Fox Davies Capital Update featuring Stratex, Bahamas Petroleum Company (LON:BPC), Cadogan Petroleum (LON:CAD), Kea Petroleum (LON:KEA)

Fox Davies Capital Update featuring Stratex, Bahamas Petroleum Company (LON:BPC), Cadogan Petroleum (LON:CAD), Kea Petroleum (LON:KEA)

Aurelian Oil & Gas plc (AUL, 17.50p, ▲ 1.45%) announced the acquisition of additional 10% equity in Cybinka and Torzym concessions on Polish Reef Oil Play taking interest to 45% in each. Aurelian is paying €337,724 and €368,177 respectively for the additional 10% interests in Cybinka and Torzym. The partner group plans to spud the first well on the Torzym concession in Q1 2012 which is targeting gross 35 million bbls mid case STOIIP. Results are expected by the end of Q2 2012.

Bahamas Petroleum Company (LON:BPC) plc (BPC, 7.50p, ► 0.0%) announced that the acquisition phase of its 3D seismic programme has been completed with a final total area of 3,075km2 having been surveyed. The acquisition area was expanded during the engagement in response to early encouraging results and good data quality. Processing has already begun, with initial indications that the data sets are of a very high quality. Preliminary results are expected to be available early in the New Year 2012 and will allow the Company to form a better understanding of the complete section of potential play-types from the Tertiary through to the Jurassic. This interpreted data will provide potential drilling locations down to below 20,000 feet and thus the finalisation of safe drilling locations.

Cadogan Petroleum (LON:CAD) plc (CAD, 41.00p, ▼ 4.65%) announced that Gordon Stein, Chief Financial Officer, has agreed to leave the Company by mutual consent, and has resigned as a director. This is due to personal reasons associated with the Company's increased focus and workload in Ukraine.

Europa Oil & Gas (Holdings) plc (EOG, 10.25p, ▲ 2.50%) announced the financial results of the Company for the 12 months to 31 July 2011. Operational highlights: drilled West Firsby-9 and Barchiz-1 wells; assumed operatorship of Brates concession; remapped Berenx structure using controlled beam migration processed 3D seismic; gained interest in PEDL182 containing the Broughton prospect through deal with Egdon & Celtique; and participated in seismic acquisition in 3 Romanian concessions. Financial performance: revenue of £3.8m (2010: £3.1m); pre-tax profit from continuing operations £0.3m (2010: loss of £1.7m); and net cash £1.9m (2010: debt of £0.5m). Post reporting date events: HGD Mackay was appointed as a director on 6 September 2011, and as CEO on 10 October 2011; Horodnic-1 well spudded on 11 October 2011; award of two licensing options over acreage in the 2011 Irish Atlantic Margin Round 17 October 2011; and Paul Barrett resigned as a director effective 21 October 2011.

Kea Petroleum (LON:KEA) plc (KEA, 5.00 ► 0.0%) announced the appointment of Mr John Dennehy to the Board of the Company as Commercial Director, with immediate effect. Based in New Zealand, John will share the responsibility of the day to day running of Kea with David Bennett, who will assume the title of Director of Exploration. John Dennehy has an extensive track record in international banking and finance, including as co-founder of McAuley, Dennehy & Tolley, one of the UK's leading independent structured asset finance houses.

Mining Corporate News

Tanzania plans to raise royalty payments on exports of gold by the end of this year as it seeks to restructure the mining sector, Minerals and Energy Minister William Ngeleja said on Wednesday. Africa's fourth-largest gold producer has been undertaking major reforms of its mining sector following growing criticism over the industry's relatively minor contribution to economic growth. Tanzania's annual gold exports have tripled to $1.5 billion in the past five years as gold prices have risen, but government revenues have remained at around $100 million a year. The 2010 Mining Act increased the rate of royalty paid on minerals such as gold from 3% to 4% and required the government to own a stake in future mining projects.

Stratex (LON:STI) International Plc (BUY, 13p) (STI, 6.88p, ► 0.0%)announced that AngloGold Ashanti Ltd and Thani Ashanti have subscribed for additional shares in the Company in order to maintain their equity stakes following the private placement by Antofagasta plc. AngloGold has subscribed for 1,550,000 Stratex Ordinary shares at 7.72p raising GBP119,660. This maintains their percentage shareholding at 11.5%. Thani has subscribed for 1,200,000 Stratex Ordinary shares at 7.72p raising GBP92,640. This maintains their percentage shareholding at 2.2%. Read More

COMPANY Profile: Bahamas Petroleum (LON:BPC), Europa Oil & Gas (LON:EOG), Aurelian Oil and Gas (LON:AUL), Helius Energy (LON:HEGY), Telit Communications (LON:TCM)

COMPANY Profile: Bahamas Petroleum (LON:BPC), Europa Oil & Gas (LON:EOG), Aurelian Oil and Gas (LON:AUL), Helius Energy (LON:HEGY), Telit Communications (LON:TCM)

While the upcoming EU summit was in the spotlight on the macroeoncomic front, corporate news was dominated by oil and gas companies led by Bahamas Petroleum (LON:BPC), which has completed the acquisition phase of its 3D seismic programme on time and budget.

Processing has already begun, with initial indications that the data sets are of a very high quality. Preliminary results are expected to be available early in 2012, said BPC.

This acquisition area was expanded during the engagement in response to early encouraging results and good data quality.

Earlier in the year, the Company announced it had raised £43.3 million to fund its technical programmes, including £23 million on the acquisition and processing of a 3D seismic survey

Sector peer Aurelian Oil & Gas (LON:AUL) has acquired additional 10 percent interest in the Cybinka and Torzym concessions on Polish Reef Oil Play from Avobone Poland B.V., taking its interest in each to 45 percent.

Under the terms of the sale, Aurelian will pay €337,724 and €368,177 for the additional stakes in Cybinka and Torzym respectively.

The partner group plans to spud the first well on the Torzym concession in Q1 2012 which is targeting gross 35 million barrels of mid case oil initially in place. Results are expected by the end of the second quarter of 2012.

Another small cap oil and gas company Europa Oil & Gas (LON:EOG) reported its full year results for the period to end July, saying its revenues rose from £3.1 million to £3.8 million, while pre-tax profits came in at £0.3 million compared to a loss of £1.7 million for the prior year.

This has allowed Europa to boost its net cash position to £1.9 million. A year earlier, the company had a debt of £0.5 million.

On the operational front, EOG has drilled West Firsby-9 and Barchiz-1 wells, gained interest in PEDL182 containing the Broughton prospect through deal with Egdon & Celtique and participated in seismic acquisition in 3 Romanian concessions.

In the mining sector, Stratex International (LON:STI) announced today that AngloGold Ashanti and its joint venture company Thani Ashanti have subscribed for additional shares in the company to maintain their equity interests following the private placement by Antofagasta (LON:ANTO) in September.

AngloGold has subscribed for £119,660 worth of shares at a price of 7.72 pence and Thani has subscribed £92,640, also at 7.72.

Following the subscription, AngloGold and Thani have stakes of 11.5 percent and 2.2 percent respectively in Stratex.

In the biotech sector, ImmuPharma (LON:IMM) told the markets that following discussions with Cephalon, its licensee for its anti-lupus drug Lupuzor, it has regained rights to Lupuzor, due to the acquisition of Cephalon by Teva Pharmaceutical Industries.

Cephalon and ImmuPharma will decide the future of the current clinical trials that Cephalon initiated in lupus patients in the US and Europe.

“We are delighted to have Lupuzor back. This paves the way for new options for the future of the company,” said chief executive of ImmuPharma Dimitri Dimitriou.

Elsewhere in the markets, Helius Energy (LON:HEGY) welcomed the UK Government's consultation on proposals for levels of support for dedicated biomass, saying it provides greater clarity for the company.

The company said the proposal is dedicated to biomass banding - to retain the existing support level of 1.5 Renewable Obligation Certificates per megawatt hour (ROCs/MWhr) until April 2016 when the level will drop slightly to 1.4 ROCs/MWhr for new accreditations.

Helius is currently seeking to secure a project funding package for a 100MWe plant in Avonmouth, Bristol, where Helius aims to start construction in the second quarter of 2012 and is progressing a similar scheme in Southampton through the consenting process.

The Company's joint venture Helius CoRDe's 7.2MWe biomass to power plant, which is currently under construction, is outside the scope of this consultation as it is located in Rothes, Scotland. The plant is due to come onstream in 2013.

Finally, machine to machine (m2m) communications specialist Telit Communications (LON:TCM) said today that its revenues for the nine months to end-September reached US$128.5 million including the seven months contribution from the Motorola m2m acquisition, up 31 percent compared to a year earlier. Read More

Bahamas Petroleum (LON:BPC) completes 3D survey at southern blocks

Bahamas Petroleum (LON:BPC) completes 3D survey at southern blocks

Bahamas Petroleum (LON:BPC) has completed the acquisition phase of its 3D seismic programme, calling it a major milestone in the continuing risk reduction at its licences in the Bahamas.

Processing of the seismic data has already started and the company said initial indications are that the data sets are of a very high quality.

Preliminary results are expected to be available early in 2012, providing BPC with potential drilling locations down to below 20,000 feet, “refining and reinforcing” conclusions of the initial 2D survey over the four most southern blocks of the company’s portfolio in the Bahamas.

“Completion of this 3D survey...is a major milestone in the continuing risk reduction work programme undertaken by the company,” said chief executive of Bahamas Petroleum Simon Potter.

“Early indications from the preliminary interpretation of the results are encouraging and we look forward to updating the market once comprehensive analysis has been completed.”

Earlier in the year, the company announced it had raised £43.3 million to fund its technical programmes, including £23 million on the acquisition and processing of a 3D seismic survey.

The company has now surveyed a total area of 3,075 square kilometres. The area was expanded following early encouraging results and good data quality.

Despite the expansion of the surveyed area and precautionary delays due to the hurricane season, the acquisition was completed on time and budget.

Shares in Bahamas were down 1.3 percent at 7.4 pence this morning, valuing the company at £91 million. Read More

Max Petroleum finds oil pay in Asanketken field exploration well - Kazakhstan-focused Max Petroleum PLC (LON:MXP), NUR-1

Max Petroleum finds oil pay in Asanketken field exploration well - Kazakhstan-focused Max Petroleum PLC (LON:MXP), NUR-1

Kazakhstan-focused Max Petroleum PLC (LON:MXP) said the ASK-2 exploration well in the Asanketken field has reached an intermediate casing point at 2,000 metres, with electric logs indicating 12 metres of net oil pay in Jurassic reservoirs between depths of 1,284 and 1,308 metres.

These reservoirs appear to correlate to the previously tested Jurassic reservoirs discovered in the ASK-1 well, confirming the original Jurassic discovery in the field. Reservoir quality is excellent with porosities ranging from 25 to 30 percent, the group said.

Max is running intermediate casing in the well prior to drilling ahead to total depth of approximately 3,300 metres to test the well's primary target, Triassic reservoirs with unrisked mean resource potential of 50 million barrels of oil.

The group also annouced that the ZMA-E2 appraisal well in the Zhana Makat field has reached a total depth of 915 metres with electric logs indicating six metres of net oil pay in two Jurassic reservoirs at depths between 835 and 875 metres. Reservoir quality is very good with porosities ranging from 20 to 25 percent.

The well will be placed on test production as soon as the necessary government approvals are obtained.

Meanwhile, the NUR-1 exploration well on the Emba B Prospect in Block E is on track to commence drilling operations by the end of October. NUR-1 will target unrisked mean resource potential of 467 million barrels of oil equivalent.

Max said it has determined that the Narmundanak South prospect in Block E is non-commercial after initial production test results from the NARS-1 well produced oil at non-commercial rates. It will plug and abandon the well. Read More

Rockhopper Exploration (LON:RKH) and Desire Petroleum (LON:DES) secure JV rig slot in Falklands - PL004 licence

Rockhopper Exploration (LON:RKH) and Desire Petroleum (LON:DES) secure JV rig slot in Falklands - PL004 licence

Rockhopper Exploration (LON:RKH) today revealed that it has signed up the Ocean Guardian drill rig for another well, this time on the PL004 licence.

The exploration well will test whether or not the Sea Lion oil discovery extends into the licence.

This is the commitment well for the farm-in deal that Rockhopper struck with Desire Petroleum (LON:DES) last week. By carrying all the costs of the well, Rockhopper will complete its acquisition of an additional stake in the joint venture licence.

The well will be drilled on Area 1 of the PL004 licence, and with its completion Rockhopper will increase its stake in this area to 60 per cent.

Drilling will begin once the Ocean Guardian has completed it next scheduled well which will be Rockhopper’s 14/10-9 well, the eighth to test the Sea Lion oil discovery.

Through last week’s farm-in deal Rockhopper has cherry-picked part of the PL004 licence, covering around 23 per cent of the acreage. Desire keeps a 92.5 per cent stake in the rest of the licence.

In Area 1 Rockhopper will increase its stake in this area to 60 per cent by paying for the upcoming well. It is also agreed that Rockhopper will also become the operator of this part of the licence.

Meanwhile Rockhopper will earn an additional 17.5 per cent stake in Area 2 – taking its total interest in this area to 25 per cent – by contributing 25 per cent of the costs for a future well in this area, should Desire decide to drill one. Read More

Morgan Stanley (NYSE: MS) Analysts Now Covering Anadarko Petroleum (NYSE: APC) Stock - Oppenheimer (NYSE: OPY), Anadarko Petroleum Corporation (Anadarko), Natural Gas Liquids (NGLs)

Morgan Stanley (NYSE: MS) Analysts Now Covering Anadarko Petroleum (NYSE: APC) Stock - Oppenheimer (NYSE: OPY), Anadarko Petroleum Corporation (Anadarko), Natural Gas Liquids (NGLs)

Equities research analysts at Morgan Stanley (NYSE: MS) initiated coverage on shares of Anadarko Petroleum (NYSE: APC) in a research note issued to investors on Wednesday. They set an “overweight” rating and a $100.00 price target on the stock.

Separately, analysts at Oppenheimer (NYSE: OPY) upgraded shares of Anadarko Petroleum from a “market perform” rating to an “outperform” rating in a research note to investors on Tuesday. They now have a $90.00 price target on the stock. Analysts at Jefferies raised their price target on shares of Anadarko Petroleum to $104.00 in a research note to investors on Monday. Also, analysts at Goldman Sachs (NYSE: GS) reiterated a “buy” rating on shares of Anadarko Petroleum in a research note to investors on Monday.

Anadarko Petroleum Corporation (Anadarko) is an independent oil and gas exploration and production company, with 2.3 billion barrels of oil equivalent of proved reserves as of December 31, 2009. The Company operates in three operating segments: Oil and gas exploration and production, Midstream and Marketing. Oil and gas exploration and production segment explores for and produces natural gas, crude oil, condensate and natural gas liquids (NGLs). Midstream segment provides gathering, processing, treating and transportation services to Anadarko and third-party oil and gas producers. The Company owns and operates natural-gas gathering, processing, treating and transportation systems in the United States. Marketing segment sells much of Anadarko’s production, as well as hydrocarbons purchased from third parties. During the year ended December 31, 2009, Anadarko divested certain oil and gas properties, primarily in Qatar, onshore United States and other international properties.

Shares of Anadarko Petroleum opened at 78.91 on Wednesday. Anadarko Petroleum has a 52 week low of $56.20 and a 52 week high of $85.50. The stock’s 50-day moving average is $69.89 and its 200-day moving average is $74.46. The company has a market cap of $39.282 billion and a price-to-earnings ratio of 46.86. Read More

CITGO Petroleum and S.A. White Award the Society of St. Vincent de Paul Atlanta $5,000 for Fueling Good - www.CITGO.com

CITGO Petroleum and S.A. White Award the Society of St. Vincent de Paul Atlanta $5,000 for Fueling Good - www.CITGO.com

"With the challenges faced by so many during the current economic climate, the services of the Society of St. Vincent de Paul are needed more than ever before. Thanks to the generosity of S.A. White and CITGO, we can continue to help those in need," said John A. Berry, CEO and executive director of SVdP Atlanta. "The Fueling Good award will allow us to increase the reach of our perishable food distribution program and provide aid to more people throughout Georgia."

Founded in 1903, SVdP Atlanta provides poverty relief services that address immediate needs and teaches people ways to become more self-sufficient. The organization aids those in need through several local and nationally run programs, including direct aid, education, family support centers, food pantries, temporary housing, thrift stores and the national car donation program. With more than 2,000 members, SVdP Atlanta donates more than 320,000 hours of service and $8.8 million in financial aid to more than 189,000 Georgians annually.

"We are honored to support SVdP Atlanta and the wide range of programs it provides to people across Georgia," said Marvin Akin, vice president for S.A. White. "The organization's dedication to preparing individuals with the necessary tools to move beyond their current status and achieve independence is inspirational for us all."

The Society of St. Vincent de Paul is one of 12 CITGO Summer Fueling Good campaign winners selected from more than 1,100 charities through a nationwide online vote. More than 100,000 votes were cast to help identify the latest winners in one of four categories: Environmental Protection and Restoration; Education and Social Investment; Energy Assistance and Conservation; and Health and Well-being.

The principles of Fueling Good can be seen in all aspects of the CITGO brand and are aligned with the social development principles of the CITGO shareholder, Petroleos de Venezuela, S.A. (PDVSA), the national oil company of the Bolivarian Republic of Venezuela.

Voting for the Fall 2011 Fueling Good program comes to a close on Oct. 27 and the next 12 winners will be announced in November. Registration for the Winter program begins Dec. 1 and all 501(c) (3) non-profit organizations based in the 26 states and District of Columbia in which CITGO operates are invited to submit an entry at www.FuelingGood.com .

For regular updates and to join the conversation, "Like" CITGO Fueling Good at www.Facebook.com/CITGOFuelingGood and view videos of past winners at www.youtube.com/CITGOFuelingGood .

CITGO, based in Houston, is a refiner, transporter and marketer of transportation fuels, lubricants, petrochemicals and other industrial products. The company is owned by PDV America, Inc., an indirect wholly owned subsidiary of Petroleos de Venezuela, S.A., the national oil company of the Bolivarian Republic of Venezuela. For more information visit www.CITGO.com . Read More

Oil and gas group Faroe Petroleum (LON:FPM) has reported a new oil discovery in well 8/10-4S on the Butch prospect in the Norwegian North Sea - Centrica (LON:CNA)

Oil and gas group Faroe Petroleum (LON:FPM) has reported a new oil discovery in well 8/10-4S on the Butch prospect in the Norwegian North Sea. Faroe holds a 15% stake in the Centrica (LON:CNA) operated licence and the discovery marks the company’s sixth success from eight exploration wells drilled since 2009. 

The joint venture partners have agreed to immediately press ahead with a down-dip side-track well to appraise for additional volumes of oil further down on the large salt-induced structure and to try to locate the oil water contact in Butch.

The latest well encountered net oil pay of approximately 50 metres in the Upper Jurassic reservoir of the Ula formation. Early results based on extensive coring, wireline logs and pressure data show that the well has encountered a light oil in good quality reservoir sands with a very high net to gross ratio. 

The entire reservoir section was found to be oil bearing and an oil water contact was not penetrated. Extensive data has been collected, including the coring of the hydrocarbon bearing zone, and a full formation evaluation is underway.

The Butch discovery is situated in 66 metres water depth in the Norwegian North Sea, close to significant existing infrastructure with the giant Ula field approximately seven kilometres to the east, Tambar approximately 10 kilometres to the north east and Gyda approximately 20 kilometres to the north. The equity holders in the licence are Centrica 40%, Suncor Norge AS 30% and Spring Energy Norway AS 15%. Shares in AIM listed Faroe rose by 8.6% to 156.5p during early trading. Read More