Weekly oil news round up by Oilman Jim – UKOG MATD BLOE 88E EEENF CASP IOG ORCA RECO.V RECAF PPC EOG CHAR ADV LBE DELT AEX PRD TRP PVR LOGP BOIL EME

Challenges raising funds are now becoming apparent for lower calibre companies and managements.  UK Oil & Gas (UKOG)’s recent open offer, aiming for £4.7 million, raised only £462,554, while Petro Matad (MATD) had to announce last week that it managed to raise only £76,000 of the $2 million hoped for.  The $9.7 million previously raised by MATD through a 3.5p placing and subscription had already come at a terrible price to shareholders, with the shares apparently “pre-sold” by insiders all the way from 8.8p down.  The price now is 2.9p.

The fun and games continue at Block Energy (BLOE), where a management previously unable to distinguish water from oil (that’s the innocent explanation) is trying to stop a shareholders’ resolution to commission an independent forensic investigation into the affairs of the company.  Among other things, the shareholders are looking for failures to disclose information to the market in a timely manner and inappropriate trading of shares by directors during close periods or otherwise.  The general meeting called to consider this resolution is scheduled for Wednesday and the outcome is awaited with some interest.  BLOE is one which I’ve been warning about for some time (see previous Sunday blog issues back to 2019).

More positive news from 88 Energy (88E $EEENF), which announced it was strengthening its board and management with the appointments of Philip Byrne, Joanne Kendrick and Robert Benkovic, and updated on its 100% owned Umiat oil field.  Further studies conducted in conjunction with the Merlin-1 post well testing and analysis have identified additional upside at Umiat and the BLM has approved deferring the Year 2 well commitment by 24 months to 31 August 2023, allowing for optimisation of the full field development plan, including evaluation of potential synergies with Project Peregrine.  In the meantime, full results from the Merlin-1 post well testing programme are expected imminently.  88 Energy has been covered in the private blog from the 0.40s and reached a high of 4.7p in March.  It’s now 2.4375p.

Caspian Sunrise (CASP) is starting to pull it all together and announced a strategic, financial and operational update on Friday.  The past few years have been difficult, but it appears to the company that it has now turned the corner both operationally and financially.  Production from the BNG contract area is currently running at the rate of 1,950 bopd, including a contribution from New Well 154 of approximately 700 bopd.  Perhaps of most significance, the Oraziman family have agreed to convert their entire debt of approximately $6.2 million into CASP shares to be issued at a price of 3.2p per share.

IOG (IOG) announced the spudding of the Blythe development well.  Following Elgood, this is the second development well in IOG‘s Phase 1 project and is expected to take less than three months to drill and complete, after which the rig will move on to Southwark.  The aim is first gas in the fourth quarter.  More on IOG in the private blog.

Orcadian Energy (ORCA) announced it has licensed a 3D seismic dataset, covering the Pilot and Blakeney discoveries plus the Bowhead prospect within block 21/27.  The dataset was shot during 2011 and 2012 and was reprocessed to focus on the Tay discoveries and prospects during 2018 and 2019.  Orcadian has courted controversy since its admission to trading on AIM a few weeks ago, taking the unusual step of publicly questioning the valuation of another quoted company, the much promoted – and much shorted – ReconAfrica ($RECO.V $RECAF), following which ORCA CEO Steve Brown found himself being “exposed” by Channel 4 News for saying the climate emergency is fake in now deleted tweets from his personal account.  Meanwhile, the company’s own Twitter account carries on in its somewhat different style.

President Energy (PPC) announced an operations update.  There’s plenty going on at the company now, with possibly the most interesting activities being the Paraguay farm-out and the Atome spin off / listing.  Meanwhile, the drilling programme at Puesto Guardian is starting in October, targeting initial projected new production of around 750 bopd with, President claims, no material increases in infrastructure or operating costs, thus giving significant benefit to the bottom line.  More on PPC in the private blog.

Finally, Europa Oil &Gas (EOG) announced the formal launch of the farm-out initiative of what it calls its high-impact exploration opportunity, the Inezgane permit, offshore Morocco, awarded to the Company in 2019.  EOG holds a 75% interest in, and operatorship of, the 11,228 sq. km. licence, with Morocco’s ONHYM holding the remaining 25%.  Total mean resources are estimated by the company to be in excess of two billion barrels.  Let’s see if anyone’s interested.

In the private blog this evening, CHAR ADV LBE DELT AEX IOG 88E EEENF PRD TRP PVR LOGP PPC BOIL and EME (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. 

Weekly oil news round up by Oilman Jim – PANR PTHRF I3E ITE SENX SEN SNUYF MATD PRTDF HE1 HLOGF 88E EEENF PRD SDX SDXEF HUR HRCXF ZPHR VNHLF BOIL IOG CHAR OIGLF ADV LBE DELT AEX AEXFF TRP RTWRF PVR PVDRF LOGP PPC PPCGF BOIL EME

Pantheon Resources (AIM PANR OTC PTHRF) announced a management resource upgrade on its Shelf Margin Deltaic sequence encountered in the the Talitha #A well.  It estimates that the SMD-B zone has the potential to contain 2.6 billion barrels of oil in place and a P50 contingent resource (recoverable) of 404 million barrels of oil.  Analysis is not yet complete on the SMD-A and SMD-C zones, although it is anticipated that the SMD-A will experience a reduction, whereas the SMD-C is broadly in line with previous analysis.  Crucially, Pantheon confirmed that discussions have commenced with a number of groups for the purpose of seeking the farmout of a working interest percentage in one or more of its Alaskan projects, the aim being to complete a farmout or funding in the fourth quarter to provide sufficient capital for future drilling and testing.  PANR‘s objective for winter 2021 / 22 is for an active work programme to test all zones of the Talitha #A well and to drill at least one other well at either Alkaid or Theta West.

i3 Energy (AIM I3E TSX ITE) announced an operational update.  Drilling operations on the second well in the Marten Hills Clearwater drilling programme have been completed and eight horizontal lateral sections, totalling approximately 12,644 metres in length, were drilled from the wellbore.  Production from both wells is anticipated to commence later this month.  Upcoming is the second phase of drilling, targeting an additional seven possible locations.  Production is expected soon to be over 10,000 barrels of oil equivalent per day.

Serinus Energy (AIM SENX WSE SEN OTC SNUYF) announced that the Sancrai-1 well has discovered gas.  The company will now proceed to perforate and test the Pliocene sand zone prior to completing the well for future production.  The “newly discovered gas field” lies approximately 7.8 km to the south of the Moftinu gas development project and, Serinus says, provides it with a similar high value, high return development opportunity.  The discovery further confirms SENX’s belief that there are multiple shallow gas fields within the Satu Mare concession area.  Many ask why the share price is so much higher in Warsaw than London.  The simple answer to that is only a small fraction of the issued share capital is registered for trading on the Polish stock market.

Petro Matad (AIM MATD OTC PRTDF) announced it has raised approximately $10.4 million at 3.5p per share via a placing and retail offer.  It also intends to raise up to approximately $2 million through an open offer.  Stated use of the funds is to allow MATD to commence production from the Heron Field, with the completion of the Heron-1 well plus the drilling of the Heron-2 and Heron-3 wells.  It has to be said that the level of the placing price surprised many (the share price was as high as 9p the previous week) and it appears to some that a large number of placing shares may have been pre-sold.

Helium One (AIM HE1 OTC HLOGF) announced a further helium gas show in drilling mud from the Tai-1 well.  This followed the loss of the drill string at 561 metres.  The drilling company has been unable to recover the lost drill pipe and the plan now is to sidetrack from above the lost pipe and continue drilling to test both the Red Sandstone (source of the gas show) and priority target horizons beneath.  Gas shows demonstrate a working helium system and support helium prospectivity, but wireline logging is required before any pay zone can be determined.

88 Energy (AIM & ASX 88E OTC EEENF) announced an update in relation to the ongoing testing programme following the drilling of the Merlin-1 well.  Additional Phase 1 geochemical analysis of fluid extracts from core samples again demonstrates the presence of hydrocarbons and results from Phase 2 of the side-wall core trim analysis are expected in the next few weeks.  VAS and gas analysis results also are expected in the coming weeks, with final analysis and results from the Merlin-1 post well testing program expected to be concluded by the end of July.  Announcement of the full results summary is targeted for early August.  Currently just under 2p, 88 Energy has been covered in the private blog from the 0.40s and reached a high of 4.7p in March.

Predator Oil & Gas (LSE PRD) announced the appointment of Mr. Lonny Baumgardner as chief operating officer with immediate effect.  Since 2015, he has been the country manager and general director for SDX Energy (AIM SDX OTC SDXEF), another company active in Morocco.  Encouragingly for PRD shareholders, he says “the success of MOU-1 in finding gas is, in my extensive experience of management of drilling operations and a downstream gas business in Morocco, the beginning of the journey to appraise and develop gas for early monetisation.”  Predator Oil & Gas has been covered in the private blog from as low as 1.3p and reached a high of 22.5p prior to the MOU-1 spud.

SDX Energy issued news itself last week, announcing that it is completing its recently drilled Ibn Yunus-2 well in Egypt, before moving the rig to the Hanut-1X exploration well site for a planned spud early in August.  The Hanut-1X is targeting gross unrisked mean recoverable volumes of 139 billion cubic feet of gas with a 33% chance of success, a well described by the company as potentially transformational.

Hurricane Energy (AIM HUR OTC HRCXF) announced an update.  Immediately prior to the maintenance shutdown in early July 2021, the field was producing from the P6 well at 10,900 bopd with an associated water cut of 32%.  Zephyr Energy (AIM ZPHR OTC VNHLF) announced the commencement of drilling of the State 16-2LN-CC well.  Drilling is expected to take approximately 20 days.  Finally, Baron Oil (BOIL) announced a resource update for the Chuditch PSC.  An independent review, validated to SPE PRMS 2018 industry standards, indicates gross mean prospective resources of 3,368 billion cubic feet of gas and 30 million barrels of condensate, equivalent to a total of 592 million barrels of oil equivalent.

In the private blog this evening, IOG CHAR OIGLF ADV LBE DELT AEX AEXFF 88E EEENF PRD TRP RTWRF PVR PVDRF LOGP PPC PPCGF BOIL and EME (but please note that commentary on all of these is not necessarily positive).  More 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 I3E ITE BLOE SCIR ECO EOG ECAOF 88E EEENF ZPHR VNHLF UKOG UKLLF UJO RBD HUR HRCXF CRS MATD PRTDF CHAR OIGLF ADV LBE IOG DELT AEX AEXFF TRP RTWRF PVR PVDRF LOGP PPC PPCGF BOIL EME

Predator Oil & Gas (LSE PRD) announced drilling results for the MOU-1 well.  Only gas shows, but evidence of thermogenic gas migration supports the pre-drill geological interpretation for a deep “gas kitchen” connected to shallower reservoirs by large faults and Predator will be proposing to its partner to drill the previously defined MOU-4 location later this year.  PRD has been covered in the private blog each week since December 2019 from as low as 1.3p and reached a high of 22.5p pre-spud.  

i3 Energy (AIM I3E TSX ITE) announced an Alberta acquisition plus a placing to finance it.  The company has signed a definitive agreement with Cenovus Energy to acquire petroleum and infrastructure assets within i3’s core area for a total consideration of $53.7 million.  Funding of £40 million ($55.4 million) has been raised at 11p per share.  The acquisition includes approximately 8,400 boepd of production, 79.5 mmboe of 2P reserves and an inventory of more than 140 net drilling locations across approximately 212,000 net acres.

Block Energy (AIM BLOE) announced a request from G.P. (Jersey) Limited to requisition a general meeting for the purpose of removing Philip Dimmock from office as a director and appointing Chuck Valceschini as chairman.  Curiously, Scirocco Energy (AIM SCIR) then issued a “response to erroneous speculation on investor forums” denying it was interested.  This could become another entertaining AIM soap opera, but remember BLOE is one that has lost its investors a lot of money on the back of misleading statements.  I predicted its share price collapse in the blog back in 2019 and it’s fallen from 17.5p to 2.5p in the meantime.

Eco (Atlantic) Oil & Gas (AIM ECO TSX EOG OTC ECAOF) announced the Jabillo-1 drill result.  The well, offshore Guyana, reached its planned target depth and was evaluated, but did not show evidence of commercial hydrocarbons.  Jabillo-1 will now be plugged and abandoned.  Next is the Sapote-1 well, which is expected to be spud in mid-August with an estimated drilling time of up to 60 days.  Eco holds an effective 1.12% working interest in these wells and financing has been provided by a $4.9 million private placement at C$0.41 (23.75p) with Africa Oil Corp and Charlestown Energy Partners.

88 Energy (AIM & ASX 88E OTC EEENF) announced the issue of 152,137,532 shares at A$0.035 (1.89p, $0.026) to pay for the acquisition of a 50% working interest in the Peregrine project from Alaska Peregrine Development Company, LLC.  88E now has a 100% interest in Peregrine, success at which also could unlock reserves at the recently acquired Umiat Oil Field, which was discovered in 1945 and is located immediately adjacent to the southern boundary of Peregrine.  88 Energy has been covered in the private blog from the 0.40s and reached a high of 4.7p in March.

Zephyr Energy (AIM ZPHR OTC VNHLF) announced rig mobilisation for the State 16-2LN-CC.  The company remains on track to spud the well before the end of July and drilling is expected to take approximately 20 days.  Meanwhile, UK Oil & Gas (AIM UKOG OTC UKLLF) currently drilling the Basur-3 appraisal well in Turkey, took advantage of its news flow, announcing a £5 million placing at 0.18p and a £4.7 million open offer at the same price.  Union Jack Oil (UJO) and Reabold Resources (RBD) investors continue to await West Newton B-1Z completion and testing operations news, which now is expected shortly.

Hurricane Energy (AIM HUR OTC HRCXF) announced that Crystal Amber Fund (AIM CRS) has increased its holding in the company’s shares to 23.09%.  This follows Crystal Amber’s success in the High Court, which resulted in the refusal by that court to sanction Hurricane’s restructuring plan.  HUR has been a strong performer over the past few weeks, trebling in price to just over 3p at the close on Friday.  Fundamentals remain unchanged, though.  It’s one I was warning about in the blog from the low 30s down.

Petro Matad (AIM MATD OTC PRTDF) announced the award of its Block XX exploitation licence in Mongolia.  The approved plan of development will concentrate initially on the proven reserves area around Heron-1, expanding in phases to target the estimated 194 million barrels of total oil in place resource potential.  Now the company can resume discussions with potential farm-in partners and review its funding options to decide which will best facilitate achieving the goal of generating revenue from production as soon as possible.

In the private blog this evening, CHAR OIGLF ADV LBE IOG DELT AEX AEXFF 88E EEENF PRD TRP TRWRF PVR PVDRF LOGP PPC PPCGF BOIL and EME (but please note that commentary on all of these is not necessarily positive).  More on that at: https://www.oilnewslondon.com/oilman-jim 

Contact me on Twitter @Oilman_Jim 

Click “Subscribe” to receive these blog posts by email

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 I3E ITE 88E EEENF ZPHR VNHLF AEX AEXFF SCIR ADV PPC PPCGF CHAR OIGLF LBE DELT IOG PRD TRP RTWRF PVR PVDRF LOGP BOIL

Another exciting week for Hurricane Energy (AIM HUR OTC HRCXF).  On Monday, the High Court refused to sanction the restructuring plan (the key court documents, which contain some fascinating information, are in the private blog) and the defeated Hurricane board continued to witter on about liquidation and risk of no value being returned to shareholders, further threatening that if the non-executive directors were removed at the meeting on 5 July, it was likely the NOMAD would resign with immediate effect and trading in the shares would be suspended.  By Wednesday, though, the HUR directors had started to accept the new reality and consented to board changes with immediate effect.  The share price had a strong week, more than doubling to 3.52p.  The restructuring plan valued the shares at less than 0.1p.

i3 Energy’s (AIM I3E TSX ITE) board had better luck last week in the High Court, which approved the cancellation of the company’s share premium account, allowing payment of a dividend to shareholders.  The expected ex-dividend date will be during the week commencing 12 July.  Meanwhile, i3’s operational update, also announced last week, disclosed current production averaging 9,353 barrels of oil equivalent per day, with further production expected soon from the Clearwater drilling programme and the Wapiti acquisition.

88 Energy (AIM & ASX 88E OTC EEENF) announced completion of the sale transaction for its Alaskan oil & gas tax credits.  $16.1 million of the $18.7 million sale proceeds are being applied to full repayment of outstanding debt, leaving 88 Energy debt free with cash holdings of $11.1 million.  With more and more UK listed companies obtaining US trading symbols, it’s becoming important now to follow the US market, which was primarily responsible for 88E’s strong upwards share price move last week.  The OTC has become the main driver for the share prices of many of these companies and I’ve been including the US symbols in the blogs and posts for some time now.  Much more about what is and has been going on at 88 Energy in the private blog.

Zephyr Energy (AIM ZPHR OTC VNHLF) announce the signing of a drilling contract with Cyclone Drilling for the State 16-2LN-CC appraisal well.  Cyclone is the same company which drilled the State 16-2 stratigraphic test well earlier this year.  Data for the latter well has been assessed and integrated and Zephyr is now postulating the potential for up to 200 well locations and a risked contingent resource potential, net to ZPHR, of up to an additional 125 million barrels of oil equivalent.  Zephyr appears to have over egged the pudding with this claim and the share price ended down on the week.

Aminex (LSE AEX OTC AEXFF) announced 2020 final results and a Ruvuma operations update.  Loss for the year was $6.14 million, however, the board has instituted cost cutting measures with the aim that by 2022, gross G&A expenditure will be reduced to less than £1 million per annum.  Drilling of the Chikumbi-1 well, in which AEX has a 25% carried interest, now has been delayed until the third quarter of 2022, but funding has been agreed with ARA Petroleum for $1.7 million to assist with working capital requirements in the meantime.  More on Aminex in the private blog.

Scirocco Energy (AIM SCIR) also holds a 25% interest in Ruvuma and issued an operational update too.  Scirocco’s interest is not carried, so it’s looking at potentially a very substantial investment unless it can negotiate a farm-out.  Ruvuma also no longer really fits with SCIR’s stated new strategy of focussing on the European energy market.   Per its recent final results statement, Scirocco “continued with the formal process to explore value realisation for its assets in Tanzania with encouraging level of interest.”  It will be interesting to see what happens.

Advance Energy (AIM ADV) announced a Buffalo-10 drilling update.  A jack-up rig has been selected and the formal contract is being finalised.  On the current schedule, drilling of the well is expected to commence in late October and the results can be expected to be available in late November / early December.  This project is a big one with the potential to deliver a gross production rate of around 40,000 barrels per day (20,000 barrels per day net to ADV) by the end of 2023.  Further on Advance in the private blog.

Finally, President Energy (AIM PPC OTC PPCGF) announced a corporate update in relation to Atome, its newly-established hydrogen and ammonia production subsidiary, which has entered into a co-operation agreement with the innovation arm of a government-owned green electricity generator, located in what President describes as “a democratic and economically open country in the Americas.”  PPC aims to list Atome’s shares on the London Stock Exchange later this year and has appointed Strand Hanson as financial advisor.

In the private blog this evening, ADV CHAR OIGLF LBE DELT IOG PRD 88E EEENF AEX AEXFF TRP RTWRF PVR PVDRF LOGP PPC PPCGF BOIL and HUR HRCXF (but please note that commentary on all of these is not necessarily positive).  More on that at: https://www.oilnewslondon.com/oilman-jim 

Contact me on Twitter @Oilman_Jim 

Click “Subscribe” to receive these blog posts by email

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 – CHAR OIGLF HE1 HLGOF PRD ZPHR VNHLF 88E EEENF MATD PRTDF BOIL PVR PVDRF HUR HRCXF LBE ADV IOG DELT AEX AEXFF TRP RTWRF LOGP PPC PPCGF CRS

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 

Contact me on Twitter @Oilman_Jim 

Click “SUBSCRIBE” to receive these blog posts by email 

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 SCIR AEX AEXFF HE1 HLOGF MSMN UKOG UKLLF BLOE CHAR OIGLF ZPHR VNHLF 88E EEENF ECO EOG.V ECAOF TLW TUWLF HUR HRCXF CRS I3E ITE.V ADV IOG DELT LBE TRP RTWRF PVR PVDRF LOGP PPC PPCGF

The (highly profitable) wait is over for shareholders in Predator Oil & Gas (LSE PRD), which announced last Wednesday that the Star Valley Rig 101 is now under contract and is being mobilised to Guercif to drill the MOU-1 well.  Predator will issue a further update when drilling operations commence in the next day or two and, thereafter, drilling is estimated to take 14-20 days.  More on PRD in the private blog, where I’ve been covering it every week since December 2019 from as low as 1.3p.  It closed at 15.75p on Friday.

Meanwhile, embracement of the energy transition continues apace.  Scirocco Energy (AIM SCIR), owner of a 25% working interest in the Tanzanian Ruvuma gas project alongside Aminex (LSE AEX OTC AEXFF) which owns a 25% carried interest in that venture, announced its proposed investment into Energy Acquisitions Group, the first investment as part of Scirocco‘s revised strategy that targets opportunities within the energy transition in Europe.  Energy Acquisitions will use the funds to acquire 100% of Greenan Generation and its 0.5 MWe anaerobic digestion plant in Northern Ireland.  The plant creates biogas, a renewable energy source, and this is the direction in which SCIR now aims to go, targeting investment in a pipeline of such plants in the UK totalling around £30 million in value.

Scirocco also owns a small interest in Helium One (AIM HE1 OTC HLOGF), which aanounced the commencement of an exploration drilling programme at its 100% owned Rukwa project in Tanzania.  Tai, a “must drill” three-way dip closure, is first and will be followed with two further exploration wells.  These types of projects are now much more appealing to the market than conventional oil and gas, as demonstrated by HE1’s £112 million market capitalisation, and we now see companies such as even Mosman Oil & Gas (AIM MSMN) trying to profile themselves as being in this business.

Other questionable companies are jumping on the energy transition bandwagon too, as we saw recently with UK Oil & Gas (AIM UKOG OTC UKLLF) claiming to be “actively scoping” two new geothermal projects in the UK, together with a hybrid geothermal, solar and battery storage project at Horse Hill.  UKOG was joined last week by Block Energy (AIM BLOE) which announced it had engaged engineers to “assess and potentially develop” geothermal, carbon capture, and hydrogen applications across their fields in Georgia.  The actual commerciality of any of this is not discussed.

Chariot Oil & Gas (AIM CHAR OTC OIGLF), which now identifies as a “transitional energy company,” announced a change of name from Chariot Oil & Gas to simply Chariot.   Of greater consequence, CHAR also announced that in addition to gross proceeds of $16.5 million (£11.7 million) raised through a placing of and subscription for new ordinary shares at 5.5p, its open offer has conditionally raised total gross proceeds of approximately $2.3 million (£1.6 million).  More on CHAR OIGLF in the private blog.

Zephyr Energy (AIM ZPHR OTC VNHLF) announced updated Paradox project financials.  Unfortunately, it slightly tarnished the credibility of these by “using a flat oil price of US$70 per barrel of oil equivalent” which values any gas component at more than 3.5 times its price.  Zephyr is another one that is “greening” itself and announced the previous week that it “pledged to achieve 100% carbon-neutral operations by 30 September 2021,” to be achieved primarily by buying verified emission reductions.

ZPHR, like many other AIM companies, has recently applied to join the OTC QB, although in its case it already has a US trading symbol, VNHLF, and already trades on the OTC as a Pink.  The QB upgrade costs $14,000 a year, plus a $5,000 application fee, but it’s difficult to see the actual need to “up-list” when companies such as 88 Energy (AIM & ASX 88E OTC EEENF) have been able to achieve a $1 billion daily volume on the OTC just as a Pink.  It’s exactly the same trading system with exactly the same market makers regardless of designation and market success there really comes down to whether or not the companies know how to crack the promotional side.  More on 88E EEENF in the private blog, where it’s been covered from the 0.40s and subsequently reached a high of 4.7p in March this year.

Eco (Atlantic) Oil & Gas (AIM ECO TSX EOG.V OTC ECAOF) announced a Guyana operational update.  Eco says it is “ready and prepared to drill a well in 2022, subject to approval by the JV.”  The question, of course, is Tullow Oil (LSE TLW OTC TUWLF)?  An even more interesting question is what will happen tomorrow, when Hurricane Energy (AIM HUR OTC HRCXF) returns to ask the court to approve the restructuring and “cram down” the shareholders?  Can the shareholder group, led by Crystal Amber Fund (AIM CRS), defeat or delay the Hurricane board with an alternative plan?  The share price is now 1.2p and as regular readers know I’ve been warning about HUR all the way from the low 30s down.

Finally, i3 Energy (AIM I3E TSX ITE.V) announced 2020 year-end reserves for its Canadian subsidiary.  Before-tax net present value of cash flows attributable to the proved reserves, discounted at 10%, is $97 million, more or less the same as the market capitalisation.  The number for the proved and probable is $183 million.  In addition to developing existing assets, i3E also is starting to make further production acquisitions and states an intention to become a dividend payer.  This one is starting to gather quite a large following, particularly in Canada, but the key question here is that following the North Sea debacle, can the management really be trusted?  More on I3E in the private blog.

In the private blog this evening, CHAR OIGLF 88E EEENF ADV IOG DELT LBE PRD AEX AEXFF TRP RTWRF PVR PVDRF LOGP PPC PPCGF HUR HRCXF CRS and I3E ITE.V (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.

Weekly oil news round up by Oilman Jim – HUR HRCXF CRS PPC PPCGF PRD LBE IOG 88E EEENF TRP RTWRF

It was an exciting week for Hurricane Energy (AIM HUR OTC HRCXF) stakeholders, culminating in the announcement that 92.34% of the votes cast at the shareholder meeting were against the resolution to approve the restructuring plan.  Next up is the court hearing on 21 June, however, the extraordinary general meeting to change the board (resolutions for which are highly likely to be successful) is not until 5 July.  Meanwhile, the current board is sticking with its plan regardless of the shareholder vote and will ask the court to approve the restructuring and “cram down” the shareholders, forcing the plan upon them despite their vote against.  It all now depends whether the shareholder group, led by Crystal Amber Fund (AIM CRS), can convince the court with an alternative plan.  More on HUR in the private blog.

President Energy (AIM PPC OTC PPCGF) announced the farm out of a 50% interest in their Pirity Concession, Paraguay, to “a substantial Northern Hemisphere state-owned energy company.”  In return, the farminee will pay 60% of the costs of an exploration well currently scheduled to commence during H1 2022 and will also pay President $4m in consideration of the company agreeing to enter into its performance obligations under the agreement, which is subject to regulatory approval and prolongation of the licence.  The exploration well will target the Delray complex of prospects, estimated by PPC to contain over 260 million barrels of oil (Pmean unrisked resources).  Costs of the well are estimated at between $10-15 million with an estimated chance of success of 30%.  More on PPC in the private blog.

Predator Oil & Gas (LSE PRD) updated regarding the drilling of the MOU-1 well.  Site construction and civil works have been completed and a further update on the mobilisation of the Star Valley Rig 101 to Guercif is expected this coming week.  Meanwhile, 11,784,845 new shares are being issued to Paul Griffiths to put him back into the position that existed had he not made the transfer of 11,784,845 of his shares in order to settle a recent placing, the company not having had the necessary headroom at the time.  These kinds of restrictions are the reason why Predator wants to move from the Official List to AIM, a retrograde step in the opinion of many shareholders.  More on PRD in the private blog.

Longboat Energy (AIM LBE) had a busy week.  The company announced a £35 million fundraising in a price range of 75p to 80p and ended up closing the funding at the bottom of the range.  The main thing of course is that it raised the money.  Longboat has now farmed in with three separate counterparties to a package of nine upcoming exploration wells with geological chances of success ranging from 15% to 55%.  The first four drills are expected in the third quarter of this year.  More on LBE in the private blog.

A major step forward last week for IOG (AIM IOG), which announced that the Blythe and Southwark gas platforms have successfully been installed at their offshore field locations, in line with the project schedule.  It’s another important milestone for IOG’s Phase 1 development and the facilities form a critical link between the co-owned and operated offshore pipeline network and IOG’s onshore Thames Reception Facilities at Bacton Terminal.  More on IOG in the private blog.

88 Energy (AIM & ASX 88E OTC EEENF) announced the acquisition of a 50% working interest from its partner in Project Peregrine, as a result of which 88 Energy now holds a 100% working interest in the project.  The consideration comprises $14 million of new 88E shares, to be issued in several tranches; a 1.5% overriding royalty interest on future production from the Project Peregrine licences; a $10m cash payment on the achievement of gross 2P reserves of 100 million barrels within 36 months; cash payments of $2.5m per 50 million barrels on the achievement of gross 2P reserves added over 100 million barrels within 36 months (capped at 5 additional cash payments); and 10% of the gross sale proceeds in respect of an assignment of greater than 49% of Project Peregrine within 24 months, excluding a bona fide farm-out.

The stated reasons why 88 Energy’s partner, Alaska Peregrine Development Company LLC, did not want to continue are that it allows 88E to pursue a continuation of the exploration program at Project Peregrine next winter, whereas APDC had indicated that it was contemplating a pause in activity to further understand the results from Merlin-1; APDC is unlikely to be able to satisfy anticipated funding requirements for operations in future seasons and do not want to hold 88 Energy back from future development of the acreage; and APDC do not have the technical acumen nor operational expertise to add value in a remote Alaskan context.  Essentially, they wanted out.  More on 88E in the private blog.

Tower Resources (AIM TRP OTC RTWRF) announced its preliminary results to 31 December 2020.  A loss of $1,360,736 was recorded for the year, but the company is confident that if the environment remains as it is currently, a combination of good planning and wider vaccination will allow it to proceed with the NJOM-3 well in 2021.  Market focus is on the Thali PSC, offshore Cameroon, however, Tower also has a prospective license in South Africa, plus a potentially interesting license in Namibia too.  More on TRP in the private blog.

In the private blog this evening, ADV IOG DELT LBE PRD LOGP CHAR (OIGLF) 88E (EEENF) AEX (AEXFF) TRP (RTWRF) PVR (PVDRF) PPC (PPCGF) and HUR (HRCXF) (but please note that commentary on all of these is not necessarily positive).  More 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 – HUR HRCXF LBE JOG JYOGF PRD IGAS IGESF PTAL TALV PTALF SAVE SVNNF PET CHAR OIGLF ADV IOG DELT 88E EEENF AEX AEXFF TRP RTWRF PVR PVDRF

The board of Hurricane Energy (AIM HUR OTC HRCXF) continues to taunt shareholders with warnings of their company’s imminent demise.  Latest was the announcement on Friday that the directors have resolved not to exercise the company’s option to extend the bareboat charter of the Aoka Mizu FPSO for a period of three years from June 2022 to June 2025.  The charter thus will expire in June 2022 and, should Hurricane be unable to agree an alternative extension for a shorter period, it may need to pursue a controlled wind-down of its business and cease operations at the Lancaster field upon the expiry of the charter in 2022, at which point the field would be decommissioned.  The share price is now 1.177p and as regular readers know I’ve been warning about HUR all the way from the low 30s down.

Longboat Energy (AIM LBE) at last announced its RTO – with three separate counterparties.  It’s acquiring a significant, near-term, low-risk exploration drilling programme on the Norwegian Continental Shelf, which is structured as three farm-in transactions.  This is being funded by a proposed £35 million equity financing, the net proceeds from which will be used to finance the consideration for the farm-ins and costs associated with the drilling programme.  Key will be the pricing of the placing.  More on LBE in the private blog.

Continuing offshore, Jersey Oil & Gas (AIM JOG OTC JYOGF) announced a Greater Buchan Area Development Project operational update.  The Concept Select Report has now been issued to the UK Oil and Gas Authority and the preferred development concept is for a fully electrified “Net-Zero” solution, estimated to emit carbon at a rate of less than 1kg of CO₂ per barrel of oil equivalent produced, which Jersey says is significantly below the North Sea average of approximately 22kg of CO₂/barrel of oil equivalent.  The most important point in terms of anything ever actually happening with the project is JOG’s confirmation that a farm-out process is now underway with broad interest and participation from multiple parties.

Predator Oil & Gas (LSE PRD) announced operational highlights for the MOU-1 drill and a placing to raise £1.5 million at 15p.  Proceeds raised are being assigned to evaluating and potentially acquiring rights to new business opportunities that the company has recently identified.  Meanwhile, the estimated spud date for the MOU-1 well is between 15 and 27 June 2021 and drilling is estimated to take 14 to 20 days.  More on PRD in the private blog, where I’ve been covering it every week since December 2019 from as low as 1.3p.  It got as high as 22.5p on Friday.

IGas Energy (AIM IGAS OTC IGESF) announced the grant of planning consent for its Stoke-on-Trent geothermal project.  It’s an interesting project that is expected to supply zero carbon heat to the city for many years to come.  A new industry report, on the economic and environmental importance of the UK deep geothermal resource by the ARUP Group and REA, estimates that, with immediate government support, the UK could deliver 360 geothermal projects by 2050.  IGAS could perhaps start carving a niche for itself here.

PetroTal (AIM PTAL TSX TAL.V OTC PTALF) announced 2021 first quarter financial and operating results.  Net income for the quarter was $30.9 million against a net loss of $31.4 million in the first quarter of 2020.  PetroTal now estimates it is operating materially above the original $90 million EBITDA budget for 2021 which assumed $50 / barrel Brent.  Excluding hedging and true-up revenue, it is estimated that for every $1 a barrel above $50 / barrel Brent, EBITDA increases by $2 to $2.5 million, making PTAL potentially free cash flow positive for 2021.  I mentioned PetroTal positively last November at 7.6p, after having been rather negative from the low 30s down.  It’s now 15p.

Savannah Energy (AIM SAVE OTC SVNNF) announced a proposed acquisition, reverse takeover and suspension of trading.  Savannah is in what it says are advanced exclusive discussions with ExxonMobil with respect to the proposed acquisition of its entire upstream and midstream asset portfolio in Chad and Cameroon.  The proposed acquisition would include a 40% operated interest in the Doba Oil Project, and an effective c. 40% interest in the Chad-Cameroon oil transportation pipeline (for information, in 2020 the Doba Oil Project produced an average gross 33,700 barrels of oil per day and the Chad-Cameroon pipeline transported a gross 129,200 barrels of oil per day).  The transaction would be classified as a reverse takeover, thus trading has been suspended, although there is no assurance that agreement between the parties actually will be reached.

Finally, Petrel Resources (AIM PET) announced preliminary results for the year ended 31 December 2020.  It’s the usual tale of woe from chairman, John Teeling, who now says the company’s focus in the immediate future will be Iraq.  Possibly of more potential benefit to shareholders is the statement that at the same time the company will open discussions with groups in other jurisdictions who might see Petrel as a way to monetise their oil and gas assets.  I highlighted PET as a favourite several times in 2019 around 1p and it subsequently went as high as 26.5p on such “discussions.”  It’s currently 2.6p, still up over 150%. 

In the private blog this evening, CHAR OIGLF ADV IOG DELT LBE 88E EEENF PRD AEX AEXFF TRP RTWRF PVR PVDRF (LOGP) HUR HRCXF and SAVE SVNNF (but please note that commentary on all of these is not necessarily positive).  More on that at: https://www.oilnewslondon.com/oilman-jim 

Now, for United States readers and those in the UK and elsewhere who are interested in something different, I’ve just published the US Special Trading Course version.

The OTC Market, a US equivalent of AIM, differs from the UK in a significant number of respects, but some of these differences offer very significant advantages to the investor:

• Unlike the UK, not all stock is tradable, in fact often just a small part of the total issued share capital can be bought and sold.  Directors’ and control parties’ (affiliates’) stock is restricted and holding periods (6 months to 24 months for newly issued shares) mean that, unlike in London, they can’t just do a placing and sell the stock straight into the market.

• Strict disclosure requirements ensure much more information is out in the open, allowing for a far better assessment of the underlying realities of the companies.

• Stronger regulation on the OTC now prevents most of the AIM type abuses which so disadvantage private investors.  As just one example, promotional compensation needs to be disclosed (something which is strictly enforced), so you actually know what is independent commentary and what is paid for fluff.  Names of all those undertaking promotional activity for the company now also have to be disclosed, removing many of the bad actors from the arena, the likes of which we see all the time in the UK touting worthless AIM companies for payment on their podcasts and in social media.

• Crucially, without distributions and underwriters quietly active (something else we see all the time in London) stock prices move much further and faster.

The course is in 8 parts and you can check out the first part for just $1.  Thereafter, it’s $19.50 a part each week for the next 7 parts.  You can cancel at any time. 

There is also a Bonus section sent to you free of charge at the end of the course explaining all the oil and gas public company deal types, with particular reference to which are the best ones.  For those interested in this sector, it could prove rather valuable.  

Total cost equivalent in Sterling for the course is approximately £97.  More information here: https://www.oilnewslondon.com/course

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 – 88E EEENF CHAR OIGLF PRD SDX SDXEF PQE PQE.V PQEFF HUR HRCXF CRS ADV IOG DELT LBE AEX AEXFF TRP RTWRF PVR PVDRF LOGP

88 Energy (AIM & ASX 88E OTC EEENF) announced another operational update.  There are three highlights: encouraging evidence of oil in down hole samples is being investigated in the laboratory; additional fluorescence has been recorded at previously unidentified depths; and final payment of vendors in stock is being made.  Costs associated with the Merlin-1 well have now been largely finalised and 88 Energy‘s net share of well costs is estimated to be around the $9 million mark.

Helping preserve the cash balance, though, discussions with vendors of services provided to 88E during Merlin-1 operations have resulted in further willingness to accept partial payment for their invoices in 88E stock in lieu of cash and the company will now issue 345,000,000 new ordinary shares at a price of A$0.025 per share (total A$8,625,000) in order to finalise these payments.  88 Energy says this will leave it in a strong financial position ahead of next winter’s exploration program.  The second well, Harrier-1, is planned to be drilled early 2022 and is targeting gross mean prospective oil resources of 417 million barrels.  More on 88E EEENF in the private blog.

A further meaningful drill now upcoming is the Anchois Gas Development appraisal well, offshore Morocco, in respect of which 75% owner and operator, Chariot Oil & Gas (AIM CHAR OTC OIGLF) last week announced a placing, subscription and open offer to raise up to $23 million (£16.3 million) at 5.5p per share.  Chariot anticipates that drilling will commence in Q4 2021.  More on CHAR OIGLF in the private blog.

Another Morocco drill is coming up soon from Predator Oil & Gas (LSE PRD), which also announced an operational update last week.  It has now awarded the contract for the construction of the MOU-1 well pad platform and the improvement and extension of up to 5 kilometres of access roads.  Civil works are to start immediately to facilitate the commencement of drilling activities, which are expected to start during June, subject to the timing of the completion of the current SDX Energy (AIM SDX OTC SDXEF) drilling programme in the Rharb Basin.  More on PRD in the private blog.

Hurricane Energy (AIM HUR OTC HRCXF) announced its full year results for 2020.  It recorded a loss for the year of $625.3 million.  In respect of its proposed financial restructuring, the High Court in London has now given directions for the convening and conduct of a virtual meeting of the shareholders, which will be held via video conference on 11 June 2021.  The restructuring plan will require the support of 75% by value of the shareholders voting at the meeting.  

With Crystal Amber Fund (AIM CRS), who oppose the restructuring, already holding 14.7% of the equity, further votes from other shareholders representing only 10.3% are required to defeat the board.  The directors’ big problem is that if all the shareholders are going to get should the resolution go through is equity valued by the company and bondholders at less than 0.1p per share, why should the shareholders not just decide to roll the dice and take a gamble on the threat of liquidation, which many now just regard as a bluff?  More on HUR HRCXF in the private blog.

Finally, spoof of the week has to be the €96 million offer for 200 million shares of Petroteq Energy (TSX.V PQE OTC PQEFF) from Uppgård Konsult AB, a Swedish company with total assets per their last filed accounts of less than €175,000.  It is said by some that Uppgård is making the offer on behalf of an unidentified third party, but what genuine €96 million offeror would chose to retain as their intermediary what appears to be a dormant company with an address on an industrial estate in the middle of nowhere.

Uppgård says the offer is only open to German investors, which is convenient since none of them are likely to have the minimum 1,000,000 shares (€480,000 worth) necessary to accept the offer.  Plus, with the offer only being made in Germany, it’s also quite curious that it’s only published in English.  It is of course meant to attract the eye of gullible investors in the USA, UK and Canada, who pushed the Petroteq share price up over 200% following its release.

In the private blog this evening, ADV IOG DELT PRD LBE 88E EEENF CHAR OIGLF AEX AEXFF TRP RTWRF PVR PVDRF LOGP and HUR HRCXF (but please note that commentary on all of these is not necessarily positive).  More on that at https://www.oilnewslondon.com/oilman-jim 

Contact me on Twitter @Oilman_Jim 

Click “SUBSCRIBE” to receive these blog posts by email 

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 – CRS HUR HRCXF I3E PANR PTHRF 88E EEENF RKH RCKHF NVPT.L PMO PMOIF HBR HBRIY TRP RTWRF ADME P4JC ADV IOG DELT PRD LBE AEX AEXFF TRP RTWRF PVR PVDRF LOGP

None too impressed with a debt for equity swap which values their shares at less than 0.1p, 14.7% shareholder Crystal Amber Fund (London CRS) has filed a requisition notice to remove the Hurricane Energy (London HUR US OTC HRCXF) non-executive directors and appoint their own nominees.  It’s good news for equity holders and the share price more than doubled last week.  

Crystal Amber says there may well have been a failure by HUR’s board to act in accordance with section 172 (1) of the Companies Act 2006, which states that a director must act in a way most likely to promote the success of a company.  However, their most damning statement, worth repeating in full, is that “on 14 January 2021, Hannam & Partners published research paid for by Hurricane.  It estimated a “risked net asset value” of 10p a share, valuing the equity at £199 million.  This assumed an average price for Brent crude oil of $60 a barrel, compared to a current price of approximately $69 a barrel, an increase of 15 per cent.  It also predicted that bondholders would be repaid in full.  On 10 May 2021, an operational update was provided which stated that its Lancaster P6 well was producing 11,600 barrels per day.  In circumstances where it is now said by the Hurricane board that Hurricane has little or no chance of repaying the bonds, there may well have been a failure by the Hurricane board to update market participants with information already shared with Hurricane‘s bondholders.”

It’s behaviour we’ve seen before at companies such as i3 Energy (London I3E) and one should always remember that the types on these boards tend to put their own and their associates’ interests first.  As regular blog readers know well, fiduciary duty to shareholders isn’t a main priority of most London public company directors.

Pantheon Resources (London PANR US OTC PTHRF) announced a resource upgrade on its Basin Floor Fan Complex, which spans both the Theta West project and the Talitha Unit. Pantheon estimates 12.1 billion barrels of oil in place and 1.41 billion barrels of oil recoverable in the Basin Floor Fan Complex.  Given discoveries at Talitha #A and previously at Pipeline State #1, PANR believes these estimates could be categorized as contingent resources.  Another Alaska explorer touting huge resource numbers, 88 Energy (London & ASX 88E US OTC EEENF), announced a new presentation available at https://clients3.weblink.com.au/pdf/88E/02376906.pdf  It’s actually well worth reading.  More on 88E EEENF in the private blog.

Rockhopper Exploration (London RKH US OTC RCKHF) announced final results for the year ended 31 December 2020.  There’s a $222.6 million one-off non-cash impairment, based on a decision in line with the Sea Lion operator, to write off the historic exploration costs associated with the resources which will not be developed as part of the Sea Lion Phase 1 project.  On the brighter side, Rockhopper are targeting completion of the Navitas farm-in, plus the outcome of the Ombrina Mare arbitration, in which they’re seeking significant monetary damages, is expected in July 2021.  Year end cash was $11.7 million.

However, the warning is there for those who read further and there are a number of downside scenarios stated in the announcement, including the farm-out to Navitas Petroleum (Tel Aviv NVPT.L) not proceeding and the heads of terms lapsing, the Sea Lion project not achieving sanction (which could be due to a number of factors including funding not being achieved), or Premier Oil (London PMO US OTC PMOIF), now Harbour Energy (London HBR US OTC HBRIY), deciding to withdraw from the Sea Lion Development, which could ultimately result in relinquishment of the acreage.  In these scenarios the Sea Lion project would need to be wound down, including the decommissioning of assets in the Falklands, and Rockhopper would be liable for its share of these project wind down costs with no funding support from Premier and/or Navitas.  RKH has sufficient financial headroom to meet forecast cash requirements for 12 months, but there is a material uncertainty which may cast significant doubt on Rockhopper‘s ability to continue as a going concern.  

Better news from Tower Resources (London TRP US OTC RTWRF), which announced a Cameroon update.  Tower has now received formal confirmation from the Minister of Mines, Industry and Technological Development of an extension of the First Exploration Period to 11 May 2022, allowing TRP to proceed with finalising a schedule for drilling and testing the NJOM-3 well.  More on Tower Resources in the private blog.

Finishing on the comedy side, ADM Energy (London ADME Frankfurt P4JC) revealed its second fake sheik.  It turns out that “His Excellency” Mr Zubair Al Zubair is not quite as described and the title “relates to social and cultural adoption rather than it having been awarded in connection with a senior governmental, or such other, position.”  Perhaps it’s now time for some changes here.

In the private blog this evening, ADV IOG DELT PRD LBE 88E EEENF AEX AEXFF TRP RTWRF PVR PVDRF LOGP and HUR HRCXF (but please note that commentary on all of these is not necessarily positive).  Further on that at https://www.oilnewslondon.com/oilman-jim 

Contact me on Twitter @Oilman_Jim 

Click “SUBSCRIBE” to receive these blog posts by email 

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.