Imperial Reaches TD at Green Tide SWDF

- Imperial Reaches TD at Green Tide SWDF

Tuesday, September 06, 2011
Imperial Resources Inc.

Imperial announced that its Green Tide Salt water Disposal Facility ("SWDF") well has now reached a total depth of 8,594 feet, having successfully penetrated the target Ellenburger formation by approximately 1,700 feet. Drilling with the 6-3/4 inch bit has now been completed and the well has been logged.

The well will now be cased to 7,500 feet and the casing cemented in place from a depth of 7,500 feet back up to 5,700 feet. Once casing has been completed the Company intends to drill an additional 350 to 650 feet using a 4-3/4 inch bit targeting several high porosity strands within the Ellenburger formation to maximise potential disposal capacity. The goal is to create between 1,450 feet to 1,750 feet of open hole cutting through known high porosity zones below the casing string.

Additional work will commence on the surface equipment during the course of this week so that once all work on the wellbore has been completed the SWDF can be restored to commercial operations. Subject to completion the SWDF will open for business with the intention of reaching its full disposal capacity of 15,000 barrels per day as soon as possible. At full capacity the Company believes the Green Tide SWDF has the potential to generate significant cash flow at relatively low operating costs.

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Phoenix Reaches TD at Marathon Well

- Phoenix Reaches TD at Marathon Well

Wednesday, August 31, 2011
Petsec Energy Ltd.

Petsec advised that the Marathon #2 well was drilled to a total depth of 21,160 feet (6,450 meters) and electric logging was completed. The well is a follow up to the successful #1 well and is situated in 8 feet (2.4 meters) of water approximately 900 meters from the #1 well location. The #2 well was designed to serve as a development well for the field in addition to testing deeper, previously undrilled exploratory reserve potential on the Marathon structure.

The #2 well confirmed the gas productive reservoirs found in the # 1 well, extending the known field pays across the structure. The deeper, exploratory section of the well was found to contain noncommercial hydrocarbons and as a result the well will be completed for production in one of the upper pay sands. Production is expected to commence in the fourth quarter of 2011.

Participating working interests in the well are:

• Petsec Energy Ltd 8%
• Phoenix Exploration Company LP (operator) 65%
• Private Companies 27%

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Nostra Terra Reaches Total Vertical Depth at Verde Prospect

- Nostra Terra Reaches Total Vertical Depth at Verde Prospect

Monday, August 15, 2011
Nostra Terra O&G Co. plc

Nostra Terra announced that the initial well in the Verde Prospect in south-eastern Colorado, has been drilled ahead of schedule to a total vertical depth of 5,300 feet.

Indications of productivity in drilling samples and electric logs were positive and the well has been recommended for completion.

Production casing will be run to total depth, followed by completion in the most optimal zone(s). NTOG will provide the first 30-day production figures as soon as these are available.

NTOG has a 16.25% working interest (WI) in the Verde prospect. Following evaluation of testing and potential production of the initial well, two or three further development wells (PUDs) could be drilled, in which Nostra Terra also has the right to participate.

Matt Lofgran, Chief Executive Officer of Nostra Terra, commented, "We're pleased with the progress made on this well ahead of schedule and hope to see further positive results on this prospect. As a company, our current prospects are fully-funded, with additional cash on hand for further acquisitions, allowing us to continue to grow, regardless of the state of the global economy or markets."

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Range Reaches Planned Depth at Georgia Well

- Range Reaches Planned Depth at Georgia Well

Friday, August 12, 2011
Range Resources Ltd.

Range Resources, along with its joint venture partners Strait and Red Emperor, announced that drilling of an initial 8 ½" pilot hole has reached its planned depth of 700m and has been successfully logged with the results confirming the anticipated lithology. The pilot hole is currently being opened up to 17 ½" after which the 13 3/8" casing will be run and cemented and drilling will then resume with a target total depth of approximately 3,500m expected to be reached in mid-September.

The Mukhiani Well is targeting the Vani 3 prospect which has the following estimated undiscovered stock tank oil-in-place ("STOIIP"):

• Vani 3 Prospect - STOIIP (MMbbls)
• P90 P50 P10 Mean
• Gross (100%) 41.7 92.7 178.2 115.2
• Net Attributable to Range (40%) 16.7 37.1 71.3 46.1

The recently completed geochemical helium survey undertaken by Range confirmed the suitability of the first drill location with oil exploration and development prospectivity complementing the earlier seismic work completed on the target.

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Gran Tierra Reaches 'Significant Milestones' in 2Q11

- Gran Tierra Reaches 'Significant Milestones' in 2Q11

Tuesday, August 09, 2011
Gran Tierra Energy Inc.

Gran Tierra announced its financial and operating results for the quarter ended June 30, 2011. All dollar amounts are in United States dollars unless otherwise indicated.

Highlights for the quarter include:

• Quarterly production of 18,141 barrels of oil equivalent per day ("BOEPD") net after royalty ("NAR"), a 36% increase in average daily production from the same period in 2010 of 13,376 BOEPD due to additional production from existing field developments, new production from recent field discoveries, and production growth from the recently acquired assets of Petrolifera Petroleum Ltd. ("Petrolifera");
• Quarterly oil production of 17,525 barrels of oil per day ("BOPD") NAR, a 32% increase in average daily production from the same period in 2010 of 13,234 BOPD NAR;
• Quarterly gas production of 3.7 million cubic feet per day ("MMCFD") NAR, a 334% increase in average daily production from the same period in 2010 of 0.8 MMCFD NAR;
• Revenue and other income for the quarter of $162.1 million, a 93% increase over the same period in 2010;
• Net income of $31.6 million or $0.11 per share basic and diluted compared to net income of $17.4 million or $0.07 per share basic and diluted in the same period in 2010;
• Funds flow from operations of $88.6 million compared to $44.3 million for the same period in 2010;
• Cash and cash equivalents were $211.4 million at June 30, 2011 compared to $355.4 million at December 31, 2010 and working capital decreased to $215.4 million at June 30, 2011 compared to $265.8 million at December 31, 2010;
• Moqueta-5 delineation well testing was initiated from a single zone at production rates of approximately 730 BOPD over 10 days with a jet pump, with additional testing ongoing;
• Major infrastructure projects were completed including the construction and commissioning of the Moqueta to Costayaco flow-line with first short-term test production commencing in June, and the connection of the Costayaco field into Colombia's national electrical system;
• First production contribution from Gran Tierra Energy's Brazil assets in the Recôncavo Basin was recorded in the quarter;
• Continued to mature plans for robust exploration, delineation and development drilling campaigns in Colombia, Brazil, Peru and Argentina through 2011 and into 2012.

"Several significant milestones were achieved in the second quarter of 2011, positioning the Company to achieve continued growth into the future. The completion of the Moqueta to Costayaco flow-line and initiation of production was a major achievement. This is the first time that an oil field in Colombia has been discovered and test production initiated with operations entirely supported by helicopter and without access by road minimizing the environmental footprint of Gran Tierra Energy's operations at this early stage of development," said Dana Coffield, President and Chief Executive Officer of Gran Tierra Energy. "We achieved record production in the quarter due to effective management of existing producing fields in Colombia and Argentina and new production from recent discoveries in Colombia and Brazil. Record cash flow, and progress in permitting and contracting, are supporting the execution of our planned exploration and drilling program scheduled for the balance of 2011 and into 2012," concluded Coffield.


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Apache Argentina Reaches TD at Huacalera Shale Well

- Apache Argentina Reaches TD at Huacalera Shale Well

Tuesday, August 02, 2011
Americas Petrogas Inc.

Americas Petrogas announced that the Hua.x-1 well on the Company's Huacalera Block, operated by the Company's joint venture partner, Apache Argentina, has reached total depth (TD) of 4100 meters (13,450 feet). A full suite of logs, including image logs, has been run and production casing has been successfully set all the way to TD.

The primary target Vaca Muerta Shale Formation (531 meters or 1,742 feet approximate gross thickness) has initial indications of overpressure. Gas shows were encountered in the Mulichinco Formation (140 meters or 459 feet approximate gross thickness), the Quintuco formation (414 meters or 1,358 feet approximate gross thickness) through the Vaca Muerta Formation and into the Tordillo Formation, and these results were reported to the appropriate government authorities.

The comprehensive suite of logs and mud log information will now be integrated and interpreted. The vertical cores, sidewall cores and rock cuttings have been sent to 3 different laboratories for analysis to measure the petrophysical and geochemical characteristics of the samples, both shales and sands. The results, which are expected during 3Q-2011, will provide fracking and testing options for tight sands and shale gas or oil reservoirs.

This is the first Vaca Muerta Shale gas pilot exploration well drilled in the 250,000 acre (390 sections) Huacalera block which lies along the emerging shale gas and shale oil play corridor in the western part of the Neuquen Basin, Argentina. As previously stated, Americas Petrogas has a 39% Working Interest in this large block and is carried 100% on the Hua.x-1 well by Apache.

Commenting on the drilling of this well, Mr. Barclay Hambrook, President and CEO, stated, "We are very pleased that the well has been drilled and cased successfully and, with Apache, we are looking forward to the results of fracking, testing and further exploration on this very large and promising block. Huacalera occupies a strategic location almost midway between our 5 northern blocks and 3 large southern blocks along the emerging shale play corridor."

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Laredo Reaches Record Production Levels in Eagle Ford Shale

- Laredo Reaches Record Production Levels in Eagle Ford Shale

Thursday, July 28, 2011
Laredo Energy

Laredo Energy announced that the company's gross production of natural gas has exceeded previous record levels in Webb County, Texas. Gross production from Laredo's operations in the Eagle Ford shale reached 40 MMcfd following the successful fracture stimulation of two Eagle Ford wells and the completion of an extension to Meritage Midstream's Eagle Ford Escondido Gathering System (EEG) in northern Webb County. Laredo expects to complete three more wells in Webb County and tie them into the EEG system by the end of August.

Laredo released the production information after the Puig 3H, Puig 4H and Bruni-Summers 1H wells were tied into the EEG system. "We now have 25 horizontal completions in Webb County, where we have a 120,000-acre position," said Glenn Hart, Laredo Energy's president and CEO. "We are continuing to develop our Eagle Ford position while adding horizontal completions in the shallower Austin Chalk, Olmos and Escondido formations."

Laredo Energy began development of the Webb County acreage position in late 2008. The company added a second drilling rig in January 2011 in order to more fully develop shallow reservoirs above the Eagle Ford shale including the Olmos, Escondido and Austin Chalk formations.

Laredo Energy currently has 16 horizontal wells producing in the Eagle Ford shale, three in the Austin Chalk formation, one in the Olmos and five in the Escondido formation.

"With the attractive economics of these shallower reservoirs, it makes sense for us to develop those assets while maintaining our Eagle Ford acreage position in Webb County," Hart said. "Our latest Austin Chalk completion was in the curved portion of a lateral above the horizontal section in the Eagle Ford formation. We continue to uncover more opportunities in shallower reservoirs by reprocessing and analyzing our 3D seismic data. We are also excited about the economic benefits that development of these resources will continue to provide to the landowners and the local economies of the city of Laredo and Webb County."

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Weatherford Reaches Record Revenues in 2Q11

- Weatherford Reaches Record Revenues in 2Q11

Tuesday, July 26, 2011
Weatherford International Ltd.

Weatherford reported second quarter 2011 income of $126 million, or $0.17 per diluted share, excluding an after-tax loss of $16 million. On a GAAP basis, our net income for the second quarter of 2011 was $110 million, or $0.15 per diluted share. The excluded after-tax loss is comprised of $13 million in severance and exit charges and $3 million in government investigation costs.

Second quarter diluted earnings per share reflect an increase of $0.09 over the second quarter of 2010 diluted earnings per share of $0.08, before charges. Sequentially, the company's second quarter diluted earnings per share, before charges, were $0.07 higher than the first quarter of 2011. International markets drove the entire sequential improvement in both revenue and profitability.

Second quarter revenues of $3.052 billion were the highest in the company's history, despite the severe negative impact of Canada's spring break-up. Revenues were 25 percent higher than the same period last year and seven percent higher than the prior quarter. International revenues were up 14 percent sequentially and up 12 percent versus the year ago quarter. North America revenue was down one percent sequentially and up 46 percent versus the second quarter of 2010. The sequential decline in North America was due to the severe impact of the Canadian break-up. The Canadian results overshadowed a very strong performance in the U.S., where sequential revenue growth outpaced rig count by more than two-to-one and operating margins expanded.

Segment operating income of $421 million improved 36 percent year-over-year and 19 percent sequentially. The company's international operations provided all of the sequential growth compared to the first quarter of 2011 and delivered 51 percent incremental margins. International operating income was down three percent compared to the year ago quarter.

The company expects earnings per share before excluded items of approximately $0.24 to $0.26 in the third quarter of 2011, supported by a seasonal recovery in Canada and steady improvement in the U.S. and international markets. For full-year 2011, the company anticipates that revenue growth will be approximately 25 percent, which is higher than the 20 percent growth rate estimated last quarter. In addition, the company expects international margins in the fourth quarter of 2011 to be meaningfully higher than full-year 2010 margins of 11 percent.

North America

Revenues for the quarter were $1.344 billion, which is a 46 percent increase over the same quarter in the prior year and down one percent sequentially. The Stimulation and Chemicals, Artificial Lift and Well Construction product lines contributed strong results for the quarter.

The current quarter's operating income was $244 million, up $117 million from the second quarter of 2010 and was down $40 million, or 14 percent, compared to the prior quarter. On a sequential basis, strong growth and steadily expanding margins in the U.S. were offset by the impact of the Canadian break-up.

Middle East/North Africa/Asia

Second quarter revenues of $617 million were two percent higher than the second quarter of 2010 and seven percent higher than the prior quarter. Weather improvements in China and Australia and a stronger Iraq helped offset the impact of a full quarter of reduced activity due to political unrest in the Middle East and North Africa. Libya operating expenses cost almost $0.01 per share. The Well Construction, Integrated Drilling and Artificial Lift product lines posted strong sequential performances.

The current quarter's operating income of $34 million decreased 54 percent as compared to the same quarter in the prior year and increased $23 million compared to the first quarter of 2011.

Europe/West Africa/FSU

Second quarter revenues of $592 million were 17 percent higher than the second quarter of 2010 and 16 percent higher than the prior quarter. The region had strong performances in the North Sea, Russia and Caspian as the winter seasonality abated. The Completion, Stimulation and Chemicals, Drilling Services and Integrated Drilling product lines had the strongest sequential growth.

The current quarter's operating income of $93 million was up 37 percent compared to the same quarter in the prior year and up $55 million compared to the prior quarter.

Latin America

Second quarter revenues of $498 million were 21 percent higher than both the second quarter of 2010 and the first quarter of 2011. Argentina, Colombia and Venezuela posted strong sequential performances. The Drilling Services, Stimulation and Chemicals and Artificial Lift product lines benefited from improved demand.

The current quarter's operating income of $51 million increased 22 percent as compared to the same quarter in the prior year and increased $30 million compared to the prior quarter.

Liquidity and Net Debt

Net debt for the quarter increased $144 million, with working capital increasing $193 million during the quarter. Recently, the company successfully renegotiated its unsecured revolving credit facility to increase the size of the facility from $1.75 billion to $2.25 billion and extend the scheduled maturity to July 16, 2016.

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Texon Reaches TD at Eagle Ford Well

- Texon Reaches TD at Eagle Ford Well

Friday, July 22, 2011
Global Petroleum Ltd.

Texon has advised that the latest Eagle Ford well, Tyler Ranch EFS #2H, has reached its total depth of 15,767 feet after successfully drilling 4,500' of horizontal well in the Eagle Ford reservoir. This is the second well targeting the Eagle Ford reservoir in which Global has a 7.939% working interest (5.95% net revenue interest).

Oil and gas shows recorded throughout the 4,500' are in line with the oil and gas shows in the nearby first Eagle Ford well, Tyler Ranch EFS #1H, which had an initial test rate of 1,267 boepd in December last year and has been in production since that time.

Tyler Ranch EFS #2 has been cased and suspended for fracking, testing and production. This work is scheduled for mid August with first oil and gas production forecast for early September.

Global has a 7.939% working interest in approximately 1,651 acres beneath the Olmos formation including the Eagle Ford Shale. Global's interest in the Leighton prospect also includes a 15% working interest in approximately 873 acres from the surface down to the stratigraphic equivalent of the Olmos formation. Global has an interest in 8 producing Olmos wells, with a ninth well due to commence production following fracture stimulation in August.

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Texon Reaches TD at Leighton Olmos Well

- Texon Reaches TD at Leighton Olmos Well

Thursday, July 21, 2011
Global Petroleum Ltd.

Texon Petroleum has advised that the latest Leighton Olmos vertical production well, Peeler #3, has reached its total vertical depth of 2,774 meters (9,100 feet). This is the ninth well targeting the Olmos reservoir in which Global has a 15% working interest (11.25% net revenue interest).

Peeler #3 is the northern most well drilled to date in the Leighton field. The targeted Olmos sand in Peeler #3 has reservoir characteristics similar to the other Olmos production wells.

Production casing has been installed in the well in preparation for fracture stimulation in August. The well will then be connected for oil and gas production.

The closest three Olmos production wells, Peelers #1 and #2 and Tyler Ranch #5 tested at initial rates of 170-445 boepd, including 80% oil, although as production progresses the proportion of gas increases.

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Oilex Reaches TD at Cambay HZ Well

- Oilex Reaches TD at Cambay HZ Well

Wednesday, July 06, 2011
Oilex Ltd.

Oilex advised that as at 23:30 Indian Standard Time on July 5, 2011 the Cambay-76H horizontal well has been drilled to a total depth of 2,740 meters and the completion string has been run successfully. The drilling rig will now be demobilized in preparation for mobilizing the multi-stage fracture stimulation equipment and related services.

• Report date: July 5, 2011
• Status: Preparing to demobilize drilling rig in preparation for fracture stimulation operations
• Past Week's Operations
  • Drilled remainder of 8 ½" horizontal hole from 2,596 to 2,740 meters
  • Run completion string for multi stage fracture stimulation from 2,195 to 2,719 meters
• Objective: Cambay Eocene "tight" reservoir Y Zone
• Total Depth (TD): 2,740 meters

Well log data indicated porous hydrocarbon-bearing intervals with elevated gas readings throughout the horizontal section drilled in the Y Zone.

After drilling the hole to Total Depth, the completion string for the planned multi-stage fracture stimulation program was successfully run in the horizontal well section. The Black Pearl drilling rig will now be demobilized from the well site so the high volume fracture stimulation equipment and related services can be mobilized in preparation for carrying out the Y Zone fracture stimulation operations.

The participating interests in the Cambay PSC are:

• Oilex Ltd (Operator) 30%
• Oilex NL Holdings (India) Limited 15%
• Gujarat State Petroleum Corporation Ltd 55%

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Caza Reaches TD at Texas Well

- Caza Reaches TD at Texas Well

Thursday, June 23, 2011
Caza O&G Inc.

Caza provided an operational update on the Company's San Jacinto property in Midland County, Texas.

Caza, as operator, announced that the Caza Elkins 3401 well in Midland County, Texas, reached a total depth of 11,854 feet on June 21, 2011. Electric logs indicate multiple potential pay sands for both oil and gas in the Clearfork, Spraberry, Wolfcamp, Strawn, Atoka and Devonian formations. Caza is currently running production casing and preparing the Caza Elkins 3401 well for further completion operations. The completion procedure will include a fracture stimulation program.

The rig has been released and will be moved to the Caza Elkins 3402 well location. The positive results associated with the Caza Elkins 3401 well have caused Caza to revise the target depth on the Caza Elkins 3402 well from 10,500 feet, as previously announced, to approximately 11,800 feet in order to test the Devonian formation. The well should take approximately 30 days to reach the target depth.

Frac crews are extremely busy and therefore difficult to schedule in this area. Given positive results on the Caza Elkins 3402 well, the Company anticipates the initial fracture stimulation procedures on both the Caza Elkins 3401 and 3402 wells to be performed sequentially this August. Given the current environment regarding frac crews, the Company believes that performing these operations sequentially is the most expeditious and economically prudent way forward.

The San Jacinto property covers approximately 480 acres with five proven undeveloped locations, including the Caza Elkins 3401 and 3402 locations. Caza has a 100% working interest before completion and an 85% working interest after completion in the Caza Elkins 3401 well with a 63.75% net revenue interest. In all subsequent wells on the San Jacinto property, including the Caza Elkins 3402 well, Caza will have a 75% working interest and a 56.25% net revenue interest.

W. Michael Ford, Caza's Chief Executive Officer commented, "We are very pleased with the results of the Caza Elkins 3401 well on the San Jacinto property. Log data suggests that the potential pay sections are better than anticipated and we look forward to drilling the Caza Elkins 3402 well and developing this project in due course."

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Nido Reaches TD at Gindara Well

- Nido Reaches TD at Gindara Well

Friday, June 17, 2011
Nido Petroleum Ltd.

Nido, on behalf of the SC 54B Joint Venture, provided the following update on the Gindara-1 well.

Since the last update, the Gindara-1 well has been drilled from 3,530 meters MD (3,508 meters TVDss) to the revised Total Depth (TD) of 3,660 meters MD (3,638 meters TVDss) in the primary Nido Limestone reservoir section. Current operations are pulling out of the hole to run wire-line logs.

While drilling the Nido Limestone at 3,560 meters MD (3,538 meters TVDss) the well intersected the predicted good quality reservoir section in the Nido Limestone which extended down to the revised TD of the well at 3,660 meters MD (3,638 meters TVDss).

Although indications are that the good quality limestone reservoir section is water bearing, it has not been possible to definitively determine if the fluids in the reservoir are hydrocarbons or water due to the combination of a potential deep invasion of the reservoir by the drilling mud and technical problems with the Logging Whilst Drilling (LWD) logging equipment. Therefore, a comprehensive wire-line logging program is being run to confirm the fluid type within the good quality Nido Limestone reservoir section.

Jon Pattillo, Nido's Head of Exploration commented, "We have encountered the high quality limestone reservoir section that was predicted pre-drill. Although indications are that the good quality limestone reservoir is water bearing, it is possible that the drilling fluid has invaded the limestone reservoir due to its good porosity. We have not been able to definitively determine if this is the case due to technical problems with the LWD logging tool and so we are running a comprehensive logging program to confirm the fluid type within the reservoir. This program will take a few days to complete and Nido will provide a further update on the results when they become available."

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Statoil Reaches Production Milestone at Leismer Proj.

- Statoil Reaches Production Milestone at Leismer Proj.

Thursday, June 16, 2011
Statoil

Statoil announced that its Leismer Demonstration Project (LDP) in northern Alberta, Canada, has achieved a production milestone of one million accumulated barrels of oil.

"We have achieved many milestones at Leismer in the past year, including regulatory approvals, a safe startup of operations and now this significant production milestone," said Lars Christian Bacher, President of Canadian Operations.

"We will continue to drive shareholder value through operational efficiency as we move into future phases of our oil sands business in Canada."

First oil at LDP was achieved in January 2011 and is expected to ramp up to its rated capacity of 18,800 barrels per day within 24 months.

Statoil's Kai Kos Deh Seh project includes four oil sands leases in the Athabasca region of Northeast Alberta: Leismer, Corner, Hangingstone and Thornberry.

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Zion O&G Reaches TD at Israel Well

- Zion O&G Reaches TD at Israel Well

Tuesday, June 14, 2011
Zion O&G Inc.

Zion O&G has reached its target depth of approximately 19,357 feet (5,900 meters) in drilling its Ma'anit-Joseph #3 well into the Permian geologic layer in Northern Israel. The Company is now preparing for open-hole logging operations, planned to commence this week.

Zion also announced that its shares of Common Stock were added to the preliminary list of both the Russell Global Index and the U.S. broad-market Russell 3000(R) on June 10, 2011. Russell Investments will publish the final inclusion lists of its indexes on June 27, 2011.

Zion's inclusion is part of the Russell's regular reconstitution of its U.S. equity indices each year. Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for both passive and active investment strategies. An industry-leading US $3.9 trillion in institutional assets currently are benchmarked to them.

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Sterling Reaches TD at Cladhan Appraisal Well

- Sterling Reaches TD at Cladhan Appraisal Well

Friday, June 03, 2011
Sterling Resources Ltd.
by SubseaIQ

Sterling announced the completion of drilling of the 210/30a-4X well on Block 210/30a in the United Kingdom North Sea. This is the fourth well (third side-track) drilled in the current four well campaign to further appraise the extent of the Cladhan reservoir.

The 210/30a-4X well was drilled in the most southern limit of the northern core area in a potentially separate channel, utilizing the Transocean Prospect rig. The objectives of the 210/30a-4X sidetrack well were to core the full reservoir section approximately one kilometer south and approximately 60 feet updip of the oil bearing 210/30a-4 well, and evaluate the southern fringe of the northern core area.

The 210/30a-4X well was drilled to a total measured depth (MD) of 10,614 feet encountering 171 feet gross, 105 feet net (vertical thickness) of high quality Upper Jurassic sands. Almost 180 feet of core was successfully recovered across the full reservoir section.

Petrophysical analysis of the interval showed five feet of oil-bearing sand at the top of the interval with an Oil-Down-To at 10,177 feet True Vertical Depth Subsea (TVDSS). An oil sample was obtained from the interval. A further 100 feet of water-bearing sand was encountered below thin shale which separates the top and bottom sands. A clear contact has not been observed although the top and bottom sands appear to be in pressure communication. The presence of a known Oil-Down-To bodes well for updip oil in other channels with the same pressure regime.

Generally, reservoir quality is very good with porosities up to 25 percent, substantiated by measurements obtained while taking fluid samples. These pressure measurements also confirm that the interval is over-pressured on trend with the 210/30a-4Y well, but some 900 psi lower than the discovery area. The implication of this information is that the southern fringe of the northern channel area is in communication with the central channel, being distinct from the main reservoir in the northern channel area. The well will be suspended for possible re-use as a future development well at this location or elsewhere after a sidetrack. With the completion of this four well drilling campaign, RPS Energy will start a review of the Cladhan resources with the intent of publishing an update report within a few weeks.

"Notwithstanding the presence of predominantly wet sands at this depth in this separate channel compartment, we are encouraged by the presence of oil in the top sand and by reservoir quality at this location. Further updip prospectivity is certainly promising," remarked John Rapach, Sterling's Chief Operating Officer. "We have proved that our current seismic model can adequately predict sand thickness but reservoir quality definition is now paramount for further appraisal and development drilling. Our next planned subsurface activity is to complete full reprocessing and interpretation of the existing seismic dataset incorporating all of the log, core, fluid and pressure results obtained during this current drilling campaign. Consequently, the next drilling campaign will probably commence in early 2012," noted Mr. Rapach.

"Our development planning is concentrating on either a subsea tie-back or FPSO development of the main northern core area with further definition of reserves and resources during our next drilling campaign. We are commencing pipeline route and environmental survey work within the next few weeks," added Mr. Rapach.

Mike Azancot, Sterling's Chief Executive Officer, commenting on these results noted, "The current exploration and appraisal drilling campaign on Cladhan has been successful in increasing the height of the oil column by 798 feet to 1228 feet in total. The extent of the development of the northern core area is now better defined with this increase in oil column. The fan area in the east of the field remains prospective as the results from the 210/30a-4Z well drilled in this campaign are not conclusive due to its proximity to a major fault. Our plan towards development with options for increased resource exploitation after further drilling is now underway with a target for first oil in 2014."

Sterling holds a 39.9% interest in license P1064 which contains Cladhan, and is the operator. The partners are Wintershall (UK North Sea) Ltd. with 33.5 percent, Encore Petroleum Ltd with 16.6 percent and Dyas UK Ltd with 10.0 percent.

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EnCore Reaches TD at Cladhan Appraisal Well

- EnCore Reaches TD at Cladhan Appraisal Well

Friday, June 03, 2011
EnCore Oil plc

EnCore announced that the Cladhan appraisal well 210/30a-4x, the final well in this current four well program located in UK North Sea Blocks 210/29a & 210/30a, has reached Total Measured Depth of 10,614 feet.

The appraisal well was drilled as a side-track to evaluate a channel to the south of the current Cladhan discovery. The well encountered an Upper Jurassic reservoir with a gross True Vertical Thickness (TVT) of 171 feet and 105 feet of net sand. Reservoir quality is excellent with porosities up to 25 per cent. Log and pressure data indicates that an uppermost sandstone unit of five feet TVT is hydrocarbon bearing with an "Oil Down To" at 10,177 feet True Vertical Depth Sub Sea (TVDSS) and a calculated Oil Water Contact at 10,200 feet TVDSS based on the pressure data. An oil sample was obtained from this interval. Below this oil bearing sand, a further 100 net feet of water-wet sands were encountered. Pressure data shows that the sands are over pressured in this well, and these are similar to the pressure trend encountered in the Central Channel drilled by the 210/30a-4y well, and therefore in a separate pressure regime from the main Cladhan accumulation. The presence of an Oil Down To indicates potential for a new accumulation, separate from Cladhan, up dip of the current well location and also potential up dip of the previously drilled 210/30a-4y well. The well will now be suspended for potential reuse in the development of the Cladhan area.

This final well completes the current phase of drilling at Cladhan and has helped delineate the discovery and provided greater clarity on what has been discovered in the Cladhan area, although there is still further appraisal work to be carried out in the area. An infield survey and pipeline survey is now planned to commence later this month to determine the best development options for the Cladhan discovery.

Commenting on the latest well result, Alan Booth, EnCore's Chief Executive Officer said, "Although the well results to date have been somewhat mixed, we have accomplished our main aim of identifying and delimiting the areal extent of the Cladhan field, or perhaps this should now be fields. A significant amount of work still lies ahead in integrating and calibrating the extensive well and core information into the seismic data, although initial analysis appears to suggest that the original Cladhan discovery is confined to the Northern Channel Belt immediately North of this current well. In the Northern Channel Belt, we have now established a hydrocarbon column of greater than 1,200 feet where reservoir quality, rather than an actual Oil Water Contact may well delimit producibility from the deeper, down dip 'fan area' of the discovery.

"The Central Channel area, drilled by the 210/30a-4y and the current 210/30a-4x wells, is in a separate pressure regime. This area is also over pressured, although not to the same degree as Cladhan. This latest well appears to have intersected the edge of an oil column and a potential Oil Water Contact some way down dip from the crest in a separate channel system. The sand quality in this location is excellent and suggests important potential further up dip in this channel. It gives us greater encouragement that the Central Channel (drilled by well 210/30a-4y) may well also contain oil trapped up dip, as this well was located some 1,000 feet below the mapped up dip limit of that particular channel.

"Further appraisal drilling, likely in the first half of 2012, will be required to understand the up dip potential in both these two new channel systems. In the mean time the Operator will continue with on going development planning.

"In terms of EnCore's upcoming work program, development studies and planning continue on our Catcher, Varadero and Burgman discoveries on the EnCore-operated UK Central North Sea Block 28/9. Further seismic data is to be acquired over the summer which will assist in this work and the Group hopes to be in a position to be able to return to Block 28/9 in late 2011 or early in 2012 to continue with further exploration and appraisal drilling.

"Our next well to be drilled will be on the EnCore-operated Tudor Rose discovery in UK Central North Sea Block 14/30a, which is expected to commence in September 2011. A Letter of Award has been signed with ADTI for use of the Sedco 704 rig to drill an appraisal well on the Tudor Rose accumulation to establish the gravity and viscosity of the oil in place, both critical issues in determining if Tudor Rose can be commercially exploited."

The equity in the Cladhan joint venture partnership is as follows: EnCore Oil plc (16.6 percent.), Sterling Resources Ltd (39.9 percent., Operator), Wintershall (UK North Sea) Limited (33.5 percent.) and Dyas (10 percent.).

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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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Sterling Reaches TD at Sangaw North Well

- Sterling Reaches TD at Sangaw North Well

Tuesday, May 24, 2011
Sterling Energy plc

Sterling provided the following update for the Sterling operated Sangaw North block in Kurdistan (53.33% working interest).

The Sangaw North-1 well has been drilled to a total depth of 4,190 meters, within the Triassic Kurra Chine formation. Wireline logs have been run across the open hole section and are currently being interpreted.

The joint-venture partnership has elected, based on gas shows while drilling, to conduct a flow test across the open hole section. The flow test, including preparatory operations, is expected to take approximately three weeks to complete. Further flow testing may be undertaken depending on the results of the first flow test and interpretation of the drilling and petrophysical data acquired in the well.

Angus MacAskill, Sterling's Chief Executive said, "We are pleased to have reached the planned well depth in this very challenging drilling environment and look forward to the outcome from the ongoing program of data acquisition."

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Today's Trends: Chinese Oil Demand Reaches Third Highest Level Since 2005

- Today's Trends: Chinese Oil Demand Reaches Third Highest Level Since 2005

Monday, May 23, 2011
Rigzone Staff

China's apparent oil demand in April reached 38.36 million metric ton (mt) or an average of 9.37 million b/d, marking an 8.3% increase from April 2010 due to increased demand during the spring sowing season, according to Platts' recent analysis.

Apparent oil demand by the world's second largest oil consumer in April was the third highest monthly demand rate since Platts began tracking the data in 2005, behind 9.62 million b/d in December 2010 and 9.58 million b/d in February 2011.

"Beijing has in recent weeks directed state oil majors to ensure adequate domestic supply of products by cutting back on exports and running refineries flat out to meet increased demand from the transportation sector and agriculture sector, with the onset of the spring planting season," said Calvin Lee, Platts senior writer, China.

Earlier this month, the National Development and Reform Commission said Chinese oil majors would temporarily suspend diesel exports, except to Hong Kong and Macau, in a bid to boost domestic supplies.

Still, Platts noted that the 8.3% increase in demand in April showed that overall oil demand growth has moderated from the blistering pace set in the first quarter of well over 10% growth each month. "Some analysts are forecasting that Chinese oil demand growth will moderate for the rest of the year because of a decelerating economy and high oil prices further denting end-user demand,” Lee said.

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