ABN Newswire

Buccaneer Energy Limited (ASX:BCC) Glacier Drilling Rig Secured

newsroom@abnnewswire.net — Tue, 29 May 2012 10:29:00 GMT

Buccaneer Energy Limited (ASX:BCC) is pleased to advise that it has completed arrangements to secure rights in respect of the Glacier Drilling Rig # 1 ("Glacier Rig").

The Glacier Rig was owned by Glacier Drilling Company, a wholly owned subsidiary of the Marathon Oil Company ("Marathon"). The Company has facilitated the purchase of the Glacier Rig by a third party that specialises in the energy sector.

The new owner and a wholly owned subsidiary of the Company, Kenai Land Ventures, LLC ("Kenai Land"), that has been set up specifically for this transaction have entered into a 3 year Bare Rig agreement.

The Bare Rig lease rate to be paid by Kenai land is a discount to the rates charged by Glacier Drilling to the Company for drilling the Kenai Loop wells in 2011 and is therefore this is seen as financially advantageous transaction for the Company. Kenai Land has exclusive access to the Glacier Rig during this period or alternatively it can lease the rig to third parties and charge a premium to the lease rate it is charged by the owner.

Option to Purchase

Kenai Land has an option to purchase the Glacier Rig at any time after the first 6 months for $7,338,000. Upon exercise of the option to purchase, a portion of the lease payments paid to that time will be credited against the purchase price.

The Glacier Rig is a Mesa 1000 carrier mounted land drilling rig. It was built in 2000 and can drill to depths of approximately 15,000'. The rig is unique in that it was designed and built with the input of the drillers that would operate the rig on the Kenai Peninsula, Alaska. Glacier Rig was designed to operate close to neighborhoods on Alaska's Kenai Peninsula. The small size is ideal for pad drilling, minimizing the drilling footprint and impact to its surroundings.

The Glacier Rig was used to drill both of the Company's Kenai Loop wells in 2011 and the Company considers its acquisition as an enabling asset and ensures its ability to develop onshore projects.

Buccaneer Director Dean Gallegos said:

"This transaction is yet another significant milestone and key component of our onshore Alaskan strategy, it will allow us to immediately secure an enabling asset in the Cook Inlet in what is a tight rig environment for three years. This arrangement also maintains the option to purchase the rig.

The lease back and option to purchase conserves capital for development of the Company's Kenai Loop project, ensures timely drilling at our Kenai Loop project and also assists by controlling the costs associated with the project."

Buccaneer Energy Limited
T: +61-2-9233-2520
F: +61-2-9233-2530
WWW: www.buccenergy.com

Oil Basins Limited (ASX:OBL) Announce New Oil Discovery at Backreef-1

newsroom@abnnewswire.net — Tue, 29 May 2012 09:33:00 GMT

Oil Basins Limited (ASX:OBL) wishes to make the following announcement so as to keep the market fully informed.

The Company, as operator on behalf of the Backreef Joint Venture - OBL group net 80% and Green Rock Energy Limited (ASX:GRK) group net 20%*, provides the following update on cased hole production testing operations at the Backreef-1 well.

KEY POINTS:

- The Backreef Area Joint Venture has delineated a new highly productive reservoir within the hitherto non-commercially prospective Devonian aged Gumhole dolomite formation. This new oil reservoir play has the following calculated attractive reservoir characteristics:

- permeability circa 750 millidarcy

- porosity 17%

- flow productivity > 1,000 bpd

- thickness circa 6m and depth below surface 750m to 1,000m

- After the production test, 'live oil' samples were collected at surface from the Gumhole dolomite.

- Indications are that the Gumhole dolomite has potential commercial productivity. If a better sited well location up-dip from Backreef-1 can be delineated fully charged with oil, it may lead to a company-maker opportunity for Oil Basins Limited.

- Previously, the Backreef Area Joint venture has announced (pre-Test) that the significant undiscovered potential wholly within this new oil play zone has been defined, with a mapped oil in place (OIP) volume of between 45.6 to 117 MMbbls, with an expectation of 77.7 MMbbls and a mean estimate of 20.6 MMbbls prospective recoverable resources.

NEW OIL DISCOVERY WITHIN GUMHOLE FORMATION - BACKREEF-1

Production Test Results: Zone 1 Gumhole Formation

Following underbalanced perforation of the 4m interval 957m to 961mRT (Zone 1) observed surface pressure build-up was rapid to 364 psig and over 800m influx (approximately 12 bbls) was observed in test string on subsequent pressure gradient survey. The gradient survey indicated mostly water.

Evident initial flow rates were recorded in excess of 1000 bpd with permeability estimated at 750 millidarcy.

Downhole build-up was for a period of 2 hours and upon opening the tool downhole and although flow was indicated, no liquid flowed to surface.

After reverse circulation, the packer was unseated. Oil was observed at the surface of the well.

Two oil samples were collected before the packer was pulled. Additional oil was observed in the well after the packer was pulled out of hole and another sample was taken. Total oil collected amounted to circa 0.2 litres (Note - after packer tool was released and tubing string flushed).

All oil samples and formation water samples will be sent to the laboratory for further assay analysis. In addition, oil traces were observed in the reversed formation fluid. The collected oil appears to be very light and of similar qualities to the structurally down dip Blina Oil Field, some 7km to the west. The formation water included clean-up mud filtrate evidently lost during the drilling of this highly permeable zone.

Production Test Results: Zone 2 Yellow Drum Formation

Following underbalanced perforation of the upper 22m interval between 918m to 940mRT (Zone 2) observed surface pressure build-up was slow to 167.5 psig and initial test string influx was observed to 730mRT, upon subsequent pressure gradient survey. The gradient survey indicted a fresh water hydrostatic column. Evident permeability at between 0.1 to 10mD. Upon opening the downhole tool and after over 4 hours of swabbing operations, the height of the influx increased to 517mRT.

After reverse circulation, the packer was unseated but no traces of oil were observed at the surface. Water samples were taken for further laboratory analysis.

The well has now been suspended and the Australian Drilling Services Rig#2 was released at midday 27 May 2012.

Commenting on these results, OBL's Executive Director and CEO Neil Doyle said:

"The Backreef Oil Discovery is the first new potentially significant oil find within Production Licence L6 since the discovery of the Blina Oil Field in 1981 by Canadian explorer Home Oil and the first potentially producible oil observed in the Gumhole dolomite formation.

The Gumhole dolomite has evident potential commercial productivity and if we can find better sited well locations up-dip from Backreef-1 with that Gumhole full of oil, it'll be a serious company-maker.

The oil discovery in the Gumhole completely justifies OBL's faith in the application of the Company's uniquely innovative approach to digitising and reprocessing vintage 2D seismic and the use of PSTM and PSDM techniques to this newly reprocessed vintage data".

As previously stated by OBL to the ASX on 7 May 2012 (pre-Test), if the lower test in the Gumhole Formation recovers hydrocarbons, the result will be consistent with the Backreef Oil Pool contingent resource estimate determined by the earlier RPS Energy (RPS) independent resource evaluation report released on 24 November 2011.

RPS's evaluation of the interval 917 to 994mRT within Backreef-1 found the major pay accumulation (6.8m) was centred between 956.7m to 963.5m MD and specifically cautioned that the potential hydrocarbons are reservoired within layers of dolomitised carbonates with good indicated porosity but likely low permeability. Adopting (pre-Test) a relatively 'low' permeability analogue as evident from the nearby Blina Yellow Drum formation, RPS concluded for a 6m thick regionally extensive dolomitised reservoir the following:

- Reservoir quality would need to be demonstrated by a test at Backreef-1.

- Oil production or oil samples will need to be obtained at Backreef-1.

- The assumed permeable dolomitic reservoir would need to be demonstrated at Backreef-1.

- Oil charge is expected to most likely occur from the southwest, and the leads are positioned updip from Blina.

- Seal should be provided by intra-formational permeability changes, and ultimately by marls in the lower Laurel Formation.

- The Kimberley Downs Embayment feature contained within of the Backreef Area could host a significant undiscovered potential Oil in Place (OIP) volume of between 45.6 to 117 MMbbls with an expectation of 77.7 MMbbls and a mean estimate of 20.6 MMbbls prospective recoverable resources.

- The Resource estimates were in accordance with standard petroleum engineering techniques and using the March 2007 SPE/WPC/AAPG/SPEE Petroleum Resources Management System (PRMS).

A total of eight (8) Leads have been independently derived by RPS within the Kimberley Downs Embayment feature in the southern and south-eastern portions of the Company's Backreef Area.

- RPS also indicated that Backreef-1 was possibly sited within or very close to their observed oil water contact (which is clearly evident in the Backreef-1 production test result of Zone 1) and this distinct possibility was also canvassed "pre-Test" in the OBL ASX Release on 7 May that if this occurred the geological interpretation could be that Backreef-1 drilled the reservoirs just below the field oil/water contact, possibly within the transition zone between the oil column and the underlying water.

- Successful recovery of oil from a future Backreef-1 well test will de-risk the charge and reservoir risk in the Backreef Lead, and reduce these risks in the other identified Leads. It would not de-risk the structural risk, as this would require additional seismic or well penetrations.

As previously stated (pre-Test) on 7 May 2012 interpretation could be that Backreef-1 drilled the reservoirs just below the field oil/water contact, possibly within the transition zone between the oil column and the underlying water.

OBL as operator of the Backreef Area, as permitted under the WA Petroleum and Geothermal Energy Resources Act 1967 ("the Act") and on behalf of the Backreef Area Joint Venture (OBL group 80% / GRK group 20%), has sought to notify the Backreef Oil Discovery (under the meaning of the Act) to the WA Minister of Mines and Petroleum and, with the detailed mapping of the extent of the new oil play within the Gumhole already completed, will take steps to seek the immediate recognition of a Location over the entire Backreef Area as the first step towards the application for a new production licence.

To view the complete Oil Basins announcement including Figures 1 and 2, please refer to the following link below:
http://media.abnnewswire.net/media/en/docs/ASX-OBL-373978.pdf

Note: *Subject to stakeholder approvals and consents.

Oil Basins Limited
T: +61-3-9692-7222
F: +61-3-9529-8057
WWW: www.oilbasins.com.au

Central Petroleum Limited (ASX:CTP) Relinquishment of Geothermal Exploration Permits

newsroom@abnnewswire.net — Mon, 28 May 2012 14:19:00 GMT

Central Petroleum Limited (ASX:CTP) wishes to advise that it has received formal notification confirming the relinquishment of its geothermal exploration permits. The Board's decision to relinquish these non-core assets was a result of the Company's ongoing asset portfolio review.

The three geothermal exploration permits were considered to be non-core relative to Central's other conventional and unconventional acreage holdings, particularly in light of the recent conventional oil discovery at Surprise in the Amadeus Basin and the near-term financial commitments which will be required to appraise that field.

Heavy expenditure obligations on the geothermal permits of $11 million over four years, including $7 million in the first two years, were determined not to constitute the best use of existing funds.

Acting CEO, Dalton Hallgren said, "The relinquishment of these non-core holdings allows the Company to focus on the assets that are expected to deliver the best return on investment. From both a financial and management perspective, the expenditure required to advance these geothermal assets was not considered in the best interests of the Company and its shareholders."

The Company has canvassed expressions of interest for both farmin and acquisition opportunities as an alternative to the relinquishment of the geothermal exploration permits, and received no interest from any party.

Central Petroleum Limited
T: +618-9474-1444
F: +618-9474-1555
WWW: www.centralpetroleum.com.au

AusTex Oil Limited (ASX:AOK) Reports Strong Flow Rates at Balder Horizontal Well

newsroom@abnnewswire.net — Mon, 28 May 2012 09:59:00 GMT

United States focused oil & gas producer and explorer AusTex Oil Limited (ASX:AOK) (OTCQX:ATXDY) is pleased to report that it has received confirmation from Range Resources Inc (NYSE:RRC) that the Balder #1-30N horizontal well has commenced production with highly encouraging flow rates recorded in the first six days.

AOK holds a 14.15% working interest and an 11.15% net revenue interest in the well which is located on the western edge of AOK's East Tonkawa Unit, which is part of the Snake River Project in Northern Oklahoma. A 40 acre portion of Range's 320 acre well location is on AOK's project area. This is the first horizontal well in which the company has participated, and these initial production rates highlight the potential value and prospectivity of AOK's Snake River Project in the Mississippian Limestone Play.

AOK's Managing Director, Daniel Lanskey, said: "The well is still recovering the large frac load from 19 stages and may take another 2-3 weeks to stabilise. These are outstanding early production rates and give us added confidence in the Snake River Project. Not only do they increase our monthly production and revenue flows, they confirm that AOK may be sitting on a project with significant untapped potential for the company and its shareholders.

We are continuing to assess other participation opportunities in the same area as Balder #1, with a number of horizontal well locations being considered at Snake River. Participation in a horizontal well with Range Resources has increased the appeal and visibility of the Snake River Project, and we intend to capitalise on this further in the near term."

Mr Lanskey also added that drilling of the first vertical production well on one of the Blubaugh Leases, the Blubaugh #20-1 in the Snake River Project, reached TD overnight with logging operations underway. He said an active vertical well development program is well underway on the continguous Blubaugh leases.

"Very shortly we will have two rigs drilling vertical wells on the Snake River Project, with one rig continung to develop the Blubaugh leases as a second production hub on the north side of the river which bisects the project area. With conditional funding agreements in place and a growing revenue base, Austex is well placed to fast-track the development of new production wells from this point on. We will continue to update shareholders on our corporate and operational progress in the coming weeks."

To view the complete AusTex Oil announcement including Figures, please refer to the following link below:
http://media.abnnewswire.net/media/en/docs/ASX-AOK-680232.pdf

AusTex Oil Limited
T: +61-2-9238-2363
F: +61-2-8088-7280
WWW: www.austexoil.com

Texon Petroleum Ltd (ASX:TXN) Fifth Eagle Ford Well Reaches Total Depth

newsroom@abnnewswire.net — Mon, 28 May 2012 09:22:00 GMT

Texon Petroleum Ltd (ASX:TXN) advises that its fifth Eagle Ford well, Peeler EFS #1H (a lease commitment well), has reached its total depth of 14,795 feet, after drilling some 4,200 feet of horizontal section.

Good oil and gas shows were recorded from the Eagle Ford - comparable with Texon's third and fourth Eagle Ford wells.

The well is scheduled to be fracced in early in July prior to being production tested.

The well is expected to be on stream by the end of July.

Texon has an 89.24% WI (66.88% NRI) in the well.

Current oil and gas futures prices:
Source: NYMEX July 2012
Oil: US$90.86/bbl
Gas: US$2.57/mmbtu (this translates to approx. US$4.30/mcf for all Texon gas - including US$4.90/mcf for Olmos and Eagle Ford gas)

Glossary:
bbl: barrel
mcf: thousand cubic feet
mmbtu: million British thermal units
NRI: Net Revenue Interest
WI: Working Interest

Texon Petroleum Ltd
T: +61-7-3211-1122 
F: +61-7-3211-0133
E: texon.info@texonpetroleum.com.au
WWW: www.texonpetroleum.com.au

Texon Petroleum Ltd (ASX:TXN) Mosman Rockingham Olmos Well

newsroom@abnnewswire.net — Mon, 28 May 2012 09:17:00 GMT

On the 22nd of May, Texon Petroleum Ltd (ASX:TXN) announced that the logs in the Wheeler #1 Olmos well indicated 23 feet of pay with good porosity and oil and gas shows. Texon advises that the well is now scheduled to be fracced about the 6th-10th of June.

The well will then be production tested and if this is successful, the well should be on stream by the end of June.

Texon has a 95% Working Interest (71.25% NRI) in the well.

Current oil and gas futures prices:
Source: NYMEX July 2012
Oil: US$90.86/bbl
Gas: US$2.57/mmbtu (this translates to approx. US$4.30/mcf for all Texon gas - including US$4.90/mcf for Olmos and Eagle Ford gas)

Glossary:
bbl: barrel
mcf: thousand cubic feet
mmbtu: million British thermal units
NRI: Net Revenue Interest
WI: Working Interest

Texon Petroleum Ltd
T: +61-7-3211-1122 
F: +61-7-3211-0133
E: texon.info@texonpetroleum.com.au
WWW: www.texonpetroleum.com.au

Beach Energy Limited (ASX:BPT) Progressing Tie-In of New Oil Trunkline to Moomba

newsroom@abnnewswire.net — Fri, 25 May 2012 13:47:00 GMT

Beach Energy Limited (ASX:BPT) has been informed by Santos Limited (ASX:STO) that the Tantanna pipeline will be permanently shut down on Friday, 1 June 2012. Santos, as operator of the pipeline between the Tantanna facility and the Gidgealpa facility, advised that the closure of the pipeline was due to integrity concerns.

Work in relation to the construction and tie-in of the new 15,000 barrels of oil per day ("bopd") trunkline (Beach 60% and operator, Senex (ASX:SXY) 40%), between the Lycium Hub and Moomba, is well advanced. This trunkline will replace the Tantanna pipeline and is expected to be operational in Q4 2012.

The closure of the Tantanna pipeline will not have a material impact on PRL 15 (Beach 40%, Senex 60% and operator) and PEL 91 (Beach 40% and operator, Drillsearch (ASX:DLS) 60%), due to the crude oil from these areas being transported to Moomba via haulage trucks. PRL 15 is producing approximately

4,800 bopd (1,900 bopd net), with production recently commencing from the Bauer Field in PEL 91 at 800 bopd (320 bopd net). Bauer production is expected to increase to 2,000 bopd (800 bopd net) following the full commissioning of the Bauer facility.

The PEL 92 (Beach 75% and operator, Cooper Energy (ASX:COE) 25%) pipeline, that transports oil to the Tantanna facility, remains fully operational with current capacity of approximately 6,000 bopd (4,500 bopd net). It is anticipated that the maximum trucking rate of crude oil from PEL 92 will initially be around 2,200 bopd (1,700 bopd net). To minimise the impact of the Tantanna pipeline closure, Beach is sourcing more haulage trucks (expected to be available early Q3 2012) and moving to 24 hour operations to increase rates.

Production is expected to initially decline to approximately 4,000 bopd (net), from current Western Flank production of approximately 7,000 bopd (net). Beach anticipates this reduction will result in total FY12 production of around 7.4 million barrels of oil equivalent (MMboe), down from 7.5 MMboe. Upon completion of the new trunkline into the Moomba facility, Beach anticipates a material increase in production to 10,000 bopd (net) during 2013.

Beach Energy Limited
T: +61-8-8338-2833
F: +61-8-8338-2336
WWW: www.beachenergy.com.au

Buccaneer Energy Limited (ASX:BCC) Closes US$20M Project Finance Facility and New US$30M Aces Revolver

newsroom@abnnewswire.net — Wed, 23 May 2012 10:25:00 GMT

Buccaneer Energy Limited (ASX:BCC) (US:BCGYF) is pleased to advise that it has executed binding agreements with New York based Richmond Hill Investment Co., LP for the provision of a US$20.0 million project finance facility ("the Facility").

The Facility uses a secured note issued by the Company's wholly owned subsidiaries, Buccaneer Alaska, LLC and Buccaneer Alaska Operations LLC, to be guaranteed by the Company. This type of funding allows for flexibility and limits shareholder dilution.

The Facility matures 17 January 2013 at which time the Company will either repay or refinance the Facility. This will enable the company to capitalize on the further development of its Cook Inlet assets prior to putting into effect a potential long dated financing alternative.

The funds raised from the project finance facility will be used for the following purposes:

- Kenai Loop # 2 well;
- Vendor payments;
- Transaction expenses; and
- General corporate & operational expenses
So as to provide additional funds under the Facility for project development, the Company has financed the acquisition of the Glacier # 1 rig from Marathon Oil Company, announced on 19 April 2012, with another party. An announcement on this transaction will be made in the next 5 days.

In addition to the above Facility the Company has also executed a US$30 million revolving credit facility with Richmond Hill to fund receivables under the State of Alaska, ACES exploration and development incentive program ("ACES Facility"). The new ACES Facility matures 31 December 2013.

This new ACES Facility replaces the facility put in place with Centaurus Capital, LLC in December 2011 and simplifies the Company's security arrangements with its lenders. It will also enable the Company to access additional development capital in the near term.

Buccaneer Director Dean Gallegos said:

"Putting together financing facilities totalling US$50 million in the current funding environment is a significant milestone for Buccaneer Energy. We are pleased to be working with Richmond Hill and we appreciate the cooperation of all our stakeholders while we have worked through the process.

Buccaneer is firmly committed to its Alaska strategy and we are looking forward to progress on our Kenai Loop project including our next well at Kenai Loop and our first offshore well later this year."

Buccaneer Energy Limited
T: +61-2-9233-2520
F: +61-2-9233-2530
WWW: www.buccenergy.com

ADX Energy Limited (ASX:ADX) Farms Out Romanian Permit

newsroom@abnnewswire.net — Wed, 23 May 2012 08:25:00 GMT

ADX Energy Ltd (ASX:ADX) is pleased to announce that a farm in agreement has been executed between ADX ('ADX') and Rohoelaufsuchungsgesellschaft ('RAG') in relation to ADX's Parta licence ("Parta Permit") in Romania.

RAG will make an upfront payment to ADX and be entitled to earn 50% interest in the Parta Permit upon a payment in lieu of past costs and a payment of a promoted share of future costs prior to the commencement of seismic operations. The forward work commitment for the Parta Permit requires the acquisition of 2D and 3D seismic and the drilling of three exploration wells.

ADX will retain a 50% interest and operatorship.

The farm in agreement is subject to approvals by the National Agency for Mineral Resources of Romania.

ADX is pleased to commence a joint venture partnership with a financially and technically capable Company such as RAG. ADX has been able to leverage its material equity position and secure 3.1 million Euros of funding to undertake modern 3D and 2D seismic during 2012 with a view to drilling exploration wells as soon as practicably possible. This transaction positions ADX as the operator of a strong joint venture with a capable partner in the prospective Parta concession.

The remaining 8 prospecting permits are still being held by ADX at 100%.

Background on Parta Permit and RAG

A concession agreement for Parta was signed in January 2011 with NAMR (Agentia Nationala Pentru Resurse Minerale). A final ratification by the Romanian authorities has been delayed due the recent changes of the Romanian government and is expected in the near future. The Parta Permit covers an area of 1,221 km2 and is located in the southern Pannonian basin area of western Romania. It covers 7 excised oil and gas fields and is considered underexplored. Previously ADX has identified several conventional leads and prospects which are estimated to contain a total of 47 mmbls of oil and 480 bcf of gas (recoverable mean prospective resource potential). The main target depths are relatively shallow between 800 and 2000 metres.

The ongoing exploration activity on the ADX' Romanian acreage is resulting in the identification of additional exploration potential. Romania represents an important growth opportunity in line with ADX's ongoing strategy of focusing its resources on core areas which offer proven prospectivity, excellent fiscal terms and materiality.

The new partner RAG is a privately held Company incorporated in Austria. The Company has a significant asset position in Austria and Hungary. Since its foundation in 1935, RAG has been exploring for and producing oil and natural gas in Central Europe. RAG also ranks amongst the leading underground natural gas storage operators in Europe supplying both national and international customers.

RAG has extensive industry experience, technological expertise, highly specialised knowledge and is operating at the highest international safety and environmental engineering standards.

ADX Energy Limited
T: +61-8-9226-2822
F: +61-8-9226-5333
E: admin@adxenergy.com.au
WWW: www.adxenergy.com.au

Oil Basins Limited (ASX:OBL) Backreef-1 Production Test Update

newsroom@abnnewswire.net — Tue, 22 May 2012 14:06:00 GMT

Oil Basins Limited (ASX:OBL) wishes to make the following announcement so as to keep the market fully informed.

The Company, as operator on behalf of the Backreef Joint Venture - OBL group net 80% and Green Rock Energy Limited (ASX:GRK) group net 20%*; wishes to advise that all test equipment arrived on site late Sunday 20 May 2012, but due to a combination of downtime of the Australian Drilling Services (ADS) Rig#2 and the unexpected difficult drilling of the cement plug (now successfully completed), we now anticipate that the well test operations will commence on Thursday 24 May 2012.

Note: *Subject to stakeholder approvals and consents.

OBL will duly advise the market of a summary of the test results at the conclusion of the Backreef-1 Production Test program.

Oil Basins Limited
T: +61-3-9692-7222
F: +61-3-9529-8057
WWW: www.oilbasins.com.au