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Several London-listed oil and gas exploration firms have encountered positive drilling results recently, as announced in their regulatory filings Monday, as well as increased their proven reserves.
Wells drilled by Mosman Oil & Gas (LSE:MSMN), Hurricane Energy (LSE:HUR), and Leni Oil & Gas (LSE:LGO) met different successes, while Caza Oil & Gas (LSE:CAZA) and Sound Oil (LSE:SOU) have updated their oil and gas reserves as a result of their drilling campaign for the year.
Mosman Oil & Gas
Australia- and New Zealand- focused Mosman said its Cross Roads-1 well in its Petroleum Creek project in New Zealand has encountered visible oil after drilling 172 metres of depth but the company said it is early to tell whether the discovery is of commercial significance.
John Barr, Executive Chairman of Mosman, nonetheless, said that the discovery is a technical success, based on the “encouraging results so far.”
“The operations are going well and the geology is as expected. We look forward to additional results including ongoing cores and wireline logs and will provide further advice as and when appropriate,” he said.
Mosman shares were up 9.3 percent to 13.25 pence at 8:21 AM GMT
Hurricane Energy
The horizontal well drilled by Hurricane Energy in the North of Scotland, in the Shetlands, show “encouraging” results, according to the company’s Chief Executive Officer, Dr. Robert Trice.
“I am extremely encouraged by the data so far acquired as it indicates that the target fault zones are present and that the encountered section is fractured and oil bearing,” Trice said.
The horizontal well was drilled as an appraisal well following the successful discovery of the Lancaster well in 2009.
Shares of Hurricane Energy gained 2.9 percent to 31 pence half an hour after trading commenced in London.
Leni Gas & Oil
Leni’s second of its 30-well campaign in Trinidad, Central America, intersected oil earlier than expected that it decided to stop drilling up to the target depth “to avoid any operational risks”.
The well encountered 687 feet of oil bearing sands on Sunday, Trinidad time, which indicated high quality hydrocarbon, with the company expecting that the tests results will be comparable as the first well successfully drilled a month ago.
Because of the success of the first two wells, Leni said it plans to accelerate its drilling campaign in 100-percent controlled Goudron field, where both wells were successfully drilled.
Leni’s Chief Executive, Neil Ritson, said the results of the first two wells indicate that the oil-in-place in the field may be much greater than what was previously estimated.
Caza Oil & Gas
US-focussed Caza Oil & Gas said its total proven reserves as at 30 April 2014 was 4,875 million barrels of oil equivalent, a 10 percent increase of the same at the end of 2013 as a result of the successful development drilling program.
“The increase in 1P reserves is a result of our successful development drilling program in the Bone Springs play,” said Chief Executive W. Michael Ford, who added the company anticipates the proven reserves will continue to increase as it proves the probable and possible reserves indicated.
Shares surged 26.4 percent, by 8:25 AM GMT, following the announcement.
Sound Oil
Sound Oil’s Rapagnano gas field in Italy now has 30 million metric standard cubic metres of gas, based on internal estimates. The new data is a 31 percent from its year-end estimate of 22.9 MMscm, following a 48-hour build up
According to Sound Oil, the said field has produced over 4 MMscm of gas a year after it became operational last May 2013, without lost time incident.
Sound Oil CEO James Parsons further announced that its Casa Tiberi field will soon commence production.
Shares on the London Stock Exchange moved up by 4.5 percent to 11.625 pence, by 8:20 AM GMT.
