Oil & Gas Corporate News
Geopark Hldgs (LON:GPK) Holdings (GPK, 570p, ▼ (0.61%)) provided an update on its drilling activities on the Fell Block in Chile including the successful testing of two wells - Cerro Iturbe 1 and Tetera 4. Well Cerro Iturbe 1 was drilled and completed to a total depth of 3,094m on an undrilled prospect located in the northwest region of the Fell Block. A production test in the Springhill formation, at approximately 2,984m in a 14.5m perforated interval, flowed at a rate of approximately 14.6mmcfd with 137bpd condensate and no water through a choke of 14mm and with a well head pressure of 2,417psi; however, further production history will be required to determine stabilised flow rates from this well. A gas flow line is being constructed and it is expected to connect the well to the main pipeline and marketing infrastructure during July 2010. Well Tetera 4 was drilled and completed to a total depth of 3,057m on a prospect in the north central region of the Fell Block which had tested small quantities of oil by previous license holders but never been produced commercially. A production test in the Springhill formation, at approximately 2,912m in a 2.5m perforated interval, flowed at a rate of approximately 115bpd of oil and 350bpd of water through a choke of 12mm and with a well head pressure of 43psi. A beam pump and surface facilities have been installed and the well has now been put on production at a rate of approximately 100 bpd oil and 250 bpd water. Further production history will be required to determine stabilised flow rates from this well and potential development drilling opportunities. In other drilling activities on the Fell Block in Chile, an appraisal well Ayelen 2, targeted for the shallow El Salto (Tertiary) gas producing formation, reached total depth of 883m. Production testing is scheduled during July 2010. GeoPark is currently drilling well Yagan Norte 2 which is targeting the Springhill and Tobifera formations at depths of approximately 3,000-3,200 metres. GeoPark is also currently acquiring a 3D seismic survey on the Otway Block in Chile.
Melrose Resources (LON:MRS) (MRS, 289p, ▲ (0.43%)) announced that it was the successful bidder for two offshore exploration blocks, EX-27 and EX-28, in the Romanian 10th Licensing Round and that it is making preparations for the potential divestment of its Permian Basin assets in the United States. The blocks lie to the north-west of the Midia and Pelican concessions in an under-explored area of the Black Sea, which became re-accessible for exploration in February 2009 following the resolution of a maritime boundary dispute between Romania and the Ukraine. The blocks have a combined area of 2,000km2 and contain the same oil and gas exploration plays as the Midia and Pelican concessions. The concession agreements for the new blocks are expected to be signed towards the end of the year and will have a firm three year initial term followed by an optional three year extension. The firm work programme bid for each block comprises 2D and 3D seismic acquisition in Year 1, one well in Year 2 and two wells in Year 3. In due course, the Company may consider reducing its working interest in the blocks and expects to spend a minimum of $60 million on exploration activities during the initial term of the concessions.
Chariot Oil & Gas (LON:CHAR) (CHAR, 116.5p, ▲ (0.43%)) announced that it has received the processed 3D seismic information in both time and depth for the Northern and Southern blocks following the extensive acquisition programmes that were completed across these licences offshore Namibia. There is 1,500km2 of data from 1811 A & B (Northern Blocks) and 3,000km2 of data from 2714 A & B (Southern Blocks).
Providence Resources (LON:PVR) (PVR, 172.5p, ▲ (4.55%)) announced that site survey operations are underway on the Dunquin acreage (FEL 3/04), Porcupine Basin, off the west coast of Ireland. The work is being carried out by ExxonMobil on behalf of the Dunquin co-venturers and is to assess the site for the drilling of an exploration well. Providence holds a 16% non-operating interest in the licence.
Tullow Oil Plc (LON:TLW) (TLW, 1041p, ▼ (0.48%)) published a trading statement and operational update. Main highlights are that the FPSO has arrived in Ghana and the Jubilee Phase 1 is on schedule for first oil by year-end. The Company has a high-impact 2H 2010 drilling programme with key wells under way in Ghana and Uganda while outside of Ghana and Uganda, seven potentially transformational exploration wells are planned to commence over the coming nine months - Sierra Leone (2), Liberia (1), Mauritania (2), Guyana (1), French Guiana (1). The Government approval for purchase of Heritage's Ugandan assets is expected imminently.
Mining Corporate News
Shanta Gold (LON:SHG) (SHG, 19.5p, ▼ (1.27%)) announced the completion of its Feasibility Study on the Chunya gold project in the Lupa goldfield in southern Tanzania. The study was conducted and coordinated by Environmental, Process and Mining Consultants (Pty) Ltd ("EPMC") a South African based consultancy with a proven track record and many years of successful performance. The study supports a 360,000 tonnes per annum metallurgical process plant fed from a number of open pit operations all within 3 km of the metallurgical plant which could produce an average of 28,400 ounces of gold per annum over an eleven year production life. Construction is estimated to take one year. Average cash operating costs are estimated to be US$643/oz.
Tertiary Minerals Plc (LON:TYM) (TYM, 2.75p, ► (0.0%)) announced the results of a positive scoping study for the Storuman fluorspar project in Sweden. A viable fluorspar project is predicted with a Base Case generating US$616M in revenue over an 18 year life of mine for $46M of initial capital costs. Net pre-tax operating cash flow of $17M per annum is predicted in the first five years of production with a 2.8 year payback of capital, pre-production strip, and further feasibility costs.
Filed Under: Oil & Gas,