Source - SMW
Roxi Petroleum (LON:RXP) said results from Well #142, and previously Well #141, are exactly as it had hoped for. 

"At an appropriate juncture these results will be passed onto Gaffney Cline so that they may review their reserves estimate attributable to the MJF structure," the company said.

"Since our last update (on Well #142), an interval between 2,201 meters and 2,208 meters has been perforated and from which the well is testing at a rates between of 215 and 290 bopd using a 8 mm choke," it added.

"As previously announced Well 142 is a material step out well, located 1.8 km to the north east of well 143 and therefore it has potential to confirm a significantly larger scale for the MJF structure.

"Importantly, the interval perforated is in the same horizon as those producing at wells 141 and 143. We therefore believe the structure at MJF extends to an area of approximately 10 km2.

"The two wells previously drilled and testing on the MJF structure, 143 and 141, are respectively producing at the rates of 479 bopd and 631 bopd using 6 mm and 7 mm chokes. Aggregate gross production from the MJF is therefore up to approximately 1,400 bopd. In total production from BNG, is now up to approximately 1,567 bopd.

"The price at which we are able to sell our oil under the provisions of our licence has also increased (compared to the low point of some $10 per barrel) by some 60% to approximately $16 per barrel. Income from oil sales is being used to fund the drilling and testing programme at BNG."

* * *

Net production from Cadogan Petroleum's (LON:CAD) oil and gas fields in western Ukraine averaged 116 barrels oil equivalent per day in 2016, which is 6% higher than the average for 2015.

Emissions to the atmosphere, measured in ton CO2/boe, were further reduced by 10% over 2015 levels.

 The impact of this increased production on the company's income statement is expected to be compounded this year by a reduction in the royalty rate for oil wells from 45% to 29%, which took effect from 1 January, and by the expected oil production from the re-entry of two old, suspended wells in the Monastyretska licence.

 These re-entries, which are part of Cadogan's strategy to sustain production while minimizing capital expenditures, are planned for the first quarter of this year.

Cadogan also  announced that its fully owned Dutch subsidiary had entered into a sale and purchase agreement and a shareholders' agreement with the owners of Exploenergy Srl  for the purchase of 90% of the company's shares. 

Exploenergy is an Italian company which has filed applications for two exploration licences located in the Po Valley, in close proximity to fields discovered by the former operator; two leads have been identified in these licences with combined, un-risked prospective resources estimated to be in excess of 60 BCF. 

Both applications are in an advanced stage of their approval process. Exploenergy has also filed an application for a third licence which is not part of this transaction and will be returned to the sellers once they have established a company vehicle.

Cadogan Petroleum Guido Michelotti said: "This transaction gives Cadogan an opportunity to apply, outside of Ukraine, our successful business model of being an efficient operator of marginal fields. We will work closely with the former management of Exploenergy and the Italian stakeholders at large to complete the application process expeditiously."

* * *

Cairn Energy (LON:CNE) says it will shortly embark on further exploration and appraisal drilling in Senegal and continues to work towards first oil and cashflow from its North Sea assets.

Chief executive Simon Thomson says the next 12 months will be an eventful period for the company.

He says: "With six successful wells drilled to date in Senegal, Cairn has established a significant and growing resource base. The 2017 drilling programme aims to further define the SNE field for development and target additional exploration upside on the acreage. "Cairn is fully-funded in respect of all of our capital commitments and we continue to actively assess and pursue new ventures within the context of a balanced portfolio."

Cairn intends to announce its preliminary results for the year to 31 December on 8 March.

* * *

Tullow Oil (LON:TLW) said the Erut-1 well in Block 13T, northern Kenya, has discovered a gross oil interval of 55 metres with 25 metres of net oil pay at a depth of 700 metres. 

The overall oil column for the field is considered to be 100 to 125 metres.

The objective of the well was to test a structural trap at the northern limit of the South Lokichar basin. 

The Erut-1 well was drilled ten kilometers north of the Etom-2 well and shares important characteristics. Fluid samples taken and wireline logging all indicate the presence of recoverable oil. 

Erut-1 successfully shows that oil has migrated to the northern limit of the South Lokichar basin and has de-risked multiple prospects in this area which will now be considered in the Partnership's future exploration and appraisal drilling programme.

The PR Marriott Rig-46 drilled the Erut-1 well to a final depth of 1,317 metres and will now move to the southern part of Block 10BB where it will spud the Amosing-6 appraisal well.

Tullow operates Blocks 13T and 10BB with 50% equity and is partnered by Africa Oil Corporation and Maersk Oil both with 25%.

* * *

JKX Oil & Gas (LON:JKX) says group production averaged 9,954 barrels of oil equivalent per day in December, 2.1% higher than in the previous month. 

Average production for 2016 was 10,083 boepd - 12.1% higher than in 2015.

In Hungary, well Hn-2ST (sidetrack) was successfully completed on the Hajdunanas IV mining plot. This is the first drilling operation completed since JKX assumed operatorship in November 2014. 

The Hn-2ST well tested 1.5 MMcfd from the Pannonian Pegasus sands (1051-1055m MD4) and 2.8 MMcfd from a lower Pannonian sand interval (1082 - 1088m MD). 

The latter is a newly discovered productive horizon in the field. Gas sales are expected from early February at an initial rate of 1.8 MMcfd, after a production and sales break of more than three years. Assessment of reserves following the well test is underway and the production forecast and development plan will be adjusted accordingly.

In Ukraine, gas production was adversely affected by hydrates in flow lines caused by cold weather. The Group continued the implementation of its field development plan (FDP) for the Rudenkivske field. After a successful workover, another Rudenkivske well (NN47) located in the north of the field tested gas and condensate from the V-25 interval in the Visean sands - the main focus of the FDP.

The well tested an initial maximum rate of 16.9 MMcfd and 668 boepd of condensate on a 137/64th" choke prior to declining to 11.5 MMcfd of gas and 255 boepd of condensate within 36 hours. Preliminary estimates of gas initially in place are 0.44 Bcf. More information will be provided once production rate has stabilised. In addition, gas lift is currently being implemented at well NN16 to restore production and increase overall recovery.

In Russia, Well 25 and Well 27 were acidised resulting in increased gas production.

JKX adds: "On December 21, 2016 Ukraine's Parliament passed legislation reducing the royalty on oil production from a maximum of 45% to 29%. Disappointingly, the proposal to reduce the gas royalty from a maximum of 29% to 12% for new wells, which was passed at the first reading, was excluded from the second reading and therefore failed to pass into law. The Company continues to believe that reducing gas production taxes is a critical step to making Ukraine's gas sector attractive for investors, which, in turn, will support the Government's stated goal of energy independence. 

"JKX will continue to work with the Government and other stakeholders in 2017 to reduce gas production taxes in order to increase investment in the sector."










At 4:14pm:

(LON:BOR) Borders  Southern Petroleum PLC share price was -0.7p at 4.28p

(LON:CAD) Cadogan Petroleum PLC share price was +0.38p at 9.75p

(LON:CHAR) Chariot Oil  Gas Ltd share price was -0.01p at 8.42p

(LON:CNE) Cairn Energy PLC share price was +1.7p at 243.2p

(LON:ENQ) EnQuest Plc share price was +0.25p at 53.5p

(LON:GKP) Gulf Keystone Petroleum share price was +0.75p at 135.75p

(LON:GPX) Gulfsands Petroleum PLC share price was 0p at 10.25p

(LON:INDI) Indus Gas Ltd share price was -12.37p at 387.63p

(LON:JKX) JKX Oil  Gas PLC share price was -0.5p at 28.5p

(LON:PET) Petrel Resources PLC share price was +0.25p at 5.88p

(LON:RKH) Rockhopper Exploration PLC share price was +1.38p at 28.13p

(LON:RPT) Regal Petroleum PLC share price was -0.06p at 3.79p

(LON:RXP) Roxi Petroleum PLC share price was +0.88p at 10.88p

(LON:TLW) Tullow Oil PLC share price was -0.8p at 312.6p