Oil & Gas Corporate News
Aurelian Oil & Gas (AUL, 36.5p, ? (2.82%)) announced re-iterated the milestones achieved since October 2009, including a significant upgrade in GIIP potential at the Voitinel Project in Romania from 50-100Bcf to 400Bcf, as well as the signing of key contrats for the Siekierki tight gas project in Poland. The Climauti-1 well will spud in April 2010 and is expected to increase production from Bilca by 18%. Additional prospective leads have also been identified in Slovakia through recent seismic processing and interpretation. Additional seismic is planned for 2010 with drilling planned for 2011.
Tower Resources (SELL, £0.02) (TRP, 4.43p, ? (2.28%)) announced that Avivi-1 has reached its total depth at 764m without experiencing oil shows - basement was penetrated at 742m. Electric logging operations are underway and a full statement will be released once these have been completed.
Comment: We suspect a lack/breach of top seal could be the main cause of failure in such a shallow well but will wait to hear a fuller comment from the company. The failure of Avivi-1 to encounter hydrocarbon, after a complete geological re-modelling of the whole sub-basin by the Company on the back of the Iti-1 well, is clearly not a good sign for the prospectivity of their Ugandan licence. We adjust our target price from 3p to 2p and change our rating to Sell.
Mining Corporate News
Churchill Mining (CHL, 99.75p, ? (2.68%)) announced that the feasibility review process at its East Kutai Coal Project (“EKCP”) will be completed in the second quarter of 2010. The company also announced that the Company has received several non-binding approaches relating to possible acquisitions of specific projects within Churchill. The Company is continuing to review these approaches, and its options with regard to the various funding and commercial alternatives for the EKCP and is working through an evaluation of these alternatives in order to maximise shareholder value.
