NOTE: I’ve removed the paywall from the Core Information section on the website. It’s sad to read on Twitter and the message boards about the mistakes some people are making and the misconceptions they labour under. Take the time to read this and you’ll understand exactly how the market really works.
Catching up now on news since the last issue of the blog, PetroTal (PTAL) announced its Q1 2023 operations and liquidity update. Average production was 12,193 barrels of oil per day with record sales volumes of 21,500 barrels of oil per day delivered through Brazil and Iquitos in March. The company exited the first quarter with $71 million in cash and a $0.015 per share quarterly dividend will start to be paid in June. A share buyback program also is to commence this quarter. At 46.5p, it’s now up over six times since I highlighted it at 7.6p.
Deltic Energy (DELT) is proposing a 20 for one consolidation of the company's shares. There are currently 1,861,931,992 in issue, which the directors say may have the potential at times to cause a de-stabilising effect on the share price. They consider the consolidation may positively impact the liquidity of and trading activity in the shares (it’s actually usually the opposite) and improve their marketability to a wider investor group. Now 1.775p, the shares are trading at around half of the 3.5p price of last year’s placing, notwithstanding the recent success at Pensacola. DELT was first covered in the Private Blog as a company of interest at around 1.6p and the share price reached a high of 4.36p prior to the Pensacola spud.
Predator Oil & Gas (PRD) announced its financial statements for the year ended 31 December 2022. Upcoming is the MOU-3 well in Morocco and the key point is that the Moulouya Fan has been identified as a sizeable asset capable of in itself potentially supplying all of the current industrial market's CNG requirements. The priority now is to complete a drilling and rigless testing programme to validate the concept. PRD is a regular performer and has been covered twice previously in the Private Blog as a company of interest, first, from the 4p placing level to finance the MOU-1 well (the share price reached a high of 22.5p prior to the MOU-1 spud) and, second, from the 5.5p placing level to finance the MOU-2 well (the share price reached a high of 12.3p prior to the MOU-2 spud). Now 8.6p, PRD and MOU-3 have been covered weekly in the Private Blog since the latest 5.5p placing.
Aminex (AEX) announced final results and its annual report for 2022. Regarding the outlook for 2023, planned is a two-week well testing programme on NT-2, conclusion of negotiations and execution of a gas sales agreement, finalisation of terms for the construction of an export pipeline from Ntorya to the Madimba gas plant (to accommodate gas by October 2023), in-field gas gathering and processing facilities, plus entering into a rig contract to drill, test and complete the Chikumbi-1 well as a gas producer, and workover and recomplete the NT-1 well also as a gas producer. With much coming up, the share price has already doubled since first being covered as a company of interest in the Private Blog.
88 Energy (88E) announced that the Hickory-1 well is to proceed to flow testing (I published a Note regarding this on 16 April). The wireline programme has been successfully completed and initial petrophysical interpretation has confirmed the presence of multiple hydrocarbon bearing pay zones across all pre-drill targets, in addition to the new upper SFS reservoir identified. These zones are planned to be to flow tested as early as possible in the 2023/2024 winter operational season. Next door neighbour Pantheon Resources (PANR) also issued an update, commenting on 88E’s announcement. As it points out these large resources are in tight oil-bearing formations (which are eschewed by the experienced oil companies). Always remember, these are penny stock plays, not investments.
Tower Resources (TRP) announced a Cameroon update. The company has applied for a one-year extension of the initial exploration period of the PSC, discussions continue with rig owners and operators with the aim to secure rig availability in the third and fourth quarter of this year to drill NJOM-3, discussion for a term loan of approximately $7 million with BGFI Bank Group is ongoing and Tower is also discussing asset-level financing. In reality they need to raise around $15 million.
The Parkmead Group (PMG) reported strong progress across its Netherlands assets. Main point was that at the LDS-01 well, which successfully discovered commercial reserves and delivered first gas earlier this month, gas condensate flow rates have been significantly higher than expected, at around 40 cubic metres per day, in addition to excellent dry gas production rates. The well has been temporarily shut-in, so that a process optimisation can take place to accommodate the increased fluid production levels. Indications are that the well has discovered a much larger net pay interval than initially thought at well completion.
Tlou Energy (TLOU) announced its activities report for the quarter ended 31 March 2023. The 66 kilovolt overhead transmission line is steadily progressing, development of a purpose-built operations facility is continuing, substation construction is scheduled to commence and production well drilling is underway with Lesedi 6. Finally, Angus Energy (ANGS) announced Saltfleetby sidetrack well test results. The well is said to be capable of producing 4-5 million cubic feet of gas per day, flowing into the system with the two other wells, and it is expected that the well will clean up further which is likely to raise the flow rate in future. A new well flowline will be constructed to enable full plateau production this summer. Boring, but steady.
Thank you for reading and I wish a happy holiday weekend to all. Please note the Private Blog will be published tomorrow, Monday 1 May 2023.