Sunday Blog, 2 July 2023
PRD PMG PTAL PTALF IOG PET CLON PANR PTHRF I3E ITE.TO 88E EEENF MATD BEY LOGP COPL BOIL PXEN TRIN ZPHR LBE JOG CHAR BCE MEN TRP ZPHR
It’s been an interesting couple of weeks since the last issue of the Sunday Blog.
Predator Oil & Gas (PRD) announced the completion of MOU-3 drilling and logging. The well has been drilled and completed for rigless testing and multiple zones of interest were encountered from 339 to 1,435 metres. PRD has been covered weekly in the private blog since the 5.5p placing to finance MOU-3 and the share price reached a high of 14p on Friday. MOU-4 drilling is due to start shortly, the cost of which has been covered by an effective £1.89 million placing at 10.5p. More on MOU-4 in the private blog this evening.
The Parkmead Group (PMG) announced a UK North Sea strategy update. The potential Perth oil development will not be pursued, principally due to recent fiscal changes which have led to a large increase in effective taxation, however, the company is planning to drill Skerryvore as soon as possible. Forecasted spud date is during Q4 2024, targeting an estimated 157 million barrels of oil equivalent from multiple horizons on the flank of a salt diapir.
PetroTal (PTAL PTALF) announced operational updates. The river blockade has been removed and oil coveys have resumed. Ramped up production has now averaged nearly 22,000 barrels of oil per day for the past seven days and the company anticipates being able to maintain production near this level, subject to barge availability, over the coming weeks. The new well, 15H, has produced at an average rate of 8,700 barrels of oil per day, ranking it near the top of the initial producers drilled to date. At 37.8p, PTAL is now up nearly five times since I highlighted it at 7.6p.
IOG (IOG) announced a successful Blythe H2 intervention. The well has now flowed at a maximum stabilised rate of around 42 million cubic feet of gas per day, above the original 30-40 million cubic feet of gas per day guidance. Production will now be managed up from 20 million cubic feet of gas per day towards the maximum rate to further dewater the pipeline. The two planned appraisal wells at Kelham North/Central and Goddard are now targeted to be drilled by 31 March 2024 per the licence terms and potential farm-in partners are being offered up to 50% of the Goddard licence.
Petrel Resources (PET) announced results for the year ended 31 December 2022. The future it says is in the emerging economies. It claims that Australian brokers and investors have profited through the liquidity of Petrel's sister company, Clontarf Energy (CLON), and are now pressing Petrel to open its books for greater Australian and Asian participation. The board says it may be worthwhile to accept funding, hopefully at much higher share prices, as it rolls out high-potential new projects. I highlighted PET several times in 2019 at around 1p and it went as high as 26.5p thereafter. Back at around 1p again, might it be ready for an encore?
Pantheon Resources (PANR PTHRF) announced its webinar and strategy update. There’s no farm-out and another $300 million is needed. It’s more or less a given now that the assets are worthless. As for Nasdaq ambitions, plenty of companies which list there turn out to be frauds, but I don’t recall any being listed which had already been called out as such by a number of market commentators. Recent trading activity has been brutal and cynical. The latest 17p placing appears to have been taken by those covering short sales from around 50p down, the counter parties to which were numerous gullible small investors duped into buying by message board shills. Bona fide investors paying 17p in the funding would have been furious at the immediately following partial bond conversion into shares at under 15p and the subsequent revelations at the webinar which sent the price down further to around 10p.
i3 Energy (I3E, ITE.TO) announced a revised 2023 capital and dividend programme. Expenditure is being increased and the dividend reduced. The high dividend (as it turns out now transitory) was of great appeal to shareholders and disappointment ensued, with the share price collapsing prior to and after the news. I3E is known as a leaky ship and the same allegations abound now as previously regarding early release of price sensitive information to larger shareholders close to the company.
In other news, 88 Energy (88E EEENF) issued Project Leonis and Hickory-1 flow testing program updates (funding this time won’t be as easy as previously), Petro Matad (MATD) announced final results for the year ended 31 December 2022 (the Velociraptor-1 exploration well currently drills ahead), Barryroe Offshore Energy (BEY) announced a wind down of the company through a creditors voluntary liquidation (see more on this in previous blogs), minority Barryroe partner Lansdowne Oil & Gas (LOGP) announced the initiation of an arbitration process against Ireland under the Energy Charter Treaty (the award could be substantial), Canadian Overseas Petroleum (COPL) announced the conversion of bonds and related share issuances (perhaps the reality of death spiral financing is now finally coming home to investors), Baron Oil (BOIL) issued its AGM statement (no success yet with the farm-outs), Prospex Energy (PXEN) announced approval to commence gas production at Selva (it will start early this month) and Trinity Exploration & Production (TRIN) announced a Jacobin drilling update (initial indications confirm that the well has encountered oil in the shallow secondary formations) plus a Galeota asset development update (it has appointed Petrofac to undertake a concept screening study).
Longboat Energy (LBE) announced a completion update for its joint venture with JAPEX (the Norwegian Ministry of Petroleum and Energy has given its approval), Jersey Oil & Gas (JOG) announced Greater Buchan Area farm-out completion (its attention now turns to securing an additional partner ahead of field development plan approval and retaining a fully carried 20-25% interest in the programme), Chariot (CHAR) announced final results (Anchois post-well analysis has delivered a material increase in resources totalling 1.4 trillion cubic feet of gas), Beacon Energy (BCE) announced commencement of drilling of the Schwarzbach-2 development well (many lost money here as stock was flipped on message board misrepresentations as to the nature of the drill), Molecular Energies (MEN) announced the proposed spin-out and IPO of Green House Capital (management is confident it will attract new energy focused investors and command a valuation not recognised by being part of the Molecular Group), Tower Resources (TRP) announced preliminary results to 31 December 2022 (discussions continue for asset level financing) and Zephyr Energy (ZPHR) announced final results (revenues of $41.1 million and a profit before tax of $22.6 million).
Thank you for reading and I wish a happy weekend to all. Please note the private blog containing more will be published this evening.