Resources round-up: Niche Group, Valiant, Cove Energy

Niche Group, an oil and gas focused investment company, has reported that two of its part-owned wells in the Hatay region in the Iskenderun Basin, onshore south east Turkey, have encounted gas shows, but neither is likely to prove commercially vaible. Well Ciftlik-1 was tested at three invtervals, but no gas flowed to the surface, indicating reservoir quality sandstones were not developed at this location. Well Kastal-1 encountered 'significant' gas shows, but was suspended for well-control reasons. The firm said it is likely the well will be abandoned.

By MoneyWeek

published 4 May 2012

Valiant Petroleum, a North Sea oil explorer, has announced that the WilHunter semi-submersible drilling rig has arrived on location to drill the Timon prospect, in which Valiant has a 10% stake. Drilling on the well is anticipated to start within the next few days and will take around 40 days to complete. Gross best estimate prospective resources are estimated by Valiant to be 30m barrels of oil equivalent, of which its stake will entitle it to 3m.

Cove Energy, an upstream oil and gas firm, has revealed that the second flow test of the Barquentine-1 well at the northern end of the Prosperidade gas complex, offshore Mozambique, flowed gas at an equipment constrained rate of approximately 100m cubic feet per day (MMcf/d). Test data supports potential unconstrained flow rates of up to 200 MMcf/d. The results indicate that fewer development wells will be required than originally planned.