VAALCO Acquires Bakken Interest in Montana

- VAALCO Acquires Bakken Interest in Montana

Friday, September 09, 2011
VAALCO Energy

VAALCO Energy, Inc. today announced that the Company has entered into a definitive agreement with Magellan Petroleum Corporation to acquire and develop an operating working interest in approximately 23,000 net mineral acres of oil, gas and mineral leases covering the Bakken and deeper formations in the East Poplar Unit and the Northwest Poplar Field in Roosevelt County, Montana. Under the terms of the agreement, VAALCO has paid Magellan $5 million and committed to spend approximately $15 million to drill three wells.

VAALCO has agreed to drill three wells to the Bakken formation and to formations below the Bakken in the Poplar Field. All three wells will be drilled by the end of 2012 and one well will be drilled on or before June 1, 2012. Of these, one well will be drilled horizontally to test the Bakken Formation, one well will be drilled vertically to test the Red River Formation, and the third will be targeted at VAALCO's discretion. Under the terms of the definitive agreement, VAALCO will have a 65% working interest in the Bakken and Deep Intervals within the Poplar Field.

Robert Gerry, Chairman and CEO said, "We are excited to complete this acquisition of additional Bakken Acreage, which we believe will be a powerful source of oil revenues to VAALCO over the next several years. In addition to the potential we see in the Bakken formation, we will also be evaluating deeper objectives in the Three Forks, Nisku and Red River formations. Our seismic studies indicate that there are structures in these deeper objectives that could be the source of prolific production and we are optimistic that we can prove up reserves and create shareholder value."

Magellan will retain its current ownership for all formations above the Bakken, including the currently producing Charles and Tyler formations and will retain the remaining 35% of the Bakken and deeper rights in partnership with VAALCO.

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Kilgore Acquires Additional Klondike Interest

- Kilgore Acquires Additional Klondike Interest

Friday, September 09, 2011
Kilgore Oil & Gas

The Board of Kilgore Oil & Gas is pleased to advise that it has entered an agreement to acquire an additional 5.2% WI in the West Klondike Exploration Prospect, which covers an area of 640 acres in Iberville Parish, Louisiana. Kilgore has acquired this additional 5.2% WI through reimbursement of back costs of approximately $40,000 and otherwise on materially the same terms as the recently announced acquisition of a 5% WI from Grand Gulf Energy Ltd.

Kilgore will now earn a cumulative 10.2% WI in the West Klondike prospect by paying 13.5% of the drilling and completion costs of the initial exploration well, due to be spudded in October 2011. The well is expected to take 30 days to be drilled to a total depth of 10,900ft. Kilgore’s share of the dry hole costs are approximately US$360,000.

Kilgore has now gained exposure to 2 significant onshore, exploration prospects in Louisiana, both of which will be drilled and tested in the next 2-3 months. This confirms the Company’s new strategic direction of combining the testing of high impact exploration prospects together with the realisation of value from its Duvernay Shale and Rock Creek Oil Projects in Canada through the partial sale/farmout process currently underway with Macquarie Capital in Calgary.

The West Klondike Prospect is a fault block closure which has been identified on 3D seismic data and is in close proximity to analogous offset production. The targeted sand sections are the Marg Tex, Lario and Upper and Lower Nod Blan. The likely resource potential is 2 million barrels of oil (MMBL) and 6 billion cubic feet of gas (BCF) with unrisked potential of 4.8 MMBL and 17 BCF gas. In addition to the main target there a larger, high pressure, prospect in the leased area that will require a separate deeper well. The target sands of this deeper feature (Bridas) have recently yielded a significant discovery approximately 2.5km to the North-East.

The West Klondike participation terms are favourable, with the Company paying 13.5% of the initial well and completion costs (US$360,000) to earn its 10.2% WI. In a success case the Company’s share of completion costs are estimated to be a further US$100,000.

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Eastern African Energy Riches Attract Interest

- Eastern African Energy Riches Attract Interest

Wednesday, September 07, 2011
OilPrice.com
by Joao Peixe

Energy deposits located in east African nations and their offshore coastlines are increasingly drawing foreign investor interest.

Recent surveys have led analysts to estimate that Mozambique has over 6 trillion cubic feet of recoverable natural gas reserves while neighboring Tanzania's natural gas reserves could exceed 7.5 trillion cubic feet.

Petroleum Development Consultants managing director David Aron noted, "The interesting question is whether there will be a (natural gas) liquefaction plant in both Tanzania and Mozambique or whether a single shared location could be developed," adding that Mozambique's natural gas from its Pande and Temane onshore fields could be exported to neighboring South Africa while Tanzanian natural gas, produced from its offshore fields, would be used primarily for power generation, allowing it to reduce its imported energy costs, Nairobi's The East African reported.

Both Tanzania and Mozambique are currently plagued by indigenous energy shortages, which lead to electrical blackouts.

Tanzania, East Africa's second- biggest economy, before its natural gas fields begin production, is seeking to relieve its electricity shortages in the interim by promoting geothermal energy. Tanzanian Energy and Minerals Deputy Minister Adam Malima said, "We are moving toward more environmentally friendly sources of energy as our demand increases. We are looking to the private sector to see if there is interest in geothermal development."

(Joao Peixe is Deputy Editor of OilPrice.com. The original article appears here.)

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Silvermere Shareholders Approve Mustang Interest Purchase

- Silvermere Shareholders Approve Mustang Interest Purchase

Wednesday, August 31, 2011
Rigzone Staff
by Karen Boman

Silvermere shares began trading on Aug. 31 in London after shareholders approved the acquisition of interest in the Mustang asset in the Gulf of Mexico and other resolutions.

The company announced in early August that it had conditionally risen £1.52 million via a placing at 25p her share, the proceeds of which would provide working capital for the Group and pay the costs associated with acquiring interest in the Mustang Island 818-L field and admission to trading on AIM, the London Stock Exchange's international market for smaller growing companies.

The development of the Mustang Island 818-L field, located in Kleberg County offshore Texas in the U.S. Gulf, is a field rehabilitation project targeting bypassed or only partially produced gas-condensate.

The field was drilled and produced by Samedan Oil Corp. in the 1980s, based on 2-D seismic mapping. From January 1980 to February 1995, the field had produced a total of 138.9 Bcf of gas. This includes production from the D1 and D2 wells, which are outside of the seismic area and therefore not taken into consideration for this evaluation. Total historic production from the wells within the seismic coverage is 125.6 Bcf.

At abandonment, some 25 wells had been drilled targeting several stacked clastic reservoir sands grouped as the A, B, G, and I sands. The I sands, which lie at depths of more than 11,000 feet, are the primary targets for the initial phases of development of wells within the Mustang asset.

The company is recommending three new wells in the outline field development plan to test and produce remaining gas, based on the fact that each of the three fault blocks mapped has a structural high that has not been drilled, supporting the idea of remaining attic gas being present.

Drilling and tie-in costs have been estimated between US $5 million and US $8 million, including the costs of connecting the wells into the existing infrastructure which is itself connected to the Six Pigs processing facility onshore on Padre Island, Texas. The infrastructure, including mini platform, flowlines, main 20-inch export line to Six Pigs and the Six Pigs processing facility, is believed to be in good order.

The Mustang asset comprises a 33.3 percent working interest and a 20.83 percent net entitlement interest (after deductions of overriding royalties) in the Mustang license area.

Silvermere, previously known as Chalkwell Investments Plc, initiated discussions last year with Core Oil and Gas Inc. which had agreed to terms to acquire the Mustang asset. Since November 2010, the company has made a series of loans to Core, which now total £2.595 million, which Core has used principally to finance its share of the costs for the re-entering and subsequent testing of the I-1 well, which lies within the Mustang license area, and to pay the consideration due from Core for the Mustang asset. On April 29, the company entered into the option agreement with Core, superseding a previous option between the parties.

Shareholders also approved a new board of directors for the company. Under the new board's guidance, Silvermere will pursue a strategy of acquiring a portfolio of U.S. oil and gas license interests onshore and in shallow offshore water, characterized by relatively low risk and low cost with the potential for near term production. The company said in a statement that the acquisition will provide a good base from which to develop this strategy.

"We are very pleased to be bringing the company back to the market with a promising and attractive asset," said Chief Executive Andy Morrison earlier this month. "The area surrounding the Mustang Asset has a proven producing history and continues to have significant potential."

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Winstar to Farmout Interest in Tunisia Concession

- Winstar to Farmout Interest in Tunisia Concession

Thursday, August 18, 2011
Winstar Resources Ltd.

Winstar has executed a Memorandum of Understanding (MOU) with a privately held European exploration and production company ("Privateco") to farmout for cash and a work program, up to 50% of Winstar's current 45% working interest in the Sabria Concession in west-central Tunisia, including existing production, inventory and reserves. All amounts are in US dollars unless otherwise stated.

Winstar and Privateco have agreed to expeditiously work towards drafting and executing a comprehensive Farmout Agreement plus ancillary agreements in accordance with the commercial terms and conditions contained within the executed MOU.

This transaction is attractive to Winstar as it:

• Provides an opportunity to accelerate the development of the extensive probable reserves associated with the Sabria Concession;
• Provides incremental working capital to fund the current and near term capital programs; and
• Provides meaningful near term incremental drilling operations at Sabria during a period in which Winstar's capital is focused on developing the Triassic and Silurian potential within the southern Tunisian concessions of Chouech Essaida and Ech Chouech.

The basic terms and conditions of the executed MOU are as follows:

• Privateco will earn an undivided 22.5% working interest within the Sabria Concession upon Closing in exchange for a cash payment of US $6.55 million, subject to final closing adjustments, and a work commitment to pay 45% of the capital costs to:
• Work-over an existing Sabria well;
• Drill and complete 3 new Sabria horizontal development wells to a depth to exploit the reserves within the Ordovician Sandstones of the Hamra and El Atchane Formations.
• The work commitment is to be completed within 2.5 years from the date on which the Tunisian government issues a decree granting approval of the title transfer to Privateco.
• The work commitment is subject to budgetary approval by ETAP (Tunisian State Oil and Gas Company) which owns the remaining 55% working interest in the Sabria Concession.

The Effective Date of the transaction is July 1, 2011 with a closing date expected during the fourth quarter of 2011. At closing, Winstar will receive $6.55MM USD of which 5.7MM USD represents the estimated value for the proved developed producing ("PDP") reserves at July 1, 2011 plus seismic and inventory. This is based on a value of $7.0 MM USD for the PDP reserves at January 1, 2011 and will be adjusted based on actual net after tax cash flows attributable to the 22.5% interest from January 1, 2011 to coincide with the December 31, 2010 RPS Energy report mentioned below.

Winstar will remain as the Operator.

This transaction is subject to execution of the formal transaction documents and final approval by the parties' respective boards and the government of Tunisia.

The work commitment is estimated to have a value to Winstar, after earned carried working interest (22.5%), of approximately US $12.3 million. Privateco also agrees to transfer the deductible tax pools associated with Winstar's carried interest of the work commitment, which is estimated to be an additional US $6.1 million of tax benefits for Winstar. Thus, the total value of the transaction is estimated to be US $25.5 million, subject to final closing adjustments, net to Winstar in cash, work and tax benefits.

Based on RPS Energy Independent reserve report as December 31, 2010, and using a value of $7.0MM USD at January 1, 2011 for PDP reserves, the 22.5% working interest in the reserves and value of Sabria, which will be earned by the Privateco is as follows:

• Total PDP Reserves; 326,000 boe (before royalty),
• Total PDP Reserves; $6.4 million (Present Value, discounted at 10%, after tax)

Winstar's 45% working interest in current production at Sabria is 190 boepd and would be 95 boepd net to Winstar's 22.5% working interest after giving effect to this transaction.

Based on reserve values estimated as of December 31, 2010, and using a value of $7.0MM USD at January 1, 2011, the Privateco is paying $21.77 per boe for PDP reserves.

Winstar is currently producing 1,500 to 1,700 boepd (1,050 to 1,150 bopd of crude plus 450 to 550 boepd of solution gas). Sales of the solution gas produced in association with the crude oil are still partially restricted due to mechanical issues within the Tunisian national gas transmission system owned and operated by STEG (Tunisian National Electric and Natural Gas Company). As a result of the mechanical restriction, Winstar is currently selling 1,500 to 1,650 boepd. The mechanical challenges are anticipated to be resolved within the near future.

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Williams Cos Affirmed Its Strong Interest In Acquiring Southern Union Company

- Williams Cos Affirmed Its Strong Interest In Acquiring Southern Union Company



Aug 17, 2011

Williams Cos (NYSE:WMB) affirmed its strong interest in acquiring Southern Union Company (NYSE:SUG) for $44 per share in cash. The all-cash proposal represents value certainty of $44 per share to Southern Union shareholders, which is a premium of 4% over the implied value of the agreement with Energy Transfer Equity (NYSE:ETE) of $42.32.

Alan Armstrong, president and chief executive officer said, "Forty-four dollars a share, cash, for every shareholder is a superior offer for Southern Union's shareholders. Southern Union's current agreement with Energy Transfer includes illiquid partnership units whose value will be exposed to equity markets in the months until closing and beyond."

The Williams Cos has a potential upside of 25% based on a current price of $28.15 and an average consensus analyst price target of $35.2.

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Egdon to Sell Interest in Avington Field

- Egdon to Sell Interest in Avington Field

Monday, August 01, 2011
Egdon Resources plc

Egdon reported that its wholly owned subsidiary Egdon Resources Avington Limited ("ERA") has reached agreement to sell a 10% interest in the Avington oil field under license PEDL070, for £400,000 in cash.

Under the transaction, ERA has agreed to sell a 5% interest to IS E&P Limited and a further 5% interest in the license to IS NV Limited (together the "IS Companies"). The consideration payable by each of the IS Companies for their respective 5% interests will comprise £200,000 in cash payable on completion and the assumption of their pro-rata shares of a Net Profit Interest ("NPI") payable to Heyco Energy Holdings S.L. The NPI varies between 5 and 10% dependent upon oil price. The effective date of the transaction is June 1, 2011.

The transfers of interest are subject to approval by the Department of Energy and Climate Change.

Prior to the transaction ERA held a 16.67% interest in PEDL070. Egdon Resources U.K. Limited also holds a further 20% interest in the license meaning that on completion Egdon will retain an aggregate 26.67% interest in the license and the Avington oil field.

The Avington oil field is located in the County of Hampshire and is operated by Star Energy Oil UK Limited. Oil is currently produced from the Jurassic age Great Oolite reservoir from two wells, Avington-2Z and Avington-3Z. Production averaged approximately 70 barrels of oil per day in June 2011.

The sale will reduce Egdon's daily production by a maximum expectation of 7 barrels of oil per day and reduce its Proven and Probable reserves by an estimated 23,000 barrels of oil. The contribution to net profit from the 10% interest for the eleven months to end June 2011 after depreciation and amortization was £18,500 before tax (unaudited). The gross cash flow from the interest for the same period was £58,000 (unaudited). The carrying value of the asset sold as at June 30, 2011 was £422,390 (unaudited).

The proceeds of the sale, which will total £400,000 payable on completion, will be utilized on Egdon's active UK and French exploration, appraisal and development program where the Company believes it can generate a better return on investment.

The IS Companies are private companies involved in oil and gas exploration and production. InfraStrata is a 50% shareholder in both companies although both companies have independent boards. Egdon directors Ken Ratcliff and Walter Roberts are also directors of InfraStrata plc and Walter Roberts and John Rix have shareholdings in the IS Companies. As such an independent committee of Egdon directors comprising Philip Stephens, Alan Booth and Mark Abbott was set up to consider the offers and negotiate and approve the transaction.

Commenting on the sale Egdon's Managing Director Mark Abbott said, "These transactions realize a significant proportion of our expected future value from the transferred interest in cash at a time of strong oil price. Egdon believes it can utilize this cash on its higher potential projects in the UK and France to provide a better return for shareholders. We still retain a material interest in the Avington field and any upside which may be realized from future drilling".

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Canadian Quantum Acquires Interest in Indian O&G Canada Permit

- Canadian Quantum Acquires Interest in Indian O&G Canada Permit

Tuesday, July 26, 2011
Canadian Quantum Energy Corp.

Canadian Quantum has acquired a 50% interest in an Indian Oil and Gas Canada Permit with Sundance Energy Corporation acquiring the other 50%. The acquisition covers all available P+NG rights underlying the Alexander First Nations Reserve, located in Central Alberta. The Alexander First Nation Permit is comprised of 6,946.17 gross hectares (17,365 gross acres) or approximately 27 sections of land. Sundance, as operator, is in the process of configuring an extensive 3D seismic program that will be shot as soon as possible. The Alexander First Nation lands have the potential for multi-zone light oil and natural gas production at relatively shallow depths with existing infrastructure in the area.

Canadian Quantum's President and CEO, Douglas Brett stated "We are excited to have acquired such a large land position in an area where another oil and gas company has recently announced a discovery well from a zone that we have mapped as being potential on the Alexander First Nation lands."

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Doxa Finalizes Interest Acquisition in Tx. Proj.

- Doxa Finalizes Interest Acquisition in Tx. Proj.

Monday, July 25, 2011
Doxa Energy Ltd.

Doxa has closed on the acquisition of a 16.70625% interest in the County Line North Project, McMullen County, Texas, a new venture targeting various Wilcox formation zones of interest. The County Line North Project, operated by Hurd Enterprises, Ltd., of San Antonio, Texas, is a conventional gas condensate prospect which is situated on an initial 280 acre block of leases. Drilling of the Kynette No. 1, the initial well on this project, has been commenced and is proceeding towards its permitted depth of 10,500'. Doxa owns 16.70625% working interest before payout, reverting to 12.5% after payout of this project, and expects its share of the leasehold and initial completed well cost to total approximately $500,000. This project is situated approximately 2 miles northeast of a recently announced successful completion, the Martin-State Gas Unit No. 1 well, a high rate Wilcox producer completed in the Campana, South (Wilcox 10,200') Field. Hurd Enterprises, Ltd. also operates the Martin-State well.

Doxa Energy Ltd. develops and maintains a portfolio of producing and developing conventional and unconventional assets, including the Eagle Ford shale oil window play in South Texas, and the recently announced acreage acquisition in the Mississippian Oil Play of northern Oklahoma.

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Uganda's Oil Potential Arouses International Interest

- Uganda's Oil Potential Arouses International Interest

Wednesday, July 20, 2011
OilPrice.com
by Charles Kennedy

The French Ambassador to Uganda has said that the exploration for oil in the country is a key opportunity for Uganda's government to press ahead with its development agendas.

Speaking during celebrations to mark the French National Day in Kampala, Ambassador Aline Kuster-Menager said, "Exploitation of the country's oil resources offers a unique and key opportunity for Uganda to boost its development with new and substantial financial resources," The Monitor reported.

Recent discoveries of vast oil reserves, particularly the oil rich Albertine Graben, with estimated reserves of at least 2.5 billion barrels of oil, mean Uganda is set to become a key oil producer on a part with other African oil producing nations, such as neighboring Sudan, Angola, Nigeria and Equatorial Guinea. Some estimate place the Albertine Graben reserve as high as six billion barrels of recoverable oil.

On the basis of such reserves, government analysts estimate that Uganda will be able to support production of over 100,000 barrels of oil per day for the next two decades.

To exploit these resources, the government has signed several leasing contracts with international companies. The French energy giant Total has been granted a large chunk of the rights of exploitation in the Albertine Graben.

The Tullow Oil exploration has already confirmed Albertine Graben reserves of 2.5 billion barrels of oil. As hydrocarbons have been encountered in 51 out of the 55 wells drilled by Tullow Oil, the developments have put Uganda's discovery rate at 92.3 percent.

(Charles Kennedy is Deputy Editor of OilPrice.com. The original article appears here.)

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Doxa to Acquire Additional Interest in Mississippian Oil Play

- Doxa to Acquire Additional Interest in Mississippian Oil Play

Friday, July 08, 2011
Doxa Energy Ltd.

Doxa has exercised its option to acquire a twenty percent (20%) leasehold interest in an existing project situated in the emerging Mississippian Oil Play ("Mississippian Oil Play") in Oklahoma. Under the terms of a previously announced Letter of Intent (see Doxa news April 27, 2011) with Dynamic Production, Inc., as amended, the Company was granted the right to acquire up to twenty percent (20%) interest in existing leases, as well as an ongoing lease acquisition program primarily in Alfalfa, Garfield, Grant and Kay Counties, Oklahoma. Dynamic Production, Inc. of Fort Worth, Texas, is managing the project and has a stated goal of acquiring approximately 18,000 acres within the play. The play is led by Chesapeake Energy Corporation, SandRidge Energy, Inc. and Eagle Energy of Oklahoma, LLC. Doxa estimates that it will ultimately acquire 3,600 net acres in this round of leasing, at a cost of approximately US $2,200,000.

John D. Harvison, President and CEO of Doxa stated, "The Mississippian Oil Play is an emerging horizontal play that has the potential to become one of the most profitable domestic onshore oil plays today, and as such has the potential of providing significant growth for Doxa as well as exceptional value for our shareholders."

According to recent public disclosures by these leading companies, this play exhibits excellent economics with single well estimated ultimate recovery projected at 300-500 MBOE and with drilling and completion costs estimated at US $3.0mil per well. In recent presentations to various professional associations over the past months, SandRidge has reiterated that it expects to achieve over 100% (i)ROR, and a net present value per well of approximately US $5.9mil, based on recent Nymex strip pricing. Based on current knowledge of well spacing disclosures from area operators, Doxa anticipates that up to 72 gross wells may ultimately be drilled on the acreage block, or 14 wells net to Doxa, based on its twenty percent (20%) participation level. The Company plans to release additional information on the proposed acquisition once details are finalized.

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Several Firms Show Interest in New Iraq Oil Bidding Round

- Several Firms Show Interest in New Iraq Oil Bidding Round

Thursday, July 07, 2011
Dow Jones Newswires
AMMAN
by Hassan Hafidh

Several international companies have submitted documents to the Iraqi oil ministry to qualify them to take part in the country's fourth oil and gas licensing auction scheduled for January, one document and persons close to the ministry said Thursday.

According to people who saw a recent document issued by the oil ministry, at least 27 international companies have paid fees to the ministry to qualify them to take part in the bidding round to auction 12 exploration blocks located in various parts of Iraq.

"The ministry is studying documents of these companies and a list of pre-qualified companies is expected to be issued within the next two weeks," a ministry official, who asked not to be name for security reasons, said.

Among the companies mentioned on the oil ministry's list that want to take part in the auction are Chevron, ONGC Videsh Ltd., Vitol Holding B.V., GulfSands Petroleum, Enel Energia, Petrol Resources PLC, TNK-BP, and Dana Petroleum.

The list also includes six Japanese firms. They are INPEX, Japan Oil, Gas and Metals National Corp., or JOGMEC, Mitsui Oil Exploration, JX Nippon O&G, or JX-NOEX, Itochu and Toyota Tsusho.

The only Arab company in the list is Mubadala Oil & Gas of the United Arab Emirates.

Iraq, which sits on the world's third largest oil reserves, has held three bidding rounds in the past two years to auction off 15 of the country's most prized oil and gas fields.

Three of the announced blocks are located in the western Anbar province while two others are shared by the Anbar, Nineveh and Najaf governorates. The sixth is in Nineveh governorate in northern Iraq. These six are believed to contain gas resources, oil ministry officials said.

The remaining five blocks, believed to contain crude oil resources, are located in other governorates including Basra, Dhi Qar (Nassiriyah), Muthanna (Samawa), Babil, Najaf, Wasit and Diyala provinces, the officials said.

The size of the blocks range from 5,500 square kilometers to 9,000 square kilometers, they added.

Iraq needs to boost gas production and build more gas-fired power plants to increase its power output, currently at 6,500 megawatts, which represent less than half the country's needs.

Although international companies would prefer production-sharing contracts for exploration blocks, Iraqi oil officials said the deals would be based on a service contract, which means winning companies will be paid a flat fee for their services rather than be given a share in the resources. But it would be slightly different from the 20-year service contract offered in the previous three bidding rounds, they said.

"The remuneration fee for each produced barrel or equivalent in the exploration contracts is expected to be more than that in the awarded oil fields," one official said.


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

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MEO Acquires Interest in Indonesia

- MEO Acquires Interest in Indonesia

Tuesday, June 28, 2011
MEO Australia Ltd.

MEO Australia announced the expansion of its business portfolio by acquiring all of the shares in Transworld Seruway Exploration Limited (TSEL) which is the holder of a 100% participating interest in the offshore Seruway PSC, from Transworld Exploration Limited (TEL). Initial consideration for this acquisition is US $5.0 million cash. In the event of successful oil or gas development from the PSC, the acquisition arrangements provide for past cost recovery and net profit interest payments to TEL to be paid out of production revenue.

The Seruway PSC currently covers an area of 3,635 km2 and contains two gas discoveries (Gurame and Kuala Langsa) together with a number of exploration opportunities. The PSC is located close to the Arun LNG plant which has near term unfilled capacity. Under the acquisition arrangements, MEO has committed to acquire a 700km2 3D seismic survey and drill one exploration well in the PSC before the end of 2012. The PSC expires on December 11, 2014 and will be operated out of the Indonesian office that MEO acquired as part of the transaction.

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Petsec Finalizes Interest Sale in China JV

- Petsec Finalizes Interest Sale in China JV

Thursday, June 23, 2011
Petsec Energy Ltd.

Petsec advised that the final tranche of consideration in respect of the sale of its China Joint Venture interest has been received. The transaction was completed under the previously announced Sale and Purchase Agreement whereby Horizon Oil acquired Petsec's wholly owned subsidiary, Petsec Petroleum LLC, which held the Company's 25% working interest in the Block 22/12 Beibu Gulf project in China.

The sale for A$38 million in cash, plus 15 million Horizon share options with an exercise price of A$0.37, follows Petsec's previous announcements that it is debt free after eliminating US $100 million of debt over the past three years.

Petsec Energy Ltd's Chairman, Mr Terry Fern, said the Company will use the sale proceeds to fund the expansion and transition of its existing USA oil and gas operations to onshore areas of the USA, and to participate in the rapidly expanding shale oil industry.

"The Company's strategy is to not only move into areas where the shale source rocks are oil-prone but also to continue with our structured transition to a greater focus on exploration for liquid rich reserves in general," Mr. Fern said.

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Egdon Equalizes Interest, Completes Seismic Survey in UK

- Egdon Equalizes Interest, Completes Seismic Survey in UK

Tuesday, June 14, 2011
Egdon Resources plc

Egdon updated on changes to certain of its UK license interests as well as details of a recent seismic survey.

Egdon have reached agreement with Europa O&G and Celtique to equalize working interests across contiguous Petroleum Exploration and Production Licenses ("PEDL") 180 and 182 in the East Midlands. Egdon is the current operator of PEDL182 and will assume operatorship of PEDL180. On conclusion of the transaction, which is subject to approval from the Department of Energy and Climate Change ("DECC"), Egdon will hold a 33.33% interest in both licenses reducing from its current 50%. The transaction provides alignment for the planned exploration program for this area, which contains a trend of oil prone structures including the Broughton oil discovery and Wressle Prospect, which spans the two licenses. A joint 3D seismic survey is planned for later in 2011 to firm up drilling locations for the licenses. It is hoped to drill during 2012 as part of a planned multi-well drilling program in the East Midlands.

Egdon have also reached agreement with Celtique whereby Celtique will acquire a 25% interest in PEDL181 from Egdon, again subject to approval by DECC. Following completion, Egdon will hold a 25% interest. Europa is the operator of PEDL181 with a 50% interest.

Egdon's interests in PEDL180 and 181 were acquired from Valhalla Oil and Gas Limited ("Valhalla") earlier in 2011. The licenses are covered by an Area of Mutual Interest agreement between Egdon and Celtique. Celtique will assume 50% of the consideration to Valhalla. This will comprise the payment of a 10% Net Profit Interest ("NPI") on each 25% interest in PEDL180 and PEDL181 assigned to it by Egdon (2.5% net). The NPI is payable from revenues after recovery of pro-rata exploration, development and production costs.

Elsewhere in the East Midlands, Egdon reported the successful completion of a 13 kilometer 2D seismic program over the Burton on the Wolds Prospect in PEDL201 where Egdon holds a 50% operated interest. The Burton on the Wolds prospect is located on the southern margin of the Widmerpool Basin to the South-East of the Rempstone Oil Field and is a four-way dip-closed prospect associated with an underlying seismic anomaly. Indicative prospective resources are estimated by Egdon at around 1.5 million barrels.

Commenting on the recent developments, Egdon's Managing Director Mark Abbott said, "We are pleased to have reached agreement with Europa and Celtique in relation to PEDLs 180, 181 and 182 and to have assumed operatorship of PEDL180. We are now in a position to operate the forthcoming 3D seismic program and develop plans for drilling on this highly prospective trend with a uniform Joint Venture partnership. The early results of the seismic program over the Burton on the Wolds Prospect look encouraging and we hope will lead to a firm drilling location."

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Victory Energy Acquires Interest in Alwan West

Victory Energy Acquires Interest in Alwan West

Monday, April 25, 2011
Victory Energy Corp.

Victory Energy, through its partnership with Aurora Energy Partners, announced the acquisition of a working interest in the Alwan West natural gas prospect.

The Alwan West prospect will be the largest natural gas well drilled by Victory Energy to date. This prospect's potential reservoir covers an area of 175 acres. It has a reserve potential of 8.75 billion cubic feet (BCF) of natural gas and 43.75 thousand barrels of gas condensate. The reserve potential is based on 50 feet of reservoir sand, one million cubic feet per acre-foot of natural gas and five barrels per million cubic feet of gas condensate. These reserve estimates are for the first Yegua sand only, which is the primary objective, and do not include potential in the secondary objectives.

The Alwan West prospect is located in far western Wharton County, Texas, near the Jackson County line. There are two natural gas lines that cross the lease within 1,000 feet of the proposed location. Victory Energy acquired the prospect, which includes a 5 percent working interest (WI) and a 3.8 percent net revenue interest (NRI), from Miramar Petroleum, Inc. of Corpus Christi, Texas, who will be the operator and who also owns a significant working interest in the well. The well is anticipated to spud in early June of this year.

This area produces from the Frio and Yegua (Oligocene) formations. The lease area is surrounded on all sides by gas condensate production. The first Yegua sand is the primary objective. Secondary objectives are the Frio and second Yegua sand. Alwan West lies on strike between two Yegua fields, Lost Fork (one mile west) and AVO Grande (3,000 feet east). Lost Fork has produced over 42 BCF, while AVO Grande has produced 7 BCF of natural gas. Both of these fields are stratigraphic traps, as is the Alwan West prospect.

Robert Miranda, Victory Energy's chairman and CEO, stated, "This prospect represents our largest gas play to date and it has the potential to deliver a stable and predictable gas flow to the company. Unlike many other gas sands, the Yegua sand is known for its consistent production and very low annual decline rates. This well is supported by both significant nearby production and quality seismic data."

Titan Acquires Interest in Petrobakken-Operated Wells

Titan Acquires Interest in Petrobakken-Operated Wells

Tuesday, March 29, 2011
Titan O&G Inc.

Titan has acquired an interest in five producing oil wells operated by Petrobakken.
The wells are located on 800 acres of land approximately 80 miles northwest of Edmonton in the Leaman area. Current gross production is approximately 60 barrels of oil a day and there is potential for another well to be drilled in the future.

"We are very pleased to have achieved our goal of becoming a producing oil company," said Jarnail Dhaddey, President of Titan. "We are also very pleased to be associating with industry leaders and look forward to using these relationships to build Titan's producing resource base and to enhance shareholder value in the coming months."

MOL Subsidiary Spuds Well at Akri-Bijeel Block

MOL Subsidiary Spuds Well at Akri-Bijeel Block

Friday, March 25, 2011
Gulf Keystone Petroleum Ltd.

Gulf Keystone announced that the Bekhme-1 Exploration Well has spudded on the Akri-Bijeel block in the Kurdistan Region of Iraq on March 21, 2011.

Bekhme-1 is the second exploration well to be drilled on the Akri-Bijeel block, 20 km to the north-east from the Bijell-1 discovery well (Operator's P50 estimate of 2.4 billion barrels of oil in place). Bekhme-1 will target prospective intervals in the Jurassic and the Triassic with a planned depth of approximately 3000 meters.

The Company has a 20 percent working interest in the Akri-Bijeel block operated by Kalegran Ltd., a 100% subsidiary of MOL Hungarian Oil and Gas Plc., which holds 80 percent working interest in the block.

John Gerstenlauer, Gulf Keystone's Chief Operating Officer commented, "Bekhme-1 is the first well to be drilled on the large surface feature that dominates the north of the Akri-Bijeel block, which is adjacent to the Shaikan block with proven oil and gas reservoirs. The discoveries at Bijell-1 and Shaikan have considerably de-risked this new drilling target making Bekhme an attractive prospect."