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Fox-Davies Capital

Fox-Davies Capital Newsflash including Circle Oil, Gulf Keystone, Gulfsands Petroleum, Northern Petroleum, Cluff Gold and Xcite Energy

Gulf Keystone Petroleum (GKP)  announced the results of a preliminary evaluation of the Shaikan-1 discovery as of 22 October 2009. The Shaikan-1 well has discovered a significant resource of low gravity oil in the Jurassic Barsarin, Sargelu, Alan, Mus and Butmah formations with the range of oil in-place for the Shaikan structure estimated to be a gross 1.0 to 5.3Bbbl of oil, with a mean of 2.8Bbbl of oil. As additional data below 2,055 meters is evaluated, the resource estimates will increase.
 
Circle Oil (COP) announced that the testing programme for the Al-Amir SE-4 well is on-going. The Company is not yet in receipt of the final results of the full testing programme and these results will be issued to the market when appropriate. The drilling rig has now moved to the north and has commenced drilling the Geyad-2 well, the first appraisal well in the Geyad discovery area.
 
Po Valley Energy (PVE)  announced that the commissioning schedule has commenced this week at the Castello field, east of Milan. Po Valley's second planned production contributor, the Sillaro field east of Bologna, is expected to commence commissioning work, from January next year. The majority of prefabricated equipment is now on site at Sillaro and mechanical assembly of the production plant will commence shortly.
 
Gulfsands Petroleum  (GPX)  announced that theYousefieh-3 vertical appraisal well encountered the top of the Cretaceous Massive Formation at a measured depth of 1,946m and was drilled to a total depth of 2,056m. Preliminary interpretation of drilling data and wireline logs has identified a gross oil column within the well-bore of 60m with a net pay of 49m having an average porosity of 19.5% and an oil-water contact at 1,590m TVD SS, consistent with that seen at Yousefieh-1 and -2. Yousefieh-3 flowed naturally at an average rate of 226b/d of 24-25 degree API oil for 9 hours on a 32/64" choke. No formation water was produced during this flow period. The well will now be completed as a potential future production well with the running of a 7" liner over the reservoir section.

In Khurbet East, KHE-12 was drilled to delineate the southern extent of the field and identify the field oil-water contact. Extended flow testing operations have recently been completed. Oil was confirmed to be present within a 6m section of core recovered from the top of the reservoir interval but the well did not flow oil to surface in the presence of artificial lift and acid stimulation. The field oil-water contact is now assessed as being located at a depth shallower than the top of the Cretaceous Massive reservoir encountered in KHE-12 at 1592m, but deeper than 1,570m, the lowest level of oil production from Khurbet East as recorded in well KHE-8. The result of this well will be incorporated into an assessment of field reserves which is scheduled to be completed during Q1 2010.
 
Northern Petroleum (NOP)  announced that its fully owned subsidiary, Northern Petroleum Nederland B.V. (NPN) has been awarded an exploration licence covering the Kerkwijk South gas prospect. The Engelen Exploration Licence covers 97km² in the West Netherlands Basin, an area where NPN already holds four other exploration and production licences. The prospect has been mapped from existing seismic data and is on trend to the Kerkwijk gas discovery drilled in 1988. The licence application, in which NPN has a 100% interest, will run for 4 years and was submitted in March 2009 in competition to the prior application of a third party.
 
Xcite Energy  (XEL) announced that its 100% subsidiary, Xcite Energy Resources Limited, has entered into Heads of Agreement  with Fugro  Well Services Limited for the provision of a turn-key tested  well as the  next stage in the development  of the Bentley field.
Mining Corporate News
 
Cluff Gold Plc  (CLF)  announced an updated NI43-101 compliant Mineral Resource estimate at its Baomahun Gold Project in Sierra Leone. This followed the recent completion of a 7,000 metre core drilling programme undertaken to test the underground potential. Inferred Mineral Resources have increased by over 500,000oz to 957,000oz of gold (9.2M tonnes grading 3.2g/t Au). In addition, total Measured and Indicated Mineral Resources are now 1,103,000oz of gold (12.0M tonnes grading 2.9g/t Au). A Scoping Study has been initiated into the combined open pit/underground scenario with completion expected in Q1, 2010 which will be independently reviewed by SRK Consulting (UK) Limited.