Oil & Gas Corporate News
Antrim Energy Inc (LON:AEY) (AEY, 58p, ? (0.85%)) has entered into an agreement to acquire a 50.1% interest in and operatorship of the 307,215 acre Cerro los Leones exploration concession, located in Argentina's Neuquen Basin. Cerro los Leones is situated in the northern portion of the Neuquen Basin in the Province of Mendoza. The existing 2-D seismic coverage of 700km provides regional control and has identified numerous lower Tertiary and Cretaceous structural and stratigraphic leads at drilling depths of 1,500-2,500m. Subsurface control is provided by seventeen previously drilled wells, which indicate the presence of reservoir, source and seal rock at multiple horizons. Sixteen of these wells reported oil and gas shows, with one flowing medium gravity oil at rates of up to 350bopd on extended test. The region boasts easy access and is close to infrastructure. Based on published reserve records of the Secretaria de Energia of Argentina, producing oil fields adjacent to and on trend with the Cerro los Leones Licence typically have ultimate recovery estimates of 15-30mmbbl, with up to 500,000bbl per well. Antrim will apply for inclusion of production from the Cerro los Leones concession in the Gas and Oil Plus incentive programs in Argentina, which provide for higher prices than other Argentine production earns. The concession provides for a state royalty of 16% and carries an obligation to the government to acquire seismic data and drill up to five wells during a three year exploration period. The cost of the work commitment to the province is valued at a gross US$13.85m. Antrim's interest in the block is being acquired from a private Argentine company. The terms of the acquisition include a re imbursement of approximately US$1,000,000 of exploration and permit expenses (netapprox.US$500,000) and for the payment to the vendor of a 2.5% gross overriding royalty. Antrim is currently working on obtaining the necessary environmental approvals to shoot a 3-D seismic program in the first half of 2011. Up to two exploration wells are planned for the latter part of 2011.
Xcite Energy (LON:XEL) (XEL, 305.5p, ? (7.98%)) announced that the 9/3b-6z horizontal well section on the Bentley field is progressing to plan, with all required equipment and personnel on board the rig and the test completion in place. The continuing bad…
