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IOG (IOG) announced an operational update. Progress at the Bacton onshore terminal is now 93% complete. The company is aiming to be ready for back-gassing in mid-February, with first gas expected approximately a week later. Drilling contractors and consultants have also been proactively engineering several options to resume safe drilling operations at Southwark and the timeline there is expected to become clearer once the newly acquired seabed survey has been analysed. The company is targeting a gross peak production rate of 140 million cubic feet of gas per day so potential revenues are substantial. IOG has been covered in the private blog each week from as low as 9p. It’s now around four times that price.
Advance Energy (ADV) announced a Buffalo project update. The operator has advised that the wireline logging operations have been completed with only residual oil being encountered. Thus, the well will be plugged and abandoned, and the rig demobilised. This was shocking news for those who had bought for the result and been persuaded by the company’s heavy promotion to investors of an ultra-low risk, high-reward opportunity. The real problem these people had, though, is that they were too late to the party. The time to buy ADV was after the placing in the low 2s, the time to sell it (or at least de-risk) was in the 4s and 5s before the result. It was an easy double or more for private blog subscribers who did that.
It’s worth noting that in addition to the private blog every Sunday evening, paid subscribers also receive the full schedule of Upcoming Drills each Wednesday, plus a free copy of the latest edition of Oilman Jim's incisive and highly informative e-book, "Understanding the London Speculative Markets & the Secrets of How to Profit From Them."
Here are some comments:
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“I completed reading your book this past weekend and wanted to commend you on a job well done…Once again, thank you, your book has provided much validation to my understanding of the markets that I have achieved so far personally.”
“I would congratulate you on your book "Understanding The UK Speculative Markets ...etc." which confirms everything that I learnt the hard way…I wish I had read something like it before I bought anything on AIM.”
“Just a quick thank you for forwarding the copy of your book. I wish I had had this information 15 years ago!…With the basket cases I could cash in what little is left but…so little left it almost makes no difference. Most…have indulged in the shenanigans that you pointed out so well in your book. Once I have cleared up my portfolio I will be using it to focus…on all future investments. Once again Jim, thank you for your help.”
President Energy (PPC) announced an operational update. OPIC Paraguay, the wholly owned subsidiary of the Taiwanese state owned energy company, CPC and PPC’s partner in the new exploration well to be drilled, has approved the budget and work programme for 2022 and first cash calls have now been made to initialise the project. The well is targeting a complex of prospects, estimated by PPC to contain an un-risked resource of 230 million barrels of oil with a 30% chance of success.
Baron Oil (BOIL) released a new investor presentation. Key points are the Chuditch 3D seismic reprocessing and other studies are progressing well, final 3D PSDM data is on track for delivery in the second quarter and there is a fourth quarter decision point for potential high impact drilling in 2023. Options to secure investment for appraisal drilling continue to be evaluated and as part of this initiative, the company is currently in contact with multiple potentially interested farm-out parties.
Pantheon Resources (PANR) announced the spudding of Theta West #1 and an operations update. The drill is targeting two primary targets, whose horizons are estimated by the company to contain 12.1 billion barrels of oil in place with an estimated 1.4 billion barrels of recoverable resources. Meanwhile, testing operations are underway at Talitha #A. Following these operations, Pantheon intends to drill Alkaid #2 as a horizontal well to maximise any production rates.
Gulf Keystone Petroleum (GKP) announced an operational and corporate update. The company has declared an additional interim dividend of $50 million, bringing distributions over the past eight months to $150 million. 2022 gross average production is expected to be 44,000 to 50,000 barrels of oil per day. The Shaikan field has delivered close to 100 million stock tank barrels and has 489 million stock tank barrels of estimated 2P gross reserves remaining. Market capitalisation is £476 million.
Jadestone Energy (JSE) announced a trading update for the year ended 31 December 2021. Revenues are estimated at $340.3 million, an annual record, with an average oil price of $74.34 per barrel realised during 2021. Cash balances at the end of the year are estimated at $117.4 million, an increase of 30% year-on-year, even after the largest spending programme in the company's history. And Jadestone now is debt free following the final scheduled repayment of its reserves-based loan in March 2021.
Zephyr Energy (ZPHR) announced a £12 million placing and $28 million senior debt facility to fund the acquisition of non-operated working interests with net production of around 1,100 barrels of oil equivalent per day and 2.764 million barrels of oil equivalent of proven reserves. The placing was at 5p (a 43% discount to the recent high) and the company says it also plans to equip the State 16-2 well for production and drill three further Paradox Basin wells in the second half of this year. Let’s see.