Sunday Blog, 3 October 2021
PTAL TAL PTALF IOG AEX SCIR HE1 HLOGF PRD CHAR CEG BPC I3E ITE COPL XOP UJO RBD ZPHR ZPHRF HUR HRCXF TRP PPC ADME BLOE ECHO UOG PXEN NTOG RKH PVR LOGP CAD BOR SAVE ZOL PTR SLE PPP SQZ JSE
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PetroTal (AIM PTAL TSXV TAL OTC PTALF) announced it has commenced drilling development well BN-9H and continued field production in excess of 15,000 barrels of oil per day. Drilling and completion should be finished in the second half of November and the well is expected to contribute materially to exit 2021 production. Per the company, using an $80/barrel Brent oil price and PetroTal's estimated EBITDA netback of approximately $47/barrel, annualized earnings before interest, taxes, depreciation and amortisation at 15,000 bopd would be approximately $255 million and allow PetroTal to complete the remaining Bretana development wells, retire the bond obligations early and examine ways to return value to shareholders. I mentioned PTAL positively in this blog last November at 7.6p. It’s now 24.5p.
IOG (AIM IOG) announced that the Blythe well has been successfully drilled, cleaned up and flow tested to a maximum gas rate of 45.5 mmscf/d. Phase 1 first gas guidance is reiterated for Q4 2021 and at current gas prices, 2021-22 cash flows are expected to substantially exceed the planning case. The Noble Hans Deul rig will now mobilise to Southwark, the third of the Phase 1 fields, where it will spud the next production well. IOG has been a strong performer of late and the share price is now 29.75p. IOG has been covered each week in the private blog from around 9p up.
Aminex (LSE AEX) announced its half year report. Loss was $1.59 million and the company says it is now making significant progress in negotiations with the Tanzania Petroleum Development Corporation on the $8.34 million Kiliwani North gas sales receivables. New cash flow forecasts, however, indicate the requirement to source additional funding during the next 12 months and the company expects to source this via an equity placement. Drilling of the potentially transformational Chikumbi-1 exploration and appraisal well on the Ruvuma licence is expected to commence early in the third quarter of next year and Aminex is carried for its 25% interest.
Scirocco Energy (AIM SCIR), owner of a non-carried 25% interest in Ruvuma, also announced half year results, with a profit of £1,507,000 due to a fair value revaluation of £2,910,000. Scirocco’s main focus now is the European sustainable energy market and it announced last week completion of the acquisition of Greenan and its 0.5MWe Anaerobic Digestion plant in Northern Ireland. Scirocco says it is making progress on its Tanzanian asset sales process, which is key to delivering its broader sustainable energy and circular economy strategy; in the meantime, funding is being obtained from the sale of its remaining interest in Helium One (AIM HE1 OTC HLOGF).
Predator Oil & Gas (LSE PRD) announced an operational update. Post well evaluation of the MOU-1 has confirmed that 6 zones within the primary target should be evaluated by a rigless well test, which will assess whether or not MOU-1 has the capability to flow gas at a sustained rate of at least 5 million cubic feet of gas per day, at which rate an initial compressed natural gas development becomes profitable for gas sales to industry at a price of $11/mcf. Drilling plans also are being prepared to drill three follow-up wells as early as possible in Q1 2022. The company says project-based funding is being explored. Predator is a company covered each week in the private blog from around 1.3p up and has been quite a spectacular performer, reaching a high of 22.5p prior to the MOU-1 spud.
Chariot (AIM CHAR) announced a MoU for the development of a large-scale green hydrogen project in Mauritania and saw a strong move up in its share price. The project is in partnership with the Mauritanian government to support its objective to become a world leader in the production of green hydrogen and has been given exclusivity over an onshore and offshore area totalling approximately 14,400 km2 to carry out pre-feasibility and feasibility studies with the intention of generating electricity from solar and wind resources to be used in electrolysis to split water to produce green hydrogen and oxygen. Meanwhile, Chariot remains on track for drilling operations offshore Morocco to commence in December, targeting a total remaining recoverable resource in excess of 1 trillion cubic feet of gas.
To clarify, since I have been asked, the Sunday blog (this one) is free and focuses on those companies which have issued news during the week; the private blog (published separately) contains more detailed information plus my actual trading ideas. There is a charge for the private blog, but I believe you will find the information within it is worth many times its cost. There is no minimum subscription term and you can unsubscribe at any time. There is also a 14 day free trial, so you have absolutely nothing to lose by trying it out. Some question the cost, but what I can say is that of those who try the trial subscription, the vast majority see the value of it and continue at the full monthly rate.
The big advantage I have is that I know whether these companies are stock promotions or real projects, which enables the approach to be tailored accordingly. I have 40 years experience in the markets from both sides of the fence and my track record in assessing these companies speaks for itself.
Rounding off with the rest of the small cap oil and gas company news (it was a busy week with many earnings announcements), Challenger Energy (AIM CEG) - formerly Bahamas Petroleum Company (AIM BPC) - announced a full year loss of $13,992,000, i3 Energy (AIM I3E TSX ITE) announced a half year loss of £7,030,000 (it’s still paying a dividend of 0.2p/share), Canadian Overseas Petroleum (AIM COPL CSE XOP) announced the finalisation of its 1 for 100 share consolidation, Union Jack Oil (AIM UJO) and Reabold Resources (AIM RBD) announced the rejection of their West Newton planning application plus RBD announced a half year loss of £1,383,000, Zephyr Energy (AIM ZPHR OTC ZPHRF) announced a half year loss of $975,000, Hurricane Energy (AIM HUR OTC HRCXF) announced updated production guidance for the next six months of 8,500 - 10,000 bopd, Tower Resources (AIM TRP) announced a half year loss of $39,458, President Energy (AIM PPC) announced a half year loss of $3,376,000, ADM Energy (AIM ADME) announced a full year loss of £7,137,000 plus a half year loss of £1,599,000, Block Energy (AIM BLOE) announced a half year loss of $2,051,000, Echo Energy (AIM ECHO) announced a half year loss of $1,451,957, United Oil & Gas (AIM UOG) announced a half year profit of $2,021,782, Prospex Energy (AIM PXEN) announced a half year profit of of £129,356 after revaluing their investments upwards by £488,335, Nostra Terra Oil & Gas (AIM NTOG) announced a half year loss of $269,000, Rockhopper Exploration (AIM RKH) announced a half year loss of $3,301,000, Providence Resources (AIM PVR) announced a half year profit of €1,628,000 due to a non-cash accounting gain in relation to warrants revaluation, Lansdowne Oil & Gas (AIM LOGP) announced a half year loss of £149,000, Cadogan Petroleum (LSE CAD) announced the sale of Ramet Holdings, Borders & Southern Petroleum (AIM BOR) announced a half year loss of $446,000, Savannah Energy (AIM SAVE) announced a half year loss of $3,109,000, Zoltav Resources (AIM ZOL) announced a half year profit of RUB 213,151,000, PetroNeft Resources (AIM PTR) announced a half year loss of $2,200,000, San Leon Energy (AIM SLE) announced a half year profit of $8,124,000, Pennpetro Energy (LSE PPP) announced a half year loss of $482,000, Serica Energy (AIM SQZ) announced a half year profit of £1,349,000 and Jadestone Energy (AIM JSE) announced the Montara H6 well has been brought onstream with an initial rate approaching 10,000 barrels a day.