Fox-Davies Capital featuring Gulf Keystone, Nostra Terra, Roxi Petroleum, Cove Energy, Eurasian Resources and Namibian Resources

Oil & Gas News

Gulf Keystone Petroleum (BUY, £2.00) (GKP, 85.75p, ▼ (0.29%)) announced that it has negotiated an agreement with BG North Sea Holdings Limited ("BG") that settles, on confidential terms, the claims and counterclaims between the parties in the previously announced arbitration. The agreement  provides for  the immediate  stay of  the arbitration  and  the proposed transfer of  the Company's interests  in the Hassi  Ba Hamou Permit for  a net cash payment  from BG of $9.9m  to GKP. The agreement is subject to the conclusion of separate transfer documentation which will require the approval of Sonatrach and any necessary Algerian governmental authorities. Whilst the Company is confident that the necessary approvals will be forthcoming, there is no guarantee this will be the case. The Company indicated that, following this transaction, further announcements will be made with respect to the orderly disposal of the Company's other interests in Algeria.

Nostra Terra Oil Gas Co Plc (NTOG, 0.94p, ▲ (1.08%)) announced that its  wholly- owned  subsidiary,  Nostra  Terra Overseas Ltd  ("NTOL"),  has  entered  into  a contract with Crimea Nadra Invest (CNI) relating to its assets in Ukraine. Under the terms of the contract, CNI will acquire all the rights and obligations associated  with  the Joint Activity Agreement of 27 January  2001  (the  "JAA") covering  NTOL's  operations in Ukraine and in particular the Oktyabrskoe  field licence,  while NTOL will retain a right to payment of 25% of any net profits generated by CNI from the JAA, which runs for a period of 25 years from 27  January 2001. The consideration for the transaction is to be settled by the deferred payment from future oil sale proceeds of approximately £29,000, which will be applied towards general working capital.

Roxi Petroleum Plc (RXP, 9.25p, ▲ (2.78%)) announced that exploration well NK22, drilled by its subsidiary "Galaz and Company" LLP, has encountered 12.8m of net  pay, determined from wireline logs, in  good quality lower Cretaceous, and Upper Jurassic aged reservoir formations. The well was drilled to a total depth of 2840m to evaluate Middle Jurassic potential on the block. Casing will be run, prior to testing the well. This represents the sixth consecutive oil well drilled by Roxi in the past 14 months. It is an exciting discovery of a satellite accumulation to NW Konys field in the Galaz Contract Area which will allow Roxi to add to pilot production expected to start in Q2.

Aminex (AEX, 14p, ▼ (1.75%)) announced that the Olympia Minerals-1 well ("OM-1") at Shoats Creek was spudded on 17 February 2010 using the Crown Drilling Rig No. 2. OM-1 is the first well in a drilling programme based on interpretation of new 3D seismic data over the property and will be drilled to an estimated total depth 9,500ft to test multiple sands in the Cockfield formation. Subject to any unforeseen operational delays, the drilling time to TD is likely to be 21 days. Aminex is the operator of OM-1 and holds a 100% working interest while Olympia Minerals, Inc. is the lessor of the mineral rights at the well location. The Company has owned the rights to Shoats Creek for several years and predecessors have produced very light oil and high quality gas there since the late 1950s. However, understanding of complex multiple prospects has now been transformed with benefit of the new 3D seismic data. Shoats Creek property covers 1,570 acres in Beauregard Parish, Southwest Louisiana, close to the Texas border.  Shoats Creek is made up of proved, undeveloped reserves in Frio and Cockfield sands with deep exploration potential in Wilcox sands, all of which have now been extensively remapped and integrated with existing well data using the 3D seismic.  It is anticipated that a deep Wilcox well will be drilled in due course in conjunction with a potential farm-in partner.

Cove Energy (COV, 23.5p, ▼ (1.05%)) announced the Windjammer exploration well in the frontier Rovuma Basin offshore Mozambique has reached an intermediate casing point and encountered more than 480 net feet of natural gas pay in high-quality reservoir sands, with a gross column of more than 1,200 feet. To date, this well has tested one of the seven identified play types in Anadarko's operated acreage offshore Mozambique. This is a true rank wildcat exploration, and having made a discovery with more than 480 net feet of pay is an excellent indication of the potential of this basin. The Windjammer discovery de-risks a substantial portion of approximately 50 leads and prospects that we've identified across our 2.6-million-acre position in the basin. The Windjammer well has been drilled to a depth of approximately 14,000 feet in about 4,800 feet of water approximately 30 miles east of the Mozambique coastline. The company anticipates drilling another 4,100 feet in this well to gain additional geological information prior to reaching total depth. After testing the deeper objectives in the well, Anadarko plans to move the Belford Dolphin drillship to its Collier prospect less than 50 miles south-southeast of Windjammer. Anadarko also expects to drill two to four additional exploration wells in the Rovuma Basin this year, with initial well results from Windjammer and Collier determining which prospects are drilled next. Anadarko is the operator with an approximate 43% paying interest in the well. Co-owners in the well are BPRL Ventures Mozambique B.V. (11.75%), Cove Energy Mozambique Rovuma Offshore, Ltd. (10%), Mitsui E&P Mozambique Area 1, Limited (23.5%) and Videocon Mozambique Rovuma 1 Limited (11.75%). Empresa Nacional de Hidrocarbonetos, eps 15% interest was carried through the exploration phase.

Mining News

Eurasian Natural Resource (ENRC, 1006p, ▲ (4.09%)) announced that it has entered into a  conditional agreement to acquire 100% of Enya Holdings BV, which holds a 90% interest in Chambishi Metals  PLC, a  Zambian copper and cobalt producer, together with a  100% interest in Comit  Resources FZE ('Comit'), a Dubai-based  marketing and sales  company  that  historically  has   handled Chambishi's copper and cobalt sales. The aggregate consideration for the Transaction amounts to US$300M, which will be wholly funded from ENRC's existing cash resources.

Namibian Resources (NBR, 2.88p, ► (0.0%)) announced, further to the announcement on 19 October 2009,  that, through its 100% owned  subsidiary Sonnberg Diamonds Ltd, it  has entered  into an  exclusive three month option agreement for to purchase an offshore diamond recovery ship. The option is solely at the Company's call and is inter alia subject to completion of due diligence and raising the necessary finance. The purchase price is NAM$13m (£1.1 million).  The ship, which is in  full working  order  and  currently actively  mining,  will,  on completion of the acquisition,  provide Sonnberg with immediate diamond production. Based upon past records, the Directors estimate that the ship is capable of a long-term average rate of production of over 1000ct per month.