- Europa Oil & Gas (Holdings) [LON:EOG] was one of the sector's biggest risers after it issued shareholder newsletter covering the period since the annual general meeting on 9 December.

It says this period has seen significant news emerge from both Ireland and the UK, specifically regarding the award of the following new licences:

- Awarded strategically important Licensing Option (LO 16/2) in the southern Porcupine Basin, offshore Ireland, as part of Phase 1 of the 2015 Atlantic Ireland round based on its proprietary 3D seismic, Europa believes LO 16/2 contains three prospects with gross mean un-risked prospective resources of 895 million barrels of oil equivalent (boe)

* The new Licensing Option is adjacent to Europas existing prospects in FEL 3/13 in the south Porcupine Basin, where 1.5 billion boe of gross mean un-risked prospective resources have already been identified

* Including LO 16/2, Europa now has a 100% interest in an estimated three billion boe of gross mean un-risked prospective resources across its three licences in the south Porcupine Basin

* A number of major international oil companies have also been offered awards of Licensing Options in Phase 1 of the 2015 Atlantic Margin Licensing Round and the level of interest shown in the acreage endorses the prospectivity of the basin

* A second phase of awards is due to be announced in May 2016 and Europa eagerly awaits news on its remaining applications

- Three new onshore licences awarded in the 14th UK Onshore licensing round, which Europa believes have a number of exciting leads and prospects

In addition, Europa has seen further progress on two of the company's onshore UK licences:

- Planning for development of the Wressle field, which has already seen production in excess of 700 boepd from the exploration well

- Well planning for an exploration well on Holmwood in the Weald basin, which has gross mean un-risked prospective resources in excess of 5 million boe

Chief executive Hugh Mackay said: "With the award of a new strategically important licence in Ireland, which saw us beat off competition from major international oil companies, together with our three new licences onshore UK, all of which have great potential, this is a tremendously exciting period for Europa.

"In addition, we continue to move our existing UK acreage forward through ongoing work on the development of the Wressle discovery which has the potential to double our existing production in H2 2016, and also the preparation for an exploration well at Holmwood, following our recent successful planning appeal. Holmwood is located adjacent to PEDL 137 which has recently demonstrated hydrocarbon flows from the Horse Hill-1 exploration well.

"A Horse Hill partner, UK Oil and Gas Investments, has joined the Holmwood licence following its farm-in agreements with Egdon and Warwick, our other two partners at Holmwood.

"We are continuing with our own farm-out activities, seeking partners in Ireland, at Holmwood and Bearn-des-Gaves in France. Whilst the current oil price provides challenges to all those active in the sector, the reductions seen in service sector costs will flow through to lower exploration and development costs which can only be of benefit as we seek partners to work with us as we continue maturing our portfolio."

* * *

LGO Energy [LON:LGO] has started additional work designed to increase production and revenues at the Goudron field in light of improved oil prices and in anticipation of reduced royalty rates.

The company previously announced that it was planning to increase investment in production operations in the light of a general stabilisation in the oil price and in expectation of reduced overriding royalties as announced on 24 February.

LGO's local subsidiary, Goudron E&P Limited, currently has Altech Rig 2 working in the field and has the option to remobilize Altech Rig 1 shortly should additional capacity be required.

A programme to restore production from a number of existing wells is expected to occupy Rig 2 for the next two to three weeks and it is anticipated that this work will add 100 barrels per day to current output. Following that phase of operations several well recompletions are envisaged which will take approximately three weeks to prepare, including securing necessary approvals and planning for the mobilisation of the required downhole equipment.

Specifically it is planned to perforate an upper C-sand interval of 180-feet of net pay previously not perforated in well GY-671 and then to perforate a 100-foot interval of Goudron sandstone net oil pay in legacy well GY-50 which has previously not been opened for production.

These operations are expected to cost approximately USD75,000 each and to increase production by a total of at least 100 bopd. Funding for this work is to be provided by LGO's wholly owned Trinidad service company, Columbus Energy Services Limited, from cash balances from work conducted by that company and pre-payments for future work which the company has been contracted to perform. The two proposed well recompletions offer the greatest potential return on investment of the immediate options identified. Further heavy workovers and recompletions are being planned based on availability of further funding. Chief executive Neil Ritson said: "In light of improved oil prices and in anticipation of reduced royalty rates which we expect to be approved shortly, the company has now commenced additional work designed to increase production and revenues at the Goudron Field."

* * *

Sound Energy [LON:SOU] has provided the following update on certain of its Moroccan and Italian gas portfolio assets.


The Company has now been advised that the "Conferenza dei Servizi" (which is the central and final approval meeting for the Badile permission to drill) has been scheduled for 21 March 2016. This "Conferenza dei Servizi" follows an initial meeting held on 3 February 2016 and the final permission to drill the Badile exploration well is expected to be granted after this meeting.


The Company advises that since achieving first gas on 3 February 2016, the Company has produced some 24.6 MMscf of gas (at an average production rate, constrained by the Company, of 0.7 MMscf/d). On 11 March 2016 the Company completed planned static and dynamic profiles, which have identified an initial reduction in well pressure with an associated minor production of water, and suggests that not all perforated levels are yet in production.

The Company has therefore decided to temporarily further constrain the flow rate from the well to approximately 0.4 MMscf/d. After a further period of production at these levels, the Company will complete a second static profile to confirm the level of pressure support. The Company may then consider re-perforating select layers of the reservoir or installing a velocity string to facilitate the load up of the minor amount of liquid being produced.


The Company is pleased to announce that civil works and camp construction on site are progressing well, that the rig has now (as scheduled) arrived in Morocco and that the unloading of the equipment has started on site. The 40 day drill programme for the first Tendrara well is expected to commence in April 2016.

* * *

Egdon [LON:EDR] and Union Jack Oil [LON:UJO] have announced the completion of drilling operations at the Laughton-1 conventional exploration well in Lincolnshire.

The Laughton-1 well was spudded on 12 February and has reached a total depth of 1,700m in line with the pre-drill prognosis. During drilling, the well recorded hydrocarbon shows from a number of potential reservoir sequences including the Kilburn Sandstone, Chatsworth Grit, Ashover Grit and Kinderscout Grit. The Silkstone Rock primary objective was poorly developed in the well.

Analysis of the wireline log data indicates that the hydrocarbon saturations associated with the shows are not sufficiently encouraging to warrant testing.

The well is currently being plugged before the drilling rig is released from contract and in due course the wellsite will be fully restored to its original condition as agricultural land.

Egdon managing director Mark Abbott said: "The drilling of the Laughton-1 conventional exploration well fulfils Egdon's farm-in obligation and so earns our 50% operated interest in PEDL209. The well was drilled within budget and without incident. This completes the work commitment for the licence's first term and allows it to proceed into its second term during which the remaining conventional and unconventional hydrocarbon potential will be further evaluated."

The licence interests in the Laughton Prospect and the two other conventional prospects in PEDL209 are : Egdon Resources U.K. Limited : 50% Blackland Park Exploration Limited : 28% Stelinmatvic Industries Limited : 12% Union Jack Oil plc : 10%.

* * *

Nostra Terra Oil and Gas [LON:NTOG] has been served notice that Sanlam Securities UK Ltd intends to cease its nominated adviser and small cap broking activities from .

"Consequently, Sanlam will cease to be the Company's nominated adviser from 15 March 2016," said Nostra Terra in a statement.

"Accordingly, pursuant to AIM Rule 1, the Company's shares will be suspended from trading on AIM with effect from 15 March 2016, if it does not appoint a new nominated adviser.

"If the Company fails to appoint a replacement nominated adviser within one month of the date of Sanlam's resignation, admission of the Company's shares to trading on AIM will be cancelled.

"The Company is confident that this will not be the case as it is well advanced in discussions with a potential replacement nominated adviser."

At 4:15pm:

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

[LON:BOR] Borders Southern Petroleum PLC share price was +0.06p at 2.06p

[LON:CHAR] Chariot Oil Gas Ltd share price was +0.21p at 6.4p

[LON:EDR] Egdon Resources PLC share price was -1.38p at 7.75p

[LON:ENQ] EnQuest Plc share price was +0.88p at 14.63p

[LON:EOG] Europa Oil Gas Holdings PLC share price was +0.63p at 5.25p

[LON:GKP] Gulf Keystone Petroleum share price was -0.37p at 12.13p

[LON:GPX] Gulfsands Petroleum PLC share price was -0.5p at 4.88p

[LON:INDI] Indus Gas Ltd share price was 0p at 129.5p

[LON:LGO] LGO Energy PLC share price was +0.02p at 0.32p

[LON:PET] Petrel Resources PLC share price was +0.13p at 3.75p

[LON:RKH] Rockhopper Exploration PLC share price was -2p at 29.5p

[LON:RPT] Regal Petroleum PLC share price was +0.01p at 2.58p

[LON:SOU] Sound Energy PLC ORD 1p share price was -0.13p at 16.25p

[LON:UJO] Union Jack Oil Plc Ord 0.025p share price was -0.03p at 0.15p

[LON:XEL] Xcite Energy Ltd share price was -1.12p at 15.38p

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