A short blog today covering some interesting news releases over the past couple of weeks.
Predator Oil & Gas (PRD) announced another fundraising, effectively for around £1.5 million at 5.7p. The proceeds are to help fund further work in Morocco, where MOU-1 well testing now is hoped to be carried out at the beginning of next month along with the commencement of MOU-3 drilling. The company says it intends to be drill-ready to commence MOU-4 well operations at the earliest opportunity following a review of the MOU-1 and MOU-3 results. Exciting times coming up here.
IOG (IOG) announced a corporate and operational update. The Blythe H1 well is producing steadily at 17 million cubic feet of gas per day, Blythe H2 is targeted to be onstream by the end of next month and expected to build up to 30-40 million cubic feet of gas per day, advanced planning is being done for the Kelham North/Central appraisal well and a farm-out process has been launched for up to 50% of Goddard with a joint venture partner. The cash balance was £31.9 million at the end of April (£6.8m restricted) and the market capitalisation is £27.3 million. Intriguing.
Longboat Energy (LBE) announced a Norwegian joint venture with Japan Petroleum Exploration. JAPEX is making a cash investment of up to $50 million into and for 49.9% of Longboat’s Norwegian subsidiary, comprised of a cash investment on completion of $16 million, a contingent consideration of $4 million (payable on successful completion of a production acquisition currently under review) and a further tranche of up to $30 million (payable on a sliding scale following a successful discovery on the Velocette exploration well, which is due to spud in the third quarter). JAPEX will also provide the joint venture with a $100 million acquisition financing facility. The deal essentially values LBE’s remaining 50.1% interest in the Longboat JAPEX subsidiary at around £12 million today (more than the current market capitalisation) and up to £40 million in the event of success at Velocette.
Molecular Energies (MEN) announced a Paraguay drilling update. It is now anticipated that spudding of the Pirity exploration well will take place at or around the end of the first week in July. The well, in which MEN holds a 50% interest, will take 40 days from the date of spud to reach total depth, targeting the Delray complex of prospects which are estimated by the company to contain in aggregate over 260 million barrels of oil. Market capitalisation is £13 million.
Thank you for reading and I wish a happy weekend to all. Please note the Private Blog will be published this evening.