Chariot (the old Chariot Oil & Gas) (AIM CHAR OTC OIGLF) announced 2020 final results. Loss for the year, after impairment of assets in Namibia and Brazil, was $70.6 million. With the decks cleared, Chariot’s main projects now are the Moroccan licences Lixus Offshore, containing the Anchois gas development, and the soon to be formally awarded Rissana Offshore, both with operatorship and 75% working interest. Drilling at Anchois is planned for Q4 2021, targeting a total remaining recoverable resource in excess of 1 trillion cubic feet of gas. More on CHAR in the private blog.
Helium One (AIM HE1 OTC HLOGF) announced the presence of helium enriched gas in drilling mud while drilling Tai-1 at the Rukwa Project in Tanzania. It’s not evidence of commerciality and evaluation will be required by wireline logging to confirm any potential pay zones, but it pleased the market and the share price had quite a strong week. The best estimate un-risked prospective resource (2U/P50) at Rukwa is 138 billion cubic feet and helium sells for very considerably more than natural gas.
Predator Oil & Gas (LSE PRD) announced the spudding of the MOU-1 well last Sunday, which will take up to 20 days to drill and log. MOU-1 has a “tight hole” status, so expect no more information until the wireline logs have been evaluated. Meanwhile, Predator’s wholly-owned subsidiary, Mag Mell (named after the mythical Irish kingdom beneath the ocean), has prepared and submitted a report to the Draft Cork County Development Plan 2021 for public consultation regarding its proposed floating storage re-gasification unit located beyond the horizon, some 50km off the Cork coast. Further on PRD in the private blog.
Zephyr Energy (AIM ZPHR OTC VNHLF) announced the grant of the final approvals necessary to drill the State 16-2LN-CC well in the Paradox Basin, Utah. It is expected that drilling operations will commence in July as previously forecast. Zephyr is touting a 2C single-well NPV-10 of $10.4 million and a total of $225 million across its leasehold for the Cane Creek reservoir, using a flat oil price of “$70 per barrel of oil equivalent.” Market capitalisation for ZPHR is already over $100 million.
88 Energy (AIM & ASX 88E OTC EEENF) announced a Merlin-1 testing program update. Geochemical analysis of fluid extracts from selected core samples demonstrated the presence of hydrocarbons and further quantitative screening on remaining samples is to commence. Meanwhile, 88 Energy is selling its Alaskan oil and gas tax credits for $18.7 million and applying the proceeds towards full repayment of its outstanding debt of $16.1 million. More on 88E in the private blog.
Petro Matad (AIM MATD OTC PRTDF) announced final results for the year ended 31 December 2020. Loss was $3.2 million. Key here now is government approval for the exploitation licence. Over at Baron Oil (AIM BOIL), the company announced its AGM statement. The most immediate development is likely to be in Peru, in respect of which BOIL intends to make a decision on the drilling of the El Barco-3X project during the second half of this year.
Providence Resources (AIM PVR OTC PVDRF) announced annual results. Loss for the year 2020 was €10.4 million. Moving forward, it all really comes down to whether or not they can actually progress Barryroe, which now has seen so many false dawns. Like PRD’s Mag Mell project, Barryroe also is located 50km from shore, far enough offshore not to be visible from land, but close enough to access local services in Cork. Chairman Pat Plunkett isn’t hanging around though. He’s decided to step down and devote more time to his other business interests. Further on PVR in the private blog.
Finally, Hurricane Energy (AIM HUR OTC HRCXF) had another busy week. On Tuesday, it announced the publication of its 2020 “Environmental, Social and Governance” report. Unfortunately, the considerable expense which must have been incurred in producing such a document does not really sit too well with the other matters which have been unfolding in court. That hearing has now concluded and an update was announced on Friday. Judgment is reserved and HUR will announce further updates once the outcome of the hearing is known.
In the private blog this evening, CHAR OIGLF LBE PRD ADV 88E EEENF IOG DELT AEX AEXFF TRP RTWRF PVR PVDRF LOGP PPC PPCGF BOIL HUR HRCXF and CRS (but please note that commentary on all of these is not necessarily positive). More 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.