Daily Archives: April 3, 2012

Coastal Energy Encounters Net Pay Offshore Thailand

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Coastal Energy, an international oil and gas exploration and production company with assets in Thailand announces the successful Miocene discovery in the Bua Ban South A-04 well.

The Bua Ban South A-04 well was drilled to a depth of 3,250 feet TVD on the eastern flank fault block at Bua Ban South, approximately 1.5 miles south of the Bua Ban Main A-11 well. The A-04 well encountered 42 feet of net pay in the Lower Miocene M75 and M100 sands with 29.5% average porosity. The M75 is a newly discovered pay sand in the Lower Miocene. Initial results indicate that this is an extension of the Miocene reservoir which was encountered in the Bua Ban Main A-11. The A-11 well has been producing since September 2010 and is currently producing over 500 bopd. The minimum areal extent of the closure is approximately 550 acres.

Randy Bartley, President & Chief Executive Officer, commented:

“We are greatly encouraged by the successful Miocene results in the A-04 well. We have now discovered oil in three different Miocene intervals between Bua Ban Main and Bua Ban South. This new discovery is very positive for the Miocene remaining potential across the entire basin as well as supporting the potential of recent Oligocene discoveries in the Bua Ban South area. The Bua Ban South A-03ST#1 well has been spudded and will test the Eocene objective. We are currently evaluating locations for Miocene appraisal wells and will begin drilling those following the A-03ST#1.”

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Niko’s Drilling Program in Indonesia Kicks Off

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Niko Resources Ltd. has announced start of its exploration drilling program in Indonesia and participation in the company’s twenty-first block in the country.

Niko will partner with Zaratex N.V. in the 5908km2 Lhokseumawe PSC in western Indonesia. The block is located directly adjacent to the giant Arun field (>3.1BBOE) and associated LNG plant. A 3865km2 3D program was acquired on the block and a number of high impact prospects were subsequently identified. Drilling is to commence in the shallow water portion of the block in April with two wells. The Candralila-1 and Ratnadewi-1 prospects will be drilled back to back and if successful will be monetized relatively quickly by accessing the existing extensive local infrastructure.

Niko’s deep water rig, the Diamond Ocean Monarch, is scheduled to arrive in Lhokseumawe in September to drill the Jayarani-1 well. This will be the first well in Niko’s planned program of more than 25 deep water wells in Indonesia. In addition, in the North Ganal PSC in which Niko is a participant, operator Eni will be using the Transocean Seven Seas to drill the Lebah-1 well in the second half of 2012. The Lebah prospect will test the extension of the Jangkrik and Jangkrik-NE discovery trend (>400MMBOE of reserves to date). Eni has already filed a POD for the development of these discoveries and first production is expected in 2015.

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Insiders: SAS banker quits after market abuse fine

A JP Morgan senior banker has quit his job after being fined for abuse of insider information about Heritage Oil.

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by Michelle McGagh on Apr 03, 2012 at 10:35

A JP Morgan chairman has quit after being find £450,000 by the City regulator over abuse of insider information relating to a new oil find by Heritage Oil and an offer for the company.

Ian Hannam, chairman of capital markets at JP Morgan Cazenove, has been fined by the Financial Services Authority (FSA) after it discovered he had disclosed inside information in two emails sent in September and October 2008 to a prospective client.

Hannam will appeal the FSA’s decision but has resigned because it would be ‘an unfair distraction to my clients and colleagues’, according to the Guardian.

The information related to Heritage Oil (HOX.L), which was an existing JP Morgan client for which Hannam was the lead adviser.

In the September email, Hannam said of a potential acquisition: ‘I thought I would update you on discussions that have been going on with a potential acquirer of [Heritage Oil chief executive] Tony Buckingham’s business.

‘Tony, advised by myself, has deferred engaging with the client until Thursday of next weeks although we know they are very excited about the recent drilling results of Heritage Oil…I believe that the offer will come in in the current difficult market conditions at £3.50-£4.00 per share. I am not trying to force your hand, just wanted to make sure you aware of what is happening.’

In the second email, Hannam discloses information about a potential oil find, he said: ‘PS – Tony has just found oil and it’s looking good.’

A Fortune article last year described Hannam as a working-class South Londoner, the son of a council worker. He joined the Territorial Special Air Service (SAS) at 17 – one of the youngest men to pass the selection process. Hannam went on to gain a civil engineering degree at Imperial College before going into construction where his first assignment was building roads in Oman.

Hannam then went to business school and embarked on a training programme at Saloman Brothers in New York and worked his way up the corporate ladder – getting caught in the Robert Maxwell fiasco along the way.

The Fortune article said: ‘From Congo to Columbia, from Iraq to Sierra Leone, Hannam and his small team of soldiers-turned-bankers and advisers did business with oligarchs, gem deals, and former mercenaries.’

The FSA said it accepted that Hannam did not deliberately set out to commit market abuse. Hannam has referred the decision to the Upper Tribunal where he and the regulator will state their cases. The Tribunal will determine whether to uphold, vary or cancel the FSA ruling.

Tracey McDermott, acting FSA director of enforcement and financial crime, said: ‘Inside information is extremely valuable and must be handled with care to ensure that it is properly controlled and that appropriate safeguards are observed.

‘This applies to all market participants but is particularly important for senior practitioners who will regularly interact with a wide circle of contacts.’

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