Sunday Blog, 20 November 2022
PRD ECO EOG.V IOG 88E EEENF PANR PTHRF HUR PTAL PTALF BOIL MEN PMG
Catching up on the last two weeks, Predator Oil & Gas (PRD) announced well preparations for MOU-2. It is now estimated that the well will commence drilling within the first two weeks of December. Gas sales and CNG financing agreements will be triggered by release of test results and a corporate transaction to monetise shareholder value will be considered after MOU-2 and MOU-1 rigless testing. Now 10p, PRD has been covered weekly in the private blog since its placing to finance MOU-2 at 5.5p. The MOU-1 drill was previously covered weekly in the private blog from significantly below the 4p placing price at which drilling of that well was financed. The share price moved up to over 22p prior to the MOU-1 spud.
Eco (Atlantic) Oil & Gas (ECO) announced that the Gazania-1 well on Block 2B, offshore South Africa, reached target depth but did not show evidence of commercial hydrocarbons and will now be plugged and abandoned. The drill was funded via a placing at 30p and the shares subsequently could be bought for as little as 24p; the price reached a high of 46p prior to results. Eco was covered weekly in the private blog throughout. The company will now move on to executing plans for more exploration wells, including a two-well campaign on Block 3B/4B, offshore South Africa planned to begin in 2023, and at least one well into Cretaceous targets on the Orinduik Block, offshore Guyana.
IOG (IOG) announced a Phase 1 update. Recent operational challenges are being addressed and for the remainder of 2022, top priorities are resumption of Saturn Banks production after the Bacton shutdown and successful stimulation to deliver first gas at the Southwark A2 well, which is expected around year end. A1 first gas is expected by early in the second quarter next year. The increase in cash generation from both Southwark wells is expected to underpin further value adding activities the company is planning over the coming months. IOG was covered weekly in the private blog from around 18p prior to its development drilling programme and moved up to 46p thereafter.
88 Energy (88E) announced it was the highest bidder on 10 leases covering approximately 25,600 contiguous acres immediately south of Prudhoe Bay on the North Slope of Alaska. The acreage, referred to as Project Leonis, contains the historical exploration well Hemi Springs Unit #3 (drilled by ARCO in 1985) and is located adjacent to TAPS and the Dalton Highway, enhancing future potential development commercialisation. Initial internal interpretation of 3D seismic data indicates a prospect that appears to be bound by faults on three sides. The main event coming up in the near future is drilling of Hickory-1 in the first half of 2023. Expect a placing fairly soon to finance it. 88E has been covered in the private blog three times in the past three years recording gains, of up to 1,300%, each time.
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Pantheon Resources (PANR) also picked up some new Alaska acreage in the sale: 40,000 acres positioned in two areas contiguous or adjacent to its current leases. Professional shorts are out for this one and the share price has halved since August. They think it’s a fraud.
Hurricane Energy (HUR) updated regarding its formal sale process. The company says it has received multiple expressions of interest from credible counterparties. The existing offer is at an indicative price of 7.7p per share cash and the process has been launched to establish whether there is a bidder prepared to offer more.
PetroTal (PTAL) announced third quarter financial and operating results. The company generated free cash flow of $37 million equating to a 44% free cash flow margin and says it is on track to deliver average production growth of approximately 40% and almost $200 million in free cash flow in 2022.
Baron Oil (BOIL) announced that it has raised approximately £5.36 million via a placing, subscription and retail offer at 0.12p. The funds are stated to have been raised to maximise the chances of delivering funding partners for drilling campaigns at Chuditch and Dunrobin.
Molecular Energies (MEN) announced its third quarter Argentina financial results. Profit before tax was $16 million for the first nine months and Louisiana production is now back on line. Planning for the Paraguay exploration well is progressing with news as to the rig expected, at which time MEN will be able to project the spud date.
The Parkmead Group (PMG) announced a two well drilling campaign in the Netherlands. A successful outcome will result in new fast track production that adds significant additional revenue and cash flow. Results of the first well should be known around the end of this year, with the second being known early next.