Oil & Gas Corporate News
Matra Petroleum (LON:MTA) plc (Buy, 7p) (MTA.L, 1.4p, ? 9.5%) announced that after delays in the work-over of well-12 caused by a blockage in the casing that required milling, substantial progress has been made. Production logging has indicated that the water production previously reported in well-12 is coming from a zone below the oil reservoir. This means that there is a likely channel in the cement behind the casing allowing this water to enter the wellbore. Matra's operations team are currently attempting to isolate this water by remedial cementation, prior to recommencing production. Well-13 has been completed, perforated and acidized to maximize the production rate. Production logging in the well has however identified water production from a deeper zone and behind the casing, similar to that seen in well-12. Prior to testing the well and putting it on production a remedial cementation will be attempted to isolate water production. The work-over rig currently on well-12 will move to well-13 on completion of its operation there.
Comment: Confirmation that the water produced does not come from the reservoir but from a water zone, some 10-15m deeper, is good news and alleviates concern on the ability to produce oil from those two wells. However the remedial cementation job will cause further delays. We still believe the stock offers good potential but investors? patience will also be tested by the apparent lack of progress on the production licence.
Ascent Resources (LON:AST) plc (Buy, 20p) (AST.L, 4.1p, ? 10.0%) has acquired a 60% interest in the 1,990km2 Igal-II exploration permit in Central Hungary though its 60% equity interest in Hungarian company Pelsolaj kft. The exploration permit, to the south east of Lake Balaton, was acquired from Winstar Resources Limited in exchange for a 4% net profit interest derived from future production from the permit area. Initial exploration will concentrate on a 300km2 area known for pre-Pannonian sediments which are highly prospective for oil, and where a number of shallow leads, c.1,000m, have already been identified. Seismic acquisition is currently underway with the objective to determine the first drilling location. The other participants in the project will be GTO Limited who is 20% partners in Ascent's Dutch offshore project, Geomega kft and Swede Resources AB, each with a 10% interest and…
