Dublin based Providence Resources (PVR) cleaned investors’ clocks again as their latest farm out collapsed. Regular blog readers will know of my scepticism regarding SpotOn Energy Limited, PVR’s £1 capital counter party. Money may have been made by some, however. SpotOn acquired £500,000 of shares at 1.5p and the share price went as high as 8.5p on the ramp. It would be interesting to know whether SpotOn (and others close to the company who subscribed at that level) still have them.
Barryroe really is the gift that keeps on giving, though, at least for Providence Resources (and Lansdowne Oil & Gas (LOGP)) insiders. They’re already touting the progression of yet another “funding solution,” which they say is well advanced and expected to be concluded before the end of the third quarter, in time to progress a 2022 drilling programme. It really always has been one for investors who can forget all about the idea of a commercially viable project and play it for what it appears to be: a stock promotion. More on PVR (and LOGP) in the private blog.
Bahamas Petroleum Company (BPC) tries to grab investor money wherever, whenever and however it can. Now, following their Bahamas drilling failure, it’s announced an extraordinary general meeting to approve a 1:10 share consolidation and a name change. There’s a £6.9 million open offer and placing at 0.35p too, but the convertible loan note addiction is very much going to continue and it’s difficult to see any appeal at all with this one. For those who have been hurt by BPC and others like it, remember that understanding the financing of these types of companies really is the key to success in this area of the stock market. It’s actually much more important than the “fundamentals” which most investors appear to focus on and I’d suggest strongly that investors losing (or not making) money in this sector very much get focussed on that.
Kistos (KIST) announced the acquisition of Tulip Oil Netherlands B.V. for €222.75 million, partly paying for it through an equity financing of £52.5 million at 155p per share. Trading resumed on Wednesday and the share price closed the week at 186p. Kistos picks up 60% interests in a number of licences, which include profitable and cash generative producing assets, plus exploration and appraisal assets from which KIST says it is looking to deliver significant upside for shareholders. As with RockRose Energy (RRE), future acquisitions will be key.
Finally, Union Jack Oil (UJO) and Reabold Resources (RBD) updated on West Newton. Cased hole logging and vertical seismic profiling operations on the WNB-1Z well have been completed. Well bore integrity has been confirmed and data is currently being processed. The next phase of operations will comprise perforation and stimulation of the Kirkham Abbey formation and subsequent flow testing of the well. Now the moment of truth awaits – is West Newton actually commercial?
In the private blog this evening, 88E, LBE, IOG, PRD, DELT, AEX, TRP, PVR, LOGP, BPC, KIST and PANR (but please note that commentary on all of these is not necessarily positive). Further on that at https://www.oilnewslondon.com/oilman-jim
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The author may hold 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.