Source - SMW
Frontera Resources Corporation (LON:FRR) was has issued an update of operations in Georgia. Frontera says since its last update on 5 September, operations continue to progress at the South Kakheti Gas Complex, situated within its Block 12 portfolio.

Work programmes have this year resulted in important new technical milestones that have been achieved in Oil Window frac operations. 

The application of demonstrated stimulation methodology has improved overall Zone 9 hydrocarbon recovery. 

The update says: "As we implement techniques that have been applied in similar zones across North America, we continue to adapt in order to maximize production rates and cumulative volumes. With this, well preparation, site construction and associated materials procurement are in process for the next six well campaign that is planned to commence in October. 

"The upcoming campaign will continue to yield results for Oil Window and Gas Window reservoir objectives against the Company's planned work programs this year. Of note, related to Gas Window operations, the Udabno#2 well will be stimulated as part of a testing program in October. 

"The planned stimulation will be the first that is designed to evaluate an extensive gas-bearing interval of approximately 2,000 meters in gross reservoir thickness associated with this well. A targeted, multi-zone approach will be implemented in order to maximise the stimulated rock volume."

* * *

Lansdowne Oil & Gas (LON:LOGP) posts a loss after tax of £0.52 million for the six months to the end of June compared to a loss of £0.55 million for the first six months of 2015.

Group operating expenses for the first half of 2016 were £0.42 million compared to operating expenses of £0.51 million for the first six months of 2015.

Net finance expense was £0.1 million for the current period against net finance expense of £0.04 million for the first six months of 2015.

Cash balances at 30 June 2016 were £0.83 million (31 December 2015: £0.32 million).

Total equity attributable to the ordinary shareholders of the Group has decreased from £24.87 million as at 30 June 2015 to £12.89 million as at 30 June 2016.

First half highlights include:

- In the second quarter of 2016, the Company secured an additional £2.1 million of funding by way of a placing in order to meet an additional liability arising from the Transocean Court Case relating to the drilling of the Barryroe appraisal well in 2012.

- At the same time, a portion of the LC Capital Master Fund loan was converted into equity, the remaining loan extended to end June 2017 and the interest rate reduced

- In addition, the Company put in place an option, with Brandon Hill Capital, to provide additional finance to the sum of £500,000. Exercise of the option is conditional upon the Company being required to reimburse Providence Resources in respect of further costs associated with the Transocean Dispute.

- Action was also taken to further reduce overhead costs

* * *

Victoria Oil & Gas (LON:VOG) has posted an H1 pre-tax profit of $3.9m, from a year-ago profit of $215,000. Revenue was $23.6m, from $18.9m.

"The first half of 2016 has been a stabilising period in the Company, as we deliver on our strategy to increase production and grow our pipeline network in Douala, Cameroon," said executive chair Kevin Foo.

"Our market assessment indicates a growing demand for our gas, for both thermal and grid power markets. 

"The Matanda acquisition was a major extension of our influence in the region, whilst the drilling programme is expected to unlock new reserves for sale to customers. 

"The preparation for drilling at our existing Logbaba production site is complete, and spudding is expected shortly. Expansion work on the Bonaberi pipeline is on track, and with Gas Sales Agreements in place, we expect to deliver to these new customers before the end of the year. 

"As we deliver on our expansion targets, we will look to increase the process plant's capacity. The settlement of the reserve bonus and termination of the 1.2% royalty was an important matter to resolve and will mean greater revenue for the Company going forward."

* * *

Regal Petroleum's (LON:RPT) H1 pre-tax profit has slipped lower to $321,000, from $481,000. Revenue was $10.4m, from $10.9m.

OUTLOOK:

- Focus during the second half of 2016 on completing comprehensive review and re-evaluation study of geology, geophysics, petroleum engineering and well performance at MEX-GOL and SV fields

- Continue to drill MEX-109 well

- Development planning for PEP asset to include acquisition of 3D seismic and possible new well in 2017

- Funding of remaining 2016 development programme anticipated to be from existing cash and cash equivalents and operational revenues

- Geopolitical and economic outlook in Ukraine remains uncertain but some improvements in geopolitical and economic stability

* * *

Petrel Resources (LON:PET) has narrowed its H1 pretax loss to €106,000, from a loss of €147,000. The losses were mostly due to administrative expenses. Revenue was essentially nil.

"Since 2014 the hydrocarbons industry has had to weather severe storms. Costs have been slashed - as has exploration. But so far, our key Atlantic Joint Venture has not been adversely affected," the company siad. 

"On the contrary, the recent Irish Bid Round attracted a record 46 applications from 17 companies, including Exxon-Mobil, Statoil, Woodside and Nexen/CNOOC. 

"This surge in international interest has already boosted 3D seismic programmes and will in time, we hope, lead to wells and discoveries. It is an exciting time to be in the Porcupine Basin. Petrel is funded for current activities."

* * *

Egdon Resources (LON:EDR) says a competent person's report has independently confirmed the commercial viability of the Wressle field development.

The report was prepared by ERC Equipoise Ltd in relation to UK Onshore (Lincolnshire) licences PEDL180 and PEDL182 in both of which Egdon is operator and holds a 25.00% interest. 

ERCE has made independent estimates of reserves and contingent and prospective oil and gas Resources that can be ascribed to the 2014 Wressle-1 discovery and the Broughton North Prospect within the licences. 

Highlights: Wressle - Gross Mean Discovered Stock Tank Oil Initially In Place ("STOOIP") of 14.18 million stock tank barrels in aggregate across three reservoir sands (Ashover Grit, Wingfield Flags and Penistone Flags) of which 2.15 million stock tank barrels is classified as discovered (2P+2C).

- Gross 2P oil Reserves (Justified For Development) of 0.62 million stock tank barrels in aggregate identified across two reservoir sands, the Ashover Grit and Wingfield Flags, that form the basis for the initial Field Development Plan that has been submitted to the Oil and Gas Authority ("OGA") and for which a planning application is currently being considered by North Lincolnshire Council.

- Gross 2P gas Reserves (Justified For Development) of 0.2 billion standard cubic feet will be monetised using on-site power generation with excess power sold into the National Grid.

- Substantial Contingent Resources have also been confirmed in the Penistone Flags reservoir with gross 2C Contingent Resources of 1.53 million stock tank barrels of oil and 2.0 billion standard cubic feet of gas.

- Plans to produce from the Penistone Flags reservoir are expected to be progressed following commencement of production from the Ashover Grit and will include monetisation of the produced gas by pipeline export or electricity generation and export.

Broughton North Prospect

- The Broughton North Prospect is in a fault block immediately to the north-west of the Wressle structure and ERCE has attributed a high Geological Chance of Success of 40% to 49% to the prospect.

- Gross Mean Stock Tank Oil Initially In Place ("STOOIP") for the Broughton North Prospect is 3.43 million stock tank barrels in aggregate across two reservoir sands (Ashover Grit and Penistone Flags) with Mean Prospective Resources of 0.51million stock tank barrels of oil plus 0.51 billion standard cubic feet of gas.

Egdon managing director Mark Abbott said: "The CPR has independently confirmed the commercial viability of the Wressle field development with overall oil and gas Reserves and Contingent Resources exceeding our original pre-drill estimates. 

"Subject to receipt of Planning and Permit approvals, we now expect first production from the Ashover Grit at Wressle -1 well at rates of 500 barrels of oil per day (125 bopd net to Egdon) in early 2017, adding material revenue and cash flow for Egdon.

"The CPR also highlights the significant Contingent oil and gas resource in the Penistone Flags and the low risk Broughton North prospect that has been identified as a near-term drilling candidate within Egdon's asset portfolio."

* * *

Borders & Southern Petroleum  (LON:BOR) reports a loss from operations of $934,000 for the six month period ending 30 June, down slightly from the corresponding period last year ($964,000). This reflects lower administrative expenses.

Finance income totalled $20,000 against $154,000 and finance expense of $193,000 (2015: nil) resulted in pre-tax losses rising to $1.1m from $810,000. The company has no debt and has a cash balance of $12.2m. The majority of the company's cash reserves are held in sterling to match its ongoing expenses. Due to the recent fall in the pound relative to the US dollar, the reported cash balance is lower than might have been anticipated. Expenditure however, has decreased during the period.




At 4:20pm:

(LON:AUR) Aurum Mining PLC share price was 0p at 1.85p

(LON:BOR) Borders  Southern Petroleum PLC share price was -0.1p at 1.8p

(LON:CHAR) Chariot Oil  Gas Ltd share price was -0.45p at 10.05p

(LON:ENQ) EnQuest Plc share price was +0.13p at 25.88p

(LON:FRR) Frontera Resources Corporation share price was +0.02p at 0.1p

(LON:GKP) Gulf Keystone Petroleum share price was -0.02p at 2.14p

(LON:GPX) Gulfsands Petroleum PLC share price was 0p at 3p

(LON:INDI) Indus Gas Ltd share price was +22.63p at 477.63p

(LON:LOGP) Lansdowne Oil  Gas PLC share price was +0.05p at 1.2p

(LON:PET) Petrel Resources PLC share price was 0p at 7p

(LON:RKH) Rockhopper Exploration PLC share price was -0.25p at 29p

(LON:RPT) Regal Petroleum PLC share price was +0.01p at 3.47p

(LON:VOG) Victoria Oil  Gas PLC share price was +0.63p at 34.25p

(LON:XEL) Xcite Energy Ltd share price was +0.05p at 2.18p



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