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Xcite Energy, Europa Oil & Gas, Dana Petroleum, Chariot Oil & Gas, EMED Mining, Chaarat Gold, Arian Silver Corporation news briefs

By Fox-Davies Capital

Xcite Energy announced that it has exchanged a letter of intent with Applied Drilling Technology International for the provision of a heavy duty, deep water jack-up drilling unit to undertake the drilling and testing of the 9/3b-R well on the Company's Bentley field in the UK North Sea. The company also announced that it has signed an agreement with AMEC for it to assist Xcite Energy demonstrate the reserves potential of the Bentley field and help bring it into production.

Europa Oil & Gas announced an update on operations at the Hykeham-1 well in the UK midlands. A 3.7m interval of Basal Sandstone was perforated and the well shut-in at surface. Wellhead pressure built to 220psig and the well has been opened up briefly to clean up the perforations. The well produced gas which indicates that the oil at reservoir conditions is close to bubble point and that the gas is liberated at the pressure drop across the formation. The well has now been shut-in for build-up prior to opening up for further flow.

Dana Petroleum announced that it has made a second gas discovery in the West El Burullus concession, offshore Nile Delta, Egypt in which Dana holds a 50% interest and operated by Gaz de France (GDF). The Papyrus-1X well was drilled in a  water depth of  approximately 20m to a total measured depth of 1990m, targeting  a Pliocene prospect consisting of a turbiditic sand system. The well encountered good quality gas bearing  channel sands and  an  extensive  set of  wireline log  data was  acquired  over  the reservoir section. A multi-rate drill stem test has been completed. The well flowed at rates of up to 33MMscfd with 442b/d of condensate. The flow rates during the test were constrained by the drill stem test equipment and it was very encouraging that downhole pressures remained high during the flow test. Dana and GDF Suez are currently evaluating concepts that would enable a combined early development of these two neighbouring gas discoveries. The Papyrus-1X well is being suspended for potential re-entry and future use as a gas production well. The drilling rig will then immediately move onto the Bamboo prospect in the same concession area. Bamboo is a large, Miocene channel and it is expected to take approximately 90 days to drill to top reservoir.

Comment: This is the second discovery in as many wells drilled and follows on from the successful West El Burullus-1X well. This acreage in the Nile Delta is proving quite prolific. The volumes of gas discovered are in shallow water, relatively close to shore and hence are considered to be potentially economic in their own right. Those positive results have de-risked considerably the other prospects in the licence.

Chariot Oil & Gas announced that Chariot and  its wholly owned  subsidiary Enigma Oil & Gas Exploration have reached an agreement with High Resolution Technology & Petroleum Ltda (now  known as "Integrated Petroleum Expertise Company - Servi?os Em Petr?leo Ltda"), to settle the dispute surrounding the termination of the service agreement which had been referred to arbitration. Both parties have agreed that there will be no payment of damages by either side and that each party will pay their own respective costs incurred during the dispute. As part of the agreement, HRT will provide Enigma with the outstanding data and reports which had not previously been provided. This agreement is the full and final settlement of the arbitration proceedings that commenced in August 2009, which have now ceased.

EMED Mining announced that the Junta de Andaluc?a ("the Government") has set out its conclusions from the preliminary review of the Company's plans. Environment is one of the four regulatory authorities with responsibility as regards PRT and, along with the Provincial Delegation of the Ministry of Innovation, Science and Companies, it co-ordinates the overall permitting process. The preliminary conclusion is that once the Company's plans, including the AAU and EIA, are in final form, they will have to be re-submitted to Environment for final assessment and report. In the meantime, for the purposes of consultation the following preliminary conditions have been provided by Environment. As a result of the legislative changes, the restoration plan and the waste storage plan needs to be expanded now in detail and submitted to Environment and also to Industry; and the classification of the tailings deposits needs to be supported by appropriate reports.

Chaarat Gold announced encouraging results from two drives and eight drill holes in the underground section of Project Area C5300, part of the area in the Company’s licence known as the "Contact Zone". Chaarat holds a licence over 100% of a 604 km? area in Kyrgyzstan. The Company has identified three parallel zones of gold mineralisation within the Chaarat Gold Property:  the Main Zone, the Contact Zone and the Tulkubash Zone.
The Contact Zone has been delineated over a strike length of 1,340 metres and is host to a JORC compliant resource of 1.42Moz at a grade of 4.21 g/t, representing approximately 43 per cent of the overall resource of the Chaarat Gold Property of 3.34Moz at a grade of 4.30 g/t gold.

Arian Silver Corporation announced the completion of the acquisition of 100% of San Jose Property in Mexico which is progressing towards production. Following the recent news regarding the Company's completed and over-subscribed Cdn$3.5 million non-brokered Private Placement, Arian announces that it has concluded the acquisition of the remaining 33.33% interest in the San Jose Property to take its ownership interest to 100%. All necessary permits are in place and the Company's efforts will remain focused on pushing the San Jose Property into production. Contracts for the proposed initial contract mining and custom milling operations are currently being finalized. Road upgrading has already begun within the mine site area to ease the movement of heavy plant away from local built-up areas and minimize any environmental impact.