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Fox-Davies Capital Newsflash including San Leon Energy, Premier Oil, Northern Petroleum and Obtala Resources

7th Jan 2010, 7:58 am Fox-Davies Capital Newsflash including San Leon Energy, Premier Oil, Northern Petroleum and Obtala Resources

San Leon Energy (SLE) entered into a joint venture with Al Meinaa Oil Services Limited ("Al Meinaa") for the reciprocal referral and joint evaluation of Oil and Gas projects in the Republic of Iraq. Al Meinaa is based in Baghdad, Iraq and was established in 2003 to work with international resources and engineering companies and rapidly expanded into the area of reservoir modelling and geological and geophysical studies, providing its services as a local partner to international companies. It has compiled information on numerous fields around Iraq, including the Ajeel, West Qurnah, Mansouria, Akkas and Bani Hassan fields. In February 2009, Al Meinaa, in a joint venture with Petronor Group, signed a 40 year lease for a large land site in Basrah, with South Oil Company for the development of an oil and gas supply base. Its management consists of senior Iraqi engineers. Following agreement of the parties' joint participation in a project and the execution of the shareholders agreement, San Leon has agreed to issue to Al Meinaa warrants to subscribe for 10 million ordinary shares in San Leon at a price of 22p per share. In addition, following the first execution of a production sharing agreement or long term service agreement, San Leon has agreed to issue to Al Meinaa warrants to subscribe for 10 million ordinary shares in San Leon at a price of 22p per share. Following exercise of these warrants, Al Meinaa shall not sell its shares for a period of one year. Thereafter any sales shall be conducted through the company's broker.

Premier Oil (PPC) announced an operational update, in which it outlined a drilling programme of three wells on the PEL 82 Licence in South Australia, following a review of 3D seismic results. The company is looked to secure a rig within the first quarter of this year.

Northern Petroleum (NOP) announced the start of production from the Geesbrug gas field in the Netherlands. Over the next few months gas production from Geesbrug initially will be 7.4mmscfd. After this initial evaluation period Northern expects to be able to significantly increase the production rate from the existing well and potentially drill several further production wells to efficiently produce the Geesbrug gas reserves, currently estimated at 137Bcf.

Obtala Resources (OBT) announced that it has recently disposed of 6.94 million shares in Kopane Diamond Developments PLC (KDD.LN) (realizing GBP928,400) to provide additional funding without the need for going to the market for funds. Obtala still remains the largest shareholder and is fully supportive of Kopane with 45.6M shares representing 19.74% of the total shares in issue. The decision for this disposal was made by Obtala to provide additional funding to advance its corporate development plan through making strategic investments and potential acquisitions. The sale of Kopane shares allows Obtala to continue with its corporate growth plan, significantly without the need of raising additional funds from the market and means no further dilution to shareholders.

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