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Rockhopper, Roxi Petroleum, Madagascar Oil, Petrel Resources and others feature in Fox-Davies Capital Newsflash

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Rockhopper Exploration (LON:RKH, 274.5p, ▲ 2.91%) provided an update on the flow test carried out at well 14/10-5: Well flowed at commercially viable rates; Well flowed at stabilised rates of 5508 stb/d; and the well achieved a maximum stabilised flow rate of 9036 stb/d.  A total section of 86m, incorporating 79m of reservoir, was perforated between 2379m and 2465m (md) over the Sea Lion Main Fan Complex. No lower fan sands were perforated on this flow test. The well flowed for a main 48 hour flow period at a stabilised rate of 5508 stb/d and 940 mscf/d of gas with a flowing well head pressure (WHP) of 783 psi on a 48/64 inch choke. It was not necessary to use any wax inhibitors or pour point suppressants and no water or H2S were produced d uring the test. Downhole mini DSTs (Drill Stem Test) were also performed on two of the three sands making up the 14m of net pay encountered in the well, which form part of the lower fan. These 2 sands had net pay of 8m and 4.5m. Interpretation of the results of the mini DST indicate that these 2 sands could have contributed an additional 800 stb/d flow rate using the same flow test techniques (artificial lift by ESP and thermal insulation by VIT) as used during the main DST performed on the upper fan in well 14/10-5. The Ocean Guardian drilling unit will now drill well 14/10-6, which will be the third appraisal well within the Sea Lion discovery area. 14/10-6 is located some 4.5km to the west of well 14/10-5 and is located within the Company's currently mapped mid-case area.
 
Roxi Petroleum (LON:RXP, 7p, ▲ 75.0%) announced the results of an independent Estimation of Resources by Gaffney Cline and Associates (“GCA”) of the Company's preliminary interpretation of approximately 1,400 km2 of high quality 3D seismic data. The data was previously acquired in the BNG Contract Area in Western Kazakhstan in 2009 and 2010. The Company has thus far identified 30 prospects and a further 7 leads within the BNG Contract Area. The prospects range in size from 3 to over 80 (mmbo, with a total aggregate gross resource potential of over 500 mmbo of "Best Estimate Prospective Resources". The geological Chance of Success, or Risk, assigned by GCA to the majority of these prospects range from around 20% to over 80% in one or two cases. The less well define d "leads" vary from 6 to over 130 mmbo in size, have an aggregate potential of a further 400 mmbo, and Chance of Success assigned by GCA of less than 15%. In addition to these prospective resources, a further 13 mmbo estimated for the South Yelemes field are classified by GCA as Contingent Resources (2C, or Best Estimate case). The Yelemes field development is contingent on further testing of the Neocomian dolomite reservoir, extension of the Sub-Surface User Contract ("SSUC") and subsequent extension of Pilot Production consents. The total Risked Most Likely Prospective and Contingent Resources on the BNG block are estimated to be 215 mmbo.
 
Madagascar Oil (LON:MOIL, Suspended) announced its full year results for the year ended 31 December, 2010. Financial highlights: Net loss for the year was $11.6 million compared to a loss of $3.9 million in 2009; Capital expenditure amounted to $12.4 million (2009: $4.3 million); The Group ended the year with $67.5 million of unrestricted cash and cash equivalents (2009: $2.9 million) and a further $1.8 million of restricted cash (2009: $3.5 million); and the Company has no debt.  Operational highlights: 18 successful wells out of 24 new wells drilled at Tsimiroro and the completion of 430km of Electrical Resistivity Tomography; Installation of the Tsimiroro steam flood pilot facility expected in Q3 2012; Netherland, Sewell & Associates Inc. is currently revisi ng the 965 million barrels contingent original oil-in-place estimate for Tsimiroro with updated report expected in near future; 86 core wells completed in Bemolanga 2010 drilling programme support the estimate that the MOIL share of the gross mine resources is 472 million barrels contingent petroleum-initially-in-place; and discussions with the Government of Madagascar regarding the approval of the 2011-2012 work programmes for exploration blocks and resolution of outstanding issues on these blocks are set to continue early July 2011.  The trading in the Company’s shares will resume today.
 
Premier Oil (LON:PMO, 451.6p, ► 0.0%) provided an exploration and appraisal update.  In Norway, The Grosbeak well 35/12-4 S, which spudded on 24 April 2011, has completed the drilling and testing of the primary well bore and will now be sidetracked to further delineate the extent of the Jurassic oil accumulation. The sidetrack is expected to be completed by the end of July. In Indonesia on the Tuna block, the Gajah Laut Utara-1 exploration well has reached a total depth of 4,688 metres in pre-Tertiary basement and is being plugged and abandoned with oil and gas shows. Oil shows were reported throughout a 350 metre thick succession of interbedded sandstones and shales in the Oligocene. However, logs suggest that the majority of these Oligocene sandstones are t ight. The Ocean General rig will now move to drill the Belut prospect. Belut Laut is located approximately 10 kilometres north-west of Gajah Laut Utara, in a separate sub-basin and is an independent test of the petroleum system on the Tuna acreage. The results of the Belut well are expected in early August. In Pakistan, the K-27 exploration well, which spudded on 4 April 2011 in the Kadanwari block, has been successful, testing gas with a flow rate of 51.3 MMscfd through a 56/64 inch choke. The operator (ENI) plans to tie the well to the production facility by the end of the third quarter, delivering around 30 MMscfd.
 
Petrel Resources (LON:PET, 15.5p, ► 0.0%) provided its preliminary Results for year ended 31 December 2010.  Highlights: The Subba and Luhais oil field development contract in Iraq is virtually completed; Petrel has received all US$7 million due from the sale of the Company's shareholding in Subba and Luhais. Petrel maintains a 10% profit interest; Petrel has applied to participate in the 4(th) Oil Licencing Round in Iraq; The Company await parliament approval on the Tano 2A licence block in Ghana where Petrel holds a 30% interest; Reprocessing of over 760 kilometres of seismic lines on Tano 2A has identified a number of promising areas; Petrel has submitted applications for blocks in the Porcupine Basin area offshore Ireland; and the company has over US$6 mi llion in cash.
 
Cove Energy (LON:COV, 86.75p, ▼ 0.29%) issued an operational update.  In Mozambique the Belford Dolphin drillship has commenced appraisal drilling in the Barquentine gas discovery area. Currently the rig is top setting the upper casing strings on Barquentine 3 after which it which it will drill Barquentine 2, located approximately 4kms SE of the discovery well and then return to finish Barquentine 2. This initial appraisal programme which will include flow testing and core analysis is to focus on proving sufficient resources in the Oligocene gas reservoirs of the Windjammer/Barquentine discovery area in order to lay the foundations for the first LNG train. New 3D Acquisition Completed. Acquisition of the new 3D seismic survey of approximately 4,448 km(2) over the southern and northern section of Rovuma Offshore block is now complete. This data is now being processed and will be integrated with reprocessed existing 3D data to obtain a consistent subsurface image across the entire deepwater hydrocarbon fairway. Final results are expected in Q4 this year. As sufficient volumes for an LNG project were encountered in the Windjammer, Barquentine and Lagosta wells the operator, Anadarko, has mobilized, in an extremely short time, a full team to pursue the LNG project such that a Final Investment Decision (FID) can be taken in 2013. Progress to date includes the identification of coastal land sites for the LNG facilities and a preliminary gas development plan. In Kenya, the Company is encouraged by the interpretation of the 2010 2D seismic the partnership has elected to accelerate the work programme with the acquisition of over 3,500sq kms of new 3D seismic split in to two surveys centered on L7 and straddling L11A & B. Preliminary interpretation of Blocks L10A and L10B has identified a number of leads. A 3D seismic survey over the eastern part of the blocks is planned later this year.

Arian Silver (LON:AGQ, 25p, ▲ 1.01%) announced a progress update on its San Jose exploration programme. The Phase-3 drill programme has been completed and all assay results received. The programme, which was completed after drilling a total of 10,224 metres for 44 holes was concentrated in the areas between Solidad and Santa Ana and east and west of the village of Guanajuatillo. Mineralisation remains open along the western strike and at depth. These results complete the Phase-3 drillin g programme and will be incorporated into the independent resource estimate that is currently in process. Best results include 4.81 metres at 334 g/t Ag, 3.93 metres at 338 g/t Ag and 2.09 metres at 625 g/t Ag.
 
Avocet Mining (LON:AVM, 182.5p, ▲ 0.27%) announced that it has completed the sale of the majority of its South East Asian assets, as part of the US$200 million sale agreement announced on 24 December 2010. The Company has completed the sale of its 100%interest in the Penjom Gold Mine in Malaysia and its 80% interest in PT Avocet Bolaang Mongondow which owns the North Lanut mine and Bakan project in North Sulawesi, Indonesia for proceeds of US$170 million. The completion of the sale of A vocet's other South East Asian assets pursuant to the same sale agreement is expected to occur during Q3 2011, following receipt of necessary government approvals. As the first use of the sales proceeds, US$25.6 million has been used to repay the loan balance and accrued interest under the Company's corporate revolving facility with Standard Chartered Bank, which was previously secured on the Penjom assets.
 
Rig Count News. The Baker Hughes Rig Count is the key barometer for the oilfield services industry and in particular the drilling contractors. Last week’s data (week ending 17/06/11) remained overall very positive for the industry. The U.S. Rig Count is up 5 from the previous week standing at 1865 – close to its recent peak level– and up 321 year over year. The Canadian rig count was up 45 at 277, as the industry continued to show a strong emergence from its seasonal slowdown. The number of oil rigs was up 15 at 9984, gas rigs were down 9 at 870 with the directional/horizontal rig count up 6 at 1,302.

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