Archipelago Resources Plc (LON:AR.) announced drill results from two of its southern satellite pits, located close to the Toka Tindung Mine in North Sulawesi, Indonesia. At the Blambangan deposit, results from 28 holes returned best results of 24m at 5.64g/t from 16 m, 34m at 3.27g/t from 6 m, and 14m at 8.03g/t from surface. At the Pajajaran deposit, results from 33 holes returned best results of 8m at 8.80g/t Au from 143 m and 15.1m at 4.10g/t Au from 165 m.
Aurum Mining Plc (LON:AUR) announced that it has given approval to exercise its option to acquire five tungsten permits (the Morille permits) in Salamanca Province, Spain. The five permits are located 15 km southwest of the city of Salamanca and cover an area of 5,796 hectares. The cost of acquiring the permits will be EUR140,000, which is to be funded out of the Company's existing cash. In addition, the vendor will retain a 1.5% net smelter royalty.
Berkeley Mineral Resources Plc (LON:BMR) announced that it has not yet been able to complete satisfactory due diligence over two clusters at Chingola as part of the option agreement signed on 20 December 2011, in one case due to overlapping mining licence factors.
EMED Mining Public Limited (LON:EMED) announced that it has entered into a Sale and Purchase Agreement with Rumbo 5-Cero, S.L. in relation to the EUR10 million purchase of certain land plots (covering part of the tailings dams) owned by Rumbo adjoining the Rio Tinto Copper Mine. The parties intend to enter into a 50/50 joint venture to test and potentially exploit some tailings and waste dumps. The Company also announced that Yanggu Xiangguang Copper Co. Ltd has conditionally agreed to subscribe for 32,247,662 new ordinary shares of 0.25 pence each on the Company at a price of 10 pence per share for aggregate proceeds of US$5 million. These funds will be partly applied in funding the cash consideration for the acquisition of the Land.
Jubilee Platinum Plc (LON:JLP) announced that it has executed a Heads of Agreement with unlisted Indian Pacific Resources Limited ("IPR") for IPR to acquire up to a 90% interest in all commodities other than PGEs and metals in Jubilee's Ambodilafa tenement, located in Madagasgar. IPR's is most interested in the 6 km long Samelahy iron ore target found on the property. IPR will spend 1 million dollars for a 51% stake in within 18 months; then a further $1 million for a 30% stake within 12 months and finally $1 million dollars for a final 9% stake within 12 months taking its total interest in the project to 90%. If Jubilee elects not to contribute at the end of Stage 3, then IPR has the right to acquire the residual 10% interest for either $1.5 million in cash or convert it to a 1.5% net sales revenue royalty.
Oil & Gas News
Soco International (LON:SIA) News that the Company has commenced production from its second platform, which will enhance the performance of the field, is welcome. Of more significance is first oil being achieved ahead of schedule which underlines management's enthusiasm about the recovery potential of the asset. We will keep looking towards the next few months to see how operations progress on the Te Giac Trang field as production increases. In this news:
• first flow of crude oil and gas from the H4 Wellhead Platform ('WHP-H4') of the Te Giac Trang Field ('TGT') occurred on 6th July 2012
• achieved over one month earlier than scheduled and nearly a year ahead of the original approved development plan
• Production will now increase from 42,000 bopd to 55,000 bopd
Melrose Resources (LON:MRS) Quite a few positives to take out of today's news with the general feeling being that the Company is continuing to make good progress across all its blocks. The South Khilala-2 well results bode well for investors as they enable the Company to underpin its production forecast. Shareholders should have further cause for optimism following the outcome of the seismic interpretation on the Galata block, offshore Bulgaria, and the commencement of seismic acquisition in Romania. Now, while today's news highlights significant progress, further work needs to be done as the Company embarks on an extensive drilling programme in the Black Sea in 2013. In this news:
• Operations on the South Khilal-2 well in Egypt completed, flowing at 14 mmcfpd, bringing the total field production rate to 25 mmcfpd
• A preliminary assessment of the new well data indicates that the field's total recoverable proved plus probable reserves should increase from 47 Bcf to 60 Bcf
• 3D data in Bulgaria identified seven structures with a total combined unrisked P50 prospective resource estimate of 125 Bcf
• Seismic acquisition operations have recently commenced on the Company's Muridava and Est Cobalcescu concessions in the Romanian Black Sea. 28 percent complete
JKX Oil & Gas (LON:JKX) Today's news that the Company has received the final permit to operate should have a positive impact on the valuation and bodes well for the share price. The anticipated ramping-up of production is delayed while workover preparations take place, and success here should enhance the Company's upward trajectory. In this news:
• Permit now received
• Sales gas has been flowing since April, but the ramp up has been delayed by a few months while Well 27 is being side-tracked
Victoria Oil and Gas (LON:VOG) Commencement of Continuous Gas and Condensate Production at Logbaba: Re-confirmation of earlier forecast of increasing production to 8mm cfpd by the end of 2012, indicates that production programme is on schedule and thus bodes well for the share price. Current production is averaging at 0.7mm cfpd, and is expected to increase steeply as more customers convert their factories to take gas. Victoria supplies gas to industrial customers and has executed 15 agreements. With the commencement of continuous production from Logbaba field, we believe Victoria is in strong position to generate net free cash flow in excess of $1bn over the life of the project. We reiterate our BUY recommendation and 13p price target. In this news:
• Commences continuous production operations at Logbaba
• Current production of 0.7mm cfpd.
• Production forecasts remains on schedule to increase to 8mm cfpd by the end of 2012.
• This will be driven by an increase in the number of thermal (heat requirement) customers and the installation of gas powered electrical generation units on customers' sites. The first units are expected to come on line in mid Q4 2012.
• It becomes the first gas producer in Cameroon to supply the industrial market.
GeoPark Holdings (LON:GPK) Max oil field discovery and Tua oil field discovery on GeoPark operated Block Llanos 34 licence, clearly demonstrates company's ability to de-risk and build resources through drill bit. Exploration Well Maniceño 1 ( a previously announced discovery) on Block Llanos 32 (10% WI) has been successfully put into the production and is currently flowing gross ~3m bpd is another positive from today's announcement. With 45-50 well drilling program for 2012, we believe GeoPark must be on investors watch list.Nevertheless, we remain cautious as Argentina's populist nationalisation drive could yet creep down the value chain to the minnows, and given that GPK is a UK listed stock, and threat Kirchner's rhetoric displays a fair degree of is myopia when it comes to the UK, there could be further risks. In this news:
Block Llanos 34 (Operated by GeoPark with a 45% Working Interest (WI))
• Exploration Well Max 1 is currently testing approximately 1,220 barrels of oil per day (bopd) of approximately 15° API oil.
• Drilling was completed in March 2012 to a total depth (TD) of 11,505 ft and the Gacheta, Guadalupe and Mirador formations were tested during May to July 2012.
• Exploration Well Tua 1 is currently testing approximately 1,723 bopd of 18.2° API oil.
• Drilling was completed in June 2012 to a TD of 10,986 ft and the well was tested during June and July 2012.
Block Llanos 32 (Operated by P1 Energy with GeoPark owning a 10%1 WI)
• Exploration Well Mapora 1 completed drilling in June 2012. Log analysis indicated that the well had no potential oil pay and therefore will be plugged and abandoned.
• Exploration Well Celeus 1 completed drilling in April 2012 with potential oil pay in the C7 and Gacheta formations. Testing is expected to be carried out in July 2012.
Fairfield Energy -Secures $150 million equity commitment: Riverstone Holdings equity commitment to invest $150mm with the option of subscribing a further $200mm, further lends confidence to the company's inventory of exploration and appraisal, development, and production assets in the Northern North Sea and Southern Gas Basin. The company already has established funding line from current investors led by Warburg Pincus. New funding will help in expediting The Crawford and Porter discoveries to Field Development Plan and also utilized for three exploration and appraisal drilling well at Darwin.