FoxDavies Daily Monitor - Aurelian Oil & Gas, Petroceltic International and San Leon Energy

Thursday, July 05, 2012

Aurelian Oil & Gas (LON:AUL) Oil encountered in first wildcat exploration well in the Zechstein 'reef' oil play in the Torzym concession is encouraging; however we wait for the final drilling test results. De-risking activities across other licences are progressing well. Year 2011 was a challenging period for the Company as the initial production rates from all three appraisal wells on Siekierki tight gas project were significantly lower than forecast. While these disappointing results have not dented the Company's exploration programme, it is hard to find any enthusiasm for a Company whose management appear to have given up, or at least are mired in confusion as to what they want to do next. In this news:

• Romanian licence activity
  • The Year 3 licence work program on Brodina has now commenced on the schedule previously advised. The "Gore? Surveys - Amplified Geochemical Imaging" sampling modules are now fully in place in the field.
  • The NAMR (Romanian regulator) has approved the new composition of the JV working interest equity levels for Aurelian (50%) and Romgaz (50%) in respect of the non-Bilca Gas Project Area in Brodina.
  • West Karpaty seismic acquisition
  • 132km of 2D seismic data have been acquired across the West Karpaty area by United Oilfield Services and Geofizyka Krakow, meeting the commitment work program on all four concessions which will now proceed into their next two year phases;
  • The PGNiG farm-in cost-carry total of ?1.575MM has now been reached and the JV partners will pay their equity interest share for further activities (Aurelian 60%, PGNiG 40%).

Petroceltic International (LON:PCI) The award of two exploration licences (B.R 270 and B.R 271) in the central Adriatic offshore further expands company's presence in Italy. In Central Adriatic & Abruzzo region, Petroceltic already holds B.R268.RG permit which includes the Elsa discovery. New licenses will not be NAV accretive in the near term; however, presence in Adriatic offshore through B.R 268 permit would be helpful in expediting exploration program at the newly awarded licenses. In this news:

• Licences B.R 270 and B.R 271 are 144.5 km2 and 327.1 km2 in size respectively, and run for six years from the date of award.
• The Company has also applied for three other adjacent exploration permits in this area, which are currently under consideration by the Ministry of Economic Development.
• The permits, in water depths of 30 to 150 metres, are located adjacent to existing oil and gas fields which have demonstrated three working hydrocarbon plays in this region; the Cretaceous Miglianico/Elsa basin floor fan, the Cretaceous to Miocene Rospo Mare/Ombrina Mare platform carbonate oil plays, and the Santo Stefano Mare Pliocene biogenic gas play.

San Leon Energy (LON:SLE) Today's news should bode well for investors, as it further demonstrates Management's drive to create value for shareholders. Unlike its previous tests in Poland, the Company is targeting conventional oil potential of the Main Dolomite, which highlights the potential diversity even within the Polish acreage. Furthermore, the JV partnership with Celtique Energie increases in exposure to its core Permian and Carboniferous acreage, it further underlines management's belief that their technical approach to unlocking the potential resources within the shale sequences will ultimately prove fruitful. While Poland receives all of the attention Albania receives less attention, which we believe is not warranted. In the news:

• The first well is planned to spud mid to late July with the second well spudding immediately after
• Both wells are testing the conventional oil potential of the Main Dolomite (Nowa Sol Concession)
• JV with Celtique Energie Poland to develop Block 243 and Laski

Quadrise Fuels International (LON:QFI) Today's news on the proposed partnership between Quadrise Fuels and Nexidea is positive for the valuation and provides an opportunity to improve financials. In the news:

• Memorandum of Agreement ("MOA") signed between both parties
• Nexedea will partner with Quadrise in the development of projects

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. More

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Source: http://www.oilvoice.com/n/FoxDavies_Daily_Monitor_Aurelian_Oil_Gas_Petroceltic_International_and_San_Leon_Energy/92ad9caae48c.aspx

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