IOG (IOG) announced a further operational update. The Blythe H2 well control issue has been overcome without the requirement to sidetrack the well and drilling continues to an expected total depth of around13,000 feet. First gas from the H2 well is expected to commence by the end of next month and production is expected to build up to 30-40 million cubic feet of gas per day. Meanwhile, the Blythe H1 well is producing steadily at 17 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 share price is up 35% since I mentioned the company’s attractions last Sunday.
Tower Resources (TRP) announced a £2.3 million placing at 0.05p. Financing discussions in respect of the NJOM-3 well remain to be concluded and the potentially abusive share placement deed between TRP and Energy Exploration Capital is still extant, notwithstanding a short standstill. It’s hard to see any attraction here until after the drill finance is actually finalised.
PetroTal (PTAL) announced the commencement of its buyback plan and a dividend timetable. Approximately $3 million of shares per quarter will be purchased by the company’s brokers in the market and cash dividend payments of $0.015 per share per quarter are commencing in June. The latest operating results confirmed repayment of all corporate bonds and production in excess of 20,000 barrels of oil per day. At 46.5p, PTAL is now up over six times since I highlighted it at 7.6p.
Barryroe Offshore Energy (BEY) announced late after market close on Friday that the necessary lease undertaking is not being issued by the Irish Government due to the company’s lack of financial capacity. This was purportedly being remedied by a convertible loan note funding agreement of up to €40 million and a placing to raise up to €20 million, however, the company announced last month that progressing documentation was taking longer than anticipated. Barryroe, which as regular readers know is not a company about which I’ve been complimentary, now appears to be at the end of the road, along with 20% partner, Lansdowne Oil & Gas (LOGP), whose last placing was stated only to cover funding requirements until the end of this month.
Egdon Resources (EDR) announced a recommended all cash acquisition of the company by Petrichor (ultimately controlled by Dallas based HEYCO Energy Group) at a price of 4.5 pence for each Egdon share, a premium of 96% to the previous day’s closing price. It shows there is still demand for UK oil and gas assets, even onshore, and is positive for other small UK oil and gas companies, particular those most directly related to this transaction, Wressle partners Europa Oil & Gas (EOG) and Union Jack Oil (UJO). Within this group, Angus Energy (ANGS) also issued news, in its case of a production ramp up at Saltfleetby. The second compressor has been successfully commissioned and the three producing wells in the field have been flowing gas to the National Grid at an average daily rate of 9.5 million cubic feet.
Pantheon Resources (PANR) announced a $22 million placing at 17p. The share price is down from a 52 week high of 144p with large amounts of convertible debt still outstanding and the main remaining event is flow testing of the Shelf Margin Deltaic horizon from the Alkaid #2 well bore. With acreage unwanted by any of the Alaska operators, endless paid for reports and manic message board touts, it has the feel of a classic US penny stock fraud, yet despite all that, there may still be one last pump left in it.
Thank you for reading and I wish a happy weekend to all. Please note the Private Blog (containing much more) will be published this evening.