Starting with last week’s drilling news, Predator Oil & Gas (PRD) announced an interim drilling update for MOU-3. Significant shallow overpressured gas has been encountered, which the company says de-risks gas migration to six potential deeper targets. Predator is drilling ahead to evaluate the targets and says it will issue a further update after the completion of logging operations. PRD has been covered three times to date in the Private Blog as a company of interest: first, at around the 4p placing level to finance the MOU-1 well (the share price reached a high of 22.5p prior to the spud); second, at around the 5.5p placing level to finance the MOU-2 well (the share price reached a high of 12.3p prior to the spud); and, third, at around the 5.5p placing level to finance the MOU-3 well (the share price reached a high of 9.89p prior to the spud).
Petro Matad (MATD) announced the spud of Velociraptor-1. The well is expected to reach total depth of approximately 1,500 metres in around 30 days, following which the well will be logged and the results evaluated. In the event of encouraging results from the well, the rig contract allows for follow up with an appraisal well. Per the company, potential recoverable resources are 200 million barrels of oil. MATD has been covered in the Private Blog as a company of interest since its placing at 2.5p to finance the Velociraptor drill. The share price reached a high of 7.1p prior to the spud.
For those wondering, the Private Blog contains my personal trading guidance notes. I would also suggest reading the Core Information section to understand fully how the London small cap markets actually work.
IOG (IOG) announced Blyth H2 first gas. Of more significance, the company reported that it is expediting equipment to the rig to resolve the apparent downhole mechanical blockage, which if successful could increase H2 flow rates by around month end to the 30-40 million cubic feet of gas per day that it guided pre-well. Further good news for shareholders is that gas prices have been improving, although the company cautions that significant volatility and uncertainty persist.
I mentioned the upcoming danger of Pantheon Resources (PANR)’s convertible bond financing in the Sunday Blog on 5 February this year when the share price was 55p. The latest conversion took place last week at under 15p and there’s still another $34.3 million of bonds to convert at the rate of $2.45 million plus interest each quarter. The company is, however, now financed again as a result of a 17p placing and subscription, which raised approximately $22 million principally to fund the flow testing of the Shelf Margin Deltaic horizon from the Alkaid #2 wellbore and finance two separate independent expert reports from Netherland Sewell on the company's Theta West and Alkaid projects plus preparation of dynamic models and field development modelling by Schlumberger. All this undoubtedly will be grossly misrepresented by the characters touting the stock, but it’s likely that there may be a significant promotion coming up here.
On to other news, IGas Energy (IGAS) announced that its geothermal business, GT Energy, has been selected by Salisbury NHS Foundation Trust as preferred contractor through the Carbon and Energy Fund Framework to deliver a geothermal heat solution for the Salisbury District Hospital NHS Trust. The company also is changing its name to Star Energy Group. Longboat Energy (LBE) announced two new disclosable holdings. Ezra Machnikowski of Guernsey has notified a 3.3% stake and Alastair Bruce of Ferndown, Dorset has notified an increased 5.2% holding. LBE is awaiting completion of its joint venture with Japex and spud of the Velocette exploration well is due next quarter.
In closing, Beacon Energy (BCE) announced the arrival of the drilling rig for the planned Schwarzbach-2 development well within the Erfelden field, onshore Germany, Touchstone Exploration (TXP) announced that its Trinidadian subsidiary was awarded the Cipero onshore block, Challenger Energy (CEG) announced similar in respect of negotiations for the grant of an exploration and production licence for the Guayaguayare block, Tlou Energy (TLOU) announced that drilling of the Lesedi 6 vertical well and lateral well top-hole sections is complete and Tower Resources (TRP) announced a Namibia technical update.
Thank you for reading and I wish a happy weekend to all. Please note the Private Blog (containing more) will be published this evening.