Sunday Blog, 13 March 2022
IOG LBE PRD EME 88E ECO
Main events last week among the more interesting small cap oil and gas companies:
IOG (IOG) announced a new gas sales agreement with BP Gas Marketing Limited, covering equity gas from all of the Saturn Banks Phase 1 fields (Blythe, Elgood, Southwark), plus the Nailsworth and Elland fields which are part of Phase 2. Resumption of Southwark drilling remains targeted for later this month and Phase 1 start-up processes are proceeding as planned. IOG has been covered in the private blog each week from as low as 9p. It’s now 43.5p, nearly five times that price.
Longboat Energy (LBE) announced the spud of the Kveikje exploration well. Kveikje is estimated to contain gross mean prospective resources of 36 mmboe with further potential upside estimated at 79 mmboe on a gross basis. Chance of success associated with the prospect is 55%. Secondary prospects, Rokke and n'Roll, have an additional 127 mmboe of gross mean prospective resources with chances of success in the range of 14%-34%. Drilling is expected to take up to four weeks.
Predator Oil & Gas (PRD) announced it has signed confidentiality agreements with companies to evaluate the exploration, appraisal and development opportunities in the area covered by the Guercif Petroleum Agreement and optimise the potential market for Guercif gas. The focus is to build the partnership necessary to finance development. PRD has been covered in the private blog from as low as 1.21p. It’s now 10.5p, having been high as 22.5p prior to the MOU-1 well spud last year.
Empyrean Energy (EME) announced a Block 29/11, China, Jade drilling update. COSL has at last completed the well site survey, enabling lodging of the final permit application required to drill. The company is now in further discussions to finalise drill rig availability and an anticipated spud date for the well. The Jade prospect has an audited mean in place potential of 225 mmbbl and a P10 in place upside of 395 mmbbl, with an independently assessed geological chance of success of 32%.
88 Energy (88E) announced that drilling of the Merlin-2 appraisal well has commenced. The initial surface hole is to be drilled to 2,000 feet, cased and system tested. Drilling is then set to deepen through the N18, N19 and N20 target horizons to the maximum planned total depth of around 8,000 feet. Flow testing will be contingent upon government approvals and weather considerations. 88E has been covered in the private blog since the share price was in the 0.40s. It’s now 2.45p.
Eco (Atlantic) Oil & Gas (ECO) announced completion of the Azinam acquisition. The company now owns and operates a number of prospective licences in three exploration regions: Guyana, Namibia and South Africa. Upcoming is the Gazania-1 well, offshore South Africa and following the signing of the rig contract earlier this month the company is anticipating drilling to commence late in the third quarter of this year. Finance is still required and a fairly large placing can be expected.
The private blog will be published this evening.