There was plenty to mull over for small cap oil and gas investors this week.
Positive news came from Nigeria focused (), which on Thursday unveiled a new reserves report for the OML40 asset which showed a near doubling of proven reserves.
The new assessment is based on additional information about the block which was received from Shell, the asset?s former owner.
With a 99% increase OML40 now has 38.2mln barrels of proven reserves. At the same time, proved and probable reserves rose 14% to 81.8mln barrels.
Meanwhile proved, probable and possible ? alternatively referred to as 3P ? reserves reduced 10% to 105.4mln barrels.
?OML 40 is truly a world class asset with multiple development, appraisal and low risk exploration targets," said chief executive Les Blair.
Elsewhere, () said a second drill ready target has been outlined by industry experts RPS Energy on the Danica Resources project in Denmark.
This project, called North R?dby, lies 75km from the producing fields ? featuring Zechstein reservoirs ? in Germany.
North R?dby is estimated to contain 60mln barrels of recoverable prospective oil resources in the Zechstein target, and 320bln cubic feet of gas in a Rotliegendes target.
Meanwhile, () chief executive Tony Hayward, said in a half year results statement, that he expects a gas sales agreement between the Kurdistan Regional Government and Turkey to be inked by the end of the year.
Given the company?s heritage and its interests in the Miran (wholly owned) and Bina Bawi (44% owned) gas assets, it is uniquely positioned to benefit, Hayward explained.
Both Miran and Bina Bawi have been through extended well testing and production at each project will be developed through drilling more wells in the coming two years.
In the meantime Genel, is expecting a significant step up in its oil producing operations in Kurdistan.
The firm said that full year production would be between 45,000 to 55,000 barrels per day. This will generate revenues of US$300-400 mln.
With the completion of an important export pipeline later this year it is also progressing a significant development programme at the Taq Taq and Tawke fields, which are on track to lift output to 140,000 barrels per day by the end of 2014.
Currently Genel?s oil is exported by truck into Turkey.
Genel?s production averaged 41,500 barrels a day in the first half of 2013. Revenues increased to US$160.6mln in the first half, compared with US$123.1mln in the corresponding period of 2012.
In other news this week, (, TSE:TPL) is to use the funds it received from last month?s farm-out agreement on its Bokhtar venture in Tajikistan to accelerate its Kazakhstan drilling programme.
"The programme is comprised of two oil exploration wells, including a deeper Triassic target, which are designed to unlock high potential prospects but represent limited risk due to their proximity to the already producing Doris field," Dr David Robson, executive chairman and president of Tethys said.
Meanwhile, FTSE 100 oil ?super major? Shell () reported second quarter results this week, which missed expectations.
It revealed adjusted earnings of US$4.6bn, versus consensus estimates of US$5.9bn.
Exploration related losses and a deteriorating operating environment in Nigeria were among the excuses given for the miss.
Cash flow from operations came in at US$12.4bn, compared to US$13.3bn in the same period of last year. The group invested US$11.3bn in the period.
Oil titan () also revealed it has now paid out almost all of the US$20bn set aside in a fund for compensation pay-offs relating to the giant oil spill in the Gulf of Mexico.
On Tuesday, it said that, due to additional litigation costs, the total charges in the group?s accounts relating to the disaster increased by US$200mln to US$42.4bn at the end of the quarter.
Provisions for a settlement with the Plaintiffs Steering Committee, which is within that US$42.4bn, increased by US$1.4bn to US$9.6bn, taking cumulative charges under the US$20bn trust fund to US$19.7bn.
() agreed a tie-up with ConocoPhilips to explore three blocks offshore Senegal.
The new venture is targeting more than 1.5bn barrels of what Cairn describes as ?yet to find? oil resources.
Two wells will be drilled by the contracted Cajun Express rig, starting in the first half of next year.
Cairn will be the operator and it retains a 40% stake, Conoco will have 25%.
Yesterday (Aug 2), US shale specialist () said it had set-up a hedging facility with Macquarie Bank to protect its production revenues from a possible fall in oil prices.?
The 12 -month arrangement sees Empyrean selling 50,765 barrels of oil at a fixed price of US$95.90 per barrel.?
"Empyrean has taken advantage of recent strength in the WTI oil price to lock in prices for a portion of its expected oil production for the next 12 months,? said chief executive Tom Kelly.
It came the day after the company notched up another solid production quarter in Texas, while testing of the potentially significant Austin Chalk zone has started.
Empyrean had an interest in 91 wells at the end of June at the Sugarloaf Project, 12 more than at end March. Suglarloaf is on the Eagle Ford shale in Texas and is operated by Marathon Oil.
On an attributable basis, gas and condensate production rose slightly to 49,060 barrels equivalent in the quarter to June compared to the previous three months.
Since then, two Austin Chalk wells have begun production, Empyrean added, with encouraging early indications.
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