewer wells available for production in 2011, thereby reducing our expected near-term production rate. The overall impact on Lineynoye field reserves is expected to be minimal.

The 1Q 2012 production target for License 61 has been revised to a range between 4,000 to 5,000 bopd and the 1Q 2013 production target to a range between 7,000 to 9,000 bopd. These amendments also incorporate a more conservative initial production estimate for the Arbuzovskoye oil field which we plan to bring on-stream in the second half of 2012.

Exploration / Delineation Program

PetroNeft's high impact 2011 exploration program, which has the potential to more than double our reserves, is targeting over 100 million barrels net to PetroNeft on five prospects in Licenses 61 and 67

License 61 (PetroNeft 100%)

The Kondrashevskoye No. 2 sidetrack well being drilled down dip from the Kondrashevskoye No. 2 well is progressing on schedule and we expect a result in early July.

The second 2011 exploration well will be at Sibkrayevskaya, a prospect of over 40 million barrels. Site preparation and mobilization of the rig and materials and rig-up operations is complete. Drilling should start in July with results expected in August.

The site for the third exploration well, North Varyakhskaya No. 1, has also been prepared and the rig and materials have been moved to the site for a planned spud in August/September 2011 following Sibkrayevskaya.

License 67 (PetroNeft 50%)

The two exploration wells, Cheremshanskaya No. 3 and Ledovoye No. 2a, are located close to existing year-round roads and will be drilled in the second half of the year. We have already mobilized equipment and completed construction of the Cheremshanskaya site and the rig is now being mobilized by barge to a nearby river port. This well is expected to spud in August and is targeting over 60 million barrels net to PetroNeft across three objectives.

Construction of the site for the Ledovoye No 2a well has commenced and we expect to spud in October/November. Ryder Scott have attributed 15 million barrels net to PetroNeft in the Upper Jurassic horizon, however, we will also be testing additional potential in the Lower Cretaceous zone.

Dennis Francis, Chief Executive Officer of PetroNeft Resources plc, commented, "While the results of Pad 2 drilling are encouraging, the Pad 3 drilling results will limit near term production growth. We are currently producing from less than 10% of our current discovered reserves and this year's exploration program has the potential to double these reserves and hence our long term production capability. Further, the experience gained from the drilling program and hydraulic fracturing to date will be applied in this and future developments to deliver improved production performance. We remain confident in the longer term reserve and production potential of Licenses 61 and 67."

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Statoil, Partners Aim to Boost Recovery Rate at Njord License

- Statoil, Partners Aim to Boost Recovery Rate at Njord License

Wednesday, June 22, 2011
Statoil

Statoil and its partners in the Njord license in the Norwegian Sea have decided to invest in low-pressure field production. This, combined with other measures, will prolong the lifetime of the field until 2020.

Reservoir pressure on Njord is falling and the field has entered tail-end production. By lowering the pressure on the first and second stage separators it will be possible to increase production from individual wells and maintain production in each for an extended period.

"Owing to the complexity of the Njord reservoir the recovery rate of proven resources is currently roughly 23%. The aim is to increase the recovery rate to 30%. This type of measure is important with a view to maintaining production on the Norwegian continental shelf (NCS)," stated Ivar Aasheim, head of NCS field development.

There is currently a great deal of activity in the Njord area. The Njord northwest flank project six kilometers northwest of the Njord platform is now being carried out. It consists of two new long-distance wells drilled directly from Njord and tied back to the platform.

Several wells will be drilled in coming years. In addition, Hyme fast-track is being processed via Njord.

"In combination with the low-pressure production project these measures will prolong the lifetime of Njord until 2020," explained Njord production head Arve Rennemo.

The low-pressure production project on Njord will boost volumes by roughly 18.5 million barrels of oil equivalents alone and extend the field's working life by two to three years.

Investments in low-pressure production amount to roughly NOK 500 million.

The contracts for Njord low-pressure production modification and the Hyme topside has been awarded to Reinertsen. The contract for compressor procurement and installation was awarded in March of this year to GE Oil & Gas.

Project execution will take place in the autumn of 2012 and the start-up of low pressure production on Njord is scheduled for the fourth quarter of 2012.

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Ptarmigan Completes Additional Option for Exploration License 1120

- Ptarmigan Completes Additional Option for Exploration License 1120

Tuesday, June 21, 2011
Ptarmigan Energy Inc.

Ptarmigan has completed an option agreement for its Western Newfoundland exploration license with Canadian Independent Oil and Gas Company (CIOGC), a privately held, Calgary based oil and gas exploration company.

President and CEO Craig Boland says that a discovery under this agreement will yield Ptarmigan a gross overriding royalty based upon a percentage of the gross production proceeds without deductions. "We are excited and very pleased that this agreement, coupled with the recent gas-in-shale farm out agreement with Shoal Point Energy (April 2011), has established strong partners to explore both traditional and non-traditional targets within Exploration License 1120, with very favorable terms for our shareholders."

Under the terms of the agreement CIOGC has 90 days to review existing seismic data and decide whether or not to exercise its option to acquire, a minimum of 1000 square kilometers of high definition 3D seismic data within the area of Exploration License 1120; 100% owned by Ptarmigan Energy. Exploration License 1120 is currently undergoing an environmental assessment and permitting process required by the Canada Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB).

Should CIOGC exercise its option to collect additional seismic data, it would be in a position to execute a definitive agreement with a seismic acquisition contractor by October, 2011 with a view to starting that work in September 2012 following completion of the environmental assessment process. CIOGC has until December 2013 to exercise its option to drill a test well to the depth of 3,250 meters or 50 meters into the top of the Labrador Formation; the established marker below all anticipated targets. That well must then be spudded by no later than December 2014.

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Valiant Finalizes Sagex Deal, Reports Drilling Date for License P471

- Valiant Finalizes Sagex Deal, Reports Drilling Date for License P471

Friday, June 17, 2011
Valiant Petroleum plc

Valiant provided the following update with regard to its offer to the shareholders of Sagex to acquire the entire issued and to be issued share capital of Sagex for a total consideration of NOK 64.1 million (£7.1 million).

As at the close of the Offer on June 10, 2011 Valiant had received acceptances in excess of 94% of the total number of voting shares in Sagex on a fully diluted basis, significantly in excess of the two thirds acceptance condition. Working in close collaboration, Valiant and Sagex have also made progress on seeking all necessary corporate, third party and regulatory consents, which remain key conditions to the Offer. Valiant remains confident that the transaction will reach completion ahead of the long stop date of August 31, 2011.

Reflecting the significant progress on moving the Offer towards completion, an interim board of directors of Sagex was elected via an Extraordinary General Meeting on June 14, 2011 comprising representatives of two of Sagex's major shareholders and Sandy Shaw, an executive director of Valiant.

Valiant has also been informed by Sagex that the first of its two planned Norwegian exploration wells is anticipated to commence operations on License P471 by early August 2011. The well will be drilled by the Borgland Dolphin semi-submersible rig and target Chamonix, a potentially large Cretaceous stratigraphic prospect, and the secondary Cortina target of Jurassic age. Sagex holds a 20% working interest and the license partners are OMV (50%, operator) and Noreco (30%).

Further updates on the Offer will be provided in due course.

Peter Buchanan, CEO of Valiant, commented, "We would like to take this opportunity to thank the outgoing Sagex board of directors for their hard work and professionalism over the past few months, which has made Valiant's offer for Sagex possible. We look forward to working towards successful completion of the Offer with both Sagex's management team and new board of directors."

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Nautical Finalizes Stake Acquisition in UKCS License

- Nautical Finalizes Stake Acquisition in UKCS License

Friday, May 20, 2011
Nautical Petroleum plc

Nautical Petroleum announced the completion of the acquisition of an additional 15% interest in UKCS License P1077 Blocks 9/2b and 9/2c (the "License), which includes the Kraken discovery, from Canamens Energy North Sea Limited.

The transaction has received approval from the Department of Energy and Climate Change and joint venture partners. The effective completion date of the transaction is May 18, 2011.

Nautical now has a 50% interest in the License.

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Sao Tome and Principe Awards Block 3 License to Oranto

Sao Tome and Principe Awards Block 3 License to Oranto

Friday, May 06, 2011
The National Petroleum Agency of Sao Tome and Prin

In the light of the First Licensing Round and following the evaluation of all applications submitted, including the necessary due diligence undertaken by the authorities The National Petroleum Agency (Agencia Nacional do Petroleo, ANP-STP) informs the public that the Government of Sao Tome and Principe has awarded Block 3 to the Oranto Petroleum.

The block covers an area of 4,228 square kilometers and is situated in zone A of the Exclusive Economic Zone.

Oranto is an independent Nigerian company with operations since 1991. The company is an active operator in fourteen blocks in West Africa and Gulf of Guinea.

Within the framework of petroleum legislation in place, a production sharing contract will be negotiated and carried out for the exploration activities on the block.

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Atlantic Petroleum to Enter Next Phase at Faroes License

Atlantic Petroleum to Enter Next Phase at Faroes License

Tuesday, April 19, 2011
Atlantic Petroleum P/F

Atlantic Petroleum has approved the work program that enables Faroes License 014 to progress into the next exploration phase.

Following technical work over the last two years, and an assessment of the prospectivity of Faroes Licenses 013 and 014, the Company has decided to approve the work program that enables Faroes License 014 to progress into the next exploration phase.

The work carried out identified which areas should be retained and which had high impact exploration structures. Based on the studies, the southern area of the license 014 will be retained, which contains the Marselius structures. The northern part of License 014 will be relinquished as this area has no mapped structures. License 013 will also be relinquished in accordance with the license terms and conditions as the prospectivity on the blocks within this license is limited in Atlantic Petroleum's view.

The work commitment on License 014 consists of acquiring a new infill 2D seismic survey to complement the seismic data shot in 2006 and to create a pseudo 3D volume over the retained area. This work program will be carried out before January 17, 2013. Atlantic Petroleum holds 40% equity in License 014 while Sagex holds the remaining 60% and is the operator of the license.

Ben Arabo, CEO, commented, "Atlantic Petroleum is committed to exploration in the Faroe Islands, so in line with focusing on acreage with high impact potential we are pleased to be moving forward with License 014 where we hope to progress towards drillable prospects by January 2013. The further work on License 014 will compliment Atlantic Petroleum's active program on the Faroese shelf where technical work on Faroes License 016 is on-going and with a planned well to be drilled on License 006 this summer with partners Statoil and ExxonMobil."

Det norske Awarded License in Barents Sea

Det norske Awarded License in Barents Sea

Monday, April 18, 2011
Det norske oljeselskap ASA

Det norske has been awarded a new license in the Barents Sea in 21 licensing round. Production license 613 is located in blocks 7322/10 and -11 in the central part of the Barents Sea. The license was Det norske's first priority in this allocation round. In total the Government offers 12 new licenses in the Barents Sea

Dong E & P is the operator of the license with a 40 percent stake. Det norske and Edison International are partners with respectively 35 and 25 percent stake. The work program for the license acquisition of 3D seismic over the area. Within three years from granting, the license must decide to drill an exploration well or hand back the license. If drilling is decided, the well must be drilled within five year from the grant.

This year's round was announced on June 23. 94 blocks, 43 in the Norwegian Sea and 51 in the Barents Sea were offered, with a deadline in November 2010. Of these, the Government has decided to offer 24 licenses to 29 companies

Faroe Snaps Up Second License in Barents Sea

Faroe Snaps Up Second License in Barents Sea

Friday, April 15, 2011
Faroe Petroleum plc
by SubseaIQ

Faroe announced the 21st Norwegian License Round award of its second license in the Norwegian Barents Sea, as announced by the Norwegian Ministry of Petroleum and Energy.

The new license covers an area of approximately 2100 square kilometers and is located within blocks 7223/3, 6 and 7224/1, 2, 3, 4 & 5. This is the largest single license awarded within the Barents Sea in this round. The main Kvalross Prospect consists of a wedge of clinoforms contained within a large structural closure. This new license area is located to the east of the recent significant Statoil discovery, Skrugard, and immediately adjacent to Faroe Petroleum's Samson Dome license, which has now completed the acquisition and processing of an extensive 3D seismic survey.

The new license partners are Faroe Petroleum (40%), together with Wintershall (40% and operator) and Petoro (20%). The license work program involves the acquisition of 3D seismic data, with a decision to drill to be taken within three years.

Graham Stewart, Chief Executive of Faroe, commented, "Faroe was awarded its first license in the Barents Sea in the 20th Norwegian Licensing Round. Since then, our team has continued its efforts to identify new high quality exploration prospects in the Barents Sea, and we are therefore delighted to have been awarded our second prestigious license in the highly competitive 21st Licensing Round. Our team has considerable experience in the Barents Sea, which is becoming an increasingly important oil province, with the Goliat oil field development now underway, and recently, a new large oil discovery by Statoil on the Skrugard prospect. The Barents Sea is an area which complements our strategic position in the Atlantic margin area of West of Shetlands and the Faroe Islands and secures further highly prospective exploration acreage for the Company. Of the 17 wells in the Company's exciting, fully funded 2011 to 2013 drilling program, 13 are planned to be drilled in Norway, clearly demonstrating Faroe's continuing commitment to create further value in Norway."

Zion O&G Notified of New Exploration License in Israel

Zion O&G Notified of New Exploration License in Israel

Thursday, April 14, 2011
Zion O&G Inc.

Zion reported that the Israeli Petroleum Commissioner's Office, on behalf of the State of Israel, has notified Zion that it will be awarded a new petroleum exploration license on land within Zion's previous (and now expired) Issachar-Zebulun Permit area. The new license has been named by Zion, the Jordan Valley License. Zion expects to formally receive the license soon.

The Jordan Valley License area is to the east of Zion's Joseph license area and Zion's Asher-Menashe license area and to the south of the Sea of Galilee. It traverses south along the western Jordan River Valley.

Zion's Chief Executive Officer, Richard Rinberg, said, "We are truly excited and very pleased that the State of Israel will award us our new Jordan Valley License. We continue to implement our exploration and drilling program and build on our progress to date. In 2011, we intend to acquire additional seismic and other geological and geophysical data in our new license area, as we endeavor to refine our potential drilling prospects in this area. Meanwhile the drilling operations at our Ma'anit-Joseph #3 well continue, as we strive for our primary target in deep Permian age rock, expected at a depth of over 19,000 feet (5,790 meters). The Ma'anit-Joseph #3 well is already one of the deepest wells ever drilled onshore Israel."

Tullow IDs Gas Finds at Tano License

Tullow IDs Gas Finds at Tano License

Wednesday, April 13, 2011
Tullow Oil plc

The Tweneboa-4 appraisal well in the Deepwater Tano license offshore Ghana has successfully encountered gas condensate in good quality sandstone reservoirs. Results of drilling, wireline logs and samples of reservoir fluids have confirmed the western extent of the Tweneboa gas condensate accumulation.

The well, located 3.9 kilometres southwest of the Tweneboa-2 appraisal well was drilled in the western flank of the accumulation to complete the appraisal of the Tweneboa gas-condensate discovery. The well encountered 18 meters of net gas condensate pay in high quality stacked reservoir sandstones which are in static pressure communication with both the Tweneboa-1 and Tweneboa-2 wells.

The Deepwater Millennium dynamically positioned drillship drilled Tweneboa-4 to a total depth of 4,007 meters in water depths of 1,436 meters. On completion of operations, the well will be suspended for future use in field appraisal and development. The rig will then move to perform drill stem tests on the Tweneboa-2 oil and gas-condensate accumulations.

Tullow (49.95%) operates the Deepwater Tano license and is partnered by Kosmos Energy Ghana (18%), Anadarko Petroleum (18%), Sabre Oil & Gas (4.05%) and the Ghana National Petroleum Corporation (GNPC) (10% carried interest).

Uganda exploration and appraisal campaign commences

Following the signing of the SPAs for the farmdown to CNOOC and Total on March 29, 2011, the exploration and appraisal program has been reactivated and two wells are expected to commence drilling in Exploration Area 1 (EA 1) within the next two weeks. The OGEC 600 rig is preparing to spud the high-impact Jobi-East prospect and the OGEC 750 rig is getting ready to drill the first Mpyo exploratory appraisal well to test its upside potential. These wells are the start of a major program of exploration and appraisal drilling, seismic acquisition, and well testing to access the significant remaining upside potential in the basin and further expand the resource base for development.

Commenting, Angus McCoss, Exploration Director, said, "Tweneboa-4 is an important milestone as it is the final well to be drilled in the Tweneboa appraisal program. The upcoming program of well testing in the Tweneboa field, along with drilling and well testing in the Enyenra field, will provide essential information on well deliverability, dynamic reservoir connectivity and hydrocarbon volumes, which will be used to optimize our development plans for these major fields. We are also delighted to be starting drilling activities again in EA 1 in Uganda and are now gearing up for a five-rig drill-out campaign in the second half of the year."

Aminex Inks Development License for Kiliwani North Gas Field

Aminex Inks Development License for Kiliwani North Gas Field

Tuesday, April 12, 2011
Aminex plc

Aminex announced that The Minister for Energy & Minerals of Tanzania, the Hon. William Ngeleja, has signed a Development License with the Company's Tanzanian subsidiary, Ndovu Resources Ltd., ('Ndovu') for the Kiliwani North Gas Field in Tanzania. This is a major step in bringing the Kiliwani North Field on to production.

The Development License represents an area carved out of the Nyuni East Songo-Songo Production Sharing Agreement ('Nyuni PSA') which includes the mapped area of the Kiliwani North gas field. The Kiliwani North-1 well flowed gas at a rate of 40 million cubic feet per day (equivalent to 6,700 barrels of oil per day) under full production test conditions. Ndovu manages the Nyuni PSA and the Kiliwani North gas field as operating partner for a four-company consortium.

East Africa has become the subject of high industry interest recently, following successful drilling by large companies operating in deep water, both in Tanzania and in neighboring northern Mozambique. The Kiliwani North Development License is the first new Development License granted in Tanzania as a consequence of exploration drilling carried out in recent times and is a significant milestone in the commercialization of Tanzanian gas.

Kiliwani North has been independently estimated to contain 45 billion cubic feet ('BCF') gas in place on a Pmean Contingent Resources basis, equivalent to 7.5 million barrels of oil. Gas from Kiliwani North will be available to assist in countering current energy shortages in Tanzania.

Another prospect which lies within the development area, known as Fanjove North, but which has yet to be drilled, has been independently estimated to contain in excess of 200 BCF gas in place, equivalent to approximately 30 million barrels of oil, on a Pmean Prospective Resources basis and, subject to the outcome of a planned transition zone seismic survey, may be drilled in due course.

The Kiliwani North wellhead is situated on the southern tip of Songo-Songo island off the coast of Tanzania and is less than 3 kilometers from the nearest access point to the process facilities (being upgraded) at the input end of the Songas common-user pipeline which delivers gas from the neighboring Songo-Songo field to the city of Dar es Salaam. Ndovu has already negotiated a memorandum of understanding for the future sale of gas to industrial users in the Dar es Salaam area and expects to be able to deliver first gas within 12 months.

Partners in the Development License are:

* Ndovu (Aminex) 65%
* RAK Gas Commission 25%
* Key Petroleum 5%
* Bounty Oil 5%

Aminex chairman Brian Hall commented, "We are very pleased to have been granted this Development license, which represents a major landmark in our Tanzanian operations. The Development License will also benefit Tanzania, paving the way for a further energy source in a market with high and urgent demand.

Kiliwani North is well situated, close to a major pipeline, and the Development License will now enable us to negotiate agreements to access processing and transportation facilities. The existing pipeline has limited capacity but we may expect development of new pipeline infrastructure as a consequence of recent deep water gas discoveries.

The new Development License is a significant step for Aminex in commercializing its Tanzanian operations. Within two months we expect to start new exploration drilling at nearby Nyuni Island, targeting a large gas prospect within the Nyuni PSA. Negotiations are being satisfactorily concluded with the Tanzanian authorities for a new, enlarged Nyuni PSA which will replace the existing Nyuni PSA upon its expiry this year. This will be the first-ever renewal of an expired PSA in Tanzania. In the event that the Nyuni-2 well has not been concluded by the expiry of the current PSA, the Tanzanian authorities have indicated that they will provide an extension to the existing PSA to enable the Nyuni-2 well to be completed.

Shareholders will be kept informed on material events at Nyuni."

Rosneft Acquires Exploration License in Nenets Autonomous District

Rosneft Acquires Exploration License in Nenets Autonomous District

Thursday, April 07, 2011

Rosneft

Rosneft acquired a license to explore the Naulsk oil field, located in the Nenets Autonomous District. The Company paid RUB 3.6 billion for the license at auction.

It is assumed that OOO Severnaya Neft, a Rosenft subsidiary, will be the operator of the project. Severnaya Neft is already engaged in exploration and production activities at three fileds - Cherpayusk, Nadeiyusk and Khasyreysk, which are part of the Val Gambourtseva oilfield.

Naulskoye's oil reserves, classified as C1 and C2, are estimated at 51.3 million tons of oil. Production should reach a maximum volume of one million tons per year. The lot size is 70.7 square kilometers. At a minimum, the cost of exploring the field is estimated at 1.5 billion rubles, including for the drilling of three wildcat wells and one exploration well, in addition to the gathering of 2-D and 3-D seismic data.

Field commissioning expected in 2016.

Polar Lights, a joint venture between Rosneft and ConocoPhillips, is currently exploring five fields in the Ardalinsk Group, which are also located in the Nenets Autonomous District.

BHP Billiton Hands Reins to FOGL Offshore Falklands

BHP Billiton Hands Reins to FOGL Offshore Falklands

Thursday, March 31, 2011
Falkland O&G Ltd.
by  SubseaIQ

FOG announced further progress on its rig contract negotiations and certain changes to its license arrangements.

Changes to license arrangements

On March 30, 2011 FOGL signed a binding Heads of Agreement with its joint venture partner, BHP Billiton, that provides for the exit of BHP Billiton from the Northern license area once certain conditions have been satisfied, including approval of the Falkland Islands Government to both the assignment of BHP Billiton's 51% interest and transfer of operatorship to FOGL.

In relation to this withdrawal BHP Billiton will contribute towards the costs of drilling the Loligo well, by placing funds in an escrow account. The funds are to be drawn by FOGL against the costs of drilling the Loligo well. In the event that the Loligo well encounters hydrocarbons, BHP Billiton will have the option to back in to the Loligo development area only, for a maximum 40% non-operating interest in the discovery, in return for making a cash contribution to FOGL's future exploration and appraisal costs. Such a reassignment of interests will also be subject to approval by the Falkland Islands Government.

The settlement with BHP Billiton will, together with other funds available to FOGL, provide FOGL with total cash resources of US $110 million. These cash resources will be sufficient to fund the Loligo well, other exploration expenditures and allow the Company to fulfill the Phase 1 work commitment of the Northern license area.

Operations

Further to its announcement on March 15, the company is close to finalizing a rig contract for its deep water exploration program.

FOGL is also considering additional drilling options. The site survey program is progressing well, with surveys already completed on three locations. FOGL is considering the most appropriate means of financing and advancing these options and is in discussion with several parties that are interested in farming in to its licenses.

Tim Bushell, Chief Executive of FOGL, said, "We are pleased to have made good progress in our rig contract negotiations and to have reached an amicable agreement with our joint venture partner that gives FOGL control over its deepwater exploration program, commencing with the drilling of the Loligo prospect."

Shell Gets Irish License to Complete Offshore Gas Pipe -Reuters

Shell Gets Irish License to Complete Offshore Gas Pipe -Reuters

Friday, March 25, 2011
Dow Jones Newswires

Ireland on Friday granted Shell a license to complete the controversial Corrib pipeline project, which the company says could provide up to 60% of Irish demand for natural gas, Reuters reported.

The pipeline will link Ireland's northwest coast to the Corrib field offshore, which is estimated to contain 1 trillion cubic feet of gas.

The Department of the Environment, Heritage and Local Government said in a statement that it had granted a pipeline foreshore license, the last government permission needed for work to begin on the project, which has been beset by protests and delays since its discovery in 1996.

But a legal action to overturn the pipeline's planning permission being heard in the country's High Court could still cause delays.

The action is being brought by residents who fear onshore processing would bring the pipeline too close to their homes and pollute the water supply. Protests against the pipeline in the past have led to several arrests and a hunger strike.

Shell said in a statement Friday that it welcomed the government's decision. It said it has developed five wells at the field, built the offshore pipeline and is close to completing the onshore terminal.