Proactiveinvestors United Kingdom

Caza Oil & Gas, Nautical Petroleum, Mediterranean Oil & Gas, Dana Petroleum, Cairn Energy, African Diamonds and others feature in Fox-Davies Capital newsflash

Fri, 13 Aug 2010 09:04:00 +0100

Caza Oil & Gas (CAZA) announced that the O.B. Ranch #1 well on the Bongo prospect in Wharton County, Texas reached total depth of 16,280ft on August 10, 2010 having encountered Yegua, Cook Mountain and Wilcox sands. Logging results and shows indicate that hydrocarbon-bearing sands were encountered in the Eocene, Cook Mountain sand formation at 12,400-12,900ft and represent a potentially significant discovery of natural gas and natural gas condensate. High resolution electric log analysis indicates the Well encountered in excess of 100ft of net potential pay. The analysis indicates that the Cook Mountain sandstone interval should be productive in the Well. Additionally, log and seismic data indicate the Well penetrated the margins of a Yegua anomaly at approximately 10,200ft that may hold additional high-value potential. The Well also enc ountered multiple Wilcox sands at 13,930-16,280ft. Well log analysis confirms the sand to be gas bearing but also indicates extremely low permeability throughout the penetrated Wilcox section. Caza has analyzed all data collected from the Well and has determined that the Wilcox section is unlikely to be productive at commercial rates.

Nautical Petroleum (NPE) announced that the 9/02b-D appraisal well on North Sea Block 9/2b spudded on 12 August 2010. The drilling activity is being performed by the Ocean Nomad semi submersible rig and the full programme is expected to take approximately 45 days. A further announcement will be made once the drilling is completed. Nautical holds a 35% equity share in North Sea Block 9/2b and is the operator.

Mediterranean Oil & Gas (MOG) reported that on August 11, 2010, Legislative Decree no. 128, dated June 29, 2010, amending the Italian Environmental Code (decree no. 152/2006), was published in the Official Journal of the Italian Republic. The Decree will come into force on August 26, 2010. The Decree prohibits, among other things, offshore exploration and production activities for liquid hydrocarbons within 5 miles of the Italian coast, applying to ongoing authorisation procedures relating to those activities. The Ombrina Mare oil and gas field is located less than 5 miles from the Italian coastline. However, given there are exemptions to the Decree which the Company believes may be applicable; it remains unclear whether the Decree operates to prohibit further development of the Ombrina Mare field. The Company, in conjunction with leg al counsel, is therefore investigating the legal position. The Company will also request clarification from the Italian authorities regarding the interpretation of the Decree in relation to the Ombrina Mare project. Pending receipt of formal clarification, MOG plans to continue the current environmental assessment procedure, with the aim of securing the production concession. In any event, should the environmental assessment process be adversely affected by the Decree, MOG will consider possible action to challenge the Decree. In addition, the Company is also evaluating the technical and economic feasibility of alternative solutions to develop the Ombrina Mare field.

The board of Cairn Energy (CNE) responded to media speculation and confirmed that discussions are taking place with a third party in respect of the disposal of an interest in Cairn India Limited. Cairn emphasises that there can be no certainty the contemplated disposal will occur or as to the terms of any such disposal. A further announcement will be made when appropriate. In a separate statement Vedanta Resources (VED) confirmed that discussions are taking place with Cairn Energy Plc regarding an acquisition of an interest in Cairn India Ltd., a company listed in India. Discussions are ongoing.

KNOC responded to the formal rejection by the Board of Dana Petroleum (DNX) of the indicative cash proposal by KNOC to acquire the Company at a price of 1,800p per share. KNOC indicated that its view on value is based on a very detailed analysis of Dana and takes into account all of the information available to it, including the Company's recent operational and corporate transaction announcements. KNOC has responded to the queries raised by the Board of Dana since the submission of the proposal, including concerns relating to pre-conditions, financing and other execution risks. KNOC is therefore considering its options in relation to Dana and a further announcement will be made in due course. The proposal is no longer subject to the pre-conditions listed in the announcement made by KNOC on 23 July 2010.

African Diamonds (AFD) announced that it has received an unsolicited proposal regarding a potential offer to acquire the entire issued and to be issued share capital of the Company. The Board of African Diamonds does not consider the proposal as currently constituted to be one it would recommend to shareholders and there can be no certainty that an offer will be made for African Diamonds or as to the terms on which any such offer would be made. African Diamonds also advises that, further to the announcement dated 29 June 2010, it continues to progress financing options regarding the development of AK6 and is in discussion with a potential investor to provide additional financial facilities to the Company.

Kopane Diamond Developments (KDD) announced that further to the announcement, on 21 July 2010, of a recommended all share offer for the entire issued and to be issued share capital of Kopane Diamond Developments Plc by Firestone Diamonds Plc, to be effected by means of a scheme of arrangement under Part 26 of the Companies Act 2006, the directors of each of Firestone and Kopane are pleased to announce that the Scheme Document relating to the Offer is today being posted to Kopane Shareholders and, for information only, to participants in the Kopane Share Option Scheme, together with a copy of the Firestone Circular relating to the New Firestone Shares to be issued in connection with the Offer. In addition the Firestone Circular is today being sent to Firestone Shareholders.

Dana Petroleum, Matra Petroleum and Dominion Petroleum feature in Fox-Davies Capital newsflash

Thu, 12 Aug 2010 08:40:00 +0100

Dana Petroleum Plc (DNX) provided an update on the unsolicited indicative conditional approach from KNOC. Dana's Chairman and Chief Executive Officer met with the Senior Executive Vice President of KNOC on 6 August asking for clarity as to how, or if, KNOC would reflect recent and future developments within Dana in its indicative, conditional proposal of 1800p per Dana share. Dana invited KNOC to conduct due diligence subject only to the signature of a non-disclosure agreement. KNOC stated that it will not conduct due diligence without the Dana Board's recommendation of KNOC's proposal and also refused to discuss either the value of Dana's assets or KNOC's assumptions behind the proposal. The Dana Board does not consider it is prudent or warranted to provide a recommendation to any conditional, unsolicited proposal at this level. In addition, the Dana Board believes KNOC has failed to recognise the value of the Company's recent developments and work in progress. Dana stated this leaves the Board with no way of progressing confidential discussions with KNOC and therefore there can be no certainty that an offer will ultimately be made by KNOC for Dana or the terms on which any such offer may be made.

Matra Petroleum Plc (MTA) announced its results for the period ended 30 June 2010. Highlights of the period include the completion of the first appraisal well in the Sokolovskoe Field, Well-13, successfully proving the presence of an oil reservoir. A short open-hole test produced light, sweet oil at a rate of approximately 110 b/d. Also, permission was granted to re-enter Well-12 to re-establish production. Cash at the end of the period was £6m. The Company plans to bring Well-13 on production as soon as possible and complete the remapping and geological modelling of the Sokolovskoe field.

Dominion Petroleum Ltd (DPL) announced that it has appointed RBC Capital Markets as its Nominated Adviser and Broker, with immediate effect. The Company is combining the roles of Nomad and Broker into a single engagement with RBC to better serve the Company through the full services they can provide. Canaccord Genuity Limited continues as a joint-broker to the Company.

Hardy Oil & Gas, Gulf Keystone, Nautical Petroleum, Lydian International and Metminco feature in Fox-Davies Capital newsflash

Wed, 11 Aug 2010 08:10:00 +0100

Hardy Oil & Gas (HDY) announced the recommencement of drilling of the exploration well KGV-D3-W1, on the Company's KG-DWN-2003/1 (D3) exploration license. The KGV-D3-W1 exploration well recommenced drilling on 10 August 2010 using the Transocean rig Frontier 534 in a water depth of 1,653 m. The target depth of the well, which aims to explore the hydrocarbon potential of Mio-Pliocene sands, is 3,514m MD. The KGV-D3-W1 well, was spud on 2 April 2010 using the Transocean rig the Deepwater Expedition. The well had been suspended at the end of May 2010, at a depth of 2,608 m MD, due to an unresolved problem with the BOP control system of the Deepwater Expedition drilling rig. The D3 licence is located in the Krishna Godavari Basin on the East Coast of India and covers an area of approximately 3,288 km2. The Company holds a 10% participating interest in the block, with Reliance Industries Limited holding 90% as operator.
Comment: A welcome development for Hardy whose exploration drilling programme abruptly came to a halt in May. We are positive on the shares and believe the current price provides a very good entry point. Next news item on the August 19th with publication of the interim results.

Gulf Keystone (GKP) announces the results of further testing of the Mus (1,627m to 1,667m) section of the Jurassic on its Shaikan-1 discovery well. Final, stable, production rates during this week's re-test, using a much improved test setup versus the original 2009 test, were measured at 1,250 bopd with an API gravity of 19.7 degrees and a gas oil ratio (GOR) of 10 standard cubic feet per barrel of oil at a flowing wellhead pressure of 50 psi. This natural flow rate represents a ten fold increase over the 128 bopd measured during the initial test in 2009. Tests using a low capacity electric submersible pump (ESP), resulted in rates up to 2,250 bopd.
The workover rig will now begin operations to complete the Shaikan-1 well in the Sargelu (1,450m to 1,510m) section of the Jurassic, and the well will be configured for long term production testing.

Comment: Another positive piece of news for the Company, providing confidence in the production potential of Shaikan and underpinning the recent progress of the share price. Gulf Keystone is organising an analyst field trip to Kurdistan from 22-25 August that should provide further evidence of their progress. We remain very positive on the stock.

Nautical Petroleum (NPT) announced that it has placed 24,280,000 New Ordinary Shares at a price of 125 pence per share to raise net proceeds of £28.8 million. Proceeds of the Placing, together with existing cash, will be used to fund Nautical's planned exploration, appraisal and pre-development activity until the end of 2011.

Lydian International (LYD) announced results from resource upgrade and extension drilling at its Amulsar gold discovery in Armenia. Amulsar is a high-sulfidation style gold project which currently hosts a CIM compliant Inferred Category Resource of 1.4 million ounces at 0.9g/t gold. Reverse circulation drill hole RCA-195 has intersected 84 meters at 4.9g/t gold (open at depth) from the Artavasdes area. This drill hole is part of an ongoing program aimed at upgrading the current resource by tracking and connecting zones of higher grade which were isolated in previous resource estimates. Gold mineralization in RCA-195 remains open at depth, to the south and east and suggests potential for an exciting new high-grade zone located below the Artavasdes area. Previously released drill holes located proximal to RCA-195 and also intersecting high-grade gold include RCA-069 (135m at 2.3g/t gold), RCA-070 (71m at 3.1g/t gold) and RCA-071(96m at 1.4g/t Other new results include 51m at 2.3g/t gold (RCA-198, open at depth) returned from resource extension drilling along the northwestern edge of the Tigranes area and 12m at 3.0g/t gold (RCA-185) from a very discrete higher grade fault zone also located along the northwestern edge of the Tigranes area.

Metminco (MNC) announced that extensive regional scale mapping and geochemical traverse sampling over the last two years, covering a large part of the extensive licences held by Hampton in Southern Peru, has identified several significant geochemical anomalous zones within a porphyry ´Cluster´ that now requires detailed geophysical surveying and drill testing. These predominantly copper and molybdenum geochemically anomalous areas occur as ‘windows’ beneath overlying unmineralized volcanics and recent volcanic ash. Eight exploration targets defined within a ´Cluster´ have been identified at Los Calatos by diamond core drilling and geochemistry and / or rock chip sampling. The Los Calatos ‘Cluster’ occurs within an area of approximately 68sq.km. ‘Cluster’ groupings are often associated with large mineralized porphyries where Giant Systems host Multiple Deposits.

Circle Oil, Dana Petroleum, Maple Energy, Rambler Metals, Condor Resources, Goldplat and others feature in Fox-Davies Capital newsflash

Tue, 10 Aug 2010 08:02:00 +0100

Circle Oil (COP) announced that the Al Amir 1-ST2 well, originally drilled in 2008, has been tested for production. The initial flow rate of 2 August 2010 was 278 bopd on a 128/64" choke using a sucker rod pump. The productive interval was perforated from 4,730-4,778 ft MD and consists of porous carbonates within the evaporitic sequence of the South Gharib Formation. The original DST of that zone conducted in 2008 produced up to 416 bopd of 16°API oil using nitrogen lift. Once the South Gharib production test and production engineering system is completed the well is planned to be put on production and the oil trucked to the Zeitco terminal. The Al Ola X-1 exploration/appraisal well, spudded on 15 July 2010 and is targeted to the south of the southern boundary of the Al Amir SE development lease in order to app raise a southern extension to the Kareem accumulation of the field. The well, at 7,335 feet MD on 8 August 2010, will also be deepened to test a secondary objective in the Lower Rudeis Formation, where oil and gas were recently tested in the Al Amir SE6 well, and is now expected to reach a total depth of 13,700 feet. Current production from the Al Amir, Al Amir SE and Geyad fields in the NW Gemsa Concession is 9,200-9,500 bopd.

Comment: The Al Amir field is a heavy oil field that contains only a small proportion of the ultimate recoverable resources attributable to the NW Gemsa lease. The Al Ola X-1 well should provide meaningful data on the extension of the Al Amir SE field. The release above does not change any of our estimates and we remain positive on the stock.

Dana Petroleum (DNX) reported the successful flow testing of the recently drilled appraisal well at the Blackbird oil field, in the UK Central North Sea. The 20/2a-9 well, operated by Nexen Petroleum UK, was drilled in a water depth of approximately 367 feet to a total measured depth of 12,000 feet, targeting a high quality Upper Jurassic oil discovery. Following detailed evaluation of all the gathered well data, it is now assessed that the well encountered 389 feet of gross pay and 90 feet of net pay of good quality oil bearing reservoir sands. The well has been successfully flow tested, producing dry oil at a facilities constrained stable flow rate of 7,000 bopd through a 38/64" choke. The well has already been completed and will be suspended for future use as an oil producer, through a potential future tie back to the Ettrick FPSO. Followi ng the recent tie-in of two further development wells to the Ettrick FPSO, the oil production rate from the Ettrick field has increased significantly from around 22,000 barrels of oil per day to over 28,000 barrels per day. As a result of these additional wells, Ettrick is expected to reach oil production output levels of approximately 30,000 barrels of oil per day in the near future. Development of the Blackbird oil field should bring significant new oil reserves through the Ettrick FPSO and maintain peak oil production rates at the Ettrick FPSO for a longer period than originally planned, in addition to extending the overall field life of Ettrick.

Maple Energy (MPLE) announced its preliminary financial results for the six months ended 30 June 2010. Adjusted EBITDA was US$5.3m compared to US$2.4m in 2009 and Gross profit was US$10.8m compared with US$8.0m in 2009 on Revenues of US$35.0m versus US$28.3m in 2009, primarily due to increases in international hydrocarbon prices. Net profit after taxes was US$0.1m, or US$0.03 cents per share, compared to a net loss after taxes of US$15.5m in 2009, or US$16.29 cents per share.

Avocet Mining (AVM) announced positive drill results from the first phase of drilling at the Souma Trend, Bélahouro district, Burkina Faso. These first phase results represent drilling at the Dynamite prospect, one of several gold prospects that occur within the 16 kilometre long gold-in-soil anomaly known as the Souma Trend, and the first to be tested by drilling over the coming months. The Souma Trend is located approximately 20 kilometres east-north-east of Avocet's Inata gold mine, which currently has Proven and Probable Ore Reserves of 0.9M oz and Mineral Resources of 1.7M oz. Avocet controls eight exploration permits in the Bélahouro District surrounding Inata that cover a combined area of 1,660 square kilometres.

Comment: There were some excellent grades encountered at very shallow depths.

Condor Resources (CNR) announced that a trench and drill sampling programme is underway on Condor's El Rodeo Concession in La India Gold District of Nicaragua. The programme is designed to define the width and grade of a gold mineralised structure, known as the Andrea Vein at approximately 100 metre intervals, along a 2 kilometre strike length identified through rock chip and soil sampling undertaken by the previous concession holder, Radius Gold, a Canadian exploration company. This previous rockchip sampling had returned numerous samples over 1 g/t, including assay results of up to 25g/t gold.

Goldplat (GDP) announced an operations update for its two gold recovery businesses in South Africa and Ghana, its gold mining operation in Kenya and its gold exploration programme in Burkina Faso. The company is making solid progress on all fronts. With gold production at our two recovery plants in South Africa and Ghana continuing to perform strongly and our Mining Licence due to be issued in Kenya, which will allow us to move into commercial gold production, we are ideally positioned to capitalise on the buoyant gold price environment. In addition we are highly confident of the potential that our Nyieme Project in Burkina Faso offers and this project will remain a key focus for the Company as we fast-track its development to define its economic potential.

Mwana Africa (MWA) announced the completion of a Competent Person's Report on Bindura Nickel Corporation’s plans for the restart of operations at the Trojan Mine, including an audited resource and reserve statement for the Trojan deposit, prepared by SRK Consulting (UK) Ltd. The key operating parameters an average mining rate of 870,000tpa at an average grade of 0.9% nickel to recover 6,300tpa of nickel in concentrate with a cash cost of $6,000/t of nickel in concentrate.

Rambler Metals and Mining (RMM) announced that it has received permission from the provincial government to proceed with construction at the Nugget Pond Mill and Mine Shaft for the Ming Copper Gold Mine Project on the Baie Verte Peninsula, Canada.

Stratic Energy, Max Petroleum, Cove Energy and European Goldfields feature in Fox-Davies Capital Newsflash

Mon, 09 Aug 2010 08:11:00 +0100

Stratic Energy (STI) announced that operator EnQuest spudded the 211/18a-W4 well on the West Don field on 7th August, 2010. This well is being drilled as a third production well. The 211/18a-W4 well targets the southern area of the West Don field and operations on this well are expected to be completed by mid to late September 2010.

Cove Energy (CVE) announced that the Instituto Nacional de Petróleo of Mozambique has approved a six-month extension to the initial exploration period for the onshore Rovuma license. This extends the term of Phase 1 of Rovuma Onshore Area from September 1, 2010 to March 1, 2011 without further commitments.

Max Petroleum (MXP) announced that the ZMA-A15 development well in the Zhana Makat Field has reached a total measured depth of 1,525m, with electric logs indicating 30m of net oil pay, including two Jurassic sandstone reservoirs with 12m of net oil pay at true vertical depths ranging between 780-829m, as well as two Triassic sandstone reservoirs with 18m of net oil pay at true vertical depths ranging between 1,277-1,331 metres. The Company is running production casing in the well, after which the Sun ZJ-30 drilling rig will move on to drill the KAW-1 exploration well on the Karsak West prospect in Block E. The Company will complete and test the ZMA-A15 well using a workover rig over the next several weeks and will announce production test results as soon as practicable.

European Goldfields (EGU) announced that the final Environmental Impact Study for the Company's project in Halkidiki, in North-Eastern Greece, has now been submitted to the Greek Ministry of Environment, Energy and Climate Change.

Encore Oil, Medusa Mining and Shanta Gold feature in Fox-Davies Capital newsflash

Fri, 06 Aug 2010 08:06:00 +0100

Encore Oil (EO) announced that the J.W.McLean rig has arrived at the Cladhan location on UK Northern North Sea blocks 210/29a & 210/30a and operations have commenced to sidetrack and delineate the oil discovery. EnCore have a 16.6% interest with Sterling Resources (39.9%, Operator), Wintershall (UK North Sea) Limited (33.5%) and Dyas (10%).

Medusa Mining (MML) announced through its Philippines operating company Philsaga Mining Corporation, announces a newly completed JORC and NI 43-101 compliant Ore Reserve estimation for the Co-O Mine. The Probable Reserve, as at 21 June 2010, now stands at 505,000 ounces contained in 1,465,000 tonnes at 10.7 g/t gold. Conversion of resources this year has maintained the Probable Reserve contained ounces at a slightly higher level compared to that announced in July 2009 of 500,000 ounces at 14.9 g/t gold in 1,041,000 tonnes. The current Probable Reserve will allow an approximate 5 year mine life at a production rate of 100,000 ounces per year.

Shanta Gold (SHG) announced that the Directors have decided to commence with mine construction at the Company's Chunya Project in southern Tanzania, subject to the Company receiving the relevant mining licence for the project. The results of the feasibility study, as announced on 5 July 2010, justify the construction of an open pit mining operation with an expected average annual production of 28,400 ounces of gold and envisages a 11-year mine life that will produce a total of approximately 313,000 ounces of gold from a total resource of 642,716 ounces at an average grade of 2.39g/t (1g/t cut-off). The capital cost is estimated at $23.19 million.

Gulf Keystone, Leni Gas & Oil, Atlantic Coal, Nyota Minerals, Kryso Resources and others feature in Fox-Davies Capital Newsflash

Thu, 05 Aug 2010 08:16:00 +0100

Gulf Keystone (GKP) announced the results of further testing of the Butmah (1783-1814m) section of the Jurassic on its Shaikan-1 discovery well. Final production rates during this week's re-test were measured at 4,650bopd with an API gravity of 17.68 degrees and a gas oil ratio of 34 standard cubic feet per barrel of oil at a flowing wellhead pressure of 295psi. This is in line with the previously estimated rate. The Mus (1627m to 1667m) section of the Jurassic will be re-tested next, followed by the Sargelu (1450-1510m), which will then also be configured for long term production testing.

Cove Energy (CVE) announced that progress on the Ironclad well in East Africa had been slowed due to adverse sea current conditions at the well location. When the currents subside, normal drilling operations and well evaluation activities will resume. Consequently the Company now anticipates that final Ironclad well results will be known in two to four weeks time when it is expected that an appropriate announcement will be made. Cove owns an 8.5% stake in the well.

Petrolatina (PELE) announced that it has yesterday agreed to place 8,143,662 new ordinary shares of which 1,302,812 Ordinary Shares were placed at a placing price of 37.57 pence per share, and 6,840,850 Ordinary Shares were placed at a placing price of 40 pence per share to raise approximately US$5 million. The net proceeds from the Placing will be used to finance the group's ongoing work programme and exploration expenditure in Colombia and for general working capital purposes.

Leni Gas & Oil (LGO) announced that the drill rig to spud the Hontomin well and commence an extended well test on the Hontomin oil discovery in northern on-shore Spain is scheduled arrive on or around the 16th August 2010.

Kryso Resources (KYS) announced that it has appointed Andre Gaston as its Chief Operating Officer. In his role of Chief Operating Officer, Andre will not have a board position but will have responsibility for managing the ongoing exploration programme at Pakrut, finalising the Pakrut project BFS being carried out by the Beijing General Research Institute of Mining and Metallurgy and preparing the mine for production. As announced on 10 June 2010, Andre commenced employment with Kryso in June as Senior Mining Engineer and will continue to work closely with BGRIMM and with other Kryso consultants to optimise the BFS as it proceeds towards completion.

Atlantic Coal (ATC) announced it has conditionally raised GBP1,710,000 (before expenses) through the placing of 427,500,000 new ordinary shares at a price of 0.4p per Placing Share, with certain new and existing shareholders . In addition, one warrant to subscribe for a new ordinary share is being issued to Placees for every Placing Share subscribed for. The Warrants are exercisable at 0.65p per new ordinary share for a period of two years from the date of admission of the Placing Shares to trading on AIM. Pursuant to the Placing, three of the Company's directors, being Adam Wilson, Steve Best and Peter Chinneck, have subscribed for an aggregate of 150,000,000 Placing Shares.

Nyota Minerals (NYO) announced further positive results from additional reverse circulation and diamond drilling at the Company's flagship Tulu Kapi Gold Project in Ethiopia. The ongoing drilling programme at Tulu Kapi is designed to expand and upgrade the current Inferred JORC resource of 1.38 million ounces as announced on 6 May 2010. Melissa Sturgess, Chief Executive Officer, commented: "We continue to make rapid progress in all areas of the exploration programme. Infill drilling has been completed and we are continuing toward increasing the Inferred resource and establishing an Indicated resource at the Tulu Kapi Gold Project."

San Leon Energy, Western Coal Corp, Eurasian Natural Resources and Salamander Energy feature in Fox-Davies Capital Newsflash

Wed, 04 Aug 2010 08:00:00 +0100

San Leon Energy (SLE) announced that it has conditionally placed 22,499,994 shares at a price of 14p per share to raise gross proceeds of approximately £3.15 million for the Company from a number of institutional and other investors through Fox-Davies Capital Limited and Arbuthnot Securities Limited. The net proceeds of the Placing will provide San Leon with the additional capital and support to continue to carry out the Company's exploration and development programme across its portfolio of projects in Poland, Ireland and Morocco.

Salamander Energy (SMDR) announced that the Bang Nouan-1 exploration well in the Savannakhet PSC, Lao PDR has been plugged and abandoned. The Bang Nouan-1 exploration well was completed on 6 May 2010. A drill stem test (DST) programme was completed between 30 July and 3 August 2010 on the secondary objective Kuchinari sandstones between an interval of 45m between 2025m and 2070m MDBRT. No significant flow of hydrocarbons was observed and an injectivity test has confirmed that this tight formation would not readily respond to fracture stimulation to achieve a commercial flow rate. Following the completion of the DST, the well has been plugged and abandoned as a dry hole and the work-over rig brought in to conduct the test will shortly be demobilised.

Western Coal Corp (WTN) announced that relation to the acquisition of Energybuild Group plc, the Company confirms that as at close of business on 8 June 2010, it had 264,236,557 shares in issue (excluding 72,122,826 Western Shares owned by Cambrian Mining Ltd, a wholly-owned subsidiary of Western) (ISIN reference number CA95801T1075). The number of shares in issue in the Company has not changed since then. In addition, the Company has in issue 1,330,000 warrants to purchase common shares at a price of CA$0.75 per share, all of which are held by Audley European Opportunities Master Fund Limited.

Eurasian Natural Resources (ENRC) announced that total ferroalloys production for the three months to June 30 rose 40% to 465,000 metric tons compared with 332,000 tons during the same period a year earlier. Ferrochrome production was up 30% at 358,000 tons, slightly below Credit Suisse's forecast of 361,000 tons of ferroalloys production for the second quarter. ENRC's ferroalloys division accounted for nearly half of the company's earnings before interest, taxes, depreciation and amortization, or Ebitda, in 2009. ENRC's production of saleable iron ore concentrate climbed 7.5% to 2.41 million tons in the second quarter, and saleable iron ore pellet production rose 62% to 2.04 million tons. ENRC's iron ore division contributed about a third of the company's Ebitda during 2009.

Rambler Metals, Circle Oil, Petroceltic International, Anglo Asian Mining, Cadogan Petroleum and others feature in Fox-Davies Capital Newsflash

Tue, 03 Aug 2010 07:58:00 +0100

Circle Oil (COP) announced the placing of 141,666,667 Ordinary Shares at a price of 30p per share to raise gross proceeds of approximately £42.5 million. Proceeds of he placing will be used in; accelerating the Company's exploration activities; funding capital expenditure in Morocco and Egypt; and providing funding for new ventures in the Company's core locations. Evolution Securities Limited acted as sole bookrunner and financial adviser and Fox Davies Capital Limited acted as co-lead manager to the Company.

Cadogan Petroleum (CAD) announced the commencement of commercial production from the Zagoryanske3 well in Ukraine. The Zagoryanske3 well was drilled to a total depth of 5,110m in 2009.This is the first occasion that the V-18 horizon has proved commercial in the Zagoryanske license. Based on analysis undertaken by the Ukrainian State Geological Exploration Institute, the well is expected to average around 1.2mmscfd gas and 120bbl per day of condensate.

Petroceltic International (PCI) announced that the Oryx-1 exploration well, on the Ksar Hadada Permit in Tunisia, has reached its total depth at 1140m. Although oil shows were encountered in both the upper and lower Ordovician reservoir units, log analysis indicates that no significant oil saturation is present in these reservoirs at this location. The well will now be plugged and abandoned, without testing, and the CTF Rig 06 will be moved to commence drilling of Sidi Toui-4.

Stratic Energy (SE) announced it has reached agreement for the proposed sale of the Company to EnQuest Plc in an all-share transaction pursuant to a statutory plan of arrangement. The proposed transaction has been approved by the boards of directors of both Stratic and EnQuest.
Under the agreement, each Stratic common share will be exchanged for 0.089626 EnQuest ordinary shares. Based on the average closing price of the EnQuest shares on the five market days to August 2, 2010 of approximately £1.17, the exchange ratio values each Stratic share at C$0.17, representing a 70% premium to the closing price of the Stratic shares on the TSX Venture Exchange of C$0.10. The total transaction value, including the assumption or repayment by EnQuest of Stratic's bank debt, 8.75% convertible debentures and 9% convertible notes, is approximately C $135 million.

Anglo Asian Mining (AAZ) announced that it has been advised by its mining consultants, SGS Mineral Services, that the final JORC compliant resource results of Phase I of the Realistic Mineral Resources Model Report at the Company’s Gedabek gold/copper mine in Azerbaijan, are now expected to be available by the end of August 2010. The resource upgrade, which SGS has indicated will exceed existing figures by at least 50% for the measured, indicated and inferred gold, copper and silver metal contents at Gedabek (RNS:13 April 2010), is well progressed, however additional work required at the modelling stage has necessitated a longer timetable than expected. Gedabek's resource currently stands at 702,000 ounces of gold, 37,500 tonnes of copper and 6,100,000 ounces of si lver.

Ormonde Mining (ORM) announced that it has received a Geological Report on its gold properties in the Salamanca Province, Spain prepared by independent consultants CSA Global (UK) Ltd, which outlines significant gold potential and recommends priority drilling targets on the main prospects identified to-date.

Rambler Metals and Mining (RMM) announced it has entered into a Toll Processing Agreement with Tenacity Gold Mining Co. Ltd.Tenacity will deliver ore for processing from its Deer Cove and Stog'er Tight Gold Mines to Rambler's Nugget Pond mill which is located within 50km of these deposits. The cost plus toll processing arrangement will commence no later than August 30th, 2010 and continue for a period of 6 months or until a minimum of 63,000 tonnes has been processed.

Serica Energy, President Petroleum, Highland Gold Mining, Ariana Resources and European Goldfields feature in Fox-Davies Capital Newsflash

Mon, 02 Aug 2010 08:02:00 +0100

Serica Energy (SQZ) announced that drilling operations have commenced at the Oates exploration well location in Block 22/19c in the UK Central North Sea. The well will be drilled by the Ensco 100 jack-up drilling rig to a depth of approximately 10,000ft and is anticipated to take approximately 30 days to drill. Serica has a 50% interest in the well.

President Petroleum (PPC) announced the acquisition of the rights to additional leases on 440 acres at ELV in Louisiana. The rights are for zones deeper than 14,000ft. The US$0.5 million cost of lease acquisition and prospect development is being paid in cash, with President Petroleum currently expecting to take an initial Working Interest of 80% in drilling the first well to casing point and a Net Revenue Interest of approximately 55%.

Highland Gold Mining (HGM) announced an update on the exploration programmes at its two properties, Unkurtash and Kassan, in Kyrgyzstan. At Unkurtash the exploration project received regulatory approval and the license agreement has recently been renewed. From the start of 2010 a total of 4,000m of drilling have been completed and preliminary drilling results obtained to date underpin the previously established potential of the property for hosting a large open-pit mineable resource with an average grade in the range of 1.4 - 1.7 g/t. Metallurgical test work including a full process flow sheet is being performed on a 1,600kg bulk sample, the results of which are expected by the end of Q3 2010. Within the Kassan property, the Karatube prospect hosts oxidised gold skarn mineralisation which is potentially amenable for heap leaching. Pending approval of the new exploration project by the Kyrgyzstan Regulatory Authorities more than 3,000 metres of exploration drilling are budgeted at Kassan this year.

Ariana Resources (AAU) announced the results from the twenty-six most recent Reverse Circulation drill holes completed on the Banu and Derya veins at the Kiziltepe gold deposit. Highlights include gold-equivalent intersections of 12.28 g/t over 2m, 4.59 g/t over 14m and 3.31 g/t over 11m.

European Goldfields (EGU) announced that the Environmental Impact Study for the Company's Certej Project in Romania has been submitted. The EIS will now be subject to the final stages of a Romanian decision-making process that conforms to the EU Directive on Environmental Impact Assessment.

Dana Petroleum, London Mining, Obtala Resources, Global Energy Development, Melrose Resources and Pantheon Resources feature in Fox-Davies Capital newsflash

Fri, 30 Jul 2010 08:41:00 +0100

Dana Petroleum Plc (DNX) announced that the Fin-1X exploration well has discovered a new oil field, in the North Zeit Bay Production Sharing Contract ("PSC") area onshore in the Gulf of Suez, in Egypt. This follows the discovery of the Lorcan oil field, made just last month in the same PSC area. The Fin-1X well (Dana 100% stakeholder and Operator) was drilled to a depth of 10,038 ft, some 3km from the Lorcan oil discovery announced in June. The Fin-1X well encountered good quality oil bearing sands in the Kareem formation, in line with Dana's prognosis prior to drilling. During the drill stem test, the Fin-1X well flowed strongly with high downhole pressures delivering an average flow rate of 1,049 barrels of oil per day through a 52/64" choke. The flow rate during this test was restricted by the temporary flow testing facilitie s and the requirements to truck the produced oil from the desert location. The well has been retained as a future oil producer. The Fin discovery together with Lorcan, which flowed at 4,714 barrels of oil per day and was also constrained by the testing equipment, confirms this area will be very attractive to develop. A preliminary development plan has already been submitted to the Egyptian General Petroleum Corporation (EGPC) for agreement. Dana estimates that these two discoveries so far in this PSC area have proven up initial reserves of 10-12 million barrels of oil (100% Dana) with the potential for considerable upside beyond these initial proved volumes. Further drilling is planned.

Melrose Resources Plc (MRS) announced an exploration discovery in the Galata block offshore Bulgaria. The Kavarna East No.1 well has been successfully drilled to test an exploration prospect approximately 10 kilometres to the east of the Melrose operated Galata field production platform. The new gas discovery lies in between two other recent discoveries, Kavarna and Kaliakra, which contain combined reserves of 74 Bcf and are currently being developed using sub-sea production wells tied back to the Galata platform. The Kavarna East No.1 well penetrated the top of the Paleocene reservoir interval at a depth of 2753 feet and encountered a net gas pay of 89 feet with an average porosity of 29 percent. The preliminary reserves estimate for the discovery is 12 Bcf, in line with pre-drill estimates, and it is expected to be developed using a low co st tie-back to the Kavarna sub-sea well location.The well encountered a gross gas column of approximately 130 feet and consistent with the other fields which have been discovered on the same geologic trend, the reservoir structure is thought to be filled with gas to the spill point. This provides further evidence that the regional biogenic gas source is substantial and that gas volumes may have migrated further north into the central area of the Galata block. The Company plans to acquire seismic over this area of the concession in 2011 to evaluate its prospectivity. The Jupiter rig will now be used to install the sub-sea tree for the Kaliakra field development and may then be used to drill the Kaliakra East prospect. This well remains contingent, however, on confirmation that the seabed conditions at the well site will allow the jack-up rig to operate at the required water depth.

Global Energy Development Plc (GED) announced that it has relinquished its Panamanian Garachine contract (the "Contract") by mutual consent with the Panamanian government with immediate effect. The relinquishment is in line with the terms of the Contract, which allowed for relinquishment of the Contract by the Company after successful completion of the work commitments of each phase. The Panamanian government has duly given its consent to allow the Contract to be formally relinquished following the completion of the Phase 1 work commitments.

Pantheon Resources Plc (PANR) issued an update on its Tyler County, East Texas well. Pantheon has been informed by the operator, Vision Resources LLC ("Vision"), that the drilling of the Kara Farms #1H ("KF#1H") well (formerly the Vision William Baggett #1 well) has been delayed. This is due to the continued tight market for drilling which has led to the lack of availability of a suitable specialised rig. Vision has options on a number of rigs that meet the specific requirements of the planned well, however the timing of their availability to Vision is uncertain and subject to their release by current operators. Consequently the time when a suitable rig will become available cannot yet be narrowed from the current estimate of between mid-September and mid-November 2010. An announcement will be made as soon as a firm date becomes a vailable.

Obtala Resources Plc (OBT) provided an update on exploration activities on the Shinyanga gold licence within the Lake Victoria Goldfields of Northern Tanzania. Highlights from Induced Polarization (IP) survey included; Seven drill targets identified; Gold-in-soil anomalies previously identified correlate with identification of possible sulphide mineralization zones; Many of these zones correlate well with gold-in-soil anomalies; and Dipole-Dipole modeling provides position, dip and depth data of the structures. An IP survey was successfully concluded in July 2010 by Spectral Geophysics (T) Ltd over two areas of previously identified positive gold-in-soil anomalism. Initially, two one kilometre-square grids, Grid A and Grid B, were completed with the Grad ient Array method on lines 100m and stations 25m apart respectively. The objective of the survey was to identify and delineate possible zones where gold bearing areas of sulphide mineralization (represented by chargeability highs) might exist. A geo-electrical map (Apparent Resistivity Data) was also created of the two areas where positive gold-in-soil anomalism was identified in earlier sampling programmes. Six Dipole-Dipole (DPDP) lines were conducted over selected Gradient Array anomalies. The combined Gradient Array and Dipole-Dipole Surveys were successful in delineating seven chargeable zones of interest where sulphide mineralization may prove to be present. The Gradient Array results over Grid A delineated four main chargeable target zones and a further three chargeable target zones of interest were identified over Grid B. Many of these zones correlate well with gold-in-soil anomalies.

London Mining (LOND) announced it has entered into a joint venture with a Chinese and Chilean based partner to take advantage of several iron ore opportunities in the Atacama region of Chile. The joint venture company, Atacama Mining Resources Corporation ("Atacama"), through its Chilean subsidiary, holds options over concessions to iron ore deposits in the Atacama region of Northern Chile. Under the agreement, London Mining has subscribed for 50% of the shares of Atacama. London Mining has also agreed to make additional loans of in aggregate USD5million to the Chilean subsidiary of Atacama to fund acquisitions of a number of concessions in the area and to get exclusive rights from our joint venture partners on future iron ore prospects in Chile. The loans will be repaid to London Mining from the earlier of first sales of ore made by the jo int venture or third party funding into the joint venture. The subscription by London Mining in Atacama is in consideration for the waiver by London Mining of previously advanced convertible loans in the aggregate amount of USD5 million. The Atacama projects are located within a short distance from a number of potential port opportunities and logistics arrangements for export to China are being investigated.

Petroneft Resources, Kea Petroleum and Anglesey Mining feature in Fox-Davies Capital newsflash

Thu, 29 Jul 2010 08:32:00 +0100

Petroneft Resources Plc (PTR) provided an update on its operations at Licence 61. Highlights included; fifth and sixth production wells successfully drilled; Wells have encountered some of the thickest net pay to date; year-round production expected to commence in August 2010; and Arbuzovskaya exploration rig-up complete.

Kea Petroleum Plc (KEA) announced that the New Zealand Minister of Energy has given his formal approval, under the Crown Minerals Act 1991, to the acquisition by the Group's wholly owned subsidiary, Kea Oil and Gas Limited, of a 100% interest in Petroleum Exploration Permit PEP 381204 from Genesis Power Limited, a wholly owned subsidiary of New Zealand government owned major energy company Genesis Energy. Under the terms of the deal, Kea will repay Genesis' past costs incurred on the permit out of future revenue generated from the permit, and Genesis will hold a right of first refusal to purchase a portion of gas discovered in the permit. PEP 381204 is an onshore/offshore area of 516 sq km, situated on the eastern margin of the North Taranaki Basin. Kea will complete its technical evaluation over the coming months, prior to the April 2011 date by which a commitment must be made to drill a well; which would then be drilled during the following year.

Anglesey Mining (AYM) announced that its 41% owned associate company Labrador Iron Mines Holdings Limited (TSX: LIM) has reported that on 27 July 2010 it received Certificates of Approval for the construction of its mining facilities from the Government of Newfoundland and Labrador. The approvals provide for the construction of open pit mining and treatment facilities at the James North, James South, Redmond 2B and Redmond 5 deposits,and include the beneficiation facility, ore, waste rock and overburden stockpiles, settling ponds, access roads, accommodation camp and other associated works for LIM's Schefferville Area direct shipping iron ore project. The approvals also include authorization for the installation and operation of power generators at the James deposit, the Silver Yard beneficiation area and the accommodation camp.

Vatakoula Gold Mines, Kryso Resources, Caza Oil & Gas, Kea Petroleum, Metminco, Mwana Africa and others feature in Fox-Davies Capital newsflash

Wed, 28 Jul 2010 09:07:00 +0100

Caza Oil & Gas Inc (CAZA) announced that the Bongo, O.B. Ranch #1 Well has reached a depth of 12,964 feet, and intermediate casing has been installed, cemented and formation integrity tested. Drilling has recommenced to the target depth of 16,000 feet, which should take approximately fifteen days. Preliminary drilling and log data indicate hydrocarbon bearing sands in a shallower horizon that will require further evaluation.

Cove Energy (COV) announced that it has concluded a conditional farm-in agreement with Dynamic Energy Exploration and Production Corporation ("DEPCO") to acquire a 15% participating interest in five contiguous deepwater blocks L5, L7, L11A & B and L12 (the "Blocks") covering an area of over 30,500 sq kms, offshore Kenya, East Africa. The five Blocks are held in a Joint Venture by Dynamic Global Advisors Kenya Limited, a wholly owned subsidiary of DEPCO with a 30% interest (15% after farmout) and Anadarko Kenya Company, an affiliate of Anadarko Petroleum Corporation ("Anadarko"), the operator of the blocks with a 70% interest. Cove is paying US$15.5m (the "Consideration") inclusive of acquisition costs, a reimbursement of DEPCO's past expenditure on the blocks and funding for Cove's and DEPCO's forward work programme durin g the first exploration phase which extends to June 2012. US$10.5m of the Consideration is payable in cash with the balance of US$5m in Cove shares to be allotted at the time of closing. It is expected that this transaction will close in Q3 2010 pending receipt of normal partner, and government consents ("Closing"). In this respect Anadarko has already given its preliminary approval.

Kea Petroleum Plc (KEA) announced that the Kan Tan IV drilling rig has now been anchored out on the Tuatara-1 drill site in the southern area of the offshore Taranaki Basin of New Zealand; and the rig commenced drilling operations on Tuesday 27 July. The Tuatara-1 well will be drilled in 50m water depth to a 2000m target depth, which is expected to be reached by mid August. The well will target the oil bearing potential of Miocene aged sandstones, which are expected to be encountered below 850 metres depth. The Tuatara prospect is mapped, on modern 2D seismic, as a dip closed structural trap covering an area of approximately 10 sq km. The permit operator AWE New Zealand Limited, a subsidiary of the Australian Stock Exchange listed company AWE Limited ("AWE"), has calculated a median recoverable resource in the event of discovery of 80 mi llion barrels of oil. The Tuatara trap bears a marked geological resemblance to that of the Maari oil field, situated some 80km to the northwest, and displays similar Direct Hydrocarbon Indicators to those observed on seismic over Maari, which has produced at rates up to 40,000 barrels per day since commencing field production in late 2008. Fair to good oil shows at the equivalent sandstone level were observed in the only other well drilled in the permit area. The NZ Minister of Energy has given his formal approval, under the Crown Minerals Act, to the acquisition by the Group's wholly owned subsidiary, Kea Oil and Gas Limited, of the 10% share in PEP38524, which contains the Tuatara Prospect. This completes the previously announced deal whereby Kea acquired this interest from AWE.

Kryso Resources (KYS) have conditionally placed 73,269,539 new ordinary shares to China Nonferrous Metals International Mining Co. Ltd (“CNMIM”) representing 29.9% of the total issued share capital of the Company at a price of 15p per share ("the Placing Shares") to raise £10,990,430.85 before expenses. Also, Kryso have conditionally issued to CNMIM one warrant for each Placing Share, conditional on completion of the above placing, exercisable at 21p per share and each entitling CNMIM to subscribe for one further new ordinary share. CNMIM is to use its best endeavours to provide mine construction financing for the Pakrut gold project. Proceeds of placing is to be deployed to fund the development of the Pakrut gold project, exploration in the Pakrut licensed area and further exploration at the Hukas nickel-copper project.

Ormonde Mining Plc (ORM) announced that, subsequent to the major Tungsten Mineral Resource upgrade published for Barruecopardo on 27 May 2010, and the capital raising announced on 30 June, it has commissioned independent consultant, Scott Wilson Mining, to carry out engineering and economic studies on Barruecopardo to quantify the benefits of the increased resource to the project economics. At the project site, infill drilling, intended to enable final optimisation of initial years mining production, is on schedule to recommence in August. Barruecopardo, which is already a recognised high grade, low capital cost, tungsten asset situated close to the major markets for Western processors and manufactures of tungsten products, is now progressing against a backdrop of rising world tungsten prices, towards taking its place as a central part of the Tungsten Industry in the Western World.

Metminco Ltd (MNC) has completed the acquisition of 5,376,562 fully paid ordinary shares in Hampton Mining Limited ("Hampton"), increasing its interest in Hampton from 69.4% to 71.9%. Consideration for the acquisition was satisfied by the issue of 21,506,248 fully paid ordinary Metminco shares (New Ordinary Shares). Hampton's premier project is the Los Calatos copper and molybdenum porphyry deposit located in southern Peru, near and in a similar geological setting to three large existing copper-molybdenum porphyry mines. At Los Calatos, Hampton has recently announced estimated JORC compliant resources (at a 0.2% copper cut-off grade) of 926 million tonnes, made up of Indicated Resources of 111 million tonnes at 0.39% Cu and 380ppm Mo and Inferred Resources of 815 million tonnes at 0.37% Cu and 260ppm Mo. Hampton's other advanced p rojects are the Mollacas copper leach project and the Vallecillo gold-zinc project. Both these projects are located in Chile, approximately 500km north of Santiago.

Mwana Africa Plc (MWA) announced an updated JORC compliant resource estimate for the Zani-Kodo gold project in the Ituri Region of north eastern DRC, in which Mwana has an 80% interest. The summary includes: JORC compliant gold resource of 1.25 million ounces at 1g/t cut-off, a 98% increase since February 2010, indicated gold resource of 260,000 ounces, 18% increase since February 2010, inferred gold resource of 1,000,000 ounces, 140% increase since February 2010, Overall resource grade increased from 2.8g/t to 3.5 g/t.

Vatakoula Gold Mines Plc (VGM) announced that gold recoveries for the fourth quarter has already reached 12,940 ounces bringing the total of gold recovered, year to date, to 51,491 ounces. This is higher than the revised 50,000 ounce annual forecast for the year ended August 2010, with five weeks of forward production still to be added to the 51,491 ounces produced to date. In addition, initial interpretation of historic geological data and more recent surface drilling has led the Company to identify several surface and underground exploration targets both on current mining licenses and on the surrounding special prospecting licenses. The exploration of these targets will be funded by a Placing that was announced earlier today. The Company has placed 400 million new ordinary shares at a price 1.85 pence per share to raise gross proceeds of &p ound;7.4 million. On 28th May 2010, the Company announced, as part of its Interim Results a revised production forecast of 50,000 ounces for the year ending August 2010 down from 60,000 ounces previously forecast. This was a result of lower than expected mining rates and stope availability in the third quarter. However in fourth quarter both increased underground mining rates and the higher than planned gold grades has resulted in higher than forecast gold recoveries. Therefore in the 7 week period from June to 21 July 2010 the Vatukoula mine has recovered 12,940 ounces. For the period 1 June 2010 to 21 July 2010, 41,497 tonnes of underground sulphide ore with a delivered grade to the mill of 9.45. grams per tonne of gold ("g/t") was mined and processed. In addition, during this same period, the oxide circuit processed 32,286 tonnes of open pit oxide ore with a delivered grade to the mill of 2.09 g/t. Underground development continued at an accelerated pace in th e same period with progress being made towards the target of 18 to 20 available mining stopes. This should provide greater flexibility and allow the mine to optimise the mine plan and deliver consistent grades to the mill. These results are above management expectations for the period and as a result the Company's fourth quarter results are expected by management to show an improvement in both production and cash costs per ounce over the previous quarter. The Company plans to release its operational update for the fourth quarter in September 2010. On the 21 June 2010, VGM announced a proposed exploration programme; To identify high-grade areas within the current mining infrastructure; To identify new areas in close proximity to the mine to enable mine expansion; and to undertake exploration over the special prospecting licenses. Preliminary results from the initial desk study have indentified several exploration targets. These include underground near vertical structur es associated with the Gold Cross shear potential lateral extensions of the Matanagata flatmake, surface or near surface oxide material and the F51 target in the northern portion of our prospecting license. Following a successful Placing the Company will now carry out the exploration programme.

Heritage Oil, Berkeley Mineral Resources, African Aura Mining, Tullow Oil and Horizonte Minerals feature in Fox-Davies Capital Newsflash

Tue, 27 Jul 2010 08:49:00 +0100

Heritage Oil Plc (HOIL) announced today that Heritage Oil & Gas Limited has completed the disposal of its entire interests in Block 1 and Block 3A (the "Assets") in Uganda. Tullow Uganda Limited ("Tullow") has paid cash consideration of US$1.35 billion and an additional contractual settlement amount of US$100 million, of which Heritage has received and retained US$1.045 billion with an additional approximately US$405 million in part deposited with the Government of the Republic of Uganda and in part held in escrow pending resolution of a tax dispute with the Ugandan Revenue Authority. Receipt of the funds provides Heritage with a strong balance sheet with cash of approximately US$1.2 billion. It is the Company's intention to return a portion of these funds to shareholders through a special dividend of up to 100 pence per share in August 2010. Further details of the dividend, including a timetable, will be provided shortly. The remainder of Heritage's funds, of over US$0.7 billion will be allocated between accelerating the work programmes on the existing portfolio and potential acquisitions.

Tullow Oil Plc (TLW) announced that on 26 July 2010, Tullow Uganda Limited ("Tullow Uganda"), a subsidiary of Tullow, has completed the US$1.35 billion acquisition of a 50% interest in Blocks 1 and 3A in Uganda from Heritage Oil & Gas Limited ("HOGL") with an additional contractual settlement amount of US$100 million. Following conditional Government approval on 6 July, all conditions have now been met and the assets have been transferred to Tullow Uganda. Tullow now plans to enter into transactions with CNOOC and Total to farm down two thirds of its interests in Blocks 1, 2 and 3A in the Lake Albert Rift Basin. This will result in a unified partnership to accelerate development of the basin and turn Uganda into a significant oil producing nation.

Berkeley Mineral Resources Plc (BMR) provided an update on progress following the granting of an option to secure the rights to process the entirety of the remaining stockpiles of lead and zinc tailings at Kabwe Mine, Zambia. In order to ensure that verification is completed swiftly, BMR has appointed international mining project management company Turner and Townsend to oversee the process. Legal due diligence is proceeding well following the appointment of a leading Lusaka-based law firm to work alongside BMR's UK lawyers. As well as reviewing the transfer of existing licence and property rights, the Company is forming a Zambian-registered subsidiary to carry out operations in the country.

African Aura Mining Inc (AAAM) announced that a first phase 4,200m initial resource definition drilling programme commenced on 25th July 2010 at the Company's 100% owned Nkout iron ore project in southern Cameroon. Highlights include; Initial 10 hole 4,200m resource drill programme underway at Nkout in Cameroon, Nkout is defined by an 8km long geophysical target that is co-incident with a range of hills, a further 12km of iron ore targets have been identified around Nkout based on the recently completed geophysical survey, previous grab sampling at Nkout has returned up to 68% Fe and averaged 55% Fe, Nkout deposit is strategically well located in an emerging iron ore province

Horizonte Minerals Plc (HZM) announce that it has entered into an agreement with leading Canadian mining company Teck Resources Limited ("Teck") for the purchase of its advanced Araguaia nickel project located in the Carajás mineral district of northern Brazil. The purchase is conditional, amongst other things, on shareholder approval.

Salamander Energy features in Fox-Davies Capital newsflash

Fri, 23 Jul 2010 08:25:00 +0100

Salamander Energy Plc (SMDR) announces that it has plugged and abandoned the Tom Hum Xanh-1X ("31-THX-1X") exploration well in Block 31, in the Vinh Chau Graben system, offshore southern Vietnam. The 31-THX-1X well has been drilled to a total true vertical depth subsea of 2,103 metres without encountering significant hydrocarbons in the target reservoir sections. Following the completion of wire-line logging operations, the well has been plugged and abandoned as a dry hole and the rig is currently being towed off location. Salamander entered into a farm out agreement with Origin Energy, announced in December 2009, which resulted in the Company retaining an operated 35% interest in the Block 31 PSC.

Victoria Oil & Gas, Faroe Petroleum, Randgold Resources, Antofagasta, Goldplat and others feature in Fox-Davies Capital newsflash

Thu, 22 Jul 2010 08:27:00 +0100

Faroe Petroleum (FPM) announced an oil discovery in well 6406/3-8 T2 on the Maria prospect (Faroe 30%). The Maria prospect (Blocks 6407/1 & 6406/3) is situated on the Halten Terrace, between Smørbukk Sør (3 km to the northwest) and the Trestakk oil discovery (5 km to the south) and the Tyrihans gas field (6 km to the south east). Maria consists of two segments, Maria South and Maria North, located respectively up dip to the south west and north east of the 6406/3-5 well (drilled in 1988). The Maria well 6406/3-8 T2 has been drilled on the Maria South segment and is the first exploration well to be drilled on licence 475BS, which was awarded in the APA 2008 licensing round. The well was drilled to a vertical depth of 4,216m in the lower Jurassic Tilje formation. The well proved oil in the main target Garn formation in Jurassi c sandstones. Preliminary log analysis indicates a thicker than expected gross oil column of 210 ft (64m) in a better than expected reservoir with excellent properties and a high net to gross ratio. Initial analysis indicates that the Maria oil has properties similar to the oil in the nearby Trestakk discovery, at around 40 degrees API. The preliminary analysis indicates volumes in place (STOIIP) of between 250 and 520 mmboe with recoverable volumes currently estimated at between 75 and 155 mmboe of oil and associated gas. Extensive data collection and sampling programmes have been undertaken, including logging, fluid sampling and several mini drill stem tests. The current equity holders in the licence are Wintershall Norge ASA 25%(operator), Concedo ASA 10%, Spring Energy Norway AS 15%, Centrica Resources (Norge) 20%, and Faroe Petroleum Norge AS with the largest equity stake at 30%. The drilling operation was undertaken by Wintershall as operator using the Songa Delta drilling rig in water depth of 303m. The well is now being plugged and abandoned.

Victoria Oil & Gas (VOG) provided a quarterly update to shareholders. Of particular note was that the La-106 well in Cameroon is currently being flared ahead of testing and that the company is still on schedule for first gas sales by year end. 2 wells have now been successfully drilled and completed and have more than enough production capacity to supply the base case scenario. The company also announced that the necessary capital expenditure to take the project into production has been significantly reduced, with estimates declining to $7M from an original $30M. Further cause for optimism was news that a gas marketing study undertaken by the Company has suggested a significantly larger market than originally estimated. With a reserves upgrade planned for Q3 2010 and progress being made on the award of the Exploitation License.

Randgold Resources (RSS) announced that construction of the Kibali project is being targeted to start in mid 2011, six months earlier than originally anticipated. The earlier start-up target date was attributable to the encouraging progress that had been made on the pre-development programmes as well as the active cooperation of the local community and the government of the Democratic Republic of Congo, which holds a 10% stake in the project through the parastatal OKIMO.

Comment: This is very positive news for Randgold, and we will incorporate it into our earnings estimates and target price when the quarterly production figures are released on Thursday 5th August.

Antofagasta Plc (ANTO) announced it had signed a legally binding Heads of Agreement with Duluth Metals Limited, a company listed on the Toronto Stock Exchange, to become an initial 40% partner in Duluth’s Nokomis copper-nickel-platinum group metal deposit, located in north-eastern Minnesota, USA, with the option to acquire an additional 25% interest under certain conditions. This transaction closed today with the signing of a definitive Participation and Limited Liability Company Agreement and the establishment of the project company, Twin Metals Minnesota LLC. Following the closing of this transaction, and subject to all applicable government and regulatory approvals, Antofagasta will acquire a 40% stake in the project company by providing US$130M of funding over a 3 year period. Antofagasta will also have an election to maintain a n option to acquire an additional 25% of the project company (to own in aggregate 65%) upon completion of a bankable feasibility study. This option will become exercisable and payable upon receipt of required project development permits at the then net present value of Nokomis, as determined by the bankable feasibility study. Antofagasta has also agreed to provide up to US$30M in additional funding to cover the subsequent expenditures of Duluth following satisfaction of the initial US$130M funding commitment and Antofagasta’s election to proceed with further funding. Such additional funds will ultimately be repayable by Duluth in cash, Duluth shares or by way of an offset against the 25% option exercise price.

Comment: This is as expected and does not impact on our forecast.

African Consolidated Minerals Plc (AFCR) announced that it has achieved the 1 million ounce JORC compliant gold resource milestone following the publication of a maiden JORC Resource at the Blue Rock gold project, located in the Gadzema greenstone belt near Chegutu, 100km southwest of Harare. The JORC resource at Blue Rock totals 8.5 million tonnes @ 1 g/t for 270,000 oz, using a cutoff grade of 0.6 g/t. ACR's total JORC compliant gold resources at its Pickstone-Peerless, Giant and Blue Rock projects now 1,085,000 ounces.

Goldplat Plc (GDP) announced that the Commissioner of Mines and Geology in Kenya, has confirmed that all the relevant documentation required for a Mining Lease to be granted for the Company's operations at the Kilimapesa Hill gold mining project has been approved. The only outstanding requirement is the formality of the issuance of a Mining Right number from the Director of Survey. The Commissioner of Mines and Geology has committed to giving the necessary assistance to Kilimapesa Gold (Pty) Limited, in order to be able to fast-track the Mining Lease issue. The Commissioner stated that, "the Kenyan Government is very positive about the granting of the Mining Lease to Kilimapesa Gold and views this as the start of a new era for the gold mining industry in Kenya."

Karelian Diamond Resources Plc (KDR) announced that it has concluded a Confidentiality Agreement (with Back in Rights) with Rio Tinto Mining and Exploration Limited. Under the agreement, Rio Tinto will disclose to Karelian confidential information and physical geological samples relating to exploration in Finland for the purpose of Karelian considering that information in relation to Karelian's potential and existing exploration programmes in Finland.

Dominion Petroleum, New World Resources, Circle Oil, Metminco and Jubilee Platinum feature in Fox-Davies Petroleum Newsflash

Wed, 21 Jul 2010 08:18:00 +0100

Dominion Petroleum Ltd (DPL) reported that the Ngaji-1 well was drilled to total depth (TD) at 1765m; the results were inconclusive as it did not identify any significant hydrocarbons. The well, the first ever drilled in the Lake Edward Graben, was designed to test the geology of the basin and will see a full suite of logging, coring and a vertical seismic profile will be acquired. These results will support the layout and design of the 2D seismic program later this year and subsequent exploration drilling next year. Furthermore, the Ngaji-1 well may be suspended to provide for possible deviated drilling under Lake Edward next year to test a lead down-dip of the current location.

Circle Oil Plc (COP) announced that the Al-Amir SE-6 appraisal well has been successfully drilled and production tested in the Al-Amir Development Lease in the onshore North West Gemsa Concession ("NW Gemsa") in Egypt. Circle confirmed that the Kareem Shagar Formation Sandstones under test flowed 42˚ API oil at a sustained average rate of 4,626 bopd and 3.91 MMscfd of gas using a 48/64" choke from the upper of the two identified pay zones. The well, which is the fifth appraisal well to be drilled in the Al-Amir SE discovery area, was shut in for a pressure build up and later placed on stream at an initial rate of 1,106 bopd using a 16/64" choke. Log result interpretations indicate that the total net thickness of the tested pay zone is approximately 30 feet in the interval 9,806 feet to 9,836 feet measured depth. The NW G emsa concession, containing the Al-Amir and Geyad Development Leases, covering an area of over 260 square kilometres, lies about 300 kilometres southeast of Cairo in a partially unexplored area of the Gulf of Suez Basin. The concession agreement includes the right of conversion to a production licence of 20 years, plus extensions, in the event of commercial discoveries. NW Gemsa partners include: Vegas Oil and Gas (50% interest and operator); Circle Oil Plc (40% interest); and Sea Dragon Energy (10% interest). The Al-Ola X-1 well spudded on 15 July and, as at 20 July 2010, was drilling ahead at 1,542 feet. This well is being drilled outside of the southern boundary of the Al-Amir SE Development Lease and is intended to capture a southern extension to the Al-Amir SE oil field. With the placement of the Al-Amir SE-6 well on stream, the NW Gemsa gross production has now reached approximately 9,500 bopd.
Metminco Ltd (MNC) has announced that following phase 2 drilling by Hampton Mining Limited, resources at Hampton’s Los Calatos Project in Peru have increased by approximately 350% to 926 million tonnes, using a cut off grade of 0.2% Cu. Metminco has a 69.4% interest in Hampton. In the phase 2 drilling campaign at Los Calatos Hampton drilled 10 core holes totaling 9,516m from November 2009 to March 2010, supplementing 13 cored holes previously drilled by Hampton (phase 1, totaling 6,387m), and 39 cored and reverse circulation holes drilled previously by Phelps Dodge and Barrick. Total metres drilled on the Los Calatos Project to June 2010 are 21,261m, of which 20,393m was considered in the revised June 2010 resource estimate. There are 111.2Mt grading 0.39% copper in the Indicated category and 814.9Mt grading 0.37% copper in the i nferred category.

Jubilee Platinum Plc (JLP) announced an update regarding progress of the planned development of its first fully commercial ConRoast DC arc furnace. The Company is also pleased to provide interim results of pilot scale refining trials using the Chemical Vapour Metal Refining Inc. (carbonylation) process for the recovery of platinum group metals and base metals (nickel, iron and cobalt) from ConRoast iron-rich alloy. Engineering and design study fast-tracked for the installation of the Company's first commercial ConRoast DC arc furnace utilising existing infrastructure and equipment at the newly acquired Middleburg processing facility. Four-phase feasibility study commissioned for the refining of metals in ConRoast PGM alloy using the CVMR process. Phase 1 - pilot scale CVMR process trials achieved exceptional results in the extrac tion of base metals: 99.5% of nickel and 95.6% of iron from ConRoast alloy as separate potentially premium grade nickel and iron products and a high grade PGM residue; and Phase 2 commenced comprising additional refining testwork and preparation of feasibility study documents.

New World Resources N.V (NWR) announced that it has reached agreements with its customers for coking coal and coke sales for the third calendar quarter of 2010. Quarterly priced coking coal, which represents 20% of the total expected sales volume for 2010, amounts to approximately 300kt for delivery in the third calendar quarter of 2010 and comprises mostly semi-soft coking coal. The average price agreed for these deliveries was EUR 158/t, 17% higher than the average price for the second calendar quarter of 2010. The average price agreed for coke sales during the third calendar quarter of 2010 was EUR 362/t, an increase of 42% compared to second calendar quarter prices and 143% higher than the 2009 average price. The expected sales volume for the period is approximately 250kt.

Xcite Energy, Petroceltic International, Dragon Oil, African Aura Mining, Salamander Energy and others feature in Fox-Davies Capital newsflash

Tue, 20 Jul 2010 08:17:00 +0100

Salamander Energy Plc (SMDR) announced that its subsidiary, Salamander Bualuang, has reached agreement with SOCO International to purchase SOCO Thailand, LLC. SOCO Thailand, LLC owns SOCO Thailand, which holds a 40% interest in the B8/38 licence in the Gulf of Thailand. Salamander currently owns 60% of the B8/38 licence, which contains the Bualuang oil field, and is the operator of the field. As of 31 December 2009, the estimated gross proved and probable reserves in the Bualuang oil field amounted to approximately 22.5 million barrels of oil (MMbo). Three horizontal development wells were completed in H1 2010, and the field is forecast to produce approximately 8,500 barrels of oil per day (bopd) on average in 2010, in line with expectations. The transaction has an effective date of 1 January 2010. The co nsideration for the acquisition is US$105 million in cash, less a working capital adjustment for the period from the effective date to closing and certain other effective date adjustments. In addition, a $1 million contingent cash payment will be made upon production of a million barrels of oil from any new discovery made within the B8/38 licence area, and located five kilometres or more from the existing Bualuang oil field. The transaction is scheduled to complete during August 2010. For the 12 months ended 31 December 2009, on an IFRS basis, SOCO Thailand generated revenues of approximately US$62 million and profit before taxation of approximately US$39 million. Gross assets of SOCO Thailand, as at 31 December 2009, were approximately US$40 million.

Soco International Plc (SIA) announced that it has entered into a conditional sale and purchase agreement for the sale of its wholly owned subsidiary SOCO Thailand LLC ("SOCO Thailand") to Salamander Energy plc ("Salamander Energy") for an initial value of US$105 million (subject to certain financial adjustments), plus contingent cash consideration of US$1 million (the "Disposal"). SOCO Thailand is a 99.9993 per cent. shareholder of SOCO Exploration (Thailand) Co Limited ("SOCO Exploration Thailand"), the entity that holds the Group's interest in the Bualuang Field, offshore of Thailand. SOCO has a track record of realising value at the appropriate stage of an asset's life-cycle and re-investing the capital to build significant shareholder value. The Board believes that the Disposal now is in the best long-term interests of the Group and represents an excellent opportunity to realise value for the Group. Th e significant proceeds from the Disposal will strengthen the Group's balance sheet and provide funding for existing exploration and development opportunities and for future opportunities that may arise.

Xcite Energy (XEL) announced that Xcite Energy Resources Limited ("XER") has entered into a binding contract for the Ocean Nomad semi-submersible rig to drill the 9/3b-R well on the Bentley field. With an expected spud date around the middle of September subject to the current rig programme, this will enable XER to complete the intended 9/3b-R well programme as planned in 2010.

Petroceltic International Plc (PCI) announced the commencement of drilling operations for the exploration well Oryx-1 on the Ksar Hadada Permit in Tunisia. Petroceltic holds a 27.03% interest and is the operator of the permit which covers an area of 5,608 square kilometres. The Oryx-1 well is the first of a two well drilling programme that forms part of the work programme agreed when PetroAsian Energy Holdings Limited farmed into the permit. PetroAsian is committed to finance all of the joint venture's work commitments in the current programme, including the drilling of the two wells, up to US$14.5 million. The well is being drilled into an Ordovician Bir Ben Tartar Formation oil target and is planned to reach a vertical target depth of a minimum of 1,165 metres. It is envisaged that the Oryx-1 well will take approximately three weeks to drill at a dry hole cost of approximately US$ 4.35 million. Independent exper t assessment by Blackwatch Petroleum Services Ltd., estimates that the most likely (P50) prospective resources in the Oryx target of 25MMbbls oil, with a 34% chance of success to the exploration well. On completion of the Oryx-1 well, the rig will be moved to the site for the Sidi Toui-4 well to drill the second well in the current programme. They have also announced that due to continued uncertainty regarding the application of the proposed decree to restrict drilling in the Italian seas, Petroceltic Italia S.r.l. has lodged an application with the Ministry of Economic Development, to suspend the current timing of the delivery of the Company's commitments on the B.R268.RG permit ("the Permit"). The Company has taken this decision as under the existing terms of the Permit and Petroceltic's Farm-in Agreement with Vega Oil S.p.A. (a subsidiary of Cygam Energy Inc.), Petroceltic is required to spud the Elsa-2 well prior to 31 October 2010. Given the continued legislative uncertainty, the Company cannot commit at present to a timetable to procure long lead items and to conclude the rig negotiations that would enable a pre-31 October 2010 spud date. The proposed legislative changes, which have not yet been published, would prohibit drilling in Italian seas within 5 nautical miles of the coastline and within 12 nautical miles around the perimeter of protected Marine Parks. Petroceltic was scheduled to spud the Elsa 2 well in Q4 2010 in a location on the Permit that is likely to be affected by the proposed restrictions. The Company has applied to have the suspension of the Permit back dated to April 16th 2010, which is the date on which the last official correspondence on the Environmental application took place. The permit will remain suspended until such time as the Ministry of Environment issue the decree of environmental compatibility for Petroceltic's drilling program. Once this environmental approval has been received the Compa ny will have sufficient time remaining on the Permit to drill the Elsa-2 well. Petroceltic intends to continue with the existing environmental permitting process, which is at an advanced stage whilst the implications of the proposed changes to legislation are assessed. The Elsa field was discovered in 1992 by AGIP with the drilling of the Elsa-1 well, which encountered an oil column of 65 meters in the Lower Cretaceous Maiolica Formation at a depth of approximately 4,500 meters. A TRACS Competent Person's Report on the Elsa field published in March 2010 estimated the most likely recoverable oil reserves to be in the region of 100 MMbbl, depending on oil gravity and viscosity.

Dragon Oil Plc (DGO) announced the completion and initial testing of both the Dzheitune (Lam) 13/144 and 28/146 development wells together with the sidetrack of the Dzheitune (Lam) A/129 well. Dzheitune (Lam) 13/144which was drilled to a depth of 3,434metres on a single completion basis by Rig 40,tested at an initial rate of 1,809 bopd. Rig 40 will now be cold-stacked on the Dzheitune (Lam) 13 platform and may be used for some additional workovers in future years. Dzheitune (Lam) 28/146 which was drilled to a depth of 3,200metres on a single completion basis by the NIS rig, tested at an initial rate of 2,311 bopd. This represents the first in a series of development wells to be drilled by the NIS rig from the Dzheitune (Lam) 28 platform. The NIS rig has now skidded to the next slot on the Dzheitune (Lam) 28 platform and has spudded the Dzheitune (Lam) 28/147 well. The Iran Khazar rig has complet ed a sidetrack of the Dzheitune (Lam) A/129 well which was drilled to a depth of 1,815 metres on a single completion basis and has yielded incremental production of 1,140 bopd. This completes the planned workover programme for 2010. The Iran Khazar rig has since moved to the Dzheitune (Lam) B platform where it is planned to spud the Dzheitune (Lam) B/148 well, after first undergoing routine maintenance.

Independent Resources Plc (IRG) announced that exploration well Oryx-1 was spudded yesterday, 19 July 2010. The Oryx-1 well is situated on the Ksar Hadada Permit (the "Permit") lying onshore Tunisia which covers an area of 5,608 square kilometres. The Company holds an 18.97% Working Interest. The Oryx-1 well is one of a two-well drilling programme that forms part of the work programme that was agreed when PetroAsian Energy Holdings Limited farmed into the Permit. PetroAsian is committed to finance all of the joint venture's work commitments in the current programme, including the drilling of the two wells, up to US$14.5 million. The well is being drilled into an Ordovician Bir Ben Tartar Formation oil target and is planned to reach a vertical target depth of a minimum of 1165 metres. It is envisaged that the Oryx-1 well will take approximately 19 days to drill,subject to operational requirements, at a dry hole cost of a pproximately US$ 4.35 million. On completion of the Oryx-1 well, the rig will be moved to the site for the Sidi Toui-4 well to drill the second well in the current programme. Further announcements will be made once each drilling programme is completed. Independent assessments of gross prospective contingent resources and chances of success for the 2010 drilling targets on the Permit have been carried out by Blackwatch Petroleum Services Ltd on behalf of PetroAsian Energy Holdings Ltd (52.96% Working Interest),

African Aura Mining Inc (AAAM) announced the results of the recently completed airborne geophysical survey undertaken by New Resolution Geophysics across the Company's Nkout, Ngoa and Akom iron ore projects in southern Cameroon. Nkout defined by a major geophysical anomaly covering at least 8km of strike length with a further 12km of targets generated around Nkout, considered to be moderately magnetic. Previous grab sampling at Nkout returned up to 68% Fe and averaged 55% Fe. A phase one 4,200m 10 hole drilling programme is to commence imminently. The Nkout deposit is strategically well located in an emerging iron ore province containing the 2.5Bt Mbalam iron ore deposit (located 150km to the south east) and close to the proposed rail route to a port which will service the Mbalam d eposit.

Connemara Mining Company Plc (CON) announced that drilling at Stonepark North has now defined a flat-lying zone of zinc-lead mineralization with a strike length of at least 650m in a north-south direction and around 100 to 150m wide. The zone is located approximately 2 km north of the original Stonepark discovery and appears to represent the shallower, up-dip portion of a larger mineralizing system. The zone is still open to the north and south. Hole 55 intersected a 4.9m zone of massive sulphides grading 10.57% zinc and 3.05 % lead from 195m depth, including a 2.75m zone at 16.47% zinc and 5.26% lead. Hole 55 is located approximately 150m northwest of hole 45 which intersected 7.5m at 19.2% zinc and 8.5% lead from 209m.

Namawaka Diamonds Limited (NAD) announced that the Lesotho project is on schedule for pre-production in January 2011; commercial production in September 2011. Valuations and grade from early stage metallurgical test-work is in line with management expectations. A significant proportion of top white gem and commercial white clean goods, with several fancy colours, Type II A D flawless diamonds and the largest diamond recovered to date, >16cts. In South Africa, in the North-West province, production for the four months to 30 June 2010 was 13,329cts and the ramp up of the large scale DMS plant is now complete. Demand for rough goods remains strong and the upward price trend in polished continues. Industry fundamentals positive despite macro-economic uncertainties in the USA and China.

Gulf Keystone Petroleum, Forte Energy, Highland Gold Mining, Max Petroleum, Obtala Resources and others feature in Foc-Davies Capital Newsflash

Mon, 19 Jul 2010 08:27:00 +0100

Max Petroleum (MXP) announced today that it has received a letter from the Ministry of Oil and Gas of the Republic of Kazakhstan ("MOG") notifying the Company of the termination of its subsoil use licence for the Astrakhanskiy Block in Western Kazakhstan (the "Astrakhanskiy Licence") due to the Company's failure to comply with the work obligations stipulated under the Licence. The letter does not affect the Company's principal asset, the Blocks A&E licence area. The Company believes the MOG's position reflects a broader policy change regarding the treatment of subsoil use licences behind in their work obligations. The Company had already decided not to drill an exploration well on the block without a partner and has obtained assurances from its senior lender, Macquarie Bank Limited, and the holders of greater than 8 5% of its convertible bond holders that a termination of the Astrakhanskiy Licence would not constitute an event of default under the Company's outstanding debt agreements.

Gulf Keystone Petroleum (GKP) announced the arrival of the initial loads of production facility equipment to the Shaikan field location and the commencement of the rig move by the AOS Discover-1 drilling rig to the Sheikh Adi-1 exploration well site. The first pre-packaged production equipment units have arrived at the production facility construction site near the Shaikan-1 well location. This equipment together with the oil storage tanks and truck loading facility will form the basis of an 18,000 bopd capacity oil production treating and truck loading facility. This facility will be used during the long term production testing of the Sargelu (upper Jurassic) oil reservoir in the Shaikan-1 discovery well (reference 12 July 2010 announcement with respect to workover rig operations). Production testing will last for at least 18 to 24 months and accumulate valuable data related to reservoir characteristics and oil recovery factors. The test volumes (estimated at 8,000 to 10,000 bopd) will generate Gulf Keystone's first oil production revenue in Kurdistan. In addition, the AOS Discoverer-1 drilling rig has arrived at the Sheikh Adi-1 well site and rig up is 10% complete. This well will be Gulf Keystone's first exploration well on the Sheikh Adi block in which the Company has an 80% working interest. The well is planned to spud in August and will target the Cretaceous, Jurassic and Triassic formations. Planned total depth, depending on well results, is 3,850 meters and drilling is expected to take 6 months. The Company's estimated oil-in-place resource potential for the Sheikh Adi structure is in excess of one billion barrels.

Forte Energy NL (FTE) reported a maiden JORC Code compliant mineral resource estimate for its 100%-owned Bir En Nar Uranium Project, located in Mauritania, West Africa. The resource, which was independently estimated and verified by Coffey Mining Pty Ltd, comprises an Indicated and Inferred Resource of 1.33Mt grading 704ppm U3O8 for 2 million pounds of contained U3O8 (using a 100ppm U3O8 cut-off). This is the Company's first JORC resource in Mauritania and complements the initial JORC resource inventory of 17.7Mt @ 296ppm U3O8 (11.6 million pounds of contained U3O8) announced last year for its Firawa Uranium Project in the Republic of Guinea. Key fea tures of the Bir En Nar resource are its exceptional grade and the fact that it remains open in several areas,with potential to expand relatively quickly with additional drilling.

Obtala Resources (OBT) provided an update on its alluvial diamond mining operation at Konoma, Sierra Leone. The mining licences are held by the 100% owned Obtala subsidiary, Sierra Leone Hard Rock Limited ("SLHR"). The Company has recovered a 23.30 carat and 11.92 carat "special" stone from its Bakidu operation in Sierra Leone. In addition to this special stone (defined as being greater than 10.8 carats), six stones of 5.15, 5.16, 5.75, 7.60, 8.86 and 9.05 carats have been recovered. Over the past two months, Obtala has been evaluating a change in the current mining strategy, adopted from previous workers. Historically most of the production was processed through the main 2Mtpa DMS plant located at Konoma. It is the Company's intention to revise this strategy in an attempt to reduce operating costs and improve overall production rates, by using a number of lower-cost mobile DMS plants which will be strategically located along the Bafi River. These smaller units will allow for focused, localised mining with reduced haulage distances and operating costs. Obtala is currently operating a 5tph DMS at the Bakidu site, some 15km east of the Konoma main plant. Historic bulk sampling at Bakidu identified a mineralised palaeo-channel with results indicating that grades of 0.17ct/m3 are achievable, with the current work by Obtala confirming this grade estimate. Obtala has recovered 963.95 carats from 8,336 tonnes of gravel processed at Bakidu, with an average stone size of 0.73 carat per stone. Geological continuity of this channel is possible and represents upside potential for the project. Additional exploration for such palaeo-channels will offer further upside potential and be will locations where the mobile DMS plants will operate in the future. Additional capital equipment has been purchased with an exc avator expected to arrive in-country in late August and an additional excavator expected in late November of this year. Diamonds recovered from the gravels treated are reported at over 95% gem quality.

Altona Energy Plc (ANR) announced an update on the Arckaringa Unincorporated Evaluation Joint Venture ('the JV') with CNOOC NEIA, a subsidiary of CNOOC, one of China's major oil companies. The Company has successfully completed the extension and transfer of interests in the Exploration Licences ('EL's) central to the JV and confirms that the appointment of the Study Engineer selected by Altona is currently pending the completion of CNOOC-NEI approval processes.

Highland Gold Mining Ltd (HGM) announced that the Company has acquired a licence for exploration and mining rights for an area of 33 km sq surrounding the Company's Belaya Gora deposit in the Khabarovsk Region. The acquisition was made in an open auction on July 15 in Khabarovsk for a bid price of 5.520 million roubles (US$ 180,752). The Belaya Gora Flanks (BGF) license covers an area which encapsulates the Belaya Gora deposit and represents excellent near-mine exploration potential for planned operations there. This acquisition underlines the Company's commitment to the development of the Belaya Gora mine and has the potential to increase the resource base at Belaya Gora. The mine is currently undergoing a JORC compliant resource audit of the GKZ-registered C1+C2 reserve of 820,000 oz contained in 7.3 million tonnes of ore wit h an average grade of 3.5 g/t of gold. The Belaya Gora development project remains on track to deliver ore to the MNV processing plant during H2 2010 with 100,000 tonnes of high grade ore being trucked to MNV contributing approximately 15 000 oz of gold to the Company's planned annual production in 2010. The BGF licence area was partially explored in the past and historical data notes a reported prognostic resource estimate of 200,000 oz of gold. The area hosts several known prospects with linear zones of vein-type and stockwork gold mineralisation with reported grades ranging between 1g/t and 3g/t and noted highlights up to 20 g/t. In addition the BGF licence covers a number of underexplored hydrothermally altered intrusives potentially hosting similar gold mineralisation as at Belaya Gora representing primary exploration targets. Licence terms for the BGF property include exploration and development for a total licence period of 20 years. A multi-discipli nary exploration programme is being designed which will include trenching and drilling programmes for verifying and expanding the known mineralised prospects as well as testing of unexplored areas. The Belaya Gora Flanks together with the resource potential from the neighbouring Blagodatnoye and Iska properties will further contribute to the development of the Company's strategic hub in the Khabarovsk region.

Beacon Hill Resources (BHR) announced that it has entered into an agreement with Consolidated Minerals Pte Limited ('Consolidated Minerals') and Global Coke Limited ('Global Coke') for a strategic US$55m investment into BHR Mining Limited ('BHR Mining'), to rapidly advance the development at its Minas Moatize coal mine in the Tete Province of Mozambique ('the Mine'). The investment is also accompanied by an intention to enter into a mine gate off-take agreement to purchase all of the coking coal produced during the mine life of the Minas Moatize coal mine. Beacon Hill and BHR Mining have entered into a subscription agreement ('the Agreement') with Consolidated Minerals, Global Coke and Global Minerals and Metals Pte Limited ('GMM'), a subsidiary of Global Coke, pursuant to which GMM has agreed to subscribe for 26% of BHR Mining for a ca sh consideration, subject to a minimum of US$55 million, equal to 26% of the net present value of the Mine to be determined by an expert. Pursuant to the Agreement, the subscription will take place no later than 9 September 2010. GMM's subscription is unconditional, save that it has a right to terminate prior to completion if it discovers an undisclosed matter which is materially prejudicial in a fundamental respect to the Mine. The parties intend to enter into a shareholders' agreement in relation to BHR Mining prior to the completion of the subscription. Beacon Hill currently owns 49% of BHR Mining and has an option over shares held by Consolidated Minerals, enabling it to increase its holding to 75% of BHR Mining for nominal value. Beacon Hill has undertaken to Consolidated Minerals not to exercise its option prior to completion of GMM's subscription and then only to the extent necessary to give it a holding of 50% of BHR Mining. Pursuant to the Ag reement, the parties have agreed to use reasonable endeavours to agree a long term off-take agreement between BHR Mining and Global Coke, for the life of the Mine and in respect of the coking coal production from the Mine. It is envisaged that Global Coke will take delivery of the coking coal at the site of the Mine's wash plant, thereby limiting the logistical risks for BHR Mining. The off-take price for the coking coal will be determined based on generally accepted international benchmarking price, allowing for delivery at the Mine gate as opposed to at a port.

Petro Matad, Max Petroleum, Geopark Holdings, Dana Petroleum, Empyrean Energy and others feature in Fox-Davies Capital newsflash

Fri, 16 Jul 2010 08:29:00 +0100

Max Petroleum Plc (MXP) announced that it has commenced drilling the ZMA-A15 development well in the Zhana Makat Field. The well's primary target is the J-IIb Jurassic reservoir at a depth of approximately 830m, with a secondary exploratory objective in the Triassic formation below 1,300m.

Comment: The drilling of a new development well on Zhana Makat should enable the Company to increase production and cash flows going forward. This is an aside to the more important exploration drilling programme that the Company is pursuing and also to the farm-out negotiations underway for the pre-salt play.

Petro Matad Ltd (MATD) announced that the Davsan Tolgoi-1 ("DT-1") exploration well reached a final measured depth of 1,220m on 14 July 2010. The well passed through the Tsagaantsav formation from 1,075m to 1,146m, then entered metamorphic basement. The entire 71m section of the Tsagaantsav formation contained oil shows and elevated mud gas, with indications of live oil through six sandstone and conglomerate units totalling about 35m in aggregate. Several of these intervals included very good shows that included cut, fluorescence, oil staining and a strong petroliferous odour. Good reservoir quality is indicated by fast drilling breaks through all sandstone and conglomerate intervals. The lower Tsagaantsav formation was encountered about 150m high to the 3D seismic prognosis, with about half of the anticipated lower Tsaga antsav thickness. The 13 July 2010 operational update by the Company initially reported the uppermost oil shows were within the lower Zuunbayan formation, however these intervals consist of volcaniclastic sandstone and conglomerates that are characteristic of Tsagaantsav reservoirs. The 3D seismic prognosis has been re-interpreted utilising the actual downhole observations. This corroborates that the well drilled the structural crest of the local four-way closure, with progressively thickening lower Tsagaantsav sandstones eastwards from the well. Wireline logging will be carried out on the DT-1 well and following completion of that process the drill will move to DT-2. Subject to Board consideration and approval, DT-2 is to be a 2,000m test of the lower Tsagaantsav that is located 4 km west of DT-1 within an independent structural closure, and adjacent to the Tamsag Basin generative area. A further statement will be made by the Company in due course. The discovery de-risks other leads and prospects on Block XX, and also the other 6 sub-basins in Block XX that are still to be explored and tested.

Melrose Resources Plc (MRS) announced the appointment of Collins Stewart as the Company's broker with immediate effect. Collins Stewart will work alongside Brewin Dolphin in a joint brokership capacity.

Geopark Holdings Ltd (GPK) was notified on 15 July 2010 that Juan Cristobal Pavez, Non Executive Director of the Company, purchased 963,000 ordinary shares in the Company at a price of 570p. His new shareholding amounts to 2,030,835 ordinary shares representing some 4.87% of the total shares outstanding of the Company.

Rockhopper Exploration Plc (RKH) announced that, following a five yearly review of the external audit function, they issued an invitation to tender to both their existing auditor and a number of new auditors. Following meetings with each of the candidates, the Company has appointed KPMG Audit Plc as the auditor to the Company and its subsidiaries with immediate effect. Baker Tilly UK Audit LLP has resigned as the Company's auditor and has confirmed to the Company that there are no circumstances in connection with its resignation which it considers need to be brought to the attention of the Company's shareholders or creditors.

Dana Petroleum Plc (DNX) provided an update on its exploration programme and drilling activities. On 14 July 2010, Dana announced its successful appraisal well at the Blackbird oil field in the UK Central North Sea. This well will be completed and flow tested shortly, and is the first of 10 exploration and appraisal wells Dana has scheduled for the second half of 2010. In addition to Blackbird, Dana has now spudded a well targeting the Nefertiti oil prospect offshore the Gulf of Suez, Egypt. Nefertiti is in the South October concession and the reserves being targeted, based on 3D seismic mapping, are up to 40MMbbl of oil (Dana's stake is 65%). Two additional targets are currently being drilled. These are the Tolmount gas prospect in the UK Southern North Sea (Dana 45% stake) and the Fin oil prospect in Egypt (Dana 100%). Fin is nearb y to Dana's recent oil discovery at Lorcan (Dana 100%), which flowed at equipment restricted rates of up to 4,714 bbl/d of oil. Results from the Fin and Tolmount wells are expected during the next few weeks. In addition, Petro Canada Netherlands BV, which, as announced on 14 June 2010, is being acquired by the Dana Group, is currently drilling the L06-08 exploration prospect offshore in the Dutch sector of the North Sea. Looking ahead to further exploration drilling over the next three months, Dana is pleased to report that the West Phoenix rig has been released from its recent well offshore Norway and will shortly be mobilising for the Anne Marie well in the Faroe Islands. The well is expected to spud within the next two weeks. Dana holds a direct 25% interest in the Anne Marie prospect. In addition, Faroe Petroleum plc ("FP"), in which Dana is the largest shareholder with a 27.5% stake, has a 12.5% interest in Anne Marie. The Anne Marie well follows on from Dana's and FP's recent successes in the UK West of Shetland area, including the two significant discoveries at Tornado and Glenlivet made in the second half of 2009. Anne Marie is one of the largest prospects being drilled by Dana this year with a mapped reserves range of up to 300MMbbl of oil. In addition, the Maersk Deliverer rig has departed from the Far East and is en route to Mauritania to drill the Cormoran prospect. Cormoran is the largest prospect in Dana's 2010 exploration campaign and is in Block 7, near to Dana's existing Pelican discovery. The well is expected to spud around 1 September 2010 and, based on 3D seismic mapping, Cormoran has a target reserves range of 400-780MMboe. Good progress is being made offshore Morocco. Following the discovery of the Anchois gas field, with Dana's first well offshore Morocco in 2009, the joint-venture group, led by Repsol, has recently acquired 1,336 sq km of 3D seismic and has also acquired 3D controlled source electromagnetic surveys (CSEM). These new data sets cover the majority of the significant number of identified prospects and leads within the Tanger-Larache concession and will be used to rank the most attractive prospects for drilling in mid 2011. The 2011 exploration programme currently comprises a firm exploration well plus a contingent exploration well and also a contingent drill stem test on the Anchois-1 well, which was suspended for future use following the 130BCF gas discovery. In West Africa, Dana is now strategically positioned offshore Guinea in a vast offshore PSC spanning over 24,000km2, following recent approval of Dana's entry to this highly prospective area through Presidential Decree. A large 3,500km2 3D seismic survey contract has been awarded to obtain detailed imaging of the multiple prospects which were identified from the existing 2D seismic data. This new 3D survey will commence this month, with processing expected to be completed by year-end allowing target selection for drilling in 2011.

Bankers Petroleum Ltd (BNK) announced that it has closed its previously announced bought deal equity financing with a syndicate of underwriters co-led by Raymond James Ltd. and GMP Securities L.P., and which includes Canaccord Genuity Corp., BMO Nesbitt Burns Inc., Macquarie Capital Markets Canada Ltd., Thomas Weisel Partners Canada Inc., UBS Securities Canada Inc., CIBC World Markets Inc., FirstEnergy Capital Corp., Jennings Capital Inc., Scotia Capital Inc., TD Securities Inc. and Wellington West Capital Markets Inc. pursuant to which the Syndicate purchased 12,903,228 common shares of the Company Cdn$7.75 per Common Share to raise gross proceeds of some Cdn$100m. The Underwriters have been granted an over-allotment option to purchase, on the same terms, up to an additional 1,935,484 Common Shares. This option is exercisable, in whole or i n part, by the underwriters, in their sole discretion, at any time following the closing and before August 15, 2010. Additional gross proceeds of approximately Cdn$15m will be realized, should the over-allotment option be exercised in full. Proceeds of the Offering will be used for Bankers production and development activities at its Patos-Marinza oilfields in Albania and for general corporate purposes. Application has been made for the 12,903,228 Common Shares subject to the Offering, to be admitted to trading on the AIM Market of the London Stock Exchange and admission is expected to occur on July 16, 2010. Subsequent to this transaction, the Company has 243,744,547 Common Shares outstanding, 14,671,614 options to purchase Common Shares and 5,096,399 Common Share purchase warrants.

Empyrean Energy Plc (EME) has been advised by the Operator that the Kowalik-1R well, at the Sugarloaf Project within the Sugarkane Gas & Condensate Field in Texas, was spudded on 9th July 2010 and the well is presently at a depth of 5,996 ft having run and set surface casing. The Kowalik-1R well is the first Sugarloaf well where Empyrean will contribute to costs and derive revenue on a post farmout basis. Because of Empyrean's increased working interest in the original Kowalik well the company will hold a 10.2% working interest in the Kowalik-1R well and as such will pay 10.2% of the costs of the well and derive 10.2% of the net proceeds from any hydrocarbon sales.

Ascent Resources, Stellar Diamonds, EMED Mining, Bowleven, Tullow Oil, Baobab Resources and others feature in Fox-Davies Capital newsflash

Thu, 15 Jul 2010 08:47:00 +0100

Bowleven Plc (BLVN) announced that the IE-3 appraisal well has reached a final depth of 3,048m. The Company has run a suite of wireline logs and has taken samples and pressure data. The information collected indicates that the well has encountered multiple hydrocarbon bearing reservoirs comprising both gas condensate and light oil. The objective of the IE-3 well was to appraise the extent and communication of the upper Isongo reservoir updip of the previous wells drilled on the IE field and also to target additional deeper Isongo reservoirs. The early indications from the well are positive with the gas condensate encountered in the upper Isongo sand objective being in communication with and extending structurally updip of the highest known gas in IE-2z. In addition, logging and sampling of the deeper prognosed secondary object ives have identified further potentially significant multiple stacked reservoirs containing light oil and gas condensate pay. Further detailed analysis, including test data, is now required to fully evaluate the impact on the reserves base and to reduce the remaining risks around the development of the IE field area. The Company is now preparing to conduct a multiple test programme of up to four drill stem tests. Following testing the intention is to move the rig to the MLHP-5 exploration well location (Sapele-1). Further announcements will be made on completion of the full test programme.

Comment: A positive result for IE-3 that could potentially result in an increase of reserves. Importantly the Company is getting closer to spudding the high-impact Sapele-1 exploration well in the MLHP-5 block.

Ascent Resources Plc (AST) through its subsidiary Ascent Resources (Netherlands) BV ('ARN'), has increased its interest in the M10/11 block in the southern North Sea off the Netherlands' coast. Following the transfer of McLaren Resources Inc's 27% interest in the block, ARN now holds a 54% interest in the project. McLaren will receive a 3% net profit interest from ARN on the 27% interest transferred and a one-off payment of $125,000 CDN if the licence extension for drilling is granted. Other partners in the project are EBN with 40% and GTO with 6%. This M10/11 appraisal project is in the shallow waters off the north coast of the Netherlands. The discovery well, M11-1 was drilled by Nederlandse Aardolie Maatschappij ('NAM') in 1985. The area benefits from good quality 3-D seismic coverage and in addition to the discovery in the Rotligendes sandstones, a number of other prospects and leads have been identified. Ascent and the other project partners are considering the drilling of an appraisal well for the Terschelling Noord discovery which was also drilled by NAM in 1992. This structure lies partly within the M10/11 license area and partly to the area to the south.

Comment: A surprising but surely opportunistic move from Ascent on a licence that was widely thought non-core and up for disposal. The Company continues to streamline the portfolio taking advantage of opportunities that arise and overall striking smart deals. We are looking forward to further exploration and appraisal progress in that licence.

Global Energy Development Plc (GED) announced that interim results for the six months ended 30 June 2010 will be published on 16 September 2010 and ahead of these results provided the following update. In line with expectations, the Company's base of production continues to show moderate decline rates with production for the period of 183,660 barrels of oil (net to the Company) against 199,403 barrels for the same period in the prior year. The Tilodiran field within the Colombian Rio Verde contract accounted for over half of the Company's production during the period and it is now the focus of the Company's drilling activity for the next three wells. This represents a modest change to the previously announced Three Year Plan, whereby one Tilodiran well will be substituted for the Rio Verde 3 well in light of the recent Rio Verde 2 well res ult. All other activities detailed in the plan remain unchanged from those previously announced. The impact of the Rio Verde 2 well result on the Company's reserves is estimated at a loss of 0.9MMboe probable reserves (from the Company's total proved plus probable ("2P") reserves of 147.1MMboe) and 3.1MMboe plus possible reserves (from the Company's total proved plus probable plus possible ("3P") reserves of 272.9MMboe). The next well to be drilled in the Plan, the Tilodiran 4 well, is contractually required and classified as a proved undeveloped well. It will be located within the Tilodiran field near to the producing Tilodiran 2 and 3 wells, with the exact location yet to be determined. The Company is currently negotiating the terms of the rig contract for the Tilodiran 4 well, which it expects to sign shortly, with rig mobilisation expected to commence in Autumn 2010, with the well drilled, completed and tested prior to 31 December 2010. The well has a p roposed total depth of approximately 12,500 feet and will target the Gacheta formation (producing in the Tilodiran 2 and 3 wells) and the Ubaque formation (producing in the Tilodiran 3 well). The Company also announces that it has recently agreed a line of credit for US$3.3m with the Colombian arm of an international bank and is able to use this facility at its discretion.

Afren Plc (AFR) announced that terms have been agreed to acquire Energy Equity Resources Oil and Gas's ("EER") residual license interest in OML 115, offshore south east Nigeria, adjacent and on trend with Afren and Oriental's Ebok and Okwok fields. Afren's net license interest in OML 115 increases from 32.5% to 40%, through acquiring EER's outstanding interest. Extensive technical work has been carried out on OML 115, identifying significant additional potential within the D series reservoir intervals. The Ebok Deep exploration well established a working hydrocarbon system and high quality reservoir sands with up dip potential in the Biafra and Isongo intervals that are believed to also extend throughout OML 115 and independently certified mid case prospective resources are 206MMbbl. Afren's commitment is to drill one exploration well on t he block by the end of Q1 2011, with drilling expected in Q4 2010. Afren will pay EER a contribution towards its back costs, to acquire their 7.5% outstanding interest in OML 115.

Tullow Oil Plc (TLW) announced that the Nsoga-5 appraisal well, which is located in the Butiaba region of Uganda Block 2, has successfully encountered 10m of net oil pay. The Nsoga-5 appraisal well was drilled to a total depth of 587m, 2.3 km to the north-east of the Nsoga-1 discovery well, targeting equivalent reservoirs in a previously un-drilled fault block. The successful Nsoga-5 well was the first of a multi-well appraisal programme planned to further evaluate the extent and production potential of oil accumulations in the greater Nsoga area. The well has now been suspended for future re-entry. The OGEC IRI-750 rig will now move 2 km south to the Kigogole field where it will drill the Kigogole-5 appraisal well. Tullow has interests in three licences in the Lake Albert Rift Basin in Uganda. Tullow operates Block 2 with a 100% inte rest and has a 50% interest in Blocks 1 and 3A which are operated by Heritage Oil (50%).

SOCO International Plc (SIA) announced that its subsidiary, SOCO Exploration & Production - DRC SPRL, has entered into a farm-out agreement wherein it has agreed to farm-out a 20% interest in the Nganzi Block, onshore the Democratic Republic of Congo (Kinshasa), to INPEX CORPORATION ("INPEX"). INPEX is a current oil producer in another area of the DRC holding a 32.28% interest in various offshore producing fields and facilities and is one of SOCO's co-venturers in Angola. SOCO E&P DRC will remain as the operator with a 65% working interest in the Block. The remaining 15% interest is held by the national oil company, La Congolaise des Hydrocarbures ("Cohydro"). Per the agreement, INPEX will fund 40% of the cost, with half of the funding obligation subject to certain caps on cost overruns, associated with a three w ell exploration drilling programme. Following the initial three well programme, INPEX will fund its participating interest share of costs associated with the Block. In addition, INPEX will fund its participating interest share of all the historical costs certified as cost recoverable incurred by SOCO E&P DRC on the Nganzi Block. The assignment of interests is subject to approval of the appropriate regulatory authorities of the Government of the Democratic Republic of Congo (Kinshasa). The Nganzi Block covers 800 square kilometres, onshore western DRC. Interpretation of the seismic from a 2008 360km 2D seismic acquisition programme is very encouraging with four large structures identified, three of which will be tested with the initial 2010 drilling programme. Drilling of the first well, the Nganga well on previously designated Prospect "B" in the Block, commenced today. Each well is anticipated to take approximately 40 to 50 days to drill with another two to three weeks added if testing is required. Pre-drill estimates place mean recoverable resources at approximately 200MMbbl of oil per each of the three structures to be drilled.

JKX Oil & Gas Plc (JKX) announced the results of its second well test in the Koshekhablskoye Field, located in the Republic of Adygea, Russia. Well 20 flowed at a stabilised rate of 22.6 MMcfd of gas and an estimated 25 bpd of condensate through a 60/64" choke with a flowing wellhead pressure of 1,510 psi. This result far exceeds the Company's expectations. The first well to be worked over and recompleted in the field, Well-27, was tested in September 2009. The well was under-reamed and an acid stimulation carried out to improve productivity and remove damage to the original borehole. The well subsequently tested at 13 MMcfd on a 36/64" choke, significantly in excess of the rates anticipated at the time of acquisition of the field. Well-20 differs from Well-27 in that the original wellbore was not utilised, but a sidetrack initiated f rom the existing wellbore just above the reservoir section and drilled through the reservoir to a TD of 5,060m. After running a new completion, Well-20 was tested without acid stimulation on a higher choke setting (60/64") than previously used for Well-27. The well rapidly cleaned-up and production recorded at a rate of 22.6 MMcfd, more than five times the maximum rate recorded historically. The well will now be tested under multiple choke sizes, including a 36/64" choke, comparable to that used in the Well-27 test. It is expected that the rate will be well in excess of that recorded for Well-27. This new test result indicates that the use of modern drilling practices and fluids combined with improved completion techniques result in significantly higher well productivities than experienced historically in the Koshekhablskoye field.

Premier Oil Plc (PMO) provided a trading and operations update ahead of its 2010 Interim Results which will be announced on Thursday 26th August 2010. Premier continues to make good progress towards its 75,000boepd production target for 2012 with increasing visibility on longer-term production growth. Major projects are progressing well and the recent Catcher discovery will now move rapidly into development. Following excellent first half exploration success, Management look forward to the Oates and Gajah Laut Utara wells, and follow up drilling on the Catcher block in the near-term.

EMED Mining Public Limited (EMED) announced the commencement of the 2010 exploration drilling program at the Company's 100%-owned Banska Stiavnica and Hodrusa exploration licences in central Slovakia. The drilling programme is designed to test for gold mineralisation at the Bursa, Quartzlager and Mohr Shaft Prospects located to the north and northeast of the small-scale Rozalia Mine, which exploits flat, high-grade, gold-bearing quartz veins using traditional hand-held mining methods.

Aurum Mining Plc (AUR LN) announced a strategic update to the market and to outline the next steps for the Company. On 22nd June 2010 the Company announced that it had entered into a nine month option agreement, with the right for a further six month extension, with Kentor Gold Limited which gave Kentor an option to acquire the Aurum Group's remaining 10% stake in the Andash asset for consideration of US$1.8m. As part of this agreement, Kentor has released Aurum from all the warranties and indemnities that were given to Kentor by Aurum when Aurum disposed of its 80% stake in the Andash asset in December 2009. The release from these potential contingent liabilities is a key step for the Company as it significantly simplifies the Company's balance sheet and it now allows the Company's Board to focus on the next phase of the Compa ny's transformation. Following Shareholder approval of the Company's investing policy in November 2009, the Board commenced a comprehensive exercise to find new projects for the Company and despite the relatively poor market conditions the Board was greatly encouraged by the types of deals and opportunities that were identified. Indeed the Company reached advanced discussions on three separate opportunities and due diligence was undertaken on each of them. The Board felt extremely confident of finding new projects capable of delivering strong Shareholder returns.

Baobab Resources Plc (BAO) announced an update on the scout drilling programme currently underway at the Tete iron/vanadium/titanium project. The first round of scout diamond drilling at the Chimbala prospect has been completed with 24 holes drilled for an aggregate total of 4,950m. The drilling, testing magnetic targets over a 3km2 area, has intersected significant widths of magnetite-ilmenite mineralisation.

Chaarat Gold Holdings Limited (CGH) announced that, further to the announcement made by the Company on 21 June 2010 regarding the acquisition of Kyrex Limited, the Company has received acceptances in respect of the offer from shareholders representing in excess of 75 per cent. of the issued share capital of Kyrex. In accordance with the drag along provisions in the articles of association of Kyrex, Chaarat is now able to acquire the remaining issued and to be issued shares in Kyrex.

Greystar Resources Ltd (GSL) announced an updated metallurgical recovery model (FS Recovery Model) and process flow for the Company's 100% owned Angostura gold-silver deposit located in Colombia's California mining district. The updated model, which will be incorporated into the Feasibility study (FS) scheduled for publication in the second half of 2010, replaces the metallurgical model used in the May, 2009 Preliminary Feasibility study (PFS Recovery Model). Typical oxide recoveries are now 91%, transitional ore around 72% and low grade sulphide recoveries in the +30% range. High grade sulphide, using BIOX gave recoveries between 86 and 94%.

Stellar Diamonds Plc (STEL) announced an operational update at its Mandala mine and Bomboko trial mine in south east Guinea. At the Mandala diamond mine, production for the first six months of 2010 yielded 36,945 carats at an average grade of 32 carats per hundred tonnes. Total production at Mandala since mining commenced in April 2009 has now exceeded 83,000 carats at an average grade of 38cpht with sales returning an average price of $32.7 per carat. The Company is targeting monthly production of 12,000 cts at Mandala as part of its production ramp up, which is now well underway. At Bomboko production from trial mining for the first six months of 2010 has yielded 3,151 carats at an average grade of 4cpht. Total production at Bomboko (including the period before Stellar acquired West African Diamonds plc) has reached 4,54 0 carats at an average grade of 4cpht with sales returning an average price of $116.7 per carat.

Dana Petroleum, Great Eastern Energy, Roxi Petroleum and Minera IRL feature in Fox-Davies Capital newsflash

Wed, 14 Jul 2010 08:02:00 +0100

Dana Petroleum (DNX) announced the successful appraisal of the Blackbird oil field in the UK Central North Sea. The 20/2a-9 well, operated by Nexen, was drilled in a water depth of approximately 367ft to a total measured depth of 12,000ft, targeting a high quality Upper Jurassic oil discovery. The well encountered approximately 330 vertical feet of gross oil bearing section and an extensive set of wireline log data is being acquired over the reservoir section, following drilling and coring. Preliminary log analysis indicates approximately 75ft total thickness of good quality oil bearing reservoir sands. The logs and cores are in the process of being fully analysed. It is planned that the well will next be completed and flow tested. It will then be suspended for future use as an oil producer, through a potential future tie back to the Ettrick FPSO.

Great Eastern Energy (GEEC) announced it has received a letter from the Government of India confirming the award of the Mannargudi Block in the state of Tamil Nadu, Southern India. It is intended that the contract covering this Block will be signed between the Company and the Government of India in the last week of July. The Mannargudi Block covers an area of 691 km² and has been attributed gas in place of 0.98 Tcf by the Directorate General of Hydrocarbons. The royalty payable on gas produced from the Mannargudi Block starts at 35%, increasing to an upper limit of 45% as production increases. Under the conditions for the award of the Block, the Company has committed to drilling 50 core wells and 32 pilot production wells over 5 years after receiving all the approvals.

Roxi Petroleum (RXP) published an operational update. On 31 May 2010 Ravninnoe well 20, drilled in Nov-Dec 2009, was put onto a 90-day production test. Following injectivity tests in June, an acid squeeze across the open perforations was performed, to stimulate the dolomitic section between 3258m and 3288m depth. Despite the acid being successfully pumped, no clear improvement has been observed from production testing to date with rates of approximately 120 barrels of oil per day being produced. Testing will continue through to the end of July, and Ravninnoe Oil LLP has applied to the Kazakh Ministry of Oil and Gas to put the well onto continuous production and further evaluate the reserves on the Ravninnoe field. BNG well 806, on the South Yelemes structure, is due to spud within the next two weeks. This appraisal well is targeted to encount er Jurassic hydrocarbon bearing sands at approximately 2200m depth. It will also core and evaluate a secondary objective in the Lower Cretaceous dolomites. As a result of the information received from well 805 and the resultant re-evaluation of the structure, the bottom hole location of well 806 will be deviated to test the South Yelemes structure at the optimum location. Well 805 testing is scheduled to commence in the second half of July 2010, with a work-over rig currently being mobilised. Two intervals will be tested, the Jurassic sands, and Lower Cretaceous dolomites. Further announcements on wells 805 and 806 will be made in due course. In 2009 approximately 34% of the prospective acreage within the block was covered with 3D seismic and the resulting prospect portfolio, covering the northern area, is currently being audited by RPS in conjunction with partners Canamens Energy Ltd and information will be released to the market at the earliest opportunity. Currently a fur ther 46% is being acquired with the "Central Survey" and the field acquisition is planned to be complete by the end of July 2010 and should be processed by the end of October. The remaining 20% of the acreage will be covered by 3D seismic in the south in 2011.

Minera IRL (MIRL) announced that, pursuant to the Company's Ollachea option agreement with Rio Tinto Mining & Exploration, on 13 July 2010 its subsidiary, Minera Kuri Kullu SA (MKK), completed a payment obligation of $3.8M to Rio Tinto under the Agreement. This is an important step towards acquiring 100% of the Ollachea Gold Project, Peru. The payment to Rio Tinto is based upon US$7 per ounce for 70% of the ounces in excess 500,000 ounces based upon the 1.2Moz of Inferred Resource estimated in the November 2009 Scoping Study. Minera is required to make total option and staged payments of US$6.25 million, of which there are two staged payments remaining totalling US$3.5 million by the end of 2011.

Coastal Energy Co and Range Resources feature in Fox-Davies Capital newsflash

Tue, 13 Jul 2010 08:10:00 +0100

Range Resources Limited (RRL) has entered into a binding Heads of Agreement through SOCA Petroleum to acquire its rights to a 10% percent interest in companies whose wholly owned subsidiaries hold production licences for three blocks in producing onshore oilfields in Trinidad and a major local drilling compa ny. The production acreage and operating wells cover the Morne Diablo, Beach Marcelle and South Quarry oilfields, with the total acreage covering 16,253 gross acres on the southern coast onshore Trinidad. Current production from the fields is 700 bopd, however Range believes a minimal work program could lift production to more than 3,500 bopd within 36 months on the known reserves. In addition to the two subsidiaries holding production licences for the onshore acreage, the proposed Range acquisition also includes a 10% interest in the parent of a wholly owned drilling company located in Trinidad, which owns five onshore drill rigs, three production rigs, one swab rig and a full workshop and pipe yard, storage tanks and facilities. Importantly, Range will be carried through initial development expenditure. The company is planning to use company-owned drilling rigs and equipment and, with cashflow from existing production, is expected to be self-sufficient (other than a significant initial working capital injection of which Range will be carried) in its forward program which aims to increase the production from 700 bopd to 3,500 bopd within 36 months from known reserves without taking into account any exploration upside. In addition to the known reserves significant potential exists in the deeper Herrera Formation which will be a primary target of future drilling using company-owned drilling rigs, which are capable of reaching the depth of these formations. Subject to the successful drill testing of this formation, the Company is ultimately targeting an increase in the production level to between 800-1,000 bopd attributable to Range. Under the terms of the HOA, Range is required to pay US$2m upon execution of definitive agreements and US$2.25m upon formal completion of the acquisition.

Coastal Energy Company (CEO) published an update of its operations in the Gulf of Thailand. The Bua Ban A-01, A-02 and A-05 wells have been completed using electric submersible pumps and tied into production facilities. Combined production from the three wells is averaging 3,000 bopd. The oil being produced is sweet and is 30o API. The Bua Ban A-03 well has reached total depth of 8,650 feet TVD. It was drilled off structure to test the lower limits of the Lower Oligocene oil column. The well encountered 20 feet of net pay in a Lower Oligocene section which is 310 feet below the previous lowest known oil point. Additionally, the well encountered 24 of net pay with 20% average porosity in the higher Miocene section at approximately 3,400 feet TVD. The oil tested from the Miocene formation is sweet and is 34o API. The Company is evaluating the future prospectivity of this play. The Benjarong A-01 and A-02 wells have been completed and flow tested at uncommercial rates. The Company is evaluating the cost and probability of success of fracture stimulation. The four wells at Songkhla A continue to perform in line with modelled rates. Production at Songkhla A is currently averaging between 8,000 - 8,500 bopd. The Company's total offshore production is now approximately 11,000 bopd. Total combined production, including 2,000 boepd from Sinphuhorm, is approximately 13,000 boepd.

Gulfsands Petroleum, Falkland Oil and Gas, Gulf Keystone Petroleum, Resaca Exploitation and Max Petroleum feature in Fox-Davies Capital newsdlash

Mon, 12 Jul 2010 08:36:00 +0100

Gulfsands Petroleum PLC (GPX) announced that ADX Energy Ltd the operator of the Kerkouane Exploration Licence offshore Tunisia has advised of the commencement of drilling operations on the Lambouka-1 well on the Lambouka Prospect in the Sicily Channel. ADX Energy has estimated the mean prospective resource for the Lambouka Prospect at 270MMboe with the primary objectives for the well being the Miocene aged Birsa Formation and the Cretaceous aged Abiod Formation. Drilling of the Lambouka-1 well is being carried out by the Atwood "Southern Cross" semi-subme rsible drilling rig and it is expected to take approximately 35 days to drill and evaluate this well. Gulfsands is acquiring a 30% participating interest in the Kerkouane Licence and the adjacent Pantelleria Permit which lies in the Sicily Channel in Italian waters.

Falkland Oil and Gas Limited (FOGL) confirmed that the Toroa F61/5-1 exploration well has been drilled to a total depth of 2476 metres and logging operations have now been completed. The well did not encounter any reservoired hydrocarbons and will now be plugged and abandoned. Further detailed evaluation of all data and information gained from this well will now be carried out. An update will be provided once this work has been completed.

Resaca Exploitation Inc (RSOX) announced that the board of directors of Resaca is actively involved in ongoing discussions with Cano Petroleum, Inc. regarding alternative financing structures that would permit the consummation of the merger of the two companies. While the Agreement and Plan of Merger previously entered into by Resaca and Cano remains in full force and effect, there can be no assurance that the merger will be consummated upon the same terms as originally agreed by the parties or at all. Resaca will provide a further update on the proposed merger in due course.

Gulf Keystone Petroleum Ltd (GKP) announced the commencement of workover/testing operations on the Shaikan-1 discovery well. The Company will execute the re-testing of Zones 3&2 two high permeability but low energy zone using a 350 hp Electric Submersible Pump as well as complete the well for long term production testing (18 to 24 months) in the original discovery Zone 1, the Sargelu in the Upper Jurassic at depths of 1,450-1,510m. This zone has a higher GOR, in the range of 120 cubic feet of gas per barrel of oil, and demonstrated natural flow rates of almost 7,500 bopd, despite the limitations of the original test equipment. It is the current intention that this production will be processed, through the facilities currently being constructed, and sold. The Company will then drill an appraisal well through the Cretaceous intervals, 50m to the east of the existing Shaikan-1 well. Much of the Cretaceous age interval could not be properly logged and evaluated during the initial drilling of the Shaikan-1 well due to a lack of drilling mud returns. The evaluation of small portions of well logs from the initial drilling would seem to indicate that the Cretaceous intervals may hold significant quantities of recoverable oil. These oil volumes are estimated by Dynamic Global Advisors at more than 700MMbbl of oil-in-place and were not fully taken account of in current resource estimates. Test zone s 4 and 5, which flowed 1,700 bopd and 10,000 boepd respectively, will not be re-entered. The entire workover and drilling program is estimated to take four to five months to complete.

Max Petroleum PLC (MXP) announced the results of its Competent Person's estimate of recoverable prospective resources associated with certain leads and prospects on the Company's Blocks A&E licence areas. Ryder Scott's estimates are based on its independent review of the prospect portfolio developed by the Company using approximately 4,980 km2 of 3D seismic data acquired, processed and interpreted in Blocks A&E. Ryder Scott estimates total risked mean recoverable resources at 1,100MMboe and total unrisked mean recoverable resources at 5,358MMboe within a range of 2,004-8,847MMboe. These include 9 post-salt prospects with unrisked mean recoverable resources of 183MMbo and 14 deep pre-salt prospects and leads with unrisked mean recoverable resources of 5,175MMboe.

Caza Oil & Gas and Polo Resources feature in Fox-Davies Capital Newsflash

Fri, 09 Jul 2010 08:30:00 +0100

Caza Oil & Gas (CAZA) announced that the Matthys-McMillan #2 development well, located in the Wharton West Wilcox Field, was drilled to a total depth of 15,000ft. During the course of drilling, the well encountered multiple Wilcox sands that appeared to be gas-bearing. Significant pressure was encountered requiring the use of heavy drilling mud to control the well. Attempts were made to execute a natural completion in four separate sand intervals within the Wilcox formation. At this time an economic flow rate has not been established. The Company's post drill evaluation indicates poor reservoir characteristics at this particular location. However, Caza is continuing to pursue further investigative work concerning the Wilcox sands. The Company has sought and received approval from its partners in Matthys-McMillan #2 to come up the wellbore and perforate at a depth of 9,478ft in the Yegua sands. Both log and seismic data indicate that the Yegua interval could be productive in the Matthys-McMillan #2. Current lead times for fracturing equipment will mean this could take up to 90 days. Elsewhere, drilling of the O.B. Ranch #1 well on the Bongo prospect commenced on 19 June 2010, and is currently drilling at 10,300ft. The well is ahead of schedule to date, and its target depth should be reached within approximately 30 days.

The FT reported that Argos Resources, a company which holds licences in the North Falkland Basin, is looking to raise £70m in a London stock market listing. Argos Resources licences are adjacent to some of Rockhopper Exploration licences, where the Sea Lion discovery has recently been made. The report indicates that pre-marketing has already started this week.

Polo Resources (POL) announced it and its wholly owned subsidiary Polo Australasia Limited entered into an agreement with Nippon Uranium Resources Proprietary Limited, a wholly owned subsidiary of ITOCHU Corporation, for the sale of Polo's entire interest of 22,550,849 shares in Extract Resources Limited at a price of AUD7.00 per Extract Share, representing total consideration of approximately AUD157.9M, subject, inter alia, to requisite approvals by shareholders of Polo at a general meeting of the Company and to Australian Foreign Investment Review Board approval for the acquisition of certain of the Extract Shares. The price of AUD7.00 per Extract Share represents a 3.7% premium to the closing market price of the Extract Shares on the ASX on 8 July 2010, and a premium of 8.9% to the closing market price of AUD6.43 on 6 July 2010, the date on which the terms of the disposal were proposed to Polo, and recognises the strategic importance of the block in which Polo is interested.
In addition to the agreement to sell 22,550,849 Extract Shares by Polo, Regent Mercantile Holdings Limited, a corporation associated with Mr. Dattels, Polo's Chairman, has agreed to sell to Nippon Uranium 2,187,708 Extract Shares, and Emerging Metals Limited, a company in which Mr. Dattels is Chairman, has agreed to sell 368,721 Extract Shares, in each case subject to FIRB approval of the acquisitions. The total number of Extract Shares therefore agreed to be purchased by Nippon Uranium is 25,107,278 shares, representing 10.3% of Extract's issued share capital.

Circle Oil, Tower Resources, Ithaca Energy and Tertiary Minerals feature in Fox-Davies Capital newsflash

Thu, 08 Jul 2010 08:18:00 +0100

Circle Oil (COP) announced yesterday that the Al Amir SE-6X down-dip flank appraisal well successfully tested a hydrocarbon bearing interval over a pay zone of approximately 8ft in thickness in the Lower Rudeis within the interval 13,776-13,784ft. A drill stem test flowed 45º API oil at a sustained average rate of 66bopd and 1.1mmscf/d of gas using a 32/64" choke. The well was shut in for pressure build-up and plugged back to a depth of 10,520ft. The Company is now preparing this well to test the main oil-bearing zone of the Kareem Shagar Sandstone. Once the Kareem sandstone is tested and evaluated, a further announcement concerning the results of the well will be made. Circle owns a 40% interest in the North Gemsa concession, with Vegas Oil & Gas as operator (50%) and Sea Dragon Energy (10%).

Comment: This is excellent news for a well designed to delineate the edge of field. The Al Amir SE field is clearly larger than expected with some additional potential in the Nubia formation at that location and no doubt that these results combined with the forthcoming testing of the Kareem sands will lead to an increase in ultimate recoverable resources.

Circle Oil (COP) announced the appointment of Professor Chris Green as its Chief Executive Officer. Professor Green initially joined Circle as a non-executive director in September 2005. He subsequently assumed the key executive roles of Technical Director and Chief Operating Officer. He is an explorationist and geophysicist with some 35 years experience in the oil and gas industry including 24 years at Shell, before leaving in 1998 as a Principal Geophysicist and a Global Shell Group Advisor. From 1998 to 2001 he was Director of Strategic Development and Geosciences at Racal Electronics and from 2001 to 2004 he was Chief Technical Officer at Thales Geosolutions Group. During the period 1996 to 2004 he was also Professor of Geophysics at the University of Saint Andrews in Scotland.

Comment: Chris Green having been the driving force behind the success of Circle Oil in the past couple of years, we expected his appointment as CEO of the Company. Nevertheless the announcement removes the uncertainty created in the meantime and enables the Company to set out with a new CEO having a clear mandate to drive the Company forward.

Tower Resources (TRP) announced that 3D seismic surveying had begun on the 0010 Licence in Namibia, in which the company has a 15% interest. The company also announced the principal conclusions from a competent person’s report appraising the resource potential of the licence. The report estimated net risked prospective resources to Tower of 170mmbbl of oil.

Ithaca Energy (IAE) announced that it has entered into an agreement with a syndicate of underwriters led by CIBC pursuant to which the Underwriters have agreed to purchase on a "bought deal" basis 47.6M common shares of Ithaca at a price of C$1.70 per common share for aggregate gross proceeds of C$81 million. Ithaca has also engaged CIBC and Cenkos Securities plc as placing agents and joint bookrunners to sell on a reasonable endeavours basis to purchasers resident in the United Kingdom, 45.1M common shares of Ithaca at a price of £1.07 per common share for aggregate gross proceeds of approximately C$77 million. The Proceeds are intended to be used to accelerate the development of the enlarged Greater Stella Area, which includes the Stella, Harrier and Hurricane discoveries, and for general corporate purposes.

Tertiary Minerals (TYM) announced that it has been granted exploration rights for fluorspar at the former producing Lassedalen Fluorspar Mine near Kongsberg, 80km to the south-west of Oslo in Norway. The area has excellent infrastructure and a rich mining history. The Lassedalen fluorspar deposit was mined on a small scale during World War II when it was developed to a depth of 40m below surface and fluorspar was mined from a 700m long drift for use in aluminium smelting.

Heritage Oil, Aurelian Oil & Gas, Amur Minerals, DiamondCorp, Orosur Mining and others feature in Fox-Davies Capital newsflash

Wed, 07 Jul 2010 08:02:00 +0100

Heritage Oil (HOIL) announced that the Government of the Republic of Uganda has provided conditional consent for the disposal of its entire interests in Block 1 and Block 3A in Uganda to Tullow Oil. The transaction is expected to complete within five working days following finalisation with Government of a mechanism, including arbitration, for dealing with any taxes lawfully payable from the disposal of the assets, although Heritage has received advice that the disposal of the Assets is not taxable in Uganda. In accordance with the Petroleum Exploration and Production Act Cap 150, Mr.Hilary Onek, Minister of Energy & Mineral Development, has given consent to Heritage's disposal of the Assets. This consent is conditional on Heritage demonstrating to Government that it will pay any taxes on demand which may arise from the disposal of the Asse ts. In a separate letter Mr. Kabagambe-Kaliisa, Permanent Secretary to the Ministry of Energy & Mineral Development, advised that if Heritage was to resolve the tax matter by arbitration in London, then such arbitration would be on the basis that Heritage deposit approximately US$121.5m, representing 30% of the disputed amount of some US$400m with the Uganda Revenue Authority and provide a bank guarantee for the balance. As announced on 17 June 2010 Heritage previously proposed to Government the option of arbitration in London. Heritage's position, based on comprehensive advice from leading tax experts in Uganda, the United Kingdom and North America, is that the disposal of the Assets is not taxable in Uganda. Heritage is considering Government's response and will update the market in due course. On completion of the transaction Heritage will receive US$1.35bn in cash from Tullow Uganda Limited, with deferred consideration of up to US$150m in cash or an interest in a mut ually agreed asset. Following completion of the transaction Heritage will provide an update on the proposed dividend.

Comment: Approval of the transaction is worth an additional 10p on our risked NAV versus our previous probability of success of 75%. We are taking into account a capital gain tax liability worth half of the contested amount, contributing a negative -34p to our risked NAV, hence a resolution in favour of Heritage and in-line with advice received from the Company would be worth 34p per share.

Tullow Oil (TLW) announced that the Government of Uganda has approved the sale by Heritage Oil & Gas Limited of its 50% interest in Blocks 1 and 3A in Uganda to Tullow's subsidiary, Tullow Uganda Limited for US$1.35bn in cash, with a deferred consideration of US$150m in cash or interest in a mutually agreed asset. Separately, Tullow Uganda has also received approval from the Government for its farmdown to CNOOC and Total, subject to certain routine conditions that Tullow intends to discuss with the Government in due course.

Aurelian Oil & Gas (AUL) announced that a drilling location has been agreed for the first of a three well programme in its Bieszczady block in the Carpathian Thrust Fold Belt. The well, which spuds in Q4 2010, will target an oil prospect of up to 100mmbbl and is expected to take two to three months to drill. Results from the well are expected in December 2010. Aurelian is also pleased to announce that there will be a further 300 km of 2D seismic acquired on the licence, starting in August. This survey will be shot to the north and east of the existing 2D covered area and it is hoped that the prospect inventory for the licence will be further enlarged with new prospects following the interpretation of this new survey in Q1/Q2 2011.

San Leon Energy (SLE) announced that it has awarded PGS Ventures AS, a subsidiary of Petroleum Geo-Services ASA Group, a contract to carry out a 300km2 seismic survey across the Slyne Basin in the Atlantic Margin, offshore west coast of Ireland. The license for exploration in the Slyne Basin was acquired by San Leon following the takeover of Island Oil & Gas in May 2010. The ultra-high capacity seismic vessel M/V Ramform Vanguard, will shortly be on route to Ireland with the survey scheduled to commence later this month and be completed by the end of August. The interests in the Slyne Basin are San Leon 50% and Lundin 50%.

Amur Minerals (AMC) announced that it has submitted an application for a two year extension of its exploration rights on its Kun-Manie licence. The extension requested by the Company is part of the ongoing programme and, if approved, the Company will have the right to further exploration within its original 950 square kilometre area. The application was submitted to the Amurnedra Ministry of Natural Resources located in Blagoveshchensk and is now being forwarded to Moscow for review and approval on the national level. Concurrently, the Company is awaiting a decision on its application for a mining licence within a part of the exploration licence, wherein reserves have been identified and a prefeasibility study indicates the presence of economic mineralisation. This application was submitted in January 2010 and a decision on the mining application generally requires six to twelve months review by the appropriate Russian authorities.

Orosur Mining (OMI) refers to the announcement made on January 11, 2010, when it advised that it entered into an Option Agreement with Gladiator Resources Limited which provides Gladiator with the right to earn up to an 80% interest in the Iron Ore, Manganese Ore and Base Metals Prospects in the Isla Cristalina Belt in Uruguay. The Option was exercised subject to the execution of a Definitive Agreement and the presentation of a report detailing the farm-in join venture arrangements. OMI and Gladiator have now agreed to extend the date for execution of the Definitive Agreement to 31 July 2010 to allow for the agreements to be finalised. Upon execution of the Definitive Agreement, Gladiator will issue AUD$ 100,000 worth of fully paid shares to OMI at market value, calculated over the preceding five day tra ding period.

DiamondCorp (DCP) announced an update on exploration and mine development activities in Botswana and South Africa. Reprocessing of ground geophysical data from Prospecting Licence PL71 covering the Jwaneng South project area by Earthmaps Consulting of Namibia has resulted in an increase in the size of the geophysical target at J-12 from 15ha to 45ha, and better definition of a 4ha target at J-05. A six-hole drilling programme targeting diamondiferous kimberlites at J-05 and J-12 will commence in August. The results from this programme, when combined with the results from the drilling of the 10ha kimberlite J-01 last November, will determine the priorities for large diameter drilling and bulk testing in PL71.

Geopark Holdings, Melrose Resources, Chariot Oil & Gas, Tullow Oil and others feature in Fox-Davies Capital newsflash

Tue, 06 Jul 2010 08:19:00 +0100

Geopark Holdings (GPK) 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 tota l 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 we ll 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 (MRS) 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 (CHAR) 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 (PVR) 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 (TLW) 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.

Shanta Gold (SHG) 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 (TYM) 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.

Fox-Davies Capital sees gold 'stronger all the way out to 2014', updates outlook on London mineral stocks

Mon, 05 Jul 2010 14:50:00 +0100

London-based stockbroker Fox-Davies Capital has reviewed its outlook on metal prices, with bullish forecasts for precious metals and a fairly muted view on base metals. In the note to investors, Fox-Davies forecasts prices for the 2010 calendar year of US$1,204.7/oz for gold, US$18.6/oz for for silver, USc314.7/lb for copper, USc94.3/lb for zinc and USc90.3/lb for lead.

The broker highlighted the strong gold price, with gold prices averaging US$1,200/oz in the June quarter – which was 50% ahead of the broker’s previous forecast and already 25% ahead of its forecast for the September quarter.

Fox-Davies now sees the gold price as being “stronger all the way out to 2014”. The stockbroker is forecasting the gold price to peak at US$1,520/oz in 2012, up 38% from its previous outlook.

“We believe that whilst concerns remain over sovereign debt issues and the parlous state of many of the individual states within the USA, investors will continue to buy gold. As a consequence we have raised our gold price forecasts and pushed the peak of the cycle out by 12 months."

In terms of base metals, the broker said that it “can see nothing that is going to drive base metal prices upwards in the short term.”

“We have pared both lead and zinc price forecasts by a further 10% for 2010 and continued the weakness into 2011. Copper prices started dropping in late April 2010, on concerns of a double dip following the austerity programs in Western Europe and a slowdown in the Chinese property market.”

Following its review of its commodity outlook, the stockbroker subsequently reviewed its a view on a number of junior mineral resource stocks.

In a note on Minera IRL (LON:MIRL, TSX:IRL, BVL:MIRL), the broker said that “should our gold price forecasts come to fruition, there will be the opportunity to bring a large amount of low grade material into the ore reserves.”

In its outlook on EMED Mining (LON:EMED), the broker remained fairly bullish on the European gold mine developer, whilst noting a recent dilution following a fund-raising in April and the effect of sterling appreciating considerably against the Euro. The broker also highlighted that at the company’s flagship development - Proyecto Rio Tinto (PRT) in the Andalucía province of southern Spain – tonnages are planned to increase by 50% following the re-commissioning of the mill.

Fox-Davies said that Highland Gold’s (LON:HGM) lower prices achieved by its Russian lead and zinc operations will be more than compensated for by the higher gold and silver prices being forecast. The stockbroker has an overall positive outlook for the company.

For Discovery Metals (LON:DME, ASX:DML), the stockbroker said that the short term copper price has no impact on its outlook, as production is expected to commence at the end of 2011, at which point “the copper price is back to our original forecast and we have raised the forecast for the period 2012 to 2014”.

Fox-Davies Capital said that Exco Resources (ASX:EXS) has been benefiting from the higher gold and copper prices as well as the lower valuation now being given to the Australian dollar. The stockbroker noted that its valuation is based on a stand alone 3Mt pa copper mine, 100% owned by Exco.

For Hambledon Mining (LON:HMB) the broker said that: “The higher gold prices now being forecast have had a significant impact ... Perhaps more importantly, the production figures released at the AGM indicated that Hambledon could beat our expectations for both tonnes milled and gold produced for the June quarter.”

The stockbroker sees a significant impact for major international gold miner, Randgold Resources (LON:RRS), In a particularly bullish note Fox-Davies estimates that its revised gold forecast could equate to as much as 700p per share, on-top of the broker’s current forecast for the FTSE100 constituent. Randgold currently trades at approximately £61.80.

In reference to one of London’s other majors, Fox-Davies upgraded its earnings forecast for African Barrick Gold (LON:ABG) as well as changing the discount rate (after the company was promoted to the FTSE100 index). In line with its improved forecasts, the broker upped its guidance from 'sell’ to ‘hold’.

For Canadian-listed, Eastern Europe focussed gold mine developer Lydian International (TSX:LYD), Fox-Davies noted that it expects production to commence at the Amulsar mine in Armenia in 2013, and as such it would not benefit as much from most significant changes to the broker’s gold price forecasts. However, in the short-term Fox-Davies believes that Lydian is more likely to be driven by the current 16,000m drilling program, which commenced in early June, and an anticipated upgrade to the project’s current 1.4Moz inferred resource.

Falkland Oil & Gas, Minera IRL, EMED Mining, Avocet Mining and Thor Mining feature in Fox-Davies Capital newsflash

Mon, 05 Jul 2010 08:28:00 +0100

Falkland Oil & Gas (FOGL) announced that results from the Toroa F61/5-1 exploration well, spudded on 31st May, have been delayed due to some minor operational issues and weather related downtime. The company now expects preliminary results during the week commencing Monday 12th July.
Encore Oil (EO) announced that the Catcher South West Appraisal (28/9-1Y) sidetrack well, located in the UK Central North Sea, has successfully encountered excellent quality oil bearing Cromarty sandstones. The well was drilled to a total depth of 6,255ft Measured Depth and initial analysis indicates 68ft of net hydrocarbon pay over a gross vertical reservoir interval of 261ft. A vertical hydrocarbon column of 173ft was encountered with an oil water contact coincident with that seen in the Catcher Discovery well. The 28/9-1Y appraisal well completes this phase of the Catcher area drilling. However, Premier and its co-venturers have decided to acquire additional site surveys over potential drilling locations in block 28/9 and further exploration wells are planned for later this year or early 2011, subject to rig availability. Encore has 15% equity in the 28/9 licence, with Nautical Petroleum holding 15% and Premier Oil holding 35%.

Minera IRL (MIRL) announced an update on the Phase 1 exploration at its Bethania Gold-Copper Porphyry Project, Peru. Minera has the option to earn 100% ownership in this project. Six drill holes intersected broad zones of gold copper molybdenum mineralization, characteristic of the targeted porphyry system. The best drill hole results, from RC10-BET10 intersected 276m from surface averaging 0.38g/t gold, 0.09% copper and 30ppm molybdenum including, also from surface, 72m at 0.66g/t gold, 0.13% copper and 40ppm molybdenum. Hole RC10-BET07 averaged 0.32g/t gold, 0.09% copper and 32ppm molybdenum over the entire 426m of the hole and included a better zone of 124m at 0.39g/t gold, 0.10% copper and 22ppm molybdenum from 260m down hole. Drill hole RC10-BET09 recorded two intersections, 90m from surface at 0.46g/t gold, 0.15% copper and 54ppm molybdenum plus 64m from 216m down hole grading 0.41g/t gold, 0.11% copper and 25ppm molybdenum. Drill hole RC10-BET11 averaged 0.29g/t gold, 0.10% copper and 30ppm molybdenum for 424m from surface.

EMED Mining (EMED) announced the European Commission has rejected a proposed ban on the use of cyanide in mining activities, which reduces the permitting risks across its European projects. The potential prohibition of cyanide use has been a concern to the European gold industry in particular and discussions were recently brought to a head by a European Parliamentary call for a general ban.

Thor Mining (THR) announced that the remaining assay results have been received from the initial calcrete sampling across the new Dundas gold project in Western Australia. The results have revealed additional anomalies with new drilling targets, the greatest concentration of high gold values encountered to date and a further substantial increase in that part of the project area offering potential drill targets. It is proposed that a further calcrete sampling program will commence as soon as practicable, both to broaden the coverage and to add detail around newly identified anomalies.

Avocet Mining (AVM) announced it has executed a legally binding definitive agreement in relation to the transaction previously announced, pursuant to which the Avion Gold Company has agreed to acquire from Avocet a 100% interest in the Houndé group of licences in Burkina Faso. In order to acquire the Houndé Licences, 10.3M shares of Avion will be issued to Avocet and held in escrow pending completion of the acquisition, which remains subject to certain conditions, including without limitation, completion of the assignment of an existing royalty agreement to Avion on some of the Houndé Licences and approval of the Toronto Stock Exchange. The Consideration Shares will at closing represent approximately 3% of Avion.

Revised Commodity and Currency assumptions

For the June quarter 2010, our main errors were once again the lead and zinc prices, which although we had downgraded both, we had now reduced the forecasts sufficiently. For our current forecasts we have pared both lead and zinc price forecasts by a further 10% for 2010 and continued the weakness into 2011. Copper prices started dropping in late April 2010, on concerns of a double dip following the austerity programs in Western Europe and a slowdown in the Chinese property market. In the short term we can see nothing that is going to drive base metal prices upwards in the short term and have reduced copper prices accordingly.

Precious metals are a totally different story. Gold prices averaged $1,200/oz in the June quarter, $50/oz ahead of our forecast and already the gold price is some $25/oz higher than the forecast we made for the September quarter in early June. Further, we believe that whilst concerns remains over sovereign debt issues and the parlous state of many of the individual states within the USA, investors will continue to buy gold. As a consequence we have raised our gold price forecasts and pushed the peak of the cycle out by 12 months. Consequently, we now have gold prices stronger all the way out to 2014, but we have not changed our long term gold price which remains $850/oz, a figure we forecast will be reached in 2015.