Mining News
Colt Resources Inc. (BUY, C$0.84) (GTP TSXV, C$0.52, ▼ 5.0%) announced that it continues to strengthen its operations team in Portugal. Seasoned geologist, Steve McRobbie, B.Sc., M.Sc., has accepted leading the Company's mine geology efforts. Mr. McRobbie is a mining and exploration geologist with nearly 20 years of extensive international experience. He has served as the Vice President of Exploration for Global Cobalt Corp., Director of Exploration of Kazakhmys Plc. and General Manager of Europe and the CIS for Monaro Mining Plc.
Kenmare Resources plc (KMR LN, 47.51p, ▼ 1.19%) announced an update for its Moma Mine. During the fourth quarter of 2011 the company produced 225,600 tonnes of Heavy Mineral Concentrate (HMC), compared with 195,700 tonnes during the third quarter, a 15% increase. The mineral separation plant produced 166,000 tonnes of ilmenite and 12,500 tonnes of zircon, 13% and 12% increases respectively on the third quarter. Total production of HMC for 2011 was 842,900 tonnes. 730,400 tonnes of finished products, compared with 712,900 during 2010. The demand for products was robust during 2011 and prices grew strongly. The market price for ilmenite at the start of 2011 of around US$100 per tonne increased three to four fold throughout the year, driven by tight market conditions. Kenmare has secured pricing for new contracts in the range of US$300 to US$400 per tonne for the first half of the year. Expansion works at the Mineral Separation Plant has experienced delays in issuing some drawings which impacted on the start of fabrication in some areas which has extended the scheduled completion date of the expansion project well into the second half of this year.
Mindoro Resources Ltd (BUY, C$0.39) (MIO TSX, C$0.12, ► 0.0%) announced that it has received commitments from its major shareholders totalling $1.28 million under its Private Placement which was previously announced on 22 November 2011. The Company expects to close the Private Placement on receipt of these funds having raised a total of C$2.7 million. The closing of the commitments from the Company's major shareholders is subject to receipt of the signed subscription agreements, the subscription funds and the approval of the TSX Venture Exchange. Additionally, the combined total commitment by Directors to participate in a separate Private Placement in March has increased to C$0.25 million.
Oil and Gas News
Jupiter Energy (JPR AU, A$0.62, ▲ 13.0%) today confirmed the successful drilling of the J-53 well in Block 31. The Well reached its final depth of 3113m after 58 days and open hole wireline logs indicate hydrocarbons in the Mid Triassic horizon. Initial analysis indicates 87m gross and 56m net pay in Mid Triassic carbonate reservoir unit, and the open hole logs indicate good levels of oil saturation and porosity, similar to the proved producing zones in J-50, J-51 and J-52. The J-53 well is the Company's fourth exploration well and the first of its two 2012 commitment wells on Block 31, Jupiter's 100 per cent owned permit in onshore Kazakhstan. The well is located 2.8 km southeast of the J-52 well and increases the known areal extent of the Akkar East field. Three exploration wells have already been drilled on this field and all three have been commercial discoveries (J-50, J-51, and J-52). 2P reserves after the drilling of J-50 and J-52 wells were independently estimated at 24.2 mmbbls and a new independent reserves report will now be prepared to include the results of all four wells drilled on Block 31: J-50, J-52, J-51 and J-53. The next reserves report should be published during the second quarter of 2012. The forward plan is to run casing and perforate the well. The well will be stimulated and flow tested for up to a maximum of ninety days during which time flow rates and reservoir pressures will be measured for various choke sizes and fluid samples collected for analysis. The well will then be shut in and an application will be submitted to the relevant regulatory authorities for the well to be put onto a Trial Production Licence.
Max Petroleum (BUY, 50p) (MXP LN, 10.25p, ▼ 2.38%) today announced that it has commenced drilling the SAGW-3 appraisal well on the Sagiz West Field in Block E. Total depth of the well will be approximately 1,400 metres, targeting Triassic reservoirs. This is the third of a four well programme with the fourth appraisal well expected to be drilled in Q1 2012. The Sagiz West discovery was made in September 2011. The well reached a depth of 1,406 metres with electric logs indicating 27 metres of net pay, including 21 metres of oil and 6 metres of gas pay, over a 114 metre interval in the Triassic formation at measured depths between 1,177 and 1,291 metres. Reservoir quality is very good with porosities ranging from 18% to 25%. A second well, the SAGW-2 appraisal well was drilled and completed in December 2011 reaching a total depth of 1,451 metres without encountering producible hydrocarbons. Extensive shows of oil and gas were seen in the well throughout the Triassic section, indicating close proximity to the edge of the Field. The well is now being cased for future use as an injection well during future field development.
Heritage Oil PLC (UNDER REVIEW) (HOIL LN, 200.8p, ▲ 0.76%) today announced that it has been awarded a further Production Sharing Agreement ("PSA") in Tanzania. Heritage is the operator with 100% interest. Highlights: The Kyela PSA, wholly located within Tanzanian territory, has an area of 1,934 square kilometres and covers the northern onshore area of the Lake Nyasa Basin; Gravity data and seismic data from the adjacent Lake Nyasa suggest the presence of a thick sedimentary section with the potential to generate oil; The work programme will commence shortly with the acquisition of a c.1,500 square kilometre high resolution gravity survey followed by the acquisition of 2D seismic.
Oilfield Services News
Baker Hughes (HOLD) (BHI US, $47, ▼ 0.60%) 2011 results were at the top end of market expectations with adjusted net income for Q4 2011 of $534 million, or $1.22/share. The outlook comments for 2012 read well:- ' Our business continues to improve and we benefited from increased activity, a favourable product mix as well as typical seasonal product sales. For 2012, we expect international growth to continue, particularly in the Latin America, Middle East, and deepwater markets. In North America, the fundamentals of the business continue to be robust driven by activity growth in the unconventional basins. The geology and economics in the liquids-rich shale plays will support substantial additional drilling, and we have every reason to be confident about the long-term prospects of this market.'
