Pantheon Resources (LON:PANR) was the sector's biggest faller after it confirmed the cessation of drilling operations at the VOBM#2 well and provided an update on the fracture stimulation remediation process at VOS#1 well.
"We have experienced a long list of individual challenges in the drilling of the VOBM#2 well, which has delayed the announcement of results," said CEO Jay Cheatham in a statement.
"The decision to try horizontal drilling with our second Polk County well, which we hoped would enhance per-well recovery rates, has not worked out as we expected and that technique will not be repeated.
"This was the first horizontal well ever drilled into this formation regionally and the abrasiveness of the hard sandstone was unexpected.
"We know that the wells can be drilled quickly and cost effectively vertically, as evidenced in our VOBM1 success nearby, so it makes obvious sense to learn from experience and revert to vertical drilling.
"The frac on VOS#1 has meanwhile confirmed the well as a solid commercial discovery, despite the variable permeability of the reservoir and the blockage encountered in initial drilling. Whilst maximum flow rates did not increase significantly post frac, analysis of the flow test data to date suggests that those rates should be sustainable and increase ultimate reserve recovery.
"The good news is that both the VOS#1 and VOBM#2 wells have encountered significant hydrocarbons in their objective horizons, exactly where we expected to find them, confirming the experience of all three of our initial wells.
"In all three cases the results are consistent with our original estimates of the likely recoverable Eagle Ford reserves and I expect all three wells to be commercial producers.
"Our priority now is to press on with the next two wells in our programme as quickly as possible, so that we can complete the delineation of what we have found in both Tyler and Polk County and move towards production at the earliest opportunity, optimising recovery rates on a field-wide basis."
* * *
Urals Energy (LON:UEN) confirms its acquisition of the entire share capital of Arctic Oil Company Ltd from JSC ArcticMorNefteGazRazvedka has completed.
The consideration for this acquisition remains as disclosed in the Company's announcement of 23 August 2016.
* * *
Frontera Resources (LON:FRR) has upgraded the gas potential and announced progress from oil and gas operations in Georgia.
- Frac completions on Zone 9 of Oil Window have yielded breakthrough stimulation results
- Niko#1 well has produced approximately 7,000 bbls of oil since the operation was completed in March
- Dino#2 and T-#45 wells achieved initial production rates of 726bbls and 186bbls per day respectively post re-frac completions
- Newly procured oil field equipment expected to be in field operations during the month of October.
- New mapping has revealed an approximate additional 15 TCF of gas potential at the South Kakheti Gas Complex
- Exploration works achieved a peak production of 900 barrels of oil equivalent per day (boepd) from various testing operations and are on track to achieve year end pilot production rates
- CPR for South Kakheti Gas Complex expected to be completed in H117
Chairman and chief executive Steve C. Nicandros said: "Important milestones have been achieved with the evolution and implementation of our stimulation and completion designs at Zone 9 within our Oil Window objectives in the central region of the South Kakheti Complex.
"In a similar fashion to technical breakthroughs that were achieved in similar settings in the United States' recent unconventional reservoir renaissance, we are achieving important success with each new completion. While this work has required a patient and methodical approach, the results have demonstrated that our technical approach is leading to game changing outcomes.
"Similarly, within our Gas Window operations, detailed technical work continues to trend in a positive direction as the size of the identified gas resource continues to grow. The integrated technical analysis that Frontera has conducted has never before been done.
"Because of this, our work continues to uncover a major regional source of gas supply for Georgia's domestic market and Europe's import requirement for many decades to come. As we continue to work closely with Georgia's Ministry of Energy, our hope is that we can soon find a way forward that will accelerate our efforts to bring this gas to market."
* * *
The sector's biggest risers were Oilex (LON:OEX) and Xcite Energy (LON:XEL) - up by more than 15.7% and over 11.1% respectively in late trading.
(LON:AUR) Aurum Mining PLC share price was 0p at 1.05p
(LON:BOR) Borders Southern Petroleum PLC share price was +0.01p at 1.71p
(LON:CHAR) Chariot Oil Gas Ltd share price was +0.23p at 5.83p
(LON:ENQ) EnQuest Plc share price was +1.13p at 27.88p
(LON:FRR) Frontera Resources Corporation share price was +0.01p at 0.1p
(LON:GKP) Gulf Keystone Petroleum share price was -1.05p at 2.4p
(LON:GPX) Gulfsands Petroleum PLC share price was -0.01p at 3.13p
(LON:INDI) Indus Gas Ltd share price was +1p at 406p
(LON:OEX) Oilex Ltd share price was +0.08p at 0.55p
(LON:PANR) Pantheon Resources PLC share price was -58.37p at 91.63p
(LON:PET) Petrel Resources PLC share price was +0.13p at 6.25p
(LON:RKH) Rockhopper Exploration PLC share price was -0.37p at 30.63p
(LON:RPT) Regal Petroleum PLC share price was -0.25p at 3p
(LON:UEN) Urals Energy PLC share price was 0p at 2.25p
(LON:XEL) Xcite Energy Ltd share price was +0.74p at 7.37p