Quetzal to Spud Llanos Well in October

- Quetzal to Spud Llanos Well in October

Tuesday, September 13, 2011
Quetzal Energy Ltd.

Quetzal provided the following update on operations:

Block 27, Llanos Basin

As previously announced, Quetzal completed a 220 square km 3D seismic survey of Block 27 in 1Q 2011 and then followed that up with an additional 54 square km survey in 2Q 2011. Merge, analysis and interpretation of this seismic has been completed and management has identified 4 drillable prospects on the block.

On August 10, 2011, Quetzal received its blanket environmental permit paving the way to proceed with the drilling of its first well on Block 27. Construction of the location began on August 29, 2011, and the Company expects to spud this first well with a rig contracted from Saxon Energy Services in the second half of October. Once drilling begins, management expects to reach target depth of 10,000 feet in 45 days.

Prospective targets include the oil bearing intervals in the Mirador and Une Formations, with the Carbonera formation representing a secondary target.

Quetzal pays 50% of cost and has a 45.275% revenue interest in this block before payout, and a 34.25% interest following payout.

Block 21, Llanos Basin

A 95 square kilometer 3D seismic program has been completed on Block 21, and management is near completion of its analysis and interpretation. Preliminary evaluation has identified 4 potential prospects of interest on Block 21 with further detailed analysis required.

On August 3, 2011, Quetzal filed for its environmental permit on Block 21 and is awaiting approval. Under contractual commitments to the ANH, and by the terms of its farm-in agreement, Quetzal and their partner, Brownstone Ventures, must drill two wells by September 12, 2012. Assuming environmental approval is received in a timely fashion, the Company expects to commence wellsite construction in 1Q 2012, and drill two wells in 2Q 2012.

Projected well depths at Block 21 are 8,000 feet.

Quetzal pays 50% of cost and has a 45.50% revenue interest in this block before payout, and a 35% interest following payout.

Canaguaro Block

A long term production test began on May 4, 2011 with an ESP set at approximately 6,000 feet depth, approximately 8,000 feet above the producing Mirador formation. Since that time, Quetzal has averaged approximately 400 barrels of oil per day and has witnessed the water cut go from and average of 18% in May to 33% in August. Initial reservoir pressure was registered at approximately 5,850 psia in May, and management has witnessed some decline in bottom hole flowing pressure since commencement of the long term test. In late August, Quetzal shut in the Canaguay 1 well for 6 days to conduct a pressure build up test. Over that short period, well pressure returned to within 100 psia of the May pressure indicating that reservoir pressure depletion is not significant. Given that the perforations are only 30 feet above the plug back depth, management believes that sand production is likely causing a restriction in flow, and reduced bottom hole flowing pressure. The Company and its partners now plan to service the well by conducting a cleanout of the well, replacing the ESP, and placing the new ESP at a deeper depth in the well closer to the producing zone. It is management's expectation that this will lead to increased fluid production and a resultant increase in oil production as well. This work is expected to be completed by November 1 and is budgeted at a net cost to Quetzal of $250,000.

Quetzal has a 25% working interest in the Canaguaro Block and is acting as operator of the well.

Block 36

The acquisition of 109 square kilometers of 3D seismic on Block 36 has been completed and analysis and interpretation continues. Drilling of one well is required by February 2012 and the Operator, Montecz continues to evaluate options to meet activity requirements of the ANH. Quetzal pays 20% of cost and has a 18.2% revenue interest in this block before payout, with a 14% interest following payout.

Guatemala Update

As part of Quetzal's ongoing strategy to maximize shareholder value, the Company continues to evaluate strategic alternatives. The Company is actively evaluating options including selling the Guatemalan assets or soliciting third party joint venture partners to assist in developing the Guatemala blocks.

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EP Passes Resolution on Tougher Offshore Drilling Regulations

- EP Passes Resolution on Tougher Offshore Drilling Regulations

Tuesday, September 13, 2011
Rigzone Staff
by Karen Boman

The European Parliament (EP) on Sept. 13 passed a resolution that would only allow development of oil and gas fields offshore Europe if companies have prepared an adequate emergency plan and has sufficient funds to repair possible damage to the environment.

According to the resolution, passed with 602 votes in favor, 64 against and 13 abstaining, site-specific plans for drilling, which would also require approval by the relevant member state before operation begins, would better protect the environment. The resolution is a means of influencing new draft legislation to be tabled by the European Commission this autumn.

"These emergency plans should identify potential hazards, assess pollution sources and effects and outline a response strategy in the even of an accident," according to a statement by the European Parliament.

The resolution also calls for a provision requiring oil and gas operators to show in the licensing procedure that they have sufficient funds to repair any harm done to the environment as a result of their activities. It also has been suggested that the scope of the polluter pays principle and strict liability should be extended to cover all damage done to marine waters and biodiversity.

While members of European Parliament are unsure if establishing a regulator for all offshore operations would be bring enough value to justify diverting "scarce" regulatory resources from national authorities, they agree that the European Maritime Safety Agency should coordinate responses in the event of an accident.

Parliament also proposes that whistleblowers be protected, enabling employees to declare any security breaches or risks anonymously with fear of harassment.

The resolution is in response to a Commission consultation paper issued last October in the aftermath of the Macondo oil spill in the Gulf of Mexico in April 2010. It also follows on from an European Parliament resolution in October 2010 on European Union action on oil exploration and extraction in Europe.

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Tethys Pumps Oil at Tajik Well

- Tethys Pumps Oil at Tajik Well

Tuesday, September 13, 2011
Tethys Petroleum Ltd.

Tethys gave an update on its operations in the Republic of Tajikistan.

Testing operations are underway on the East Olimtoi EOL09 exploration well located south of the town of Kulob some 10 km north of the Afghan border. This well reached a total depth of 3,765 meters in the Akdzhar formation and testing operations are being undertaken on the overlying Bukhara and Alai formations.

Currently the well is flowing a mixture of completion brine and oil from the upper Alai sandstone interval, this oil being of good quality with an API gravity of approximately 36 degrees. The current section open to testing includes this upper Alai sandstone unit as well as the lower Alai limestone interval and the upper part of the Bukhara formation. The well was drilled with heavy drilling fluid (weighted with barite), which was required to control the well when it intersected the upper Alai reservoir. Barite is currently being observed in the flow lines which the company believes is also inhibiting flow at present. It is anticipated that the well will clean up in due course, however the cleanup period may take some time. The Company is currently evaluating methods of speeding up the clean up of this well including acidization or nitrogen-lifting using coiled tubing, subject to availability of equipment.

There are two further sandstone zones in the Alai formation which appear oil bearing based on wireline logs and which will be tested after a stable and representative flow rate has been achieved from the upper Alai sandstone unit. The lower part of the Bukhara interval was also tested but was found to have low permeability at this location although with the potential for production in future wells using production enhancement techniques such as hydraulic fracture stimulation. Mobilization of such equipment to Tajikistan would take a
significant amount of time, as such the company has chosen to focus on the upper zones of this particular well at this time.

The Persea 1 exploration well, located near the town of Kurgon-Teppa is progressing within the 12 1/4" hole section. This well is primarily targeting the Bukhara limestone formation in a four-way dip closed structure with the overlying Alai formation forming a potential secondary target. The planned total depth of this well is 2,700 meters and it is expected that this will be reached in October 2011.

Data collection for the gravity, gradiometry and magnetic aerial survey carried out over the 35,000 km2 Bokhtar Production Sharing Contract Area has now just been completed. This will provide additional and more aerially extensive data to complement the existing seismic acquisition with the final processed data and results expected in 4Q 2011.

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Cairn Updates Operations Offshore Greenland

- Cairn Updates Operations Offshore Greenland

Tuesday, September 13, 2011
Cairn Energy plc

The following operational update relates to Cairn's exploration drilling campaign offshore Greenland.

Gamma-1 Well: Eqqua Block, West Disko Area

The Gamma-1 exploration well, drilled by the Ocean Rig Corcovado drillship, located in 1,520 meters (m) of water and 294 kilometers (km) from Aasiaat, in the Eqqua Block in the West Disko area has reached total depth (TD) and preparations are under way to plug and abandon the well. The well had been targeted to test a deep water Tertiary basin floor fan located 100km down dip from the T8-1 well where biogenic and thermogenic gas had been encountered in 2010.

The Gamma-1 well intersected the prognosed basin floor fan at the anticipated depth, although no reservoir or hydrocarbon shows were encountered in the interval.

Delta-1 Well: Napariaq Block, West Disko Area

The Delta-1 exploration well, drilled by the Leiv Eiriksson semisubmersible drilling rig, located in a water depth of 293m and approximately 365km offshore Aasiaat, in the Napariaq Block is currently drilling ahead. The Delta-1 well is aiming to intersect Cretaceous sediments in a large structural closure beneath the Tertiary volcanic interval in which oil shows were encountered in the Alpha-1 well drilled in 2010. The well has so far encountered several hundred meters of Tertiary volcanic section, which is thicker than anticipated and with only minor hydrocarbon indications. A further update will be made later this month, once the well reaches TD.

AT7-1 Well: Atammik Block, South Ungava Area

Following completion of the operations on the Delta-1 Well, the Leiv Eiriksson is scheduled to move south to re-enter the AT7-1 well in the Atammik block, located in 909m of water and 198km offshore Nuuk, and drill to the planned TD.

Fifth Well: AT2 Prospect: Atammik Block, South Ungava Area

Once operations on the Gamma-1 well are complete, the Ocean Rig Corcovado is scheduled to move 597km south, to the Atammik Block, to drill the AT2 prospect as a fifth well in the 2011 exploration drilling campaign.

Further updates will be provided whenever a well is at TD and operations are complete.

Simon Thomson, Chief Executive, said, "The full results of the Gamma-1 well and the update from the Delta-1 well will be reviewed in the context of all the data gathered during the Greenland exploration campaign.

The rigs are scheduled to move south to drill the final two wells of the program on the Atammik block. We remain focused on the potential of our multi-basin position in Greenland."

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Nordic Sets Private Placement for Bakken Drilling Funds

- Nordic Sets Private Placement for Bakken Drilling Funds

Monday, September 12, 2011
Nordic Oil & Gas Ltd.

Donald Benson, President of Nordic Oil and Gas Ltd. ("the Company" or Nordic"), on Monday announced a new non-brokered private placement offering (the "Offering") of up to 30,000,000 units ("Units") at a price of $0.075 per Unit for gross proceeds of up to $2,250,000. Each Unit of the Offering will consist of one Class A common share of the Company issued as a "flow-through share" within the meaning of the Income Tax Act (Canada) and one-half of one Class A common share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder thereof to purchase one regular Class A common share of the Company at a price of $0.10 per share for a period of 18 months from the date of issuance.

The securities issued pursuant to the Offering are subject to a four-month hold period from the date of issuance. The Company anticipates multiple closings of the Offering in the coming weeks.

Certain finders are expected to assist the Company by introducing potential subscriber(s) to the Offering and, subject to compliance with applicable legislation, will be entitled to receive fees equal to up to 10% of the purchase price of the Units sold pursuant to the Offering, as well as compensation warrants (the "Finder's Warrants") equal to up to 10% of the number of Units sold pursuant to the Offering. Each Finder's Warrant shall entitle the holder thereof to purchase one regular Class A common share of the Company at a price of $0.10 for a period of 18 months from the date of issuance.

All terms of the Offering are subject to the approval of the TSX Venture Exchange.

"It is our intention to use a large portion of the funds raised in this Offering to undertake the drilling of our first exploration well on our Weyburn/Bakken property in southeast Saskatchewan," Mr. Benson stated. "We feel that our Weyburn/Bakken property should be our top priority at this time and we would like to be in position to drill the first well early in the fourth quarter of 2011."

Upon analyzing the seismic shot in the region, Nordic's geophysicist has identified four potential drilling locations on the land. He notes that in addition to the Bakken, the seismic also indicates that both the Midale/Frobisher and Red River zones are prospective as well.

"The offsetting land in the area has been producing from the Midale zone since 1991," Mr. Benson added.

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Cooper Begins Butlers-4 Drilling

- Cooper Begins Butlers-4 Drilling

Monday, September 12, 2011
Cooper Energy Limited

Cooper Energy Limited announced that the Butlers-4 appraisal/development well in PEL92 spudded at 11:30 pm Sunday. The current operation is drilling ahead in the surface hole at 135 meters.

Butlers-4 is the third appraisal/development well on the Butlers Oil Field in the current PEL92 drilling program. Butlers-4 is targeting the Namur oil reservoir in the crestal part of the field 0.26km to the southeast of the Butlers-1 discovery well. The well will be drilled to a total depth of about 1,390 meters and is expected to take 9 days to drill and complete.

The Butlers oil field is currently producing approximately 1,400 barrels of oil per day from the Namur reservoir from the Butlers-1 well with Butlers-2 and Butlers-3 yet to be completed. It is expected that Butlers-4 will accelerate production as well as draining previously unaccessed reserves. The Butlers surface facilities will be upgraded to handle the increased production. Oil production from Butlers is exported via the pipeline to Tantanna and then exported to Moomba.

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Bering Spuds Concordia Parish Well

- Bering Spuds Concordia Parish Well

Monday, September 12, 2011
Bering Exploration, Inc.

Bering Exploration, Inc. announced Monday that drilling has begun on the Sharp Heirs A No. 1 well located in Concordia Parish, Louisiana. This well 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 excited to begin drilling our initial well on this prospect and expect to reach total depth in a couple of weeks," stated Steven Plumb, VP of Finance of Bering. "If successful, this prospect has the potential to significantly add to our existing production."

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Total Hits Gas Pay in Caspian

- Total Hits Gas Pay in Caspian

Friday, September 09, 2011
Total S.A.

Total on Friday announced a major gas discovery in the Caspian Sea in the Absheron block offshore Azerbaijan.

The Absheron X-2 well has encountered more than 500 feet of cumulated net gas pays within high quality sands on the northern flank of a major 270 square kilometers structure. Reservoirs are expected to extend over the entire northern part of the structure.

The well's first results confirm a potential of several trillion cubic feet of gas and associated condensates.

"This discovery could be very significant in terms of resources," said Total's Senior Vice President Exploration, Marc Blaizot. "It is the result of Total's bolder exploration strategy aimed at exploring high risk/high reward prospects both in prolific and frontier basins particularly in high pressure, deeply buried reservoirs. Our geoscientists and drillers have all the skills to make other discoveries in similar environments like the United Kingdom, Brunei, Malaysia or Egypt where new permits have been recently awarded to Total."

The well is currently at a depth of approximately 6,550 meters. Drilling will continue to explore further deeper objectives that look attractive. The well will then be tested to better confirm the reservoir potential.

The Absheron discovery is located in 500 meters of water, 100 kilometers south east of Baku, some 25 kilometers north east of the Shah Deniz gas and condensate field.

Total subsidiary, Total EP Absheron is the operator of the Absheron license with a 40% equity. The partners are SOCAR (40%) and GDF SUEZ (20%).

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Tullow Reports French Guiana Discovery

- Tullow Reports French Guiana Discovery

Friday, September 09, 2011
Tullow Oil plc

Tullow Oil plc announced Friday that the Zaedyus exploration well (GM-ES-1), offshore French Guiana, has made an oil discovery having encountered 72 meters of net oil pay in two turbidite fans. Results of drilling, wireline logs and samples of reservoir fluids show that the well has encountered good quality reservoir sands on prognosis.

The objective of the Zaedyus well was to test whether the Jubilee-play, successfully established in West Africa, was mirrored on the other side of the Atlantic. This discovery therefore opens a new hydrocarbon basin within which several neighboring prospects have been mapped. This result also reduces the exploration risk associated with Tullow's prospect inventory offshore French Guiana, Suriname and Guyana. An appraisal program and extensive follow-up exploration activities will now be considered.

The Zaedyus well is being drilled in the Guyane Maritime license using the ENSCO 8503 deepwater semi submersible. The well was drilled in water depths of 2,048 meters and has been drilled to a depth of 5,711 meters. Drilling operations will now continue and the well will be deepened to over 6,000 meters to calibrate the deeper geology. The well will then likely be sidetracked to enable cores to be obtained over the reservoir sections.

Tullow (27.5%) operates the Guyane Maritime license and is partnered by Shell (45%), Total (25%) and Northpet (2.5%), a company owned 50% by Northern Petroleum plc and 50% by Wessex Exploration plc.

Angus McCoss, Tullow's Exploration Director, commented Friday:

"The discovery at Zaedyus has proved the extension of the Jubilee-play across the Atlantic and made an important new discovery in French Guiana. Tullow has built a commanding and unique acreage position in South America and this result marks the start of a significant and potentially transformational long-term exploration and appraisal campaign in the region."

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PA Resources Kicks Off Lille John Drilling

- PA Resources Kicks Off Lille John Drilling

Friday, September 09, 2011
PA Resources

The oil and gas group PA Resources continues its drilling campaign in Licence 12/06 in the Danish North Sea with the commencement of drilling of an exploration well at the Lille John prospect.

In July an exploration well was drilled on the Broder Tuck prospect on the Danish License 12/06 and gas and condensate was discovered. In August, a side track encountered additional hydrocarbons. The well has now been plugged and abandoned.

The drilling rig ENSCO 70 has mobilized to the Lille John prospect, approximately 8 kilometres south of Broder Tuck, and the drilling of the second exploration well in this drilling programme has now commenced.

The well has targets at three levels; Miocene, Chalk and Middle Jurassic. Lille John is hoped to contain both oil and gas.

The following companies participate in Licence 12/06: PA Resources UK Limited (64%), Nordsøfonden (Danish North Sea Fund) (20%), Danoil Exploration A/S (8%) and Spyker Energy APS (a wholly-owned subsidiary of Spyker Energy Plc) (8%).

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African Petroleum Finds Drilling Success Off Liberia

- African Petroleum Finds Drilling Success Off Liberia

Friday, September 09, 2011
African Petroleum

African Petroleum has completed drilling the first well (Apalis-1) in deep water offshore Liberia in Block LB-09.

The results of Apalis-1 confirm Blocks LB-08 and LB-09 (100% owned by African Petroleum) are located in a prospective oil basin, which is a major step forward. The geological and geophysical data have confirmed the critical components of a working hydrocarbon system are present and functioning. The Company is now accelerating a multi well drilling program on the 25+ exploration prospects identified on Blocks LB-08 & LB-09 offshore Liberia and are planning to drill the next well during 4th quarter 2011 and 1st quarter 2012.

Apalis-1 was drilled to a depth of 3665 meters and encountered oil shows in several geological units including the shallower (Tertiary) and deeper (Cretaceous) and petrophysical analysis indicates the presence of hydrocarbons. The well also confirmed the presence of organic oil prone source rocks confirming that Blocks LB-08 & LB-09 are in an attractive oil basin.

No commercial quality reservoir with hydrocarbons was encountered and consequently no well production test was undertaken.

The well was drilled without any technical problems and the costs have been materially under budget.

Having confirmed a working hydrocarbon system with the first well the forward exploration programme will focus on the deeper basinal zone where improved reservoir quality is anticipated in the well-developed Cretaceous fan system.

Karl Thompson, CEO, comments that “This is the first the first ever frontier well in the deep water in Liberia and has confirmed we are exploring in a highly prospective oil basin which was its key objective and we are committed to continuing exploration in the area”.

SIERRA LEONE

The 3D seismic survey underway in Block SL-03 Sierra Leone (100% owned by African Petroleum) to the west of the Anadarko Venus and Mercury discoveries is progressing well and is now 65% complete. The 3D survey is the start of the initial exploration phase in exploring for similar Upper Cretaceous targets as the nearby Mercury and Venus discoveries.

GAMBIA

The interpretation of the 3D seismic survey in The Gambia (60% owned by African Petroleum) is progressing very well and an extensive system of Upper Cretaceous fan systems has clearly been identified.

African Petroleum is one of the largest net exploration holders in the West African Upper Cretaceous Exploration fairway and is making continued progress in acquiring new exploration licences.

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Dart Commences Drilling Ops at China Daijing Proj.

- Dart Commences Drilling Ops at China Daijing Proj.

Thursday, September 08, 2011
Dart Energy Ltd.

Dart Energy has commenced drilling activities at the Dajing project in Xinjiang Province, China, with the spudding of the first two exploration wells (DJD-02E and DJD-10E). This is part of an initial exploration program which will see a total of up to 14 exploration wells drilled prior to year end, and assuming no program delays, Dart would expect first core drilling results to be available in the first quarter of 2012.

This follows approval in August of the 2011 exploration program and budget by the Dajing Joint Management Committee (JMC). The JMC is comprised of representatives of both Dart and its partner at Dajing, China National Petroleum Corporation (CNPC).

In addition to the spudding of the first wells, the following other activities have been completed at the Dajing project:

• 4 drilling rigs have been mobilized to site
• 3 on-site desorption units and 2 permeability testing units have been mobilized to site
• 3 work camps established on-site
• Site and road construction for 2 other exploration wells has been completed (DJD-O1E; DJD-O4E), with those wells expected to be spud within the next week

Nick Davies, Dart Executive Chairman, said, "We are now operationally underway at Dajing, which is a major milestone for Dart. Dajing has the potential to be a project of substantial scale within the Dart global portfolio, and our attention is completely focussed on executing the exploration drilling campaign diligently, quickly and safely. Dart Energy looks forward to working collaboratively with our partner, CNPC, to unlock the potential of this block."

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US Lawmaker Pushes For Drilling In Alaska Refuge

- US Lawmaker Pushes For Drilling In Alaska Refuge

Wednesday, September 07, 2011
Dow Jones Newswires
WASHINGTON
by Ryan Tracy

The top lawmaker on the U.S. House Natural Resources Committee Wednesday said opening the Arctic National Wildlife Refuge in Alaska to drilling should be part of a plan to reduce the federal debt.

The comments from Rep. Doc Hastings (R., Wash.) came as a separate committee of 12 lawmakers begins work to find more than $1 trillion in budget savings before a November deadline. The oil and gas industry is also pushing more drilling as a way to boost economic growth.

Proposals to drill in the Alaska refuge have failed in Congress before and are sure to draw opposition from conservation advocates. It is far from clear that the deficit committee, which is already facing a tight deadline to reach a compromise, would consider allowing exploration there as part of a plan to increase revenues.

"We must remember that it's not just about cutting spending," Hastings said. "There's no question that Washington D.C. has a spending problem, but we must also look for new ways to generate revenue without raising taxes."

"For the Joint Committee [of lawmakers working on deficit reduction], which is looking at a 10-year window, this could generate several billions of dollars in new revenue to help meet their goal," Hastings said.

The deficit committee is also expected to consider other ways to increase revenue, perhaps including a plan from Democrats to reduce tax breaks for oil companies. The chairman and chief executive of Chevron, who spoke after Hastings at a public event here, said he opposed oil companies being "singled out" as part of a deficit deal. "If you impose punitive measures on my industry, we will invest less. It's simply the way we go through our decision making process," John Watson said.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Premier Oil Granted Drilling Permit in North Sea

- Premier Oil Granted Drilling Permit in North Sea

Wednesday, September 07, 2011
Norwegian Petroleum Directorate

The Norwegian Petroleum Directorate has granted Premier Oil Norge AS a drilling permit for well 9/1-1 S.

Well 9/1-1 S will be drilled from the Bredford Dolphin drilling facility in position 57°35'37.02"N and 4°00'56.05"E.

The drilling program for well 9/1-1 S concerns the drilling of a wildcat well in production license 406. Premier Oil Norge AS is the operator with a 40 percent ownership interest. The other licensees are Skeie Energy AS with 40 percent and Spring Energy Exploration AS with 20 percent. Production license 406 was awarded in APA 2006.

The area in this production license is located in the southeastern part of the North Sea. It consists of parts of blocks 8/3, 9/1, 17/12, 18/10 and 18/11. Well 9/1-1 S is the first exploration well to be drilled in this production license.

The drilling permit is contingent upon the operator securing all permits and consents required by other authorities before commencing the drilling activity.

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Frontera Commences Drilling Ops at Georgia Field

- Frontera Commences Drilling Ops at Georgia Field

Tuesday, September 06, 2011
Frontera Resources Corp.

Frontera announced commencement of new drilling operations at the Mtsare Khevi Field within its Shallow Fields Production Unit, Block 12, in the country of Georgia.

Site preparation and mobilization of drilling equipment were completed in late August and drilling is currently underway at the Mtsare Khevi #31 development well location. The #31 well is the first of a planned twenty well program over the next twenty four months designed to exploit multiple Upper Pliocene sandstone reservoirs situated at a depth of approximately 300 meters. In addition, efforts are underway to implement a pump optimization program designed to enhance production from existing oil wells within the field. Planning is also progressing related to a previously disclosed infrastructure project designed to initiate gas sales from currently shut-in gas wells within the field.

The Mtsare Khevi Field, which Frontera operates with 100% interest, is located in the western portion of the Shallow Fields Production Unit and currently delivers approximately 90 barrels of oil per day from its shallow reservoirs. Twenty new well locations have been identified for ongoing low-cost drilling, targeting both oil and gas reservoirs and providing for reservoir pressure support through three proposed water injection wells.

The independent engineering firm of Netherland, Sewell & Associates "NSA" places a "Best Estimate" for gross original oil-in-place for the Mtsare Khevi Field of 14.9 million barrels, with a "low"-to-"high" range of 11.3-19.7 million barrels; and a "Best Estimate" for associated recoverable gross contingent and unrisked prospective oil resources of 2.1 million barrels, with a "low"-to-"high" range of 1.4-3.2 million barrels. This assessment is generally consistent with Frontera's internal estimates.

For gas, NSA places a "Best Estimate" for gross original gas-in-place for the Mtsare Khevi Field of 2.6 billion cubic feet, with a "low"-to-"high" range of 2.1-3.1 billion cubic feet; and a "Best Estimate" for associated gross contingent and unrisked prospective resources of 1.5 billion cubic feet, with "low"-to-"high" range of 1.2-1.9 billion cubic feet. Frontera's internal estimates reflect additional resource potential along the northwest trend of the field's fault block, which NSA have not yet been asked to evaluate.

The Shallow Fields Production Unit is located in the central portion of Block 12 and represents what the Company believes to be an extensive trend of low-cost, low-risk oil and gas resources. The unit contains a number of known oil fields; Mirzaani, Mtsare Khevi, Nazarlebi and Patara Shiraki, representing undeveloped or under-developed fields that have additional associated exploitation potential. The unit also contains an inventory of "look-alike" exploration prospects, the Kakabeti, Lambalo, Mkralihevi, Mlashiskhevi-Oleskhevi and Tsitsmatiani prospects, each of which contains Soviet-era wells that had hydrocarbon shows while drilling, but were never placed on production or adequately appraised. Reservoir objectives are the well-known, regional clastic reservoirs of Pliocene and Miocene age, situated at depths from 10 meters to 1,500 meters.

Further to the successful completion of the recently announced equity financing package, the new drilling campaign at Mtsare Khevi Field is part of an overall plan whereby Frontera intends to increase production from its portfolio within Block 12 from 225b/d to c.5,000b/d over the next two years,

Steve C. Nicandros, Chairman and Chief Executive Officer, commented, "The commencement of drilling operations, which began in August at the Mtsare Khevi Field, represents the launch of an exciting and extensive drilling campaign at this undeveloped, low-cost asset. Like the other assets within the Shallow Fields Production Unit, this field represents near term value realization and reserve additions for our company."

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BOEMRE: Operators Evacuate Ops in GOM

- BOEMRE - Operators Evacuate Ops in GOM

Monday, September 05, 2011
BOEMRE

Offshore oil and gas operators in the Gulf of Mexico are evacuating platforms and rigs in the path of Tropical Storm Lee. The Bureau of Ocean Energy Management, Regulation, and Enforcement (BOEMRE) Hurricane Response Team is monitoring the operators' activities. The team will continue to work with offshore operators and other state and federal agencies until operations return to normal and the storm is no longer a threat to Gulf of Mexico oil and gas activities.

Based on data from offshore operator reports submitted as of 11:30 a.m. CDT Sunday, personnel have been evacuated from a total of 239 production platforms, equivalent to 38.7 percent of the 617 manned platforms in the Gulf of Mexico. Production platforms are the structures located offshore from which oil and natural gas are produced. Unlike drilling rigs, which typically move from location to location, production facilities remain in the same location throughout a project's duration

Personnel have been evacuated from 25 rigs, equivalent to 35.7 percent of the 70 rigs currently operating in the Gulf. Rigs can include several types of self-contained offshore drilling facilities including jackup rigs, submersibles and semisubmersibles.

As part of the evacuation process, personnel activate the applicable shut-in procedure, which can frequently be accomplished from a remote location. This involves closing the sub-surface safety valves located below the surface of the ocean floor to prevent the release of oil or gas. During the recent hurricane seasons, the shut-in valves functioned 100 percent of the time, efficiently shutting in production from wells on the Outer Continental Shelf and protecting the marine and coastal environments. Shutting-in oil and gas production is a standard procedure conducted by industry for safety and environmental reasons.

From operator reports, it is estimated that approximately 60.2 percent of the current oil production in the Gulf of Mexico has been shut-in. It is also estimated that approximately 44.3 percent of the natural gas production in the Gulf of Mexico has been shut-in. The production percentages are calculated using information submitted by offshore operators in daily reports. Shut-in production information included in these reports is based on the amount of oil and gas the operator expected to produce that day. The shut-in production figures therefore are estimates, which BOEMRE compares to historical production reports to ensure the estimates follow a logical pattern.

After the hurricane has passed, facilities will be inspected. Once all standard checks have been completed, production from undamaged facilities will be brought back on line immediately. Facilities sustaining damage may take longer to bring back on line. BOEMRE will continue to update the evacuation and shut-in statistics at 1:00 p.m. CDT each day as appropriate.

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Circle Oil Granted Extension for Oman Exploration

- Circle Oil Granted Extension for Oman Exploration

Monday, September 05, 2011
Circle Oil plc

Circle Oil announced the following operational update on its activities in Blocks 49 and 52 in Oman.

Block 49

Circle confirmed that the Ministry of Oil and Gas, Oman has granted an extension to the exploration period for our onshore Block 49 now ending December 26, 2012. Within this time frame, Circle will be required to complete an additional 2,500 line kilometers of closely spaced 2D seismic survey and drill one exploration well. The seismic program is to be acquired in the south-eastern part of the permit, north-east of and adjacent to the 3D survey which was completed in 2010. This survey is intended to provide a better understanding of the whole southern permit area, and outline potential additional drilling targets. It will complement the existing dataset, and cover an area with sparse coverage of legacy 2D lines. Acquisition parameters for the survey will draw on the experience obtained during the acquisition and processing of the 3D survey.

Block 49, covering an area of over 15,438 square kilometers, lies about 700 kilometers south-west of Muscat in a relatively unexplored area of Southern Oman. The concession agreement includes the right of conversion to a production license of 30 years in the event of commercial discoveries. Circle Oil Oman Ltd is the operator of Block 49 with a 100% working interest.

Block 52

The processing of the 5,026 line kilometers of marine 2D seismic, recorded from December 2010 to February 2011, has been completed. The processed data received to date are of a significantly improved quality over the historic seismic data. Interpretations have confirmed the presence of multiple structures and potential targets for exploration drilling. As result a farm-out process has recently been initiated using both internal data rooms and an external agency. The farm-out process is aimed at seeking a partner(s) to drill a commitment well in Block 52 within the next 18 months.

Circle's interpretations detailed in the farmout package in Block 52 have identified several promising play types in stratigraphy ranging in age from Pre-Cambrian to Tertiary, but the offshore Outer Sawquirah Area of Late Cretaceous to Palaeogene structural closures is considered the most prospective.

The identified principal reservoir intervals are Palaeogene Hadhramaut carbonates and clastics and late Cretaceous Aruma Group carbonates. Potential source rocks are considered to be Lower Hadhramaut and Aruma shales with additional potential in the basinal Jurassic Sahtan Group and the Infra-Cambrian Huqf Super Group. Sealing units for potential traps are provided by extensive shale units of the Fars, Hadhramaut and Aruma groups.

Nine large four way dip closed prospects are recognized in the Outer Sawqirah Area. Internal pre-drill deterministic STOIIP of these nine prospects for the most likely unrisked case is calculated as 7,264 MMBO. The associated ultimate recoverable resources for the nine prospects are estimated internally as 2,179 MMBO.

The water depths for proposed drilling locations on the nine prospects range from 724 to 956 m and target depths range from 1,490 to 2,850 m. The largest individual prospect, presently designated as Prospect A1, is situated in a water depth of approximately 769 m, with an internally estimated deterministic most likely STOIIP of 2,435 MMBO and associated most likely ultimate recoverable resources of 731 MMBO, with depth to top target at 1,490 m.

The Company would emphasize the point that the pre-drill deterministic estimates of STOIIP and resources are based on the information and interpretations available at time of issue and are made based on Circle's management deterministic best estimates. There can be no assurance that such estimates will prove to be accurate as future technical evaluations and results, including drilling results, could lead to variations or differ materially from those indicated in this release.

As expected, further exploration work is necessary and the Company is now seeking partners to join in this effort. Further announcements will be made in due course.

Block 52, covering an area of over 63,460 square kilometers, lies about 500 kilometers SSW of Muscat in an underexplored area of offshore Southern Oman. The concession agreement includes the right of conversion to a production license of 30 years in the event of commercial discoveries. Circle Oil Oman Offshore Ltd is the operator of Block 52 with a 100% working interest.

Commenting Prof. Chris Green, CEO, said, "The granting of the extension for Block 49 will allow Circle to further evaluate drilling opportunities within the southern area of the permit. In Block 52, the new seismic is of excellent quality and multiple closures, including some leads we mapped previously, have been firmed up as prospects. The interpretations coming from Block 52 seismic have allowed us to prepare a comprehensive farm-out package."

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Max Petroleum Begins Drilling Kazakh UTS-4 Appraisal

- Max Petroleum Begins Drilling Kazakh UTS-4 Appraisal

Monday, September 05, 2011
Max Petroleum plc


Max Petroleum has commenced drilling the UTS-4 appraisal well on the Uytas prospect in Block A, Kazakhstan. The total depth of the well will be approximately 800 meters, targeting potential Cretaceous and Jurassic reservoirs.


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AGR Notes New Drilling Technology and Growth Strategy

- AGR Notes New Drilling Technology and Growth Strategy

Thursday, September 01, 2011
AGR Group ASA

AGR Group is embarking on a new growth strategy that will allow it to maximize opportunities presented by today's market conditions. The strategy, announced by Skogen at Pareto, focuses on new technology and closer working relationships across divisions and markets.

AGR Group is launching a new technology which enables safer, cost-effective drilling of wells where reservoir conditions require more precise bottom-hole-pressure management. The EC-Drill® technology, which can be used off both fixed and floating rigs, is expected to enable further growth across the businesses.

Skogen's Pareto address signaled the official launch of this technology, "As a leading provider of technologies for demanding drilling and well operations, we are focused on developing new solutions which can enhance our customers' operations. With some reservoirs located a further 5,000 to 10,000 meters below the seabed, it is imperative that our equipment can handle very high pressures and temperatures."

Skogen also plans to bring the company's drilling technology and petroleum services divisions together to form 'AGR'. He continued, "In addition to EC-Drill® we have developed a range of established and market-leading technologies, including the Riserless Mud Recovery (RMR®) system.

"Previously, our drilling services division operated independently from our petroleum services division. We are now bringing them together to offer customers more choice and flexibility and to allow us to grow the company."

As Skogen turns his attention to growing 'AGR' he is seeking new opportunities for AGR's highly successful Field Operations business.

"Field Operations has grown significantly over the past few years and is today a substantial business. Going forward, we will consider how we can best further develop Field Operations. This is an attractive business and we see a range of interesting opportunities."

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Gasco to Start Drilling Uinta Wells in October

- Gasco to Start Drilling Uinta Wells in October

Thursday, September 01, 2011
Gasco Energy Inc.

Gasco provided an interim operations update on its Riverbend Project in Utah's Uinta Basin.

Green River Oil Well Permits Received

Gasco recently received the necessary federal drilling permits for two oil wells that will be drilled to test the productive potential of the Green River Formation at approximately 5,500 feet proposed total vertical depth. The Company plans to commence building the locations next week and anticipates spudding the wells within the first two weeks of October 2011.

Gasco is operator of both wells with a 100% working interest. The wells, the Federal 23-30-G-9-19 (76.8% NRI) and the Federal 34-19G-9-19 (80% NRI), will be drilled in succession with a recently contracted 1,000 horse-power drilling rig which the Company has secured under a two-well contract. Gasco anticipates that completions for both wells will follow shortly after both wells have been drilled with first production to occur in November 2011.

Current commodity prices feature strong potential per-well economics for the Green River play. Gasco estimates that the cost to drill and complete a Green River well is approximately $800,000, with per-well estimated ultimate recoveries of 50,000 barrels of oil. The current differentials to West Texas Intermediate for Uinta Basin Black Wax, adjusted for transportation and quality, are approximately $16 per barrel.

"Despite the permitting delays, we are pleased to commence operations on the two-well Green River program," said King Grant, Gasco's President and CEO. "We have selected high-graded locations which benefit from existing well logs from gas wells that were previously drilled by Gasco. By proving the productive potential of the Green River Formation, we believe we can begin to de-risk approximately 11,000 net acres which we believe are prospective for crude oil in this part of the Uinta Basin."

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