Proactive Investor's  Instablog

ExxonMobil (NYSE:XOM) is investing $250 million to explore Argentina's unconventional Vaca Muerta shale, whereMadalena Ventures (CVE:MVN) has interests in two blocks, according to local newspaper La Mañana Neuquén.

The world's largest oil and gas producer drilled five exploration wells last year, partnering with state-owned YPF.

According to the paper, Exxon's country manager in Argentina, Daniel De Nigris, said the company plans to drill five more wells this year. He said some of the wells already drilled are being tested.

This is a positive sign for Madalena's interests in Vaca Muerta, where another mega cap producer, Chevron (NYSE: CVX), said earlier this week it hopes to invest up to $15 billion, along with partner YPF, in Vaca Muerta. The final YPF-Chevronagreement should be signed in July, once outstanding trade and tax issues are hammered out.

Calgary-based Madalena has two blocks in the Vaca Muerta and Agrio Shales at Coiron Amargo (35 percent W.I.) and Curamhuele (90 percent W.I.).

Earlier this month, Mackie Research Capital analyst Bill Newman reaffirmed his Buy rating on Madalena and a $2.15 price target, describing the Neuquén basin as having "world class resource potential."

Adding to the bustle of activity, Apache Corporation (NYSE: APA) plans to invest $200 million and drill wells in Vaca Muerta this year.

Madalena recently stated it has a total of 2.86 billion barrels of oil in its three blocks in Argentina. The potential recoverable resource in the Cortadera block, where Madalena is partnered with Apache, is 1.05 billion barrels of oil.

Madalena's shares have soared 50 per cent in the past six months.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Shares of Belvedere Resources (CVE:BEL) lost ground Thursday after the company announced that it is suspending mining operationgs at its Hitura nickel mine in Finland in response to continued low nickel prices.

Further to its announcement in January, the company told investors today that it has now initiated a two-week notice period for the start of temporary layoffs, of up to 60 of the 69 people employed at the mine.

The layoff period will continue for up to 90 days for each employee. The company added that key staff will stay on to manage the care and maintenance of the mine and mill facilities during the suspension.

"The continuing weakness in the nickel prices, in conjunction with permitting delays, has left the company with little option but to suspend nickel operations and commence temporary lay-offs," said CEO David Pym in a release Thursday.

"During the lay-off period the company will continue to concentrate on the metallurgical, environmental and engineering studies involved with assessing the viability of processing the nearby Kopsa gold copper ores through the Hitura mill."

The Finland-based operator made a net profit of €1.3mln (€2.6mln) over the whole of 2012, but was in the red in the final three months due to poor nickel prices and grades. Full year revenues were €27.9mln, up from €24.7mln while the amount of nickel produced rose to 2,282 tonnes against 2,157 tonnes.

Belvedere was trading at 4.5 cents on Thursday, down 10 per cent.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

WesternZagros Resources Ltd. (CVE:WZR), a Canadian oil and gas company with operations in Iraqi Kurdistan, reported a 33 percent increase in its cash position at the end of the first quarter as proven resources and output potential improve.

Total current assets, including cash and cash equivalents as well as short-term investments, rose to $198.9 million as of March 31, from $149.2 million at the end of December, the Calgary, Alberta-based company said in a statement on Thursday.

Last month, WesternZagros closed a private placement of 11.4 million common shares priced at $1.25, raising $14.3 million. In March, WesternZagros received $123 million through a debt and equity financing by existing shareholder Crest Energy International.

WesternZagros said Thursday that the total combined mean estimate of gross unrisked contingent resources at the Kurdamir and Garmian blocks is now 974 million barrels of oil equivalent and the total mean estimate of gross unrisked prospective resources is now 4.7 billion barrels of oil equivalent.

It added that the total combined mean estimate of gross unrisked contingent resources of the Kurdamir structure increased to 545 million barrels of oil in the Oligocene and Eocene reservoirs.

"Our twin goals of increasing proven resources and production potential are our main focus and the first quarter provided a solid start to the year," Chief Executive Officer Simon Hatfield said in the statement.

This year so far, the company has spud an appraisal well on one of its major discoveries and has spud the first well of a planned three-well shallow drilling program and is preparing to spud two more exploration wells, according to the statement.

"We remain very optimistic that the strength of our business model, the proven expertise of our personnel and the evolved efficiency of our drilling program will help us to achieve significant increases in our proven resource estimates throughout the rest of the year," Hatfield said.

Net loss for the three months that ended March 31 widened to $4.157 million from $1.997 million a year earlier. On a per-share basis, the net loss was unchanged at one penny a share compared with the year-earlier period, matching the average estimate of five analysts.

WesternZagros shares rose 1.8 percent to C$1.14 at the market close in Toronto on Wednesday. The stock gained 4.6 percent since the beginning of the year through Wednesday, compared with a 23 percent loss for the junior S&P/TSX Venture Composite Index(CVE:OSPVX).

The stock, with a market value of C$528.2 million, has 7 "buy", one "strong buy" and one "hold" recommendations from analysts.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.