Max Petroleum (LON:MXP) jumped 12% to 14.75p during early trading on almost 6 times the average daily volume, after the company said it has been granted regulatory approval to convert the Zhana Makat Field to full field development, effective immediately, enabling it to take advantage of higher export oil prices. It said the Kazakh government regulatory approval now allows it to produce oil from the field for up to a further 25 years, as well as granting it the right to sell 80% of the crude oil on the export market. It noted that current export oil sales are generating after-tax net proceeds that are around $22 to $25 a barrel higher than comparable domestic sales. Zhana Makat is currently producing around 2,100 barrels of oil a day. Based on the mid price of the two numbers that could be an extra $1.25 million dollars per month to the company!
Borders & Southern (LON:BOR) slipped 8% to 62p during early trading after the company said its drilling operations on the Darwin prospect have been delayed due to technical issues with rig equipment and it anticipates another four to five weeks of activity on the well. Drilling started on Jan. 31 and was originally anticipated to last around 45 days. It noted that the rig issues have now been addressed. The market soon jumped on what looked like cheap stock in the low 60's, pushing the price to 71p just after lunch.
Xtract Energy (LON:XTR) jumped 13% to 2p during afternoon trading as retail investors jumped aboard in anticipation of an operational update on the companies Luna Well. Volumes over the last few sessions have been rather eye catching, and in the last update the company said 'the Maersk Resolve drilling rig has arrived at the Luna location, jacked up out of the water and made ready for drilling operations and that the well was spudded on Feb. 12. Luna well will be drilled to a depth of 2,250 meters with a reservoir sandstone thickness prognosis of 90 meters. Luna prospect is targeting between 35 million barrels of oil, or mmbbls - 153 mmbbls net resources to Xtract. Luna drilling program is expected to take one month.' Later in the session the company did give an operations update that said 'The Luna well objective was to test the overall Rotliegendes play concept over licences 01/11 and 02/05. The Luna well location was picked in order to maximize the information gathered by the well and was designed to address a number of play uncertainties. The Luna well did not encounter hydrocarbons. The extensive new data obtained from drilling the Luna well will be analysed and integrated into the overall Rotliegendes play model covering the two licence areas.' Shares quickly sold off on the back of the update.
Solo Oil (LON:SOLO) jumped 11% to 0.63p during afternoon trading on decent volume. The 0.56 level has been a great support line historically, so possibly holder here have drawn a line in the sand once again on this one. In the last update the company did say 'The reversal of the Union Gas meter, which was tentatively scheduled for February 27, 2012 has been delayed by Union Gas due to its internal resource planning. Union has given the Company a new date of March 19 for the meter reversal. Piping modifications at the facility will commence once the gas flow is reversed and will allow initiation of the gas re-injection scheme. The workover program for installation of a production packer in Ausable #1 well will coincide with meter reversal and will allow gas reinjection into the uppermost section of the Ausable reef.'
Written by Steven Asfour, Sales Trader at Fox-Davies
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