Weekly oil news round up by Oilman Jim – HUR HRCXF SENX SEN.WP SNUYF RBD UJO PTAL TAL.V PTALF BPC BSHPF IOG PRD DELT 88E EEENF LBE AEX AEXFF TRP RTWRF PVR PVDRF LOGP RKH RCKHF ADV CVN.AX CVONF MATD PRTDF

Hurricane Energy (London HUR US OTC HRCXF) announced an update on its proposed financial restructuring.  Subject to directions of the court, a meeting of the bondholders is to be held on 4 June 2021 to consider and, if thought fit, approve the restructuring plan.  Hurricane is warning shareholders and bondholders that in the event the restructuring plan is not approved, either by the bondholders or the court, it is likely that there would be a controlled wind-down of operations followed by an insolvent liquidation of the company.

Even if approved, in return for releasing $50 million of the principal amount outstanding under the convertibles, bondholders will receive ordinary shares comprising 95% of the fully diluted pro forma equity of the company, which values the existing equity at less than 0.1p per share.  I’ve been warning about HUR all the way from the low 30s down and all that was necessary to see what was going to happen here was to read and understand the consequences of the contents of Hurricane’s RNS announcements.  It’s now 0.7p.

Another one where people appear not to read the RNS announcements is Serinus Energy (London SENX US OTC SNUYF Warsaw SEN.WP).  I commented on the disparity of prices between the London and Warsaw exchanges previously and said in the private blog in March that I was dubious regarding Serinus since its share price appeared to have been manipulated in Warsaw to encourage buying / enable distribution in London.  Since then, the share price is down in both venues.

SENX last week announced interim results for the three months ended 31 March 2021 and reported a loss of over $1 million.  I mentioned this on Twitter last week and my statement was met with vehement denials.  It’s difficult at times to understand how people can be so ignorant and stupid, particularly when we’re talking about a simple fact stated by the company itself in an official RNS announcement.  One of the loss deniers was even describing himself as an accountant, while failing to understand the difference between the statement of cash flows and the statement of comprehensive loss.  It’s perhaps no wonder that such people lose money in these markets – as do those who listen to them.

PetroTal (London PTAL US OTC PTALF Toronto TAL.V) announced an operational and corporate update.  The 7D well has been successfully drilled and completed, flowing at an initial rate of approximately 3,700 bopd during its first 10 days of production; and has averaged approximately 4,550 bopd during the past three days, during which time Bretana oil field production has averaged approximately 11,100 bopd.  Two wells, representing 1,200 bopd, are currently shut in awaiting increased water injection pump enhancements.

PetroTal’s goal is to end 2021 at 18,000 to 19,000 bopd and, to help enable that, the 3WD water disposal well now is being drilled and completion is expected mid-June.  This will enable the disposal of an additional 50,000 barrels of water per day and accommodate the company’s expected production growth until mid-2022.  I mentioned PTAL positively last November at 7.6p, after having been rather negative from the low 30s down.  It’s now 15p.

In other news, Reabold Resources (London RBD) and Union Jack Oil (London UJO) announced that Gaffney, Cline & Associates has been appointed to prepare a competent person’s report in respect of PEDL183 following the testing of the WNB-1Z and WNA-2 wells.  It’s the big event for these two and is expected to commence this month.  Meanwhile, Bahamas Petroleum Company (London BPC US OTC BSHPF) announced an extension of the open offer timetable until 18 May 2021.  Funds are obviously not coming in too easily.  The Saffron-2 well in Trinidad and Tobago is hoped to spud on 23 May 2021.  

Finally, IOG (London IOG) announced a collaboration agreement with GeoNetZero CDT.  The key focus will be on proving which fields and aquifers across the Bacton catchment area are the most suitable carbon sinks, particularly where existing infrastructure could provide operational synergies.  Essentially, further greening of their North Sea gas project.  

In the private blog this evening, PRD DELT 88E EEENF IOG LBE AEX AEXFF TRP RTWRF PVR PVDRF LOGP RKH RCKHF ADV CVN.AX CVONF and MATD PRTDF (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.

Weekly oil news round up by Oilman Jim – AAOG PRD SDX SDXEF AET SEY STGAF 88E EEENF IOG LBE DELT AEX AEXFF TRP RTWRF PVR PVDRF LOGP

So, at last, it’s time to say goodbye to Anglo African Oil & Gas (London AAOG), which announced its cancellation of trading on AIM.  AAOG has featured numerous times in the blog over the past few years and not in a good way.  It’s perhaps the company I’ve criticised the most and I’ve been right about it all the way down from 20p to oblivion.  What went wrong with it?  First, those with actual understanding of the project and the requisite experience all left the company over three years ago and secondly, terminally, the board was willing to enter into any arrangement necessary to obtain finance, regardless of how damaging it may have been to the shareholders’ interests.  Anglo African’s failure was inevitable and I’m sorry for all those who thought they knew best.

On to more positive matters, Predator Oil & Gas (London PRD) issued an operational update.  The MOU-1 well remains on schedule to commence drilling during June 2021, dependent upon the completion of drilling operations for three wells for SDX Energy (London SDX US OTC SDXEF), after which the rig will be mobilised to Predator’s acreage for the Guercif drilling, which is expected to take up to 20 days.  Results from MOU-1 may potentially de-risk up to 1,823 BCF of prospective high estimate gross recoverable gas resources.  Now over 15p, PRD is a company I’ve been covering each week in the private blog since December 2019 from as low as 1.3p.

Afrenta (London AET), the old Sterling Energy (London SEY US OTC STGAF), announced its launch “with a clear mandate to look at opportunities to invest in the energy transition in Africa.”  It aims to announce a transaction within the next 12 months.  Personally, though, I’m finding it hard to get as excited about this one as some others and, given the timescales, I think there could be many opportunities along the way to pick up AET at better prices for those who are interested.

Finally, 88 Energy (London 88E US OTC EEENF) announced the appointment of Ashley Gilbert to the board as managing director of 88 Energy with effect from 10 May 2021, following the resignation of David Wall.  Awaited over the next few weeks are the test results of the sidewall cores, cuttings, mud gas and fluid samples from Merlin-1.  88E is another which features regularly in the private blog, since it’s such a regular and reliable money earner for traders.  The key question here now is will the same “modus operandi” continue under Mr. Gilbert?

In the private blog this evening, IOG LBE PRD DELT 88E (EEENF) AEX (AEXFF) TRP (RTWRF) PVR (PVDRF) LOGP and AET (SEY (STGAF)) (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.

Weekly oil news round up by Oilman Jim – HUR HRCXF 88E EEENF PANR PTHRF HE1 HLOGF UKOG UKLLF IOG PRD DELT LBE AEX AEXFF TRP RTWRF PVR PVDRF LOGP ARG AORGF

Hurricane Energy (London HUR US OTC HRCXF) announced its proposed financial restructuring.  As I said in the blog a few weeks ago when the share price was at 2.7p, the shareholders are done for.  In return for releasing $50 million of the principal amount outstanding under the convertibles, bondholders will receive ordinary shares comprising 95% of the fully diluted pro forma equity of the company.  That values the existing equity at just $2.63 million, which is £1.9 million, less than 0.1p per share.

I’ve actually been warning about Hurricane Energy all the way from the low 30s down.  It was more or less clear what was going to happen here and no special skill was required to know.  All you needed to have done was to read in full – and understand the consequences of – the contents of HUR’s RNS announcements.  For those who got hurt, perhaps to protect yourselves in future, it’s worth remembering who was touting Hurricane Energy over the past year or so and recall that their “research” in fact was entirely false.

88 Energy (London 88E US OTC EEENF) announced an operations update.  Testing has commenced on the sidewall cores, cuttings, mud gas and fluid samples from Merlin-1 and results are expected over the next two to ten weeks.  Initial mapping of additional prospective zones encountered in Merlin-1 is encouraging it says.  Results announced by Pantheon Resources (London PANR US OTC PTHRF) on acreage adjacent to 88E’s Icewine project have positive implications and 88 Energy is now re-assessing the potential across its acreage.  More on 88E in the private blog.

As you’ll notice, I’m now including the OTC trading symbols for those companies also quoted in the United States.  This is the big market, which was very much demonstrated by the recent massive trading activity in the shares of 88 Energy.  It also provides the ability to trade after the London market closes.  More and more UK quoted companies are obtaining US trading symbols now, the latest being Helium Energy (London HE1), which announced last week that its shares will cross-trade publicly on the US OTC under the ticker HLOGF.

UK Oil & Gas (London UKOG) also has a US ticker, UKLLF, but it’s “Grey Market” and there’s a warning on the OTC Markets website stating that “Broker dealers are not willing or able to publicly quote these securities because of lack of investor interest, company information availability or regulatory compliance.”  It might be something UK Oil & Gas should get sorted out.

Meanwhile, UKOG announced it has become one of the six founder members of the newly-formed Geothermal Energy Advancement Association.  UK Oil & Gas says it is actively scoping two new standalone geothermal projects in the UK, together with a hybrid geothermal, solar and battery storage project at the Horse Hill site.  It also plans to review geothermal opportunities onshore Turkey once the forthcoming Basur-3 appraisal well has been completed.  At least it’s a possible use for their non-commercial well bores.

IOG, formerly Independent Oil & Gas, (London IOG) announced its name change and, more importantly, completion of its Phase 1 platforms, Blythe and Southwark.  Installation of both platforms is scheduled to be completed before the end of Q2, in preparation for first gas in late Q3.  As readers of the private blog know, I’ve been positive about IOG for some time and from much lower levels.

In the private blog this evening, PRD, DELT, IOG, LBE, 88E (EEENF), AEX (AEXFF), TRP (RTWRF), PVR (PVDRF), LOGP, HUR (HRCXF)and ARG (AORGF) (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.

Weekly oil news round up by Oilman Jim – PVR LOGP BPC KIST RRE UJO RBD 88E LBE IOG PRD DELT AEX TRP PANR

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.

Weekly oil news round up by Oilman Jim – 88E EEENF HUR PTAL UKOG LBE IOG PRD DELT AEX TRP PVR LOGP JOG PANR

Main excitement last week came from 88 Energy (88E), which moved up as high as 9.19 cents (6.7p equivalent) in the United States on Monday, hitting a $1 billion market cap when the UK and Australian markets were closed.  Ramping of the EEENF OTC symbol was widespread across social media and there was a multi-million dollar windfall for those who were able to sell into the US market.  Reality hit that evening, though, when the company announced operational issues had prevented hydrocarbon samples from the two most prospective zones.  The share price on Tuesday went as low as 0.875p on the news, but that was still nearly double the last 0.45p placing price.  It closed on Friday at 1.38p, over three times that price.

88E, which features regularly in the private blog, is a regular and reliable money earner for traders, simply because management actually plays the game expected by its shareholders, fulfilling a silent agreement with them and directing significant funds to professional public relations following their placings.  That’s why, notwithstanding numerous exploration failures, 88 Energy can always continue to raise cash.  It’s interesting how some company promoters understand this, while others don’t even want to try to give their shareholders an even break.

Grimmest company press release of the week has to be that from Hurricane Energy (HUR), which announced a “CPR Summary & Stakeholder Engagement Update.”  Essentially, the shareholders are done for.  The company reports that it continues to engage with an ad hoc group of its convertible noteholders over its forward work programme, strategy, financing and balance sheet recapitalisation and warns there is a risk of significant dilution to existing shareholders from a possible restructuring and/or partial equitisation of the convertible bonds and of potentially limited or no value being returned to shareholders. 

It gets no better, since if no agreement can be reached with HUR‘s stakeholders on additional development activity at Lancaster, although the field could continue to produce from the P6 well before reaching its economic limit (the timing of which would depend on oil prices, actual production levels delivered and the level of cost savings achievable), the field may then be decommissioned, with potentially limited or no value returned to shareholders.  Now 2.7p, I’ve been warning about Hurricane Energy from the low 30s down.

PetroTal (PTAL), now 17.62p, has staged a nice recovery since I mentioned it positively towards the end of last year at 7.6p.  It announced a Q1 operations update last week, reporting the commencement of its 2021 drilling program.  PetroTal has spudded the first well of the year (7D), with expected completion the first week of May, and has already successfully completed the workover of well 4H on time and under budget.  Following completion of the 7D well, the team will drill the second water disposal well, adding 50,000 barrels per day of water disposal capacity, and following completion of that, they will drill four development horizontal oil wells in H2 2021.  

PTAL achieved Q1 2021 exit production of 8,275 barrels of oil per day with the quarter’s production averaging approximately 7,300 barrels of oil per day.  Total cash liquidity was approximately $76 million at quarter end, plus future Petroperu true-up payments of approximately $36 million to PetroTal are expected, significantly enhancing the 2021 cash flow profile compared to budget.  After a rather rocky time, PTAL now appears to be back on track. 

UK Oil & Gas (UKOG) announced that the Turkish Ministry of Energy and Natural Resources has granted UKOG Turkey and its 50% partner, Aladdin Middle East, formal consent to drill the forthcoming Basur-3 appraisal well, located in the Resan licence, which contains what UKOG states is the “potentially significant” Basur-Resan oil discovery.  UK Oil & Gas is delighted with the speedy grant  of drilling consent, which it says illustrates how oil and gas projects can be pushed ahead with more certainty in Turkey than in the UK.

Drilling pad and access road construction works continue to move ahead at good pace, with completion expected by end May, as previously announced.  The Basur-3 drill is the first step towards establishing the commerciality of the Basur-Resan Mardin oil pool, which UKOG claims contains “potentially transformational discovered recoverable oil resources.”  All that’s really certain here is a large placing.

In the private blog this evening, 88E, LBE, IOG, PRD, DELT, AEX, TRP, PVR, LOGP, HUR, PTAL, JOG, UKOG 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.

Weekly oil news round up by Oilman Jim – COPL IOG JOG PRD TLOU AST MSMN SDX FOG BPC SQZ ZEN SCIR SLE ZPHR ECO UJO

Canadian Overseas Petroleum (COPL) announced completion of its Atomic acquisition.  Now suspended from trading, the company has made an application to cancel the listing of the shares from the Official List of the Main Market of the London Stock Exchange, although the shares will remain listed on the Canadian Stock Exchange.  COPL then proposes to make a new application in respect of the enlarged group for admission to the Official List of the London Stock Exchange by way of a Standard Listing.  Although the deal superficially looks good, it appears the shares are going to be suspended from trading in London for quite a while.

Independent Oil & Gas (IOG) announced a Goddard and Abbeydale area technical update, plus final results for the year ended 31 December 2020.  Extensive seismic reprocessing work over the past year has identified additional resources and opportunities on both P2438 (Goddard and Southsea) and P2442 (Thornbridge, Kelham and Abbeydale) and the new data shows enhanced potential for both licences to host production hubs with step-out exploration and appraisal upside.  Meanwhile, Independent continues on the path to Phase 1 first gas in Q3 this year.  More on IOG in the private blog.

Jersey Oil & Gas (JOG) announced a placing and subscription.  £15 million was raised before expenses at an issue price of 165p.  JOG says it can now continue to develop its Greater Buchan Area project at pace and progress its recently launched farm-out process.  The numbers appear strong: 172 MMboe of 2C contingent resources are estimated, with significant exploration upside potential, and JOG aims to deliver initial production of up to 40,000 bopd.  Let’s see if they can find someone interested.  Development costs are said to be £1 billion.

Predator Oil & Gas (PRD) announced a business development update covering Guercif development and operating costs for a pilot compressed natural gas project in Morocco in accordance with the company’s strategy to fast-track monetisation of an initial potential gas discovery at MOU-1.  Also addressed in the update is its floating storage / regasification unit and LNG project offshore Ireland.  Now over 13p, PRD is a company I’ve been covering each week in the private blog since December 2019 from as low as 1.3p.

Tlou Energy (TLOU) announced a £2.625 million placing at 3.5p.  Funds raised will go towards development of the Lesedi project including construction of transmission lines to connect the Lesedi power project to the existing Botswana electricity grid.  The transmission line is a key piece of infrastructure required to enable TLOU to become a power producer and is expected to considerably reduce future funding risk for the company.  Next up is project finance.

In other news, Ascent Resources (AST) announced an update after market close on Friday regarding its Slovenian direct settlement discussions.  The Slovenia government is not prepared to pay Ascent anything at all, so look out for a big fall in the AST share price on Monday.  Mosman Oil & Gas (MSMN) announced a £1.5 million placing and a Falcon update.  The placing was at 0.15p and the Falcon well has watered out.  SDX Energy (SDX) announced financial and operating results for the twelve months ended 31 December 2020.  The result was a $2,058,000 loss.  

Falcon Oil & Gas (FOG) announced its planned 2021 work programme in the Beetaloo sub-basin.  It includes resuming clean-up operations of Kyalla 117 and commencing an extended production test, plus drilling the Velkerri 76 S2-1 vertical well.  Bahamas Petroleum Company (BPC) announced a Trinidad and Tobago and Suriname update.  Main event is the upcoming drilling of the Saffron #2 appraisal well, which BPC anticipates beginning on 17 May 2021.  Serica Energy (SQZ) announced the Columbus development well spud.  The well is expected to take around 70 days and production is expected to commence in early Q4 this year, with average gross production forecast to be around 7,000 boe/d.  

Zenith Energy (ZEN) announced the extension of the SPA for the acquisition of the Sidi El Kilani Concession from CNPC.  Tunisian government approval has not yet been received.  Scirocco Energy (SCIR) announced the disposal of its interest in the Ausable Reef assets and a Helium One update.  Nothing was received for the Ausable Reef interest; Helium One seismic acquisition has commenced.  San Leon Energy (SLE) announced an operational update.  Quite a lot in it if anyone’s interested.  

Zephyr Energy (ZPHR) announced board approval to proceed with the State 16-2 lateral.  It’s in discussions with potential industry and financial partners regarding funding.  Eco (Atlantic) Oil & Gas (ECO) announced renewal of the Orinduik petroleum agreement.  That’s now extended through to 13 January 2023.  Finally, Union Jack Oil (UJO) announced the purchase of a royalty interest.  A relatively tiny investment has resulted in a lengthy press release and presentation, and a lot of well known oil field names to drop.

More in the private blog, including my actual trading ideas.  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.

Weekly oil news round up by Oilman Jim – KIST LBE COPL PRD UOG 88E NOG AEX JOG AST WTE ANGS PTR PXEN CAD PANR

Kistos (KIST) announced the acquisition of Tulip Oil Netherlands, which owns an operating interest in the Q10-A offshore gas field, interests in other fields in the Dutch North Sea, including the Q10-B, Q11-B and M10/M11 discoveries, and further exploration and appraisal projects.  Total upfront consideration for the acquisition is EUR 220 million, comprised of a combination of cash, the assumption by Kistos of an existing bond instrument issued by Tulip’s offshore subsidiary, the issue of a new debt instrument and the issue to the seller of equity in Kistos (the amount of which is as yet undisclosed).  In addition, contingent consideration of up to EUR 163 million is payable on certain development milestones.  It is anticipated that KIST will carry out an equity placing.  The shares are now suspended (up 67.5% from the IPO price last year) pending publication of an AIM admission document   Next up in this category perhaps is Longboat Energy (LBE).  More on that in the private blog.

Canadian Overseas Petroleum (COPL) announced a £14 million placing at 0.32p.  Net proceeds will be used for working capital required post completion of the acquisition of Atomic Oil and Gas LLC, fees and expenditures related to the Atomic acquisition and for general corporate purposes.  Atomic’s assets are located in the Powder River Basin in Wyoming, where it holds operated interests in 58,552 gross acres of contiguous leasehold, with two oil production units within the lease block, the Barron Flats Shannon Miscible Flood Unit (57.7% working interest) and the Cole Creek Unit (66.7% working interest), as well as one unitised exploration area, the Barron Flats Federal Unit (deep).  Atomic also has two affiliates, Southwestern Production Corp. (the operating entity) and Pipeco (holding the pipeline and facility assets).  COPL expects to close the deal tomorrow.

Predator Oil & Gas (PRD) announced a £1.785 million placing at 10.5p.  Some of the funds raised will be used to provide a contingency for the increase in certain MOU-1 well costs occasioned by the 12-month long COVID-19 pandemic, enable long lead items necessary for a potential well testing programme to be pre-purchased, prepare additional follow-up drilling locations based on the new seismic interpretation over the past 12 months and commission a front end engineering study to supply compressed natural gas to the Moroccan industrial market to support early monetisation of gas and an eventual plan of development submission.  The share price took the placing news in its stride and closed the week at 12p.  Predator is one of the shares I’ve been covering in the private blog each week from as low as 1.3p.

United Oil & Gas (UOG) announced the spudding of the ASD-1X exploration well in Egypt.  The company holds a 22% working interest.  The well will take up to 60 days to drill and is funded entirely from operational cash flow.  The UOG share price now appears to have overcome what appeared to be continuous selling at around the 3p level and has moved ahead strongly on the back of recent positive announcements.

88 Energy (88E) announced an operations update.  Drilling has now commenced at Merlin-1, with results expected within the next 4 weeks, although given operational delays, it is now considered unlikely that the Harrier-1 well will be drilled this season.  The share price responded positively, closing the week at 0.875p, having been as high as 0.945p, delivering yet another 100% return for those who participate in this company’s regular placings.  88E is another one I cover each week in the private blog.

Nostrum Oil & Gas (NOG) announced a reserves update.  Total proven plus probable reserves at 31 December 2020 were 39 mmboe, the proven case at 28.9 mmboe comprising 27.7 mmboe for proved developed producing from 45 current wells and 1.2 mmboe in the proved undeveloped category.  The audit also confirmed Chinarevskoye contingent resources of 146 mmboe, plus management estimates of the Rostoshinskoye contingent resources of 31 mmboe.  The market cap for this lot, producing around 17,000 boepd, is £17 million, the only problem being net debt of around $1.1 billion.

Aminex (AEX) announced a Ruvuma operations update.  Seismic acquisition is taking place over 480 km² during the second and third quarters of 2021 with processing being completed thereafter.  The Chikumbi-1 well is planned to spud in early 2022 with mobilisation of the rig and other services planned for the second half of this year.  Assuming a successful outcome, first gas from the project is anticipated to occur in September 2024.  Aminex is carried for its share of the associated field development costs up to $35 million, equivalent to gross development expenditure of $140 million.  Further on AEX in the private blog.

In other news, Jersey Oil & Gas (JOG) issued a response to media speculation.  The company confirmed that it is in discussions regarding a fundraising of £10 million to £15 million.  Ascent Resources (AST) announced a Slovenia operation and joint venture partner update.  Production at the PG-11A well has restarted and average production in excess of 20,000 scm/day has initially been recorded.  Westmount Energy (WTE) announced the commencement of drilling operations at Jabillo-1.  It holds a 1.3475% effective interest.  Angus Energy (ANGS) announced final results.  Loss for the year was £2.516 million.  Petroneft Resources (PTR) announced an operational update.  Production has commenced from the Cheremshanskoye field on Licence 67 and is currently over 240 bopd.  Prospex Energy (PXEN) announced a placing to raise £750,000.  It’s issuing 50 million new shares at 1.5p.  Cadogan Petroleum (CAD) updated on its loan to Proger Managers & Partners.  It has agreed to postpone the loan reimbursement until 19 March.  Finally, Pantheon Resources (PANR) announced an operational update for the Talitha #A well.  The company has decided to kick off a completely new sidetrack hole and estimates that drilling and testing operations through this initiative will take 15 to 18 days.

More in the private blog, including my actual trading ideas.  Further on that at https://www.oilnewslondon.com/oilman-jim 

Contact me on Twitter @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.

Weekly oil news round up by Oilman Jim – JOG TRP HUR 88E PANR PVR LOGP RKH LBE UJO MSMN UKOG TXP RMP SDX EME WTE RBD ANGS PTR BPC CHAR TLOU EDR PXEN MATD CAD WCAT

Jersey Oil & Gas (JOG) announced the findings of its “Concept Select Report” in respect of the Greater Buchan area development project, which they estimate to contain an aggregate 172 MMboe 2C contingent resource of light sweet crude and associated gas. The planned development is centred on resuming production at the Buchan oil field and producing the J2 and Verbier oil discoveries, as well as other existing and yet to find discoveries within the Greater Buchan area as future upside.  All that’s needed now is £1 billion to develop it and the plan is to launch a farm-out process.  Essentially it’s now a bet on whether they can pull that off.

Tower Resources (TRP) announced an extension of the Pegasus loan facility to the end of November 2021.  TRP is now optimistic that it can get financing in place by the summer to drill the NJOM-3 well and hopes to repay the loan by 15 July 2021.  Discussions continue with potential farm-out partners for its Thali license in Cameroon and the company also hopes to have a substantial announcement to make in due course.  More on TRP in the private blog.

Hurricane Energy (HUR) announced a stakeholder engagement and Lancaster activity update.  The company has now concluded that it will not be possible to drill the proposed second production well during the 2021 summer weather window without unacceptable operational and cost risk and is now considering drilling the side-track in 2022.  Meanwhile, stakeholders, including an ad hoc group of convertible noteholders, are discussing HUR’s forward work programme, strategy, financing and balance sheet recapitalisation.  Now 3.27p, it’s one I’ve been cautioning about since the low 30s.

88 Energy (88E) announced an operations update.  Rig mobilisation is progressing well and spud of the Merlin-1 is scheduled for tomorrow.  Drilling of the second well, Harrier-1, remains subject to permitting, Merlin-1 results and weather / schedule.  Success at Merlin-1 could yield over 300 million barrels net to 88E and open up further prospectivity at Project Peregrine, in addition to unlocking the proven resource at the adjacent Umiat oil field, which is 100% owned by 88 Energy.  Further on 88E in the private blog.

Pantheon Resources (PANR) has run into difficulties.  Due to equipment failures and technical issues, it has not been possible to effectively set the liner.  Damage has occurred to the geologic formations above the Kuparuk, which swelled while the hole was open during the delay.  The company has now made the decision to drill a new sidetrack into that formation, however, the delay caused by this could impact the ability to test all zones effectively before the end of the drilling season.  Testing, of course, is critical to establish commercial viability.

Providence Resources (PVR) and Lansdowne Oil & Gas (LOGP) announced a Barryroe farm-out update.  Unsurprisingly, SpotOn Energy Ltd. (the £1 capital counterparty) has been unable to secure the minimum necessary $166m funding.  The only option for PVR and LOGP, therefore, has been to extend the backstop date for a further two months to 30 April, 2021, in the hope that SpotOn can somehow pull off the financing.  More on PVR and LOGP in the private blog.

Rockhopper Exploration (RKH) announced the extension of their North Falkland Basin licences until 1 November 2022.  The proposed merger of Premier Oil and Chrysaor to create Harbour Energy will bring a financially stronger operator to the project, which combined with the proposed entry of Navitas Petroleum to Sea Lion, could create a solid operational and financial foundation and give the project a stronger chance of progressing.  Possibly not too bad a bet in an environment of rising energy prices.

Longboat Energy (LBE) announced notice of results.  LBE was established by the former management team of Faroe Petroleum plc to build a significant North Sea-focused E&P business.  Full Year results for the period ending 31 December 2020 will be announced on 23 March, 2021 and key will be the company’s comments on its acquisition progress.  Further on LBE in the private blog.

In other news, Union Jack Oil (UJO) announced the completion of a further acquisition of a 15% interest in PEDL253 (Biscathorpe).  Notwithstanding recent claimed successes, though, the shares are now back below the last two placing prices.  Mosman Oil & Gas (MSMN) announced a Falcon well update.  As would be expected when drilling in a mature area, the operator has reported an increase in water production alongside a fall in pressure at Falcon-1, resulting in significantly lower reported oil and gas production rates.  UK Oil & Gas (UKOG) announced that the Loxley appeal inquiry now is scheduled for July 2021.  The company’s counsel continues to advise that there are strong grounds to expect a positive appeal outcome as Surrey County Council’s cited grounds for refusal are in direct conflict with the advice of its professional Planning and Highway Officers and their respective recommendations for approval.

Touchstone Exploration (TXP) announced a 2020 year-end reserves and operational update.  The company says this provides further independent confirmation of the significant opportunities TXP has in place from its Trinidad assets.  Red Emperor Resources (RMP) announced its half year report.  It reminded shareholders that the company has recently made an application to the ASX in respect of a proposed transaction which is under consideration and the shares remain suspended from trading on both the ASX and AIM.  SDX Energy (SDX) announced the West Gharib PSA has been extended for 10 years to 2031.  This increases SDX’s share of reserves in its core West Gharib oil asset by 60%.

Empyrean Energy (EME) announced a US tax refund.  $357,702 is expected to be received by the company this month.  Westmount Energy (WTE) announced Bulletwood-1 results.  The well encountered quality reservoirs but non-commercial hydrocarbons.  Reabold Resources (RBD) announced a partial sale of convertible loan notes.  These are to “strategic investors” who have indicated their support of an initial public offering, reverse takeover or similar for Corallian.  Angus Energy (ANGS) announced a Balcombe oil field planning update.  West Sussex County Council’s planning committee has rejected the company’s planning application for an extended well test.

Petroneft Resources (PTR) announced the completion of its fracking program and initial results.  It says these are very encouraging, leading to production increases and opening the door to potential further developments.  Bahamas Petroleum Company (BPC) announced an update on the court process in The Bahamas.  The judge allowed the company’s application and ordered the applicants to post $200,000 security for costs within 30 days.  Chariot Oil & Gas (CHAR) announced a gas market MOU signed in Morocco.  This relates to the Ministry’s support of Chariot and ONHYM’s Anchois gas development project as a potential provider of significant gas to the Moroccan market.

Tlou Energy (TLOU) announced that finance is progressing with a key funding partner.  TLOU says that it is a very reputable Botswana based entity, but due to confidentiality the company is unable to name the entity concerned at this time.  Egdon Resources (EDR) announced a Biscathorpe project update.  Subject to receipt of planning and other consents, the Biscathorpe-2Z side-track conventional appraisal well could potentially be drilled in the second half of 2021.  Prospex Energy (PXEN) announced the completion of the acquisition of a 49.9% interest in the El Romeral operation, which includes three producing wells and a 8.1 MW power station for a net consideration of Euro 375,000.  The price says it all.

Petro Matad (MATD) announced a Block XX operational update.  Progress has been much slower than it hoped to achieve.  Cadogan Petroleum (CAD) announced an update regarding its loan to Proger Managers & Partners srl.  It says Proger must make payment of Euro 14,857,350 (reimbursement of the loan in terms of principal and interest accrued to date) within the next five business days.  Finally, Wildcat Petroleum (WCAT) announced the appointment of Professor Olinga Taeed as blockchain advisor.  It says his extensive experience of the regulatory and technical issues surrounding the launch of new cryptocurrencies will be invaluable as WCAT seeks to transform the way the oil and gas industry transacts.

More in the private blog, including my actual trading ideas.  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.

Weekly oil news round up by Oilman Jim – SENX I3E 88E PTAL CHAR CORO ECHO SOU RBD ANGS MSMN ENW UOG BOIL

Serinus Energy (SENX) announced the flow-test results of the Moftinu-1008 well in Romania.  Approximately 667 boe/d, a decent result from a 1,000 metre well.  SENX is traded on both the London and Warsaw markets, with the share price in the latter being several times that of the former.  The company has attempted to explain this by pointing out that while all 1,140,660,629 issued and outstanding shares are eligible to be traded on AIM, only 78,629,941 of these shares are eligible to be traded on the Warsaw Stock Exchange.  Regardless, some still prefer to ignore the implications of the “float” numbers and continue to insist the Warsaw price proves that the London price is a bargain.

i3 Energy (I3E) announced an operational update.  Production at its newly acquired Canadian portfolio remains stable with November 2020 to January 2021 averaging 9,150 boe/d.  Forecasted 2021 net operating income (revenue minus royalties, opex, transportation and processing) is approximately $27.6 million based on mid-February strip pricing and an estimated maintenance capital budget of approximately $2.4 million.  I3E’s stated intention is to declare a maiden dividend in Q1 2021 and many think it looks cheap, but after the North Sea debacle this management has to earn back a lot of trust.

88 Energy (88E) announced a Project Peregrine prospective resources report.  It’s a historic one previously announced by XCD Energy (now a 100% owned subsidiary of 88 Energy), completed in January 2020 by ERC Equipoise, which assessed the prospective resources associated with 88E’s 100% owned Project Peregrine at over 1.6 bbo in the mean case (unrisked net entitlement).  Spud of the first Merlin-1 well is scheduled this coming week.  Further on 88E in the private blog.

PetroTal (PTAL) announced 2020 year-end oil reserves.  Proved reserves increased by 4% to 22.3 mmbo, proved plus probable reserves increased by 7% to 51.0 mmbo and proved plus probable and possible reserves increased by 25% to 106.1 mmbo.  NPV-10 is calculated at $317 million for proved reserves and $830 million for probable reserves.  I mentioned PTAL positively last November at 7.6p, after having been rather negative from the low 30s down.  It’s now more than doubled to 17.75p.

Chariot Oil & Gas (CHAR) announced it has signed a collaboration agreement with Subsea Integration Alliance to work together to enable the front-end design, engineering, procurement, construction, installation and operation of the Anchois gas development project in Morocco.  Key now is whether they can actually obtain development debt finance as previously announced.  Estimated capex required to bring the development online is anticipated to be in the region of $300 to $500 million.

Coro Energy (CORO) announced a proposed acquisition, placing and open offer.  It has agreed to acquire Global Energy Partnership Limited, but all this company appears to have done is to have “screened” some renewable energy projects.  CORO is issuing 142,500,000 new shares (current value over £575,000) to pay for this £2 capital company, whose 31 January 2021 accounts filed at Companies House show it to be insolvent with assets of £136 and liabilities of £2,715.  The placing raised £4.5 million gross, though, and a further £500,000 is hoped for from the open offer, but I suspect most of this will be used to “restructure” CORO’s debt and enable a “divestment” of the Italian assets (they’ll most likely be paying someone to take them).  Along with its stablemates, Echo Energy (ECHO) and Sound Energy (SOU), CORO is one I’ve been negative about for some time and from much higher prices.

In other news, Reabold Resources (RBD) announced an increased investment in Corallian.  It’s intended to be used to support “workstreams” related to the submission of a draft field development plan for the Victory gas field and for general working capital purposes.  Angus Energy (ANGS) announced a Balcombe field-planning recommendation and meeting, a Saltfleetby loan facility update and a re-evaluation of the Lidsey field.  It keeps on trying.  Mosman Oil & Gas (MSMN) announced updated six monthly production.  Net production attributable to Mosman was 54 boe/d.

Enwell Energy (ENW) announced results of the SV-25 well and spud of the SV-29 well.  SV-25 is producing at a stabilised flow rate of approximately 452 boe/d and SV-29 has now been spudded with a target depth of 5,450 metres.  United Oil & Gas (UOG) announced an ASH-3 well test update.  On a 30/64″ choke, expected to be representative of the producing flow rates, the well flowed at 910 boe/d net to UOG.  Finally, Baron Oil (BOIL) announced that its extension request for the Chuditch PSC has been approved.  It now expects completion of the commitment work programme in a timely manner.

More in the private blog, including my actual trading ideas.  Further on that at https://www.oilnewslondon.com/oilman-jim 

Contact me on Twitter @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.

Weekly oil news round up by Oilman Jim – PRD PANR 88E PTAL BPC BLOE SCIR AEX ADME COPL GKP PTR TLOU UOG UPL WCAT

Predator Oil & Gas (PRD) issued an operational and corporate update.  The main point in the announcement is that the Guercif MOU-1 well pad construction is programmed for April 2021.  Good progress is being made onshore Trinidad too with its CO2 injection project and Predator also remains focussed on providing a niche solution to near-term security of energy supply for Ireland, during a transition to a dominantly renewable source of energy, utilising its floating storage and regasification unit concept.  PRD has been a strong performer and reached 8.25p last week.  I don’t mention many in the private blog (only the few I believe are certain to go up), but Predator is one of them and I’ve been covering it from as low as 1.3p.

Pantheon Resources (PANR) announced a Talitha-1 operations update.  The current plan is to test the Shelf Margin Deltaic, Basin Floor Fan (two separate zones) and the Kuparuk zones.  As the company emphasises, testing all zones is critical to determine ultimate commerciality.  88 Energy (88E) referred to PANR in its operations update, stating that the nearby Talitha-A well early results are encouraging, with the potential for extension into 88E’s leases.  Meanwhile, rig commissioning is now complete and mobilisation has started for Merlin-1 drilling, which is scheduled to commence in the first week of March 2021.  More on 88E in the private blog.

PetroTal (PTAL) announced completion of its $100 million bond issue and a 2021 capital budget of the same amount.  The program is designed to enable PTAL to more than double production from Q1 2021 to Q4 2021 and complete phase two of the central processing facility in Q3 2021, completion of which will take overall fluid production capacity up to 124,000 barrels per day, sufficient to handle 24,000 barrels of oil per day.  It’s targeting average 2021 oil production between 11,000 and 12,000 bopd with a target 2021 exit range of 18,000 to 19,000 bopd, generating cash flow of approximately $90 million, based on a forecast Brent oil price of $50 per barrel flat.  I mentioned PTAL positively a number of weeks ago at 7.6p, after having been rather negative from the low 30s down.  It’s now more than doubled to 18.12p.

Bahamas Petroleum Company (BPC) announced a corporate and strategic update.  Operational activity is now focussing on the Company’s 2021 work programme in Trinidad and Tobago and Suriname, targeting exit production of c.2,500 bopd.  As readers know, I’ve been cautious about BPC for some time and it’s down from 2.6p pre-drill result in the Bahamas to 0.57p now.  I did warn this could happen.

Another one I warned about many, many times, all the way down from 17.5p to its current 3.25p level, is Block Energy (BLOE).  It announced last week first gas sales at the West Rustavi Field and says that production across all of its portfolio is currently approximately 940 boepd, the key word here being “currently.”  Block is notorious for claiming 1,100 barrels a day of production from a certain well (which was spun by its PR as all oil) and it was a very long time before they eventually admitted that it was mainly water.

Scirocco Energy (SCIR) announced a strategy update and board changes.  It has identified various near-term investment opportunities within the low-carbon space, including renewable energy, circular economy and energy storage and transfer.  Regarding its non-operated stake in Ruvuma alongside its wider Tanzania portfolio, in respect of which a formal sales process commenced in Q1 2020, SCIR is now engaged in advanced dialogue with a number of interested parties, having received indicative proposals which it is considering.  It’s troubling, therefore, why some paid PR has been saying recently that the best way to play Ruvuma (scheduled to be drilled in early 2022) is via Scirocco, rather than Aminex (AEX), which actually owns a 25% carried interest.

In other news, ADM Energy (ADME) issued a statement regarding its share price movement.  ADME confirmed it was in discussions with its shareholders, funding partners and prospective and new investors in connection with a possible equity fundraising, including via a placing.  Canadian Overseas Petroleum (COPL) issued an announcement in connection with its senior credit facility for up to $65 million.  The facility has been approved by the investment committee of the lender, a US based global investment firm.  Gulf Keystone Petroleum (GKP) announced an updated independent reserves and resources evaluation.  It had gross 2P and 2C reserves and resources of around 800 MMbo at 31 December 2020, including over 500 MMbo of gross 2P reserves.  Petroneft (PTR) announced a $2.9 million convertible loan facility.  It says the funding will support its key operational priorities which are expected to deliver considerable news flow in the near to medium term.

Tlou Energy (TLOU) announced it is seeking carbon neutrality.  It’s progressing towards having the first carbon neutral power project in Botswana, with plans to combine gas, solar and carbon sequestration.  United Oil & Gas (UOG) announced an ASH-3 well update. A total of 27.5 meters net pay has been interpreted in the targeted reservoir and initial testing will be completed in the coming days before the well is then brought onstream through the existing ASH field facilities.  Uplands Resources (UPL) issued a technical quantification.  Its Pyrite prospect in Tunisia is interpreted to contain 1.1 TCF of recoverable gas (P50 prospective resources) with a chance of success estimated to be 22%.  Finally, Wildcat Petroleum (WCAT) issued a statement regarding the appointment of Michael Edelson as senior business advisor.  He is currently a non-executive director of Manchester United F.C., the Chairman of SysGroup plc and has helped to float over 20 companies during his career, one of which was ASOS. 

More in the private blog, including my actual trading ideas.  Further on that at https://www.oilnewslondon.com/oilman-jim 

Contact me on Twitter @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.