Perhaps the most interesting share of the week was UK Oil & Gas Investments (UKOG). Following confirmation the previous Friday evening that it was considering raising funds, the UKOG share price fell sharply on Monday to just over 1p. It stayed down until Thursday, when an announcement was issued that regulatory approval had been given for a 150 day production test of the Horse Hill discovery, to be followed by a HH-2 appraisal well in the event of a successful test. It then spiked to over 2p and collapsed again on Friday, after a placing to raise £5.5 million at 0.9p was announced. Use of proceeds of the placing includes funding UKOG’s share of the planned Portland and Kimmeridge Holmwood exploration well, but does not include paying off the outstanding £3.75 million “death spiral” financing. Won’t be buying yet, but it’s one to keep an eye on.
Note: Solo Oil (SOLO), Alba Minerals (ALBA), Primorus Investments (PRIM) and Gunsynd (GUN) also have interests in Horse Hill Developments Limited, which in turn owns 65% of the Horse Hill discovery.
Echo Energy (ECHO) also issued three announcements last week: positive extended well test results on CSo-85; the commencement of drilling of well EMS-1001; and the acceleration of drilling of Fraccion D. The shares remained steady, trading just under the recent 12p placing price. Upland Resources (UPL) announced a placing to raise £3 million at 2.5p. Its share of the Wick well now is fully funded. Petro Matad (MATD) announced another placing to raise £13.7 million at 10p. The whole six well drilling program now is funded and, once the placing shares are distributed through the market, MATD should have some decent upside potential.
Diversified Gas & Oil (DGOC) announced the proposed acquisition of 11,350 stripper wells with combined production of c. 32,000 boepd. The cash consideration is approximately $575 million and the acquisition will constitute a reverse takeover, hence the shares now are suspended pending the publication of a new admission document. Reabold Resources (RBD) announced the acquisition of Gaelic Resources with various high impact drilling opportunities in California. In connection with this, RBD has published a new company presentation at https://reabold.com/investor-relations/reports-and-presentations/. Concerns remain, but with seven potentially transformational drilling events now coming up, it’s certainly one for the watchlist.
The author holds one or more investments in one or more of the companies mentioned so this post cannot be viewed as independent research. This post does not constitute investment advice or a recommendation to buy or sell and may be incorrect or outdated.