It’s been an interesting week for news and a very profitable week for Private Blog subscribers. Helium One Global (HE1) announced the purchase of an Epiroc Predator 220 drilling rig and its share price nearly doubled on the week. The rig is currently being mobilised to the Rukwa site and will be used to drill the Tai-C well in Q3 2023 with a target September spud date. Ownership will further enable HE1 to move quickly into an appraisal phase upon success at Tai-C, and allow accelerated exploration on the Rukwa, Eyasi and Balangida projects. Civils work on the Tai-C well pad and access roads is already underway, a contract has been executed with Baker Hughes for their services in respect of wireline, cementing and fluids and GeoLog International has been contracted for mudlogging services.
Deltic Energy (DELT) announced a significant increase in the Pensacola resource estimate and also nearly doubled its share price. Following post well analysis, DELT now estimates the Pensacola structure to contain gross P50 initially in place volumes of gas and oil of 342 million barrels of oil equivalent and almost double the volume of recoverable gas and oil than originally thought, with Deltic now estimating total gross P50 estimated ultimate recovery of around 99 million barrels of oil equivalent, up from 50 million barrels of oil equivalent immediately after well completion. Significantly, DELT now estimates Pensacola contains material volumes of oil, representing around 30% of the combined recoverable hydrocarbons and says work is progressing with partners to develop the appraisal and development programme for Pensacola with an appraisal well being targeted for late 2024.
Predator Oil & Gas (PRD) announced completion of MOU-4 drilling and logging, plus an update. The well has been completed for rigless testing, the Moulouya Fan anomaly extends further to the southeast than previously mapped, potential for a sealed Jurassic carbonate target is substantiated by MOU-4 and 43 metres of likely gas sands have been interpreted by NuTech in the MOU-3 well. The update two days later reported 64 metres of likely gas sands interpreted by NuTech in MOU-4 and a likely gas reservoir at the top of the Jurassic carbonate target. The rigless testing programme will now include the Jurassic and there is said to be significant Jurassic gas potential if rigless testing is successful. Further announcements are imminent.
Aminex (AEX) issued a Ruvuma operations update. The JV partners have chosen a new optimal target location of the CH-1 well, full processing of the 3D seismic data is done and interpretation is due to be completed in Q4 2023, a workover of the NT-1 well is scheduled to run after the drilling of CH-1, the gas sales agreement has been agreed among the JV partners and the Tanzania Petroleum Development Corporation, the field development plan for the Ntorya area has been approved by all parties, the Tanzanian authorities have progressed with the construction of the export pipeline from Ntorya to the Madimba gas plant, APT has received the first shipment of long lead items required for the spudding of the CH-1 well, the two-week well-testing programme on the NT-2 well is expected to run in the coming months and first gas production is expected at the end of 2023. A further announcement on drilling rig arrangements and timings is awaited.
Molecular Energies (MEN) announced the sale of certain shares in Atome Energy (ATOM). Molecular has disposed of 800,000 ordinary shares in Atome at a price of £1 per share, which will generate a gain of £800,000 as the shares are held at nil cost in the accounts. As a result of the sale, Molecular now holds 8,272,045 ordinary shares in Atome representing 20.5% of the issued share capital. MEN’s market capitalisation is only slightly greater than the implied value of the ATOM shares and it has a major drill upcoming in Paraguay next month targeting over 260 million barrels.
Eco (Atlantic) Oil & Gas (ECO) announced the sale of a 6.25% working interest in Block 3B/4B, offshore South Africa, to Africa Oil for up to $10.5 million cash. On closing of the acquisition, the interests will be: Africa Oil 26.25%, Eco Atlantic 20% and Ricocure 53.75%. The JV partners continue to progress the collaborative farm-out for up to a 55% gross working interest with various potential parties and the application process for a permit to drill one well and one contingent well (and potentially up to five wells) in the north of Block 3B/4B remains underway. The restructure is said to strengthen the JV position amid ongoing negotiations with third parties to farm into the block and execute a drilling campaign.
Chariot (CHAR) announced a $15 million placing and subscription at 14p per share, plus a $3 million open offer. The proceeds of the fundraise will be used for near term onshore drilling and development planning on a new onshore Moroccan licence, expected to be awarded imminently, plus new ventures and working capital. The new licence is said to give Chariot near-term drilling opportunities with the potential to accelerate the timeframe to first gas and, as it continues to progress its partnership process for Anchois, the fundraise provides an improved financial position ahead of concluding negotiations.
Finally, Petro Matad (MATD) announced Velociraptor-1 well results. All the reservoirs encountered were water bearing, but the drill was always presented as having a low chance of success and the share price ended up on the week. Focus now shifts back to Block XX where the Heron development offers near term oil production and where low risk, near field exploration opportunities have already been identified which provide further upside potential.
Thank you for reading and I wish a happy weekend to all. The Private Blog will be published this evening.