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San Leon Energy, Ithaca Energy, Mediterranean Oil & Gas, New World Oil & Gas news briefs

Contributed by Fox-Davies Capital

San Leon Energy: Go Go at Barryroe - The latest update from Barryroe's operator (Providence) has for the first time outlined the size of the field (P50 ~323mm bbl), and although the Company's interest is a net profit interest, following this update, it now starts to have fungible value attached to it; depending on the production profile and precise nature of the agreement governing the interest, this could be worth in excess of $30mm. We have deliberately used the word fungible, as to realise the value of this interest, the Company does not need to wait for the funds. While this is accretive to the value of the shares, we are maintaining our current Target Price (60p) as we would want to be more accurate in ascribing the value of the interest before we consolidate it in to our valuation. Following this news, we are reiterating our BUY Recommendation.

Ithaca Energy: Positive Operations update - Company's Q3'12 production increased by 28% q/q to 5m boepd, driven by a full quarter's contribution from Athena field and strong performance by Beatrice and Jacky fields. Company's guidance is 6.3 - 6.9mm boepd (in Q4) including 1m boepd from Cook and MacCulloch that are in the process of being acquired from Noble Energy; Athena production has stabilized at 10 - 11m bpd (gross). We remain upbeat about the Company's prospects in near to medium term given commencement of production from Athena, the FDP approval for the Stella and Harrier Fields in the Central North Sea and the recent acquisitions of non-operating interests in Cook oil field and MacCulloch fields. Management continues to improve its credibility by developing diversity in its strategy, and providing a solid platform from which to grow, both though acquisitions and organically through the drill bit.

Mediterranean Oil & Gas: Production update - Production from the company's flagship field - Guendalina gas field averaged net 11.14mm cub.min 3Q, up 2% sequentially. Restoration of production from Monteverdese Concession surface facility that was shut-in for the third quarter and part of the second quarter is another positive. Following divestment of 13 non-core exploration and production gas assets, in onshore Italy, the company is now focused on increasing production from Guendalina field and accelerating development activities on Ombrina Mare field. With no leverage on the balance sheet and revenue flow from Guendalina gas field, the company is well placed to raise new borrowings to expand its asset base and fund its exploration programme.

New World Oil and Gas: Blue Creek Project WI increased to 35% - Company's interest in theBlue Creek Project has increased by 10% to 35% following acquisition of 2-D seismic data. New World has provision to increase interest to 100% subject to achieving various milestones. Completion of on-going drilling of first well - Blue Creek #2 on the B Crest prospect will further increase company's interest to 56.6%. RPS energy has estimated a combined P50 volumetrics of 329mm bbl for the three drill ready prospects on the Blue Creek field, thus increasing interest in the project will be valuation accretive.