Sunday Blog, 26 September 2021
IOG IGAS LBE DELT PET CHAR UJO ADV UKOG EDR EOG TRP LEK UOG PPC PXEN ANGS TLOU CASP JOG PGR TXP ENW RKH HBR PTR WCAT AEX SCIR 88E EEENF PRD PVR LOGP EME
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IOG (AIM: IOG) announced an £8.5 million placing at 25p to pursue what it says is a high-return incremental opportunity by funding its 50% net share of the cost of drilling a dual-lateral appraisal well at the Kelham North and Kelham Central prospects in licence P2442, estimated to contain gross mid-case resources of 36 and 42 billion cubic feet equivalent respectively. The wells have geological chances of success of 80% and 70% and, if successful, these assets would form the basis of a new southern hub. Meanwhile, the company has continued to make good progress on the development of its Phase 1 assets and remains on course to achieve Phase 1 first gas before year-end. More on IOG in the private blog, where it’s been covered each week from around 9p up.
IGas Energy (AIM: IGAS) followed its announcement from the previous week of an agreement with CeraPhi Energy (for the repurposing of oil and gas wells to access subsurface thermal heat to produce baseload clean energy) with the news of a MoU with SSE Heat Networks for the development of a geothermal district heating project in Stoke-on-Trent. Interim results too were announced last week (a loss of £12 million) and the company also has submitted planning applications to produce hydrogen from two existing sites in Surrey. If successful in developing these projects, IGas is on track to produce the UK's first blue hydrogen ahead of other, refinery scale projects. After spiking well over 100% on its geothermal announcements, IGAS is back at an interesting £20 million capitalisation.
Longboat Energy (AIM: LBE) announced the commencement of drilling operations on the Egyptian Vulture exploration well, in which it holds a 15% interest. The news follows the previous week’s announcement that drilling has commenced at Rødhette (20% interest). Mugnetind (20% interest) is expected to commence drilling by the end of September and drilling at Ginny / Hermine (9% interest) is expected to commence in December. The rig is confirmed for the Kveikje and Cambozola wells, to be drilled in 2022, and the Copernicus well site survey is to be acquired shortly. To quote Helge Hammer, CEO of Longboat:
“The exploration programme over the next 18 months offers shareholders a unique opportunity to gain exposure to a drilling portfolio of seven wells targeting net mean prospective resource potential of 104MMboe with an additional 220 MMboe of upside which provides the potential to create a Net Asset Value of over $1 billion based on precedent transactions in the Norwegian North Sea for development assets.”
The current market capitalisation of Longboat is £43 million. More on this one in the private blog.
Deltic Energy (AIM: DELT) announced that the company and its operating partner, Shell U.K., have completed the geophysical site survey over the planned Pensacola exploration well location on licence P2252. The Deltic-Shell JV is scheduled to drill Pensacola in Q2 2022. In the meantime, Cairn Energy has farmed-in to five of DELT’s licences, accelerating development. More in the private blog, where it’s been covered each week from 1.35p up.
Petrel Resources (AIM: PET) announced its interim statement. The loss was €162,000 and the statement was little more than waffle, but it’s one whose share price can explode upwards on any meaningful news. I highlighted PET several times in 2019 at around 1p and it subsequently hit 26.5p, up over 2,500%. Back at 1.7p, Petrel is still funded for ongoing activities. The focus is once again Iraq.
Chariot (AIM: CHAR) announced that it has signed a binding letter of intent with Halliburton for services on Chariot's planned Anchois gas appraisal well within the Lixus licence, offshore Morocco. The company remains on track for drilling operations to commence in December, targeting a total remaining recoverable resource in excess of 1 trillion cubic feet of gas. More on CHAR in the private blog, where it’s been covered each week from around 5p up.
Union Jack Oil (AIM: UJO) announced its placing. At 22p (just 0.11p pre 200:1 consolidation) it’s to finance the Biscathorpe side-track again. UJO’s placings (and there have been a lot of them) all follow a classic pattern with the same individuals involved every time: short, leak placing news, run price down, cover short with placing stock. It’s been going on for some time. Here’s what I wrote in 2019:
“…News of a placing was then leaked and it's now down below its last placing price of 0.17p, following the company's confirmation that a placing is underway…This is not the first time, or even the second time that information about a placing at Union Jack Oil has been leaked…”
No action has been taken by the company to stop these leaks, which makes it appear that management is complicit. Instead of flaming those who criticise, perhaps they should be explaining, for despite all the claimed success, all their investors are in loss.
Advance Energy (AIM: ADV) announced a Buffalo project update. The Buffalo-10 well is on schedule to spud in early November, with a mid case recoverable volume estimate of 34 million barrels (gross, 2C contingent) for the field, and the well is considered by RISC Advisory to have an 85% probability of confirming a sanctionable development project based on the minimum economic field size. More on ADV in the private blog, where it’s been covered each week from around 2p up.
In other news, UK Oil & Gas (AIM: UKOG) announced completion of the Horse Hill production facilities upgrade. Oil production has now been re-established. Egdon Resources (AIM: EDR) and Europa Oil & Gas (AIM: EOG) (along with UJO) announced instantaneous flow rates for Wressle-1. EDR also announced that the 3D seismic survey over the Resolution and Endeavour gas discoveries has been delayed. Tower Resources (AIM: TRP) announced a Cameroon farm-out update. Documentation of its farm-out to Beluga Energy has been submitted to the Minister. Lekoil (AIM: LEK) announced a civil claim. The dismissed CEO is suing them back.
United Oil & Gas (AIM: UOG) announced an update on the ASX-1X exploration well. It encountered a number of oil-bearing reservoirs and completion / testing is now planned. President Energy (AIM: PPC) announced a drilling and workover update. It has signed a drilling services contract for three firm wells to be drilled at the Puesto Guardian concession. Prospex Energy (AIM: PXEN) announced approval of the El Romeral well workover. It’s now scheduled for the week commencing 18 October. Angus Energy (AIM: ANGS) announced a re-evaluation of the Lidsey field. Preliminary work suggests that the structure be mapped afresh using new data.
Tlou Energy (AIM: TLOU) announced final results. A loss of $2,357,834. Caspian Sunrise (AIM: CASP) announced interim results. A profit of $2,351,000. Jersey Oil & Gas (AIM: JOG) announced interim results too. A loss of £1,921,741. Phoenix Global Resources (AIM: PGR) announced additional funding. Mercuria has agreed to increase the bridging facility by $7.5 million to $50.0 million. Touchstone Exploration (LSE: TXP) announced Royston-1 drilling results. The well encountered substantial hydrocarbon accumulations based on drilling and wireline log data. Enwell Energy (AIM: ENW) announced the spudding of the SV-31 well. Target depth is 5,250 metres.
Rockhopper Exploration (AIM: RKH) announced a Sea Lion update. Harbour Energy (LSE: HBR) has decided not to proceed with the Sea Lion project. Petroneft Resources (AIM: PTR) announced the export of crude oil. Sales commence 1 October. Wildcat Petroleum (LSE: WCAT) announced an update. Blockchain activities and the token offering will not take place before the company has acquires an upstream oil and gas asset and published a prospectus. Finally, Aminex (LSE: AEX) and Scirocco Energy (AIM: SCIR) announced the award of a seismic acquisition contract. It relates to the Ruvuma joint venture, where both companies hold 25% interests (AEX is carried).
In the private blog this evening, ADV CHAR AEX LBE IOG DELT 88E EEENF PRD TRP PVR LOGP PPC and EME: