Oilbarrel Newsletter 24th October 2013

Oilbarrel Weekly Roundup 16th - 24th October 2013 Oilbarrel Forms An Association With Greenbarrel.org As Anger Mounts About Large Power Price Increases Written By Stewart Dalby We wrote recently that we entered the final business quarter with some exciting corporate news in that we have been bought out from Rivington Street holdings by investment group Galloway Ltd, which is indirectly owned by a Trust in which Jim Mellon has a life interest. The team at Oilbarrel is looking forward to launching a newly branded and fresh looking website under the new owners. We are also pleased to announce an association with Greenbarrel.org. Greenbarrel is owned and run by Barney Smith and his son Harry Smith. Barney a former diplomat and is currently Non-Executive Chairman of Coastal Energy. Many readers and subscribers will remember Barney from the days when, with his wife Mary, they ran the Oilbarrel conferences. The aim of Greenbarrel is to encourage and facilitate more informed investment in quoted companies specialising in all aspects of renewable energy and clean technology. There are over 50 companies such companies listed on AIM alone, yet there is no “alternatives” sector in most market listing. Nor is it easy to access information on individual companies. Greenbarrel aims to fill some of that information gap. The Greenbarrel website provides concise profiles of a number of individual AIM listed companies as well as other companies  listed on global markets in the alternative energy/clean technology sector, giving a brief overview of the company of the operations of the company, contact details, up to date share information along with summary data drawn from recent financial reports. It also publishes general features on renewables and articles on the progress of individual companies general features. In addition Greenbarrel also publishes press releases from the government as it plays a key role in the sector. Oilbarrel writers will contribute to the Greenbarrel site, mainly writing company specific articles. To read Greenbarrel please click here or visit our home page. Renewables alternative energy suppliers are much in the news just now as anger mounts and alternative energy are much in the news at the moment as concern mounts about the large prices that energy suppliers are announcing. Two Utilities SSE and British gas have announced prices of over 8 per cent. The other four energy providers supplying the UK are bound to follow suit, because like the high street banks they are a tight oligopoly. There have also been startled gasps and concern in many quarter with the announcement that the nuclear plant at Hinkley Point in Somerset, the first nuclear project in the UK for a generation, will receive £92.50 per megawatt hour of electricity for 35 years after production starts in 2023. This is roughly double the current wholesale price of £45 /MWh. Energy suppliers say the price rises reflect lack of past investment, transmission costs and renewable subsidies. These necessitate large price increase, they say. There is some truth in the subsidies in the renewable sector being rather lavish. Take two examples. Offshore wind farms qualify for two renewable obligation certificates (ROCs), the scheme whereby energy suppliers have to buy a certain percentage of their power from renewable sources. ROCs cost about £50 each to purchase currently. Offshore windmills qualify for two Rocs. There is also a climate change levy. This means offshore windmills produce electricity that seels at £155 a MWh to the consumer similarly with gas from anaerobic digestion this costs £145 a MWh to the consumer. The problem is that the “Green” subsidies, unlike education or health, are not funded from the general tax net, they are loaded straight on to the consumer, as a sort of extra tax. The most penalised sector are the less well off because they spend proportionately more of their income on gas and electricity bills than do the chattering classes. The chattering classes are often the most vocal about climate change. The bottom line in all this is that decarbonising energy supply does not come without cost, sometimes a lot of cost. The price of an offshore windmill makes the nuclear plant look not unreasonable and a plus about the plant which is going to cost £16b is being financed by the private sector, French Group EDF is leading the project and with two Chinese groups also being involved. 62nd Oilbarrel Conference - Thursday 7th November 2013 Sponsored By: 62nd Oilbarrel Conference Thursday 7th November 2013 The Brewery Chiswell Street London EC1Y 4SD (Nearest stations are Moorgate and Liverpool Street) Presenting Companies Include: Zoltav Resources Rockflow Resources Callinan Royalties To Register Click Here - or Contact support@oilbarrel.com to find out more Our free-to-attend Forums have enabled Investors and Industry experts, for 9yrs now, to hear directly from presenting Oil & Gas and Exploration companies and in-turn, created new investment opportunities. Interested in Speaking and/or Sponsoring an Oilbarrel event Speak with PAUL NEWMAN on +44 (0)20 7562 5422 or via email Paul.Newman@Oilbarrel.com Latest News News: October 24, 2013 Neon Energy Spuds Second Vietnam Wildcat As The First Is Sidetracked Following A Gas Kick Four years after it made its début offshore Vietnam through the A$5.7 million acquisition of an unlisted Aussie company, whose name it then took, Neon Energy is nearing the moment of truth as to the potential riches of these undrilled waters.  The ASX-quoted company used the buyout to not only change its name, from Salinas Energy, but also its focus, with investor attention switching from heavy oil in California to wildcatting in South East Asia. Full story... News: October 23, 2013 Oilbarrel Forms An Association With Greenbarrel.org As Anger Mounts About Large Power Price Increases We wrote recently that we entered the final business quarter with some exciting corporate news in that we have been bought out from Rivington Street holdings by investment group Galloway Ltd, which is indirectly owned by a Trust in which Jim Mellon has a life interest. The team at Oilbarrel is looking forward to launching a newly branded and fresh looking website under the new owners. Full story... News: October 23, 2013 Solo Oil Puts More Cash Into West Africa SPV As Investors Continue To Wait For News From Tanzania Solo Oil has bumped up its investment in an SPV seeking to farm into an oil discovery in West Africa, agreeing to put another US$500,000 in cash behind the US$300,000 in cash and shares already committed to Pan Minerals & Oil AG.  AIM-quoted Solo now has a near 20 per cent stake in the Swiss-based Pan Minerals, which has to date invested almost US$3.5 million in the pursuit of farm-ins to proven oilfields in West Africa. Full story... News: October 22, 2013 Jacka Resources Under Pressure As Costs Mount At Hammamet-3 Costs continue to mount for ASX-quoted Jacka Resources in the Mediterranean as a second sidetrack is planned on the long-running Hammamet West-3 appraisal well offshore Tunisia. This will add another US$20 million to the bill, of which Jacka's share will be US$3 million.  The near-horizontal well has already cost US$80 million gross, with the Perth-based small cap on the hook for US$16 million (under the terms of its 2010 farm-in, Jacka paid 30 per cent of the well costs up to a gross well cost of US$27.2 million and then reverted to its 15 per cent WI). Full story... News: October 22, 2013 Zeta Petroleum’s Jimbolia-100 Well in Romania Disappoints as it Tests A Second Target Zone It is has been one step forward one step back for ASX-listed Zeta Petroleum with its long running Jimbolia-100 well on the Jimbolia field in Romania, where it is totally focused. The appraisal well is testing the JimboliaVeche oil discovery which has a current P50 mean contingent resource of 1.7 million barrels (mmbbls). Full story... News: October 21, 2013 TXO Expands The Acreage For Its Planned Hydrocarbon Recovery Plant In Freeport, Grand Bahama AIM quoted TXO has a frontier exploration venture in Tasmania and interests in producing wells in Kentucky. But the main interest of the £2.5 million (at 0.18p) market cap group is a 30.17 per cent shareholding in the Grand Bahama Group with an option to raise its stake to 43.18 per cent by year end. Full story... Features: October 21, 2013 Poweralternatives: Altona Energy Lands Cornerstone Investor In £3.2 Million Equity Raise But Shareholders Remain Impatient For News From Arckaringa CTL Project A lot can happen in a year.  Unfortunately for shareholders in Altona Energy, it is also true that very little can happen.  This is certainly the case for the AIM micro-cap's Arckaringa coal-to-liquids project in South Australia, where most of 2011-2012 was spent securing environmental clearances and most of 2013 has been spent waiting for the appointment of a drilling contractor to drill the seven test boreholes that will be pivotal to delivering a bankable feasibility study. Full story... Market Overview: October 18, 2013 Despite Last Minute Deal OF US Borrowing Capability Oil Prices Lose Their Mid-Week Shine  Last minute wheeling and dealing resulted in an “eleventh hour” compromise for the US government whereby it can increase the nation’s borrowing capability and re-open services across the country. In early trading on Friday, commodities had lost their midweek shine with Brent crude priced just above US$109 and WTI holding above US$100 a barrel. Full story... News: October 17, 2013 Sound Oil Marches On With Its Plan To Become A Successful Mid-Cap E & P Company With News About Its Badile Prospect In Italy AIM-listed Sound Oil certainly seems to be marching on with its campaign to become a successful mid- cap as opposed to a small cap E & P with news about its Badile prospect in Italy. Sound has released a Competent Persons Report (CPR) report from ERC Equipoise Ltd which significantly  boosts the Best estimate NPV and the Best estimate gross prospective resources totals for the Badile prospect, which is likely to be the second “material” well in the company’s Italian programme Full story... News: October 17, 2013 Wessex Exploration Lets Northern Petroleum Pick Up The Tab Offshore Guyane As It Fights To Conserve Cash There's a reason small caps are advised to steer clear of deepwater wildcatting unless someone else is picking up the tab: the drill costs can quickly bleed them dry.  This is certainly the case at AIM micro-cap Wessex Exploration where cash resources have been stretched thin by a four-well campaign offshore Guyane in South America.  With shareholders still seething that the Board last year snubbed a 10 pence per share cash bid from French oil giant Total, the penny stock has been forced to give up equity in its flagship project in order to stem the monthly cash bleed. Full story... News: October 16, 2013 Premier Oil Joins The East Africa Rift Basin Gold Rush As It Farms Into Taipan's Block 2B Onshore Kenya Premier Oil has made its debut onshore Kenya by agreeing to farm-in to Block 2B in the southern Anza Basin as it seeks to build on its legacy of rift basin exploration success. The London-listed independent is paying US$1 million in back costs and US$13.275 million in drilling and testing costs to earn a 55 per cent stake in the Taipan Resources block. Full story.. Press releases October 24, 2013 - Ceramic Fuel Cells Notice of AGM  October 24, 2013 - Europa Oil & Gas Completion of 3D Seismic Offshore Ireland  October 24, 2013 - Sterling Energy Plc Interim Management Statement October 24, 2013 - Heritage Oil Exploration Portfolio in Papua New Guinea October 24, 2013 - Serica Energy plc Posting of Placing and Open Offer Circular October 23, 2013 - Dong Energy Interim Financial Report - 9M 2013 - Dong... October 23, 2013 - Premier Oil Interim Management Statement  October 23, 2013 - San Leon Energy Holding(s) in Company October 23, 2013 - Cain Energy Transaction in Own Shares  October 23, 2013 - San Leon Energy Lewino-1G2 Operational Update October 23, 2013 - Plexus Group Final Results  October 23, 2013 - Magnolia Petroleum Directors’ Share Purchases October 23, 2013 - PA Resources UK Limited PA Resources’ Interim Report January -... October 23, 2013 - IGas Plc Share Incentive Plan  October 23, 2013 - San Leon Energy Holding(s) in Company October 23, 2013 - San Leon Energy Holding(s) in Company October 22, 2013 - Magnolia Petroleum USD5 million Credit Facility Secured  October 22, 2013 - Magnolia Petroleum Operations Update October 22, 2013 - EnQuest Plc Acquisition October 22, 2013 - Geopark Holdings Ltd Update to NYSE Listing October 22, 2013 - Nido Petroleum Limited Quarterly Activities Report October 22, 2013 - Serica Energy plc Placing and Open Offer October 22, 2013 - EnQuest PLC Acquisition October 22, 2013 - Geopark Holdings Ltd Update to NYSE Listing October 21, 2013 - Wasabi Energy Notice of AGM October 21, 2013 - Good Energy Holding(s) in Company October 21, 2013 - San Leon Energy Completion of Second Placing October 21, 2013 - Tangiers Petroleum Ltd Issue of Equity  October 21, 2013 - JKX Oil & Gas Progress Report on R-103 Frac in Ukraine October 21, 2013 - Solo Oil Investment in West Africa October 21, 2013 - Green Dragon Gas Operations Update October 21, 2013 - Rialto Energy Ltd Notice of Annual General Meeting and  October 21, 2013 - Trap Oil Group Operations Update October 18, 2013 - Fortune Oil US$300 million Loan Facility October 18, 2013 - Mediterranean Oil & Gas Q3 Operational Update October 18, 2013 - Jupiter Energy Limited Quarterly Update October 18, 2013 - Tethy's Petroleum Tethys Petroleum Limited: Kazakhstan... October 18, 2013 - San Leon Energy Result of EGM October 18, 2013 - Empeyrean Energy Change of Adviser  October 18, 2013 - Chariot Oil and Gas Ltd Notice of Extraordinary General Meeting  October 18, 2013 - Nighthawk Energy plc Result of General Meeting  October 17, 2013 - Cairn Energy Interim Management Statement October 17, 2013 - TXO Plc Update on GBG Investment October 17, 2013 - Egdon Resources Completion of Seismic Survey, Dorset. October 17, 2013 - Bridge Energy ASA Bridge Energy ASA: PL457 Drilling Campaign... October 16, 2013 - Northern Petroleum Plc French Guiana equity change  October 16, 2013 - Greka Drilling Limited Operations Update  October 16, 2013 - Plexus Group Contract Win - BG Egypt October 16, 2013 - Petrel Energy Corehole Confirms Oil Generation in Norte... October 16, 2013 - Central Petroleum Ltd Southern Georgina Seismic Recorded Ahead... October 16, 2013 - Max Petroleum Drilling Update October 16, 2013 - Wessex Exploration Plc Final Results Don't forget to visit our other website

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