Shell CEO Cautious on Rosneft Arctic Talks - Report

- Shell CEO Cautious on Rosneft Arctic Talks - Report

Wednesday, June 01, 2011
Dow Jones Newswires

Shell Chief Executive Peter Voser said talks last week with Russian Deputy Prime Minister Igor Sechin about the possible joint exploration of Russia's Arctic shelf had looked at a "multitude of blocks" but that it was "too early to say where this will go," the Financial Times reports Wednesday.

Last week's meeting between Voser and Sechin, who oversees the oil and gas sector, came two days after Russian Energy Minister Sergei Shmatko said he doesn't expect state-controlled oil giant Rosneft and BP to revive their strategic alliance after it was blocked by BP's existing Russian partners, a group of Soviet-born billionaires known as AAR.

BP and Rosneft announced in January plans for a $16 billion share swap and joint development of three blocks in Russia's Arctic Sea. But AAR, arguing the pact violated the terms of its agreement with BP in their TNK-BP Ltd. joint venture, went to court in the U.K. to block the deal.

After months of talks, discussions broke down earlier this month.

While BP said last week it is still discussing the joint exploration of the Russian Arctic with Rosneft, Shell has expressed renewed interest in that region. However, the idea of a share swap with Rosneft isn't under consideration, the company told Dow Jones Newswires.

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

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Mediterranean O&G Gets Extension Offshore Malta

- Mediterranean O&G Gets Extension Offshore Malta

Wednesday, June 01, 2011
Mediterranean O&G plc

Mediterranean O&G announced the following news on Offshore Malta Area 4 PSC (Blocks 4,5,6,7), the Guendalina Gas Field Development in Italy and the appointment of Panmure Gordon as joint broker.

KEY POINTS

• 18 month extension of Malta Area 4 PSC exploration period to January 18, 2013
• Advanced negotiations to farm out 75% of Malta Area 4
• Guendalina Gas Field development progressing on schedule - first gas on track for September
• Appointment of Panmure Gordon Limited as joint broker

Michael Bonte-Friedheim, the Company's CEO, stated, "We are very pleased to have reached an agreement with the Government of Malta to extend the exploration phase for all blocks of Area 4. The additional 18 months will allow us to progress our analysis of the acreage and hopefully identify attractive drilling targets.

We are in advanced discussions with a third party for the farm out of a 75% interest in Area 4 and are hopeful that the seismic survey will identify further prospects in the area and make the drilling of an exploration well attractive.

The Guendalina development is progressing well, the most critical phase having been completed successfully, and on schedule. The development represents one of the key milestones of the Company's business plan that will allow it to significantly increase net gas production and revenues, once this comes on stream.

We look forward to working with Panmure Gordon and, post the recent reorganization and fund-raising, believe it is the right time to strengthen the Company's team of advisers to help take the Company forward."

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Range Completes Acquisition of Trinidad Assets

- Range Completes Acquisition of Trinidad Assets

Wednesday, June 01, 2011
Range Resources Ltd.

Range Resources announced the completion of the acquisition of 100% of SOCA Petroleum which in turn holds 100% of three exploration and production onshore oil and gas licenses, along with 100% of a fully operational drilling subsidiary with five exploration drill rigs, four production drill rigs and associated equipment and operational personnel.

As previously mentioned in an earlier announcement, the completion of the acquisition now immediately triggers the commencement of an aggressive work program that is expected to see a rapid increase in production from the existing reserve base as it moves towards its targeted production rate of 4,000 bopd from existing P1 and P2 reserves (currently production is 650-700 bopd). The program will also target the deeper (and potentially bigger) Herrera formation and untested areas not currently forming part of the current reserve base.

The Company is currently updating the current reserve and valuation report across the Trinidad assets which will also include the Herrera potential which has not been included in previous reports.

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Rockhopper Encouraged by Sea Lion Appraisal Results

- Rockhopper Encouraged by Sea Lion Appraisal Results

Wednesday, June 01, 2011
Rockhopper Exploration plc

Rockhopper Exploration provided the following update on the 14/10-5 appraisal well:

• Significant reservoir package and hydrocarbon column encountered
• Wireline log analysis indicates 93.5m (306 feet) net pay in good quality reservoir
• Average porosity greater than 20%
• Average permeability of 100-200 millidarcies (mD) and up to 1,000mD
• 79m net pay in main fan complex
• 14.5m net pay in lower fan complex
• No oil water contact observed
• Rockhopper now intends to test the well

14/10-5 was drilled 600m north of the 14/10-2 discovery well to a total depth of 2,726m (drilled depth) and was the second appraisal well on the Sea Lion feature.

The well was designed to appraise the Sea Lion main fan reservoir and investigate hydrocarbon column and reservoir distribution.

The well has been highly successful, proving a very thick, high quality reservoir package and a substantial oil column. The geological prognosis once again came in very close to prediction.

The Sea Lion reservoir sands were encountered 22m updip from the 14/10-2 discovery well at a depth of 2,378m (drilled depth). A total reservoir package of 110m (360 feet) comprising one main sand and three thinner sands was encountered with a net to gross of 91% in the main sand and 25-80% in the lower sands. The gross oil column in the main Sea Lion fan is now 125m (410 feet). MDT pressures confirm oil gradients throughout all sands.

Wireline logging indicates that reservoir quality is good, with average porosity of greater than 20% and average permeabilities of 100-200mD.

79m (259 feet) of net pay has been encountered in the main fan complex with a net to gross of 91%. 14.5m (47 feet) of pay has been encountered in the lower fan complex with a net to gross of 25-80%. The lower fan was not prognosed to be well developed at this location.

64m (210ft) of conventional core was cut and recovered through the main sand.

The Company now intends to test the well. Tests will comprise both mini DST (downhole dual packer MDT) and a fully engineered drill stem test (DST). The Company intends to perform mini DST tests on both the upper and lower fans and to perform the fully engineered DST on the upper fan only. Testing operations are anticipated to take approximately a month and a further announcement will be issued once all testing operations have been completed.

Following completion of all testing operations, Rockhopper intends to drill a further appraisal well on Sea Lion located some 4.2km to the west of the 14/10-2 discovery well. This well will be located outside the Company's "low case" area and within the Company's "mid case" area for the main fan and is also intended to penetrate the lower fan in what the Company believes will prove a more optimal location.

Sam Moody, Chief Executive, commented, "This is an enormously encouraging result and is a testament to the quality of our technical team. The well test will be another key step on the road towards proving commerciality for the Sea Lion discovery."

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