Oil & Gas Corporate News
Circle Oil (BUY, £0.80) (COP, 32.25p, ? (0.0%)) announced that the Geyad-2X ST1 well has commenced production in the onshore NW Gemsa Concession in Egypt. Production has started from the upper of the two identified pay zones in the Kareem Shagar Sandstone. The lower untested pay zone, in the Kareem Rahmi Sandstone, will be further evaluated at a later date. The Geyad-2X ST1 well is producing at a rate of approximately 2,100bopd.
Comment: Geyad-2 is producing at a higher stabilised rate than we had expected, as a result the production has already reached the bottom end of our 9-10,000b/d target for this year. It is now likely the Company will exceed it. We remain positive on the stock and maintain Buy rating and price target.
Victoria Oil & Gas (BUY, £0.08) (VOG, 4p, ? (1.96%)) announced an update on the passive seismic spectroscopy survey at its Logbaba gas and condensate project in Douala, Cameroon. The survey findings are in line with the geological understanding of the Logbaba reservoir sands and correlate well with data from the four old wells and the newly drilled well La-105. The analysis of the survey indicates a major potential hydrocarbon accumulation around two kilometres from the current drilling location. The survey also suggests that the most prospective area at the existing discovery lies around 300m from Well La-104, between that well and La-101. The well design team are considering this data and its impact on the design of the next well, La106, which is due to be spudded on 6 February 2010.
Comment: This is exciting news and will undoubtedly be taken into account in the design of La-106 as the Company needs to test the sweet spot of the anomaly. Passive seismic works best with good well control and in this case provides good evidence for the filed to be possibly larger than anticipated. The positive anomaly further to the North is likely to become the target of further exploration drilling by Victoria Oil&Gas in the licence and could provide further material upside.
Frontera Resources Corp (FRR, 9.5p, ? (1.3%)) announced that it has completed a new phase of drilling operations at the Mirzaani and Mtsare Khevi Fields within its Shallow Fields Production Unit, Block 12, in the country of Georgia. The Mirzaani #1 well was drilled to a depth…
