StockMarketWire.com - Tower Resources' [LON:TRP] shares plummeted after it received formal notification from Lion Petroleum Inc that the Badada-1 well onshore Kenya has been drilled to a total depth of 3,500 metres MDBRT and following completion of logging operations will be plugged and abandoned as a dry hole.

Tower's shares were down by more than 47% in late trading.

Premier Oil [LON:PMO] - which has a 55% interest in the well - was down by just under 5% in late trading. Premier said the well was drilled within budget.

* * *

Stratex International [LON:STI] was another faller after issuing an update on construction at its Altıntepe gold project in northern Turkey. Stratex is free-carried to production through their joint-venture partner Bahar Madencilik ('Bahar') and will receive 20% net cash-flow during an initial payback period and 45% subsequently. Highlights: · Excavation and engineering infill for leach pads and ponds almost completed;

· Installation of crushers under way;

· ADR plant installed and analytical and metallurgical laboratories completed and fully functioning;

· Weather conditions have delayed some elements of construction, especially the leach pads, and as a result completion of construction is now projected to take place in May 2015; and

· Legal challenges against the Ministry that approved the Project's original Environmental Impact Assessment (EIA) have been refuted by the Ministry but, to eliminate uncertainty, Bahar have intervened to seek the overturning of these challenges. Construction has been unaffected.

Chief executive Bob Foster said, "Bahar and the operating JV company, Altintepe Madencilik, have continued to make sound progress with the construction of the mine. However, following very difficult weather conditions during December and January, it is now clear that completion will not be achieved until at least May.

"In the meantime two groups have filed law suits against the Ministry that approved the original EIA, contesting some elements of the EIA. The challenges have not been directed at Altintepe Madencilik but our JV partners are closely following the process with a view to minimizing the effect of the cases."

* * *

Bankers Petroleum [LON:BNK] subsidiary, Bankers Petroleum Albania Ltd (BPAL), has agreed to pay US$16.5m to BP Oil International [LON:BP.] to settle a legal dispute.

BP Oil International took action in the High Court in September 2013 over the termination by BPAL in November 2012 of a long term oil supply contract and initially sought damages of up to US$54.2m for, among other things, the alleged wrongful termination of such agreement.

BPOI's claim had recently been revalued at US$37.4m to reflect movements in oil price since September 2013. As part of the settlement, neither party admitted to wrongful or illegal conduct, and both parties' claims and counterclaims will be dismissed.

* * *

SeaEnergy [LON:SEA] said subsidiary Return To Scene Ltd has brought forward its deployment of the R2S Visual Asset Management (VAM) spherical photographic capture of its Atlantis facility in the Gulf of Mexico (GOM).

The R2S photographic team is already on site in the US with project completion, expected during Q2 2015.

The contract, which has a stand-alone value of US $450,000, falls under a Global Agreement between Return To Scene and BP which has been in place since 2013.

BP has used the R2S software/services on nine assets to date, including its three other offshore facilities in the Gulf of Mexico; Mad Dog, Thunder Horse and Na Kika.

* * *

Gulfsands Petroleum [LON:GPX] has completed drilling operations on the Douar Ouled Balkhair 1 gas exploration well in Morocco with the well being confirmed as a gas discovery.

DOB-1 is in the the Rharb Centre permit in northern Morocco.

During testing of this discovery, gas flowed to surface during the well's clean up flow period at rates in excess of 10 million standard cubic feet per day. DOB-1 has now been suspended as a future gas production well.

The DOB-1 well is the third well to be drilled on the Rharb Centre permit based on the Company'sinterpretation of 3D seismic survey data acquired by Gulfsands on the permit area in the second half of 2013. The first two wells to be drilled on this permit were also successful in finding gas and flowing it to surface, at wells LTU-1 and DRC-1.

The DOB-1 well was drilled to a Total Depth ("TD") of 1140 metres Measured Depth and encountered the primary reservoir target interval on prognosis at a depth of approximately 808 metres MD. Significantly elevated gas readings obtained while drilling, as well as interpretation of geological samples and wire line logs, indicated the presence of a gas bearing sandstone reservoir section of excellent quality. Detailed petrophysical evaluation of wireline logs over the primary target yielded an interpretation indicating a 4.2 metres gross sand thickness, with a net sand thickness of 3.7 metres and evaluated average gas saturation of 70% and average porosity of 34%.

The DOB-1 well was cemented and perforated over the primary reservoir interval, completed and then subjected to a flow testing and pressure survey period for evaluation of well flow performance and connected gas volumes. During initial clean up flow operations over this reservoir, the well produced natural gas at an estimated rate in excess of 10 million standard cubic feet per day on a 48/64th inch choke setting. During subsequent multi-rate flow testing, a stable flow of 6.2 mmscfpd was established for a period of 4 hours on a 32/64th inch choke setting, with a final wellhead flowing pressure of 1084 psi. No formation water was detected in the gas production stream during testing operations.

The secondary reservoir target interval for the well was encountered at a depth of approximately 1075 metres MD. Significantly elevated gas readings were encountered over the interval 1075-1127 metres MD. However, after the completion of wire line logging operations, mechanical problems with well bore integrity above this interval prevented further access to or production testing of this deeper potential reservoir.

The company is currently reviewing all available data in order to determine the optimal path for further exploration of this reservoir section, which may include a re-deepening of this well at a later date post production of the shallower gas zone, potentially employing in this future operation a modified and strengthened well design.

Drilling and well testing operations for DOB-1 were completed on plan and on budget. Upon completion of operations the Company plans to suspend drilling operations whilst a detailed technical assessment is conducted over the DOB-1 and DRC-1 gas discoveries that will include the identification of potential locations for further drilling in the near vicinity of these discoveries.

Chief executive Mahdi Sajjad said: "We are delighted with the results of the drilling and flow testing operations at well DOB-1. This is the third consecutive successful exploration drilling result that the Company has achieved in Morocco utilising the 3D seismic data acquired and processed in 2013-2014.

"We are continuing with our efforts to commence production from these discoveries and are receiving much appreciated assistance from ONHYM to ensure this is achieved as soon as possible."

* * *

Europa Oil & Gas (Holdings) [LON:EOG] was one of the sector's biggest risers after it confirmed that the Kiln Lane -1 conventional exploration well in north-east Lincolnshire spudded this morning.4

The company estimates Kiln Lane has mean gross un-risked recoverable resources of 2.9 million barrels of oil.

Europa is operator of and has a 50% working interest in PEDL 181, which covers an area of over 540 sq kms in the East Midlands Petroleum Province.

Egdon Resources and Celtique Energie Petroleum Ltd each have a 25% interest in the licence.

The planned well will be drilled as a straight hole to a total depth of approximately 2,500 metres. Europa anticipates drilling operations will take 36 days.

The Kiln Lane prospect is a robust structural closure defined on 3-D seismic data and the well has been designed to intersect a number of prospective Upper Carboniferous age sandstone reservoirs in a structurally favourable position near the crest of the structure.

Kiln Lane is located some 25 km east of both Europa's Crosby Warren field, which has been producing oil for almost 28 years, and the recent Egdon-operated Wressle-1 oil discovery in PEDL 180 in which Europa has a 33.3% interest. The prospect is a typical East Midlands Petroleum Province oil play but in a comparatively underexplored part of the basin.

In the event of exploration success Europa will suspend the well and return with a dedicated test rig for production testing operations in a similar fashion to the current testing operations at Wressle.

Should production testing prove successful Europa will follow up with an extended well test with the intention of obtaining more detailed reservoir performance information to enable fast track development. Success at Kiln Lane also has the potential to substantially de-risk a number of other exploration leads in the licence area for possible follow-up drilling.

Kiln Lane is a conventional exploration well targeting oil in Upper Carboniferous sandstone reservoirs. It is not a shale gas well and therefore operations at the site will not involve high volume unconventional hydraulic fracturing.

Europa chief executive Hugh Mackay said: ""We are delighted to commence operations on the Kiln Lane conventional oil prospect and we look forward to updating shareholders with the results from this well towards the end of March.

"I wish to thank our geoscience, operations and permitting teams all of whom have delivered excellent performance and have brought the well to spud on schedule against a tight timeframe.

"We are encouraged by the recent discovery of oil at the neighbouring Wressle well and we hope that Kiln Lane will be similarly successful and provide another opportunity to build on our existing oil production and revenues from conventional oil fields in the East Midlands Petroleum Province."

* Egdon Resources' [LON:EDR] share price was unchanged in late trading after noting that Europa Oil and Gas had started drilling operations at the Kiln Lane-1 exploration well on PEDL181 in Lincolnshire where Egdon holds a 25.0% interest.









At 4:16pm:

[LON:AUR] Aurum Mining PLC share price was 0p at 0.95p

[LON:BNK] Bankers Petroleum Ltd share price was -12.5p at 157.5p

[LON:BOR] Borders Southern Petroleum PLC share price was -0.1p at 6.15p

[LON:BP.] BP PLC share price was -4.05p at 442.65p

[LON:CHAR] Chariot Oil Gas Ltd share price was -0.13p at 8.72p

[LON:DGO] Dragon Oil PLC share price was -16.75p at 539.75p

[LON:ENQ] EnQuest Plc share price was -2.12p at 41.63p

[LON:FOGL] Falkland Oil Gas Ltd share price was +3.25p at 33.75p

[LON:GKP] Gulf Keystone Petroleum share price was -2p at 36.5p

[LON:GPX] Gulfsands Petroleum PLC share price was +1.25p at 37.25p

[LON:INDI] Indus Gas Ltd share price was +1p at 100p

[LON:PET] Petrel Resources PLC share price was -0.12p at 3.88p

[LON:PMO] Premier Oil PLC share price was -8.6p at 168.7p

[LON:RKH] Rockhopper Exploration PLC share price was +3.25p at 67.5p

[LON:RPT] Regal Petroleum PLC share price was -0.75p at 3.75p

[LON:STI] Stratex International PLC share price was -0.15p at 1.83p

[LON:TRP] Tower Resources PLC share price was -0.2p at 0.23p

[LON:XEL] Xcite Energy Ltd share price was +0.13p at 32.63p



Story provided by StockMarketWire.com