Leni Gas & Oil, Latest Map Reveals Size & Scale of the Goudron Field & Trinidad Operations

Leni Gas & Oil, (LGO:AIM) the Trinidad focused oil company, today published a new map of their Trinidad operations. The map reveals the locations of the first five wells, spud as part of the 30 well redevelopment program plus the details of the locations of future wells that will be spud on the Goudron field.

In addition there is also a 3D diagram of the Gros Morne reservoir illustrating the pay zones in the Gros Morne and Lower Cruse structures.

The location of the Icacos oilfield and Trinity Innis oilfield are also shown. Leni Gas & Oil has an option to acquire 100% of Trinity Innis, which was announced to the market on the 16^th July 2014. Trinity Innis is a producing oilfield where production averages between 140-150 barrels of oil per day ("bopd") from approximately 25 active wells.

What is striking about this map is the size and scale of the Goudron acreage which is 3.5 kilometres by 2.5 kilometres 

It is a huge area that has massive production upside. It is clear from the map that Texaco did not really venture properly into the Goudron field as there are huge areas of unexplored acreage that clearly has the potential to be drilled.

The other really important point is that if LGO secure the option over Trinity Innis they will get game changing production output and almost certainly like Goudron have a field that has the potential for further exploration.

I think this map is a really great illustration 

Horse Hill Now Drilling. My guess is that this is now a major oil play

Drilling commences at Horse Hill

I have no doubt there is Oil and Gas in the Weald Basin. 

The geology is well known. All the ingredients are in place. Source Rock, Reservoir Rock, Seals, Traps and Maturation. Initially my assessment of Horse Hill led me to think this was a gas play, however after evaluation, I suspect the Kimmeridge clays are probably a major oil source.

This has to be one of the most exciting onshore exploration adventures for many years. There is a good technical team on the drill site. The Weald Basin is well known geologically and Horse Hill is not really an exploration story as such, its more of an evaluation story. The value in the Horse Hill well and for investors will be the technical outcomes. The contact data will be really useful.

If gas is found in the Weald Basin it must be sourced from either the older Triassic or deeper Palaeozoic strata and not the Liassic shales, which is the source for the oils. Horse Hill are at least targeting the correct structure (Triassic) Its pretty exciting and a very considered drill program from a technical perspective.

The Horse Hill-1 well is planned to be drilled to a Total Depth ("TD") of 2,646 metres (8,680 feet) and is designed to test for a number of conventional stacked oil targets in the Jurassic, as well as a deeper conventional gas target in the Triassic.

The operator, Horse Hill Developments Ltd ("HHDL"), is a special purpose company with a 65% operating interest in the PEDL 137 license in the Weald Basin to the north of Gatwick Airport in Surrey. UKOG has binding agreements in place to own a direct 20% interest in HHDL and an additional 2.4% interest by virtue of its 6% ownership in Angus Energy Limited ("Angus Energy"). Angus Energy owns 40% of HHDL.

The participants in the Horse Hill Prospect are HHDL (65%) and Magellan Petroleum Corporation (35%).

David Lenigas, the Company's Chairman, commented:

"This is an exciting time for UKOG as we embark on this well that will not only test a number of conventional oil formations, but will be one of the first wells drilled in this part of the Weald Basin to test for the potential for conventional gas in the deeper Triassic formations."

About Horse Hill:

The 99.29 km² (24,525 acre) Horse Hill Petroleum Exploration and Development Licence No. 137 (PEDL 137) ("Horse Hill") is located in Surrey, a few miles from Gatwick Airport.

The Horse Hill Prospect OOIP and OGIP and prospective resources, as announced by UKOG on 20 December 2013, are summarised in Table 1.

Table 1: Horse Hill Prospect estimated OOIP, OGIP and Prospective Resources.

Target Reservoir Oil	OOIP Upside Potential (MMSTB)	OOIP Mean (MMSTB)	Prospective Resources Mean (MMSTB )
Upper Portland Sandstone	116	57	17
Lower Portland Sandstone	284	147	44
Corallian Sandstone	67	33	10
Greater Oolite Limestone	204	104	16
Total Oil	671	341	87
Target Reservoir Gas	OGIP Upside Potential (Bcf)	OGIP Mean (Bcf)	Prospective Resources Mean (Bcf)
Triassic Sandstone	456	234	164

Horse Hill Well-1 Set for Spudding. The Americans Like Magellan Petroleum and This Story

The Horse Hill 1 Well is getting ready for spudding as all permits are now in place. 

My analyst has produced a very good geological report on the Weald Basin. Looks very promising for more oil. 

All eyes will now be on the JV partnership. The participants in the Horse Hill-1 well are HHDL (Operator) with a 65% working interest and Magellan Petroleum Corporation with a 35% interest. Co-investors in Horse Hill Developments are Alba Mineral Resources PLC, Regency Mines PLC, Angus Energy Ltd, (Magellan's partner in the project) Solo Oil PLC, Doriemus PLC, Stellar Resources PLC and UK Oil & Gas Investments PLC.

It is worth noting that Magellan Petroleum, Listed on the NASDAQ code MPET:NAQ has seen its share its share price rise by over 95% this year.

What is also interesting is that since the 3rd June 2014 when Magellan announced its plans for two UK wells which included Horse Hill, the share price has risen by 14%

So its pretty interesting, not just UK investors will be looking out to see how Horse Hill gets on, but also are friends across the pond. 

http://www.magellanpetroleum.com/media-center/press-releases/detail/184/magellan-announces-plans-for-two-uk-wells-in-2014

ASX listed Cossack Energy Join San Leon Energy in the Bieszczady Project South East Poland, with Well Nieb‐1 set for testing

Highlights:

• Cossack has proceeded to Settlement on the Bieszczady Project in Poland.
  
• Cossack has now diversified its portfolio into two significant projects located in the Carpathian
  foothills region and is now focused on the development on the most immediate prospects located in
  Poland.
  
• Anticipates a near term flow testing program on the Nieb‐1 discovery well to prove up existing
  Contingent Gas Resources to Reserves, followed by a fast track program to production.
  
  
  Acquisition of Polish Project Completed
  Cossack Energy Limited (“Cossack” or “the Company”), the oil and gas explorer with assets in the world class North Carpathian oil and gas province stretching across the borders of Poland and Ukraine, is pleased to announce that it has executed a Share Purchase Agreement (“SPA”) with Iskander Energy Corporation to finalise the purchase the Bieszczady Project in Poland.
  
  Bieszczady Project Acquisition
  As announced at the end of May, Cossack executed a Binding Heads of Agreement (“HoA”) with Iskander Energy (“Iskander”) to acquire their complete 24% working interest in the Bieszczady Project (“Project”) located in south‐east Poland. As contemplated in the HoA, the Company paid a non‐refundable deposit of US$200,000 to Iskander in early June and moved into an extended period of exclusivity which afforded the Company further time to conduct more in‐depth due diligence on the Project up until early July 2014.
  In early July Cossack confirm that it had, with the exception of a couple of minor items, completed its in‐ depth due diligence within the period of exclusivity and elected to proceed with the acquisition, and delivered to Iskander a Notice to Proceed with the transaction at that time.
  Cossack can now further confirm that it has finalised its in‐depth due diligence and has completed the necessary formalities, including execution of the SPA, and has proceeded with the acquisition with immediate effect.
  These formalities contemplated by the HoA were the negotiation of a formal SPA which was executed with Iskander on 30th July after which the Company moved immediately to settlement of the transaction (“Settlement”) which was via the acquisition of a Polish holding Company called EuroGas Polska Sp. z o.o., the owner of the 24% working interest in the Joint Operating Agreement (“JOA”) for the Project. 
  
  
  
  Settlement was concluded as contemplated by the HoA with the payment of US$500,000 (plus working capital adjustments).
  The remaining obligations under the HoA subsequent to Settlement encompass the requirement for Cossack to pay the final instalment of the US$1 million purchase price being US$300,000 payable to Iskander (less any adjustments) by 31 December 2014.
  Bieszczady Project Description
  Cossack has now acquired a 24% working interest in the Bieszczady Project which is made up of eight (8) contiguous licences covering an extensive area of 3,546 km2 in the far south‐east of Poland bordering on Ukraine and Slovakia in the foothills of the Carpathian Mountains.
  Polskie Górnictwo Naftowe i Gazownictwo (“PGNiG”), who is the largest oil & gas exploration and production company in Poland, is the 51% JV owner and Operator of the Project with LSE AIM listed San Leon Energy plc as the other 25% JV Partner.
  Immediate Well Test to prove up Contingent Resources
  The program of works for 2014 proposed by the Operator (PGNiG) is concentrated on a wide perforation and production test of the Niebieszczady‐1 (“Nieb‐1”) discovery well located in the Tarnawa Central prospect containing the contingent resources which was drilled and tested in 2011.
  Final timing of the proposed program will be determined at a meeting of the Joint Venture Committee, proposed for the end of July 2014 in Warsaw. It is expected that the program will be initiated in the second half of the 2014 calendar year.
  Development scenarios are highly advanced and would be via a dedicated processing facility and a 17km lateral pipeline to interconnect into an existing metering facility located on the high pressure pipeline system.
  Please also see ASX Announcement and associated presentation released on 5th June for more background information on the Bieszczady Project.
  Bieszczady Project Contingent & Prospective Resources
  Tarnawa Central, one of five prospective fields identified in the Project area, has been initially flow tested by means of the Nieb‐1 discovery well and will be the subject of an extended production test in the upcoming half year with the intention of converting the Contingent Resources into Reserves and is estimated by RPS Canada in their Report with an Evaluation Date of 15 November 2012 to contain the following Contingent Resources:‐
  
  

Shale Fracking in Poland…………3Legs Have Cracked It,,,, Land Valuations Set to Soar

3Legs Resources (LSE:3Leg) Lublewo LEP-1ST1H lateral well, Game Changer & Major Value Kicker for Poland’s Shale Gas Sector.

Incredible news out this morning by AIM listed Polish shale gas exploration company 3Legs Resources (LSE:3Leg) who have reported the results of their Baltic Basin, Lublewo LEP-1ST1H well stimulation. In partnership with US Major ConocoPhillips, 3Legs have successfully completed stimulation over 25 stages of their Lublewo well, in what is a landmark technical achievement.

For investors in Poland’s shale gas sector, this news is of major significance as 3Legs and ConocoPhillips have not only completed a successful stimulation but have worked out the right fluid combination to penetrate the Baltic Basin shale structure.

Getting the fluid combination right is the Holy Grail for a successful fracture and major issue to date in Poland has been working to discover just what is the right fluid combination to deliver a successful frack and one that will be able to unlock Poland’s huge shale gas reserves.

Cross-Linked Gel

On the Lublewo well, 3Legs have used a cross-linked gel a step back from the slickwater fluid that was used on the Lebien LE-2H well in 2011.  The use of a cross-linked gel was designed to reduce the amount of fluid required per stage, while maximising proppant delivery. It appears that this hybrid fluid systems has been able to control fluid loss to increase the fluid efficiency, provide good fracture conductivity, keep polymer concentration to a low level and help eliminate proppant flowback ensuring the frack can be stabilized.

Poland’s Largest Successful Multi Stage Simulation

3Legs, ConocoPhilips & Lane Energy have conducted what is Poland’s largest multi-stage shale simulation. By identifying the correct fluid combination, it appears 3Legs have found a way to keep the proppant in suspension and thus ensuring more proppant gets into the rock structure and penetrates much further (Lublewo delivered 7.7 million lbs of proppant over the 25 stages executed across 1,469 metres out of the available 1,495 metres of lateral section) By using the hybrid gel combination, they have used less water, a factor that is significant in that it reduces costs by making clean up much quicker.

Raises Investment Interest in San Leon’s Lewino-1G2

The other reason why this news is so significant is the Baltic Basin concession owner Lane Energy Poland Sp. Zoo where 3Legs and ConocoPhilips hold a 30% and 70% interest respectively, contracted the Polish company United Oilfield Services (UOS) to drill and frack the Lublewo well. This is important as it means the on the ground experience in Poland’s drilling sector is now gathering pace and where these experiences will certainly be transferred to other companies like San Leon Energy (LSE:SLE). Indeed this news by 3Legs puts a real spotlight on San Leon’s Lewino-1G2 well, which successfully flow tested in January and is now ready for a horizontal well to be spud and where I understand UOS will likely be contracted to spud Lewino (UOS did the successful flow test). I would suspect that San Leon would be approached by a major who off the back of this news by 3Legs would want to have access to one of Poland’s most advanced shale gas wells, where it too could employ similar techniques to bring Lewino into production pretty quickly.

Raising Valuations

On a final note, surely the news out today significantly raises the valuations of Poland’s shale gas acreage. It has been as high as $500 per acre and is today valued at $50 an acre but where a more reasonable valuation after this latest news must be ranging from $1,000 to $2,000, in contrast US shale gas acreage is valued at circa $38,000 an acre. San Leon has interests in nearly 5 million acres of land in Poland of which 1.2 million acres is pure play shale gas.

Shares in both 3Legs and San Leon are up this morning on the back of this great news.

BNK Petroleum, (TSX: BKX) Possibly Good News for Poland's Shale Gas Sector, if They Explain it Better at Least

I am really interested to see if the Polish Shale Gas sector takes off. I am tracking 3Legs, San Leon, Conoco, Chevron, ENI etc 

I was pretty pissed off by this update from BNK (ONLY A FEW etc) how many is a few?

Anyway, it looks like they have had some success but I would like to see a much better technical description of exactly what fracs did what where and how


BNK PETROLEUM INC. OPERATIONS UPDATE
BNK Petroleum Inc. (the “Company”) (TSX: BKX) is 

Poland
As previously announced, the Company successfully placed proppant in 9 of the 20 stages attempted in its Gapowo B-1 horizontal well, and is continuing its recovery of the fracture stimulation fluid (“fluid”). Mechanical issues with the artificial lift equipment resulted in a fluid recovery rate that was slower than anticipated. The mechanical issues were corrected late last week, and fluid recovery re-commenced at higher rates. As of this date, 21% of the fluid has been recovered, with continuous natural gas being produced from the well. 


The well has had gas rates spiking to over one million cubic feet per day for short periods of time, and is currently averaging between 200,000 to 400,000 cubic feet per day. These gas rates may continue to increase as the well continues to unload fluid. The preliminary flowback and gas production results obtained so far indicate that the fracture stimulation may have achieved a lower than desired effective permeability. The Company believes that only a few of the 9 stages may have been successful in creating the desired conductivity. Downhole pressure recorders were installed which will provide further information during the continued flowback. This data will also help in understanding the stronger-than-expected build-up that occurred during the period when the well was shut-in for mechanical repairs. 

Massive Infrastructure Boost in Tanzania for Solo Oil

Solo Oil

Hot Testing of Tanzania’s Natural Gas Pipeline is Major Value Catalyst

I was interested to learn of news coming in from Tanzania that the Mtwara to Dar es Salaam natural gas pipeline is nearly complete and that gas could start flowing as early as January 2015, please see article by IPP Media.

http://www.ippmedia.com/frontend/index.php?l=69867

This is a very important piece of news for London listed Solo Oil (LSE:SOLO) and its partner in Tanzania AMINEX (LSE:AEX) as the pipeline passes just 20 kilometres from the Ntorya-1 gas condensate discovery, part of the Ruvuma Basin PSA where Solo has a 25% stake. A resource report prepared by ISIS Petroleum Consultants attributes 5.75 tcf of potential gas-in-place resources to the Ruvuma PSA. ISIS calculates that Ntorya holds mean 1.17 tcf of un-risked gas in place of which 178 bcf are considered discovered.

According to reports, live testing of the pipeline will take place in January 2015, when natural gas is set to start flowing. The Tanzania government officially inaugurated the construction of the Mnazi Bay to Dar es Salaam Gas Pipeline project, on September 5th, 2012.

Back in May this year Solo announced 2D seismic acquisition to appraise up-dip portion of the Ntorya-1 discovery were complete and processing had begun. Fully interpreted results are expected anytime soon and if positive, could pave the way for Ntorya to rapidly advance towards production.

Typically a gas condensate well can be brought into production within two years if pipeline infrastructure is in place. For Solo and AMINEX, it would be a question of constructing a 20 kilometre pipeline spur from Ntorya to feed into the main pipeline, a process made much easier now the main pipeline construction is on track for completion.

San Leon Energy Boosted by Massive Cash Injection from JV Partnership , Why I am Covering

San Leon Energy (AIM:SLE) is worth looking at. The recent deal closed with Palomar ( see details below) sees the company get a huge cash boost

I was in New York a few weeks ago and I can tell you, investors in the US are really keen to get their hands on large acreage oil and gas play owners, with assets in good jurisdictions in energy thirsty markets. San Leon, ticks many boxes on that front. 

Myself and geological team are now working hard on research into the Polish onshore gas market, where  San Leon is the largest private sector acreage owner. Given the fact George Soros (No mug investor) is a shareholder in San Leon, 

I would expect this company to fly following the deal. It is worth noting that San Leon have an OTCQX listing

www.otcmarkets.com/stock/SLGYY/quote

A factor that will help them attract North American investment. I would also suggest its a bad idea to take out a Short Position CFD against San Leon, as there is likely to be considerable news flow following this deal.

Watch this space and watch this research.......!!!!!!!!!!

Palomar Natural Resources to Develop the Siekierki and Rawicz Gas Fields

Highlights

·     Joint venture agreement signed with Palomar Natural Resources ("PNR") across seven Concessions in Poland's Permian Basin

·     PNR has paid $5 million and $15 million cash upfront for a 65% working interest in each of the Southern Permian Basin and Northern Permian Basin Concessions, respectively

·     San Leon carried for defined initial work programme aimed at bringing the Rawicz and Siekierki fields into production as soon as possible

·     PNR was founded in 2013 by John Buggenhagen, former Exploration Director of San Leon, and Robert Price

San Leon Energy, the AIM listed company focused on oil and gas exploration in Europe and North Africa, is delighted to announce that it has signed a joint venture agreement with Palomar Natural Resources ("PNR") across seven Concessions in Poland's Permian Basin initially focused on developing the discovered, un-produced Siekierki and Rawicz gas fields. In return for a 65% working interest in the Southern Permian Basin and  Northern Permian Basin Concessions,  PNR has paid upfront to San Leon $5 million and $15 million, respectively, in cash and will carry San Leon for a defined initial work programme aimed at bringing the Rawicz and Siekierki fields into production as soon as possible. PNR will become the operator of all of the Concessions.

The Joint Venture ("JV") is divided into two core areas across seven exploration concessions including the Rawicz (39/2009/p), Wschowa (8/2009/p), Gora (30/2008/p) and Nowa Sol (5/2009/p) concessions ("Southern Permian Basin"); and the Poznan North (26/2008/p), Poznan East (4/2003/p), Poznan East (5/2003/p) concessions ("Northern Permian Basin").

Southern Permian Basin - Rawicz Gas Field:

PNR has received a 65% equity interest and operatorship in the Southern Permian Basin concessions, including the Rawicz field. The Company has retained a 35% equity interest. In consideration for this farm-out:

1.    PNR has provided San Leon with $5 million in cash up-front; and

2.    PNR will carry San Leon's participating interest in the first two development wells on the Rawicz gas field including drilling, evaluation, completion and testing of each well in the Permian Rotliegendes formation.

The carry, plus a 10% return, will be repaid to PNR from half of San Leon's production revenues from the Rawicz field. In the event that there are no production revenues, the carry will not be repaid.

PNR intends to start permitting, operational planning, and well design immediately pending final approvals and permits from the Polish regulatory authorities. The first well is planned to be drilled in Q3/Q4 2014 including completion and testing.

Northern Permian Basin - Siekierki Gas Field

PNR will receive 65% equity interest and Operatorship in the Northern Permian Basin concessions, including the Siekierki field. The Company has retained a 35% equity interest. In consideration for this farm-out::

1.    PNR has provided San Leon with $15 million in cash up-front; and

2.    PNR will fully carry the work over, recompletion and testing of three existing wells (Trzek-1, Trzek-2H and Trzek-3H) in the Permian Rotliegendes formation. 

3.    There is no cost recovery by PNR for the carry.

The goal of recompleting the three wells is to focus on higher quality reservoir intervals, and for the work overs to begin during late Q3/early Q4 2014. These wells produced an average of approximately 3 mmscf/d during previous testing, and the work overs will target additional reservoir zones and improved flow rates and ultimate recoveries from the significant resource potential of the Siekierki field.

Further Development Of Assets

On both the Rawicz and the Siekierki fields, the above work programmes aim to provide the justification to construct production facilities and pipelines and to achieve near-term production. If PNR decides to proceed with the development of either or both assets after the above well work, it will include San Leon in seeking project finance.

This completed deal replaces the existing Letter of Intents ("LOIs)" on the concession in these areas.

Oisin Fanning, San Leon Chairman, commented:

"I am delighted to be working again with John Buggenhagen, former Exploration Director of San Leon, who knows these assets as well as anybody. PNR bring a team of US based industry experts who have the expertise to maximize production and ultimate recovery from these significant gas fields. The receipt of the up-front cash payments, and the execution of work programmes on Rawicz and Siekierki to target early production, put San Leon on a strong footing and will provide a basis for continued production growth throughout the Company's portfolio."

John Buggenhagen, Palomar Natural Resources CEO, commented:

"I am very excited to be returning to Poland and once again to work with San Leon, but this time as a partner. I truly believe in these production based assets and the significant exploration upside that exists across all seven concessions. PNR is owned by the management and the Palomar Group, which is fully capitalised to execute its development plans for all of its assets including this joint venture. With PNR's technical expertise and strong financial position, and San Leon's long experience in Poland we expect significant production and strong revenue growth over the next 18 months."

About Palomar Natural Resources

PNR was founded in 2013 by John Buggenhagen and Robert Price in Denver, Colorado with a focus on using modern exploration and production technology, proven and developed in North America, to identify and unlock significant reserves in proven petroleum fairways around the world. PNR is currently focused on near term production projects in the DJ Basin in Colorado where it has established its first oil and gas production; and the San Juan Basin in New Mexico where the Company is currently acquiring 3D seismic in anticipation for a redevelopment program over a proven oil field. The Company has an ongoing US and international new ventures effort looking for high quality projects focused on production.