Max Petroleum (BUY, £0.50) (MXP, 16.5p, ? (4.35%)) announced today that the BOR-1 exploration well on the Borkyldakty prospect in Block E has reached a total measured depth of 1,755m, with electric logs indicating 38m of net oil pay over five Triassic sandstone reservoirs at true vertical depths ranging between 1,357-1,536m. The Company will run production casing in the well, which will be tested in the next few weeks using a workover rig. After setting casing in the BOR-1 well, the Sun ZJ-30 drilling rig will move on to drill the KZN-1 exploration well on the North Kyzylzhar II East Block prospect in Block E, which is expected to spud in early March 2010.
Comment: Excellent news for Max Petroleum. This result establishes proof of concept for the 12-well post-salt exploration programme and validates the extensive regional and prospect level work that was carried out by the Company. The good homework has paid off today.
Dominion Petroleum Ltd (DPL, 6.25p, ? (2.04%)) announced that agreement in principle has been signed with Les Etablissements Maurel & Prom to farm in to the Mandawa and Kisangire PSAs (Production Sharing Agreements) subject to execution of final agreements. Under the final agreements, M & P will acquire: a 40% interest in the Mandawa PSA onshore Tanzania, resulting in M & P owning 90% of the Mandawa licence and Dominion's interest being reduced to 10%; and a 35% carried interest in the Kisangire PSA onshore Tanzania (operated by Heritage Oil, who own a 55% interest), reducing Dominion's interest to 10%. In return for these additional interests being acquired by M & P, Dominion's funding requirement in respect of the Kianika-1 well on the Mandawa licence will be reduced from 100% to 20% of the drilling costs and to 10% of associated expenses. Dominion will retain a 10% interest in all profits earned from the Mandawa licence.
Falkland Oil & Gas (BUY, £4.00) (FOGL, 152.75p, ? (0.49%)) announced that it has reached an agreement with Desire Petroleum to contract the Ocean Guardian rig to drill the first ever exploration well in the East Falklands Basin on the Toroa prospect, which it expects will be within the first half of 2010.
Tower Resources (HOLD, £0.03) (TRP, 4.3p, ? (0.56%)) announced that the Avivi-1 exploration well spudded on 13 February 2010.The well…
