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Fox-Davies Capital Wednesday Energy and Mining News Wrap

8th Oct 2008, 9:16 am Fox-Davies Capital Wednesday Energy and Mining News Wrap

ROC Oil  (ROC)  has advised that MAW-1, the first appraisal well in relation to the Massambala heavy oil discovery in Cabinda South Block, onshore Angola, has been plugged and abandoned having reached a Total Depth of 455m. Roc holds a 60% interest in the block and is operator. The programme will now continue with the drilling of the second appraisal well before operations are suspended prior to the onset of the rainy season.
 
Comment: This latest plug and abandonment news follows on from the abandonment of Arroz-1 exploration well on the same block two weeks previously and Sesamo well in Angola at the end of July this year.
 
Frontera Resources  (FRR)  an independent oil and gas exploration and production company, announced early results of its ongoing development drilling program at the Mtsare Khevi Field in its Shallow Fields Production Unit, Block 12, in the country of Georgia. The combined results of the first six wells have revealed a structure larger in area than previously thought. In addition, the presence of a substantial gas cap in the field has been confirmed and continuous development drilling has successfully pushed the limits of the lowest known oil on the structure further down the flank than originally mapped, thereby increasing the size of the oil bearing portion of the field. Individual wells are also drilling more quickly than originally projected. As a result, this new information has initiated a structural remapping of the field, and current plans call for at least 40 additional locations to be drilled in 2009.
 
Comments: Wells quicker to drill combined with potentially increased resources may enhance economics for the project.
 
The directors of Nighthawk Energy  (HAWK), the US focused hydrocarbon production and development company, announce operational updates on the Jolly Ranch Group, Centurion and Xenia projects. Nighthawk holds a 50 per cent working interest in each of the projects. The Jolly 16-1 flowed on a 24 hour test at 446 BOPD and over 1 MMCFGPD from the Lower Atoka shales and 100 per cent. oil cut. The flow rate is apparently considerably higher than that reported on 2 October 2008.
 

Tertiary Minerals  (TYM)  announced positive results from first stage metallurgical testwork on magnetite mineralised samples from its Kolari iron project in Finland. All of the 10 reported DTT concentrates exceed 68% Iron and they average 70% iron, the desirable level for high grade magnetite concentrates to sell as sinter feed, pellet feed or direct reduction grade pellet feed.
 
Mount Burgess Mining (MTB)announced that Assay results from 1,067m of recent diamond core drilling have now been incorporated into the resource models for both the main Kihabe deposit and also the Nxuu deposit, seven kms east of Kihabe. The combined Kihabe and Nxuu indicated and inferred potential open cut resources applying a 0.5% zinc equivalent low grade cut are estimated at 27.4 million tonnes @ 2.32% zinc equivalent grade (16.4 million tonnes indicated and 11 million tonnes inferred).
 
Comment: Our view is that given current metal prices, these grades are far too low to be economic.
 
Thor Mining (THR)  announces that it has received all assay results from the partially completed aircore  drilling program recently  undertaken on  the Bundey River tenement, Northern Territory.

Approximately two-thirds of the planned air  core drilling was able to  be completed with  27 holes completed for 1,685m. Locally anomalous results were received from  prospective   carbonaceous   horizons   including   a   significant   coal intersection.

Some of the coal intersected appears to be high quality  anthracite and  has been  re sampled  for further  analysis. Several basement  samples  also  returned anomalous  uranium  assays.  The results are regarded as encouraging at this early stage of exploration.

Comment: A first-pass reconnaissance drilling program with some minor indications.
 

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