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Aminex (AEX) announced a Ruvuma operations update. The seismic camp is now fully constructed and the contractor is completing the mobilisation of all necessary equipment to site, which is expected to be completed by the middle of this month. Acquisition of the 338 square kilometre 3D survey will commence upon full equipment mobilisation. This is an integral step in progressing and de-risking the Ntorya gas discovery ahead of the drilling of the Chikumbi-1 well, in respect of which the operator continues to target a third quarter spud date. Aminex has been covered in the private blog as a company of interest since July last year from as low as 0.5p. It closed on Friday at 0.9p, having been as high as 1.15p last Tuesday.
Scirocco Energy (SCIR), like Aminex, also owns a 25% interest in Ruvuma. Its interest is not carried, though, and the operational update released last week confirmed the company is continuing with ongoing discussions regarding possible farm-down and divestment options, while simultaneously progressing its funding options in the event that it retains a 25% interest in Ruvuma at the time of the Chikumbi-1 drill. Scirocco would need to raise around £5 million, but considering the current low market capitalisation, were it to do so via a normal placing, the share price could do well over the next six months during the run up to the spud, much better perhaps than with the company’s current sustainable energy and circular economy projects.
Chariot (CHAR) announced that it and Total Eren have signed a memorandum of understanding with Tharisa to develop, finance, construct, own, operate and maintain a solar photovoltaic project for the supply of electricity to the Tharisa mine in South Africa. The project is initially anticipated to be 40 mega watt peak with demand expected to increase over the life of the mine. CHAR’s main commercial value lies in the Anchois project, in respect of which Chariot recently announced the completion of gas drilling operations. The share price reached 12.75p. CHAR undertook a placing at 5.5p in May last year, following which Chariot was covered in the private blog as a company of interest and could be picked up as low as 5p.
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i3 Energy (I3E) announced that it is moving from a bi-annual to a monthly schedule for its dividend payments. During the course of 2022, i3 will pay a minimum dividend totalling £11.827 million, representing a 7.1% yield at the closing price on 2 February (the yield is now 5.99% following the subsequent upward share price movement). This dividend will be divided and paid in 10 equal increments and I3E will declare its first monthly dividend during the first half of February for payment in March.
Kistos (KIST) is acquiring 20% working interests in the producing Laggan, Tormore, Edradour, and Glenlivet gas fields, plus a 20% interest in the undeveloped Glendronach gas field and a 25% interest in block 206/4a, which contains the 638 billion cubic feet of gas Benriach prospect. Production from these assets is expected to be approximately 6,000 barrels of oil equivalent (net) during 2022 and 2P reserves are 6.2 million barrels of oil equivalent. Initial cash consideration is $125 million.
Rockhopper Exploration (RKH) announced a Sea Lion update. Harbour Energy and Navitas have extended the provisions of the previously signed heads of terms from 31 January 2022 to 31 March 2022, with a view to signing definitive documentation on the transaction by this date. Rockhopper and Navitas will align working interests across all their Falkland Islands petroleum licences, with Rockhopper holding 35% and Navitas 65%. Crucially, Navitas will provide loan funding to Rockhopper.
Borders & Southern (BOR) announced that it has been granted an extension to its Falkland Islands licences. Production licences PL018, PL019 and PL020 plus the Darwin Discovery Area licence have been extended until 31 December 2022. Per its half-year report for the six months ended 30 June 2021, though, it is likely that additional funds will be sought imminently in order to meet licence and working capital needs, and to meet the "going concern" tests of the 2021 year-end audit.
Longboat Energy (LBE) announced Ginny/Hermine drill results. The well failed to encounter hydrocarbons and will now be plugged and abandoned. Upcoming, though, is the fully funded 2022 well programme with the Kveikje well expected to spud next month, the Cambozola well spudding in the spring and Copernicus in the summer. Cambozola and Copernicus, are big ones, with mean resource estimates of 159 million barrels of oil equivalent and 254 million barrels of oil equivalent respectively.
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