The weekend press had a field day with the Friday Morning bid for Bowleven (LON:BLVN), but that was not enough to stop the profit takers from showing up early on in the trading session. All sorts of price targets have been thrown around for this one, but one important factor that could beef the price up, is the outcome of the volumetric study. If the company report a very bullish study, then all current potential prices surly have to be revised? We will be watching very closely for the update on this one.
The volume in Ascent Resources (LON:AST) has been catching the eye over the last few trading sessions, and the shares continued to rally again today, pushing 5% better to 3.45p by the end of lunch. The two interesting points to remember here are, 1.) In the last update from the 25th of November last year, the company said 'The producing interval in Pg-10 is between 3,125 and 3,175m in the 'F' sands of the Middle Miocene, a reservoir interval that has not previously been produced. A deeper zone that was stimulated within the 'K' sands produced water and a detailed analysis of the fracture procedure, the logs of the zone and the pressure data acquired will be required to fully evaluate that part of the reservoir. An updated gas-in-place volumetric assessment for the field is now being finalised and will be reported when it is completed.' Now it's the last line of that statement that interests me the most, as we have not had the up-dated gas-in-place statements yet. Point 2.) Is that Enquest Plc. (LON:ENQ) own almost 15% of the company. Now from reading the last few updates, it looks like the company should be having a busy second half of the year, and I wonder how Enquest will play its hand on this one?
Gulf Keystone (LON:GKP) continued on its path to the moon, jumping another 10% in early trading to a new all-time high of 465p. The weekend press were also throwing around the potential for a FTSE 100 listing here, one that would of course force the FTSE trackers to jump on board. The market is still waiting for the updates from the Shaikan-5 and Shaikan-6 appraisal wells, any sniff of a bullish update could well send these on to the next psychological resistance level of 500p.
Xcite Energy (LON:XEL) jumped to a high of 205p during early trading, after the company said that the results of the independent reserves and resources audit of the Company Assets, effective 31 December 2011, as audited by TRACS International Consultancy Ltd showed Oil reserves of the type 1P, 2P and 3P for the Core Area of approximately 96 MMstb, 116 MMstb and 140 MMstb, respectively, NPV10 (after tax) for the Core Area of $1.076 billion, $1.464 billion and $1.921 billion on a 1P, 2P and 3P basis, respectively (see "Cautionary Language" below for a general explanation of the method and assumptions used in these calculations), Prospective resources for seven (7) prospects on the Company Assets remain unchanged and those assigned were, in the aggregate, approximately 18 MMboe on a risked "best estimate" basis. The market is now waiting on an update regarding the rig, that could be a catalyst to see a retest of the stubborn 200p resistance level once again.
Caza Oil & Gas (LON:CAZA) jumped 13% to 12.25p on almost 4 times the average daily volume. Shares have been on a bullish run since the company announced it had put its San Jacinto property up for sale. First line resistance looks to be at 13p on this one, with support at 10.5p.
Tethys Petroleum (LON:TPL) the oil and gas exploration and production company with activities in Central Asia and the Republics of Tajikistan, Kazakhstan and Uzbekistan, have caught my eye over the last few weeks. The share have been in bull mode since mid-December last year, jumping from 29p to a high of 47p. The last few updates from the company have made for interesting reading, and we will be keeping a close eye on this one for more news flow. One interesting snippet from the Tajikistan update back on the 9th of January said 'At East Olimtoi testing operations will continue on the EOL09 well with plans for stimulation of the Alai reservoir and plans to perforate two further zones. The coiled tubing unit necessary to optimally carry out this work is now in country but additional parts are still in transit from Uzbekistan and the unit is expected to be on-site within the next two months.' So on based on that statement, holders can be looking forward to another updates soon.
Written by Steven Asfour, Sales Trader at Fox-Davies