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New World Oil and Gas, JKX Oil & Gas, Europa Oil & Gas news briefs

Contributed by Fox-Davies Capital

New World Oil and Gas: Belize Drilling Update - Drilling of first well Blue Creek #2 on the B Crest prospect is progressing per schedule. B Crest prospect is estimated to hold gross P50 un-risked prospective resources of 92.1mm bbl with three drill ready prospects on the Blue Creek estimated to hold 329mm bbl oil resources. The company is fully funded for three well programme on the block. Encouraging drill results will be positive.
In this news:

- Well has been drilled to a depth of 3,150ft.  The Company expects to reach the target depth ('TD') of 7,000ft on or before 15 November 2012. 
- At this depth the Well will have reached the base of the mid Cretaceous Y2 interval.
- RPS Energy reports the B Crest prospect to contain a P50 un-risked prospective resource of 92.1MMbo (Y1 and Y2 intervals) and a P50 un-risked NPV (10) of US$2.4 billion.

JKX Oil & Gas: Interim Management Update - The Q3 production declined by 11.8% sequentially to 8,779 boed due to 15.9% decline in gas output. However production trajectory appears north-bound in near-medium term led by - Rising production from Russian gas field and Commencement of stand-alone development of Elizavetovskoye licence in Ukraine with production planned for the 2H 2013. Three producing gas wells at Russian gas plant are currently producing 20mm cfpd and are expected to touch 40mm cfpd in the first half of 2013. On the exploration side, exploratory activities in Slovakia, Bulgaria and Russia are making decent progress.

In this news:

- Good progress in increasing Russian gas production with current rates in excess of 50% of plant capacity (40mm cfpd).
- Award of Rudenkovskoye multi-stage frac contract with preparatory work on-going for project execution in spring 2013.
- 3D seismic acquisition underway in Zaplavskoye exploration licence in Ukraine following well Z-04 exploration success.

Europa Oil & Gas: 2012 Results - No Cash, No Exploration - No Hope? - Financials results were encouraging with 19% y/y increase oil production to 200 boepd and a generation of £2.0 positive operating cash flow during the period. However on the broader aspect, lack of sufficient funds on the balance sheet limits growth at the drill bit. The net cash balance of just £0.2m provides no scope for carrying out exploration activities. It identified two sizeable prospects, Mullen in LO 11/07 and Kiernan in LO 11/08, through 2D seismic survey which is estimated to hold 2C resources of 277 bcf. However, Europa doesn't have sufficient funds to advance exploration program to the drilling stage. The negotiations to farm-out its interest large Berenx gas play in the Aquitaine basin and Irish Atlantic Margin basin has been continuing for a long time and we are yet to see material progress, so the question is when, not if, the cash call comes. So what is next? It is hard to see, without a dramatic change in approach, how the Company can hope to leverage off of its position. It is too weak to fight for a dominant role in any farm-out discussions, and the operating cash flow is anemic given what it needs to do going forward. The upside is the management, which is no guarantee of success. Given the previous year's cash performance, and the fact that there is little left in the kitty (for an operating company), its going to be tight at a number of points during the year.

In this news:

- Average daily UK production up 18% to 200 boepd (2011: 169 boepd)
- CPR confirms 48.2mm bbl net mean unrisked resource for UK (excluding Holmwood) and Berenx deep in onshore France
- Identified exciting shallow gas play in Béarn des Gaves permit, France.
- Revenue up 34% to £5.1m (2011: £3.8m)
- Pre-tax profit before impairment and exploration write-down £1.2m (2011: £0.7m)
- Net loss £11.3m (2011: £0.2m) after exploration write-down of £12.5m in  respect of Romania and PEDL150
- Net cash £0.2m (2011: £1.9m)