Catching up on the last couple of weeks, Deltic Energy (DELT) announced that it and Shell have made a positive well investment decision to drill the Selene gas prospect, estimated to contain gross P50 prospective resources of 318 billion cubic feet of gas with a 70% geological chance of success. Deltic holds a 50% working interest, but is carried for 75% of the costs of drilling and testing the well. DELT closed on Friday at 3.45p, more than double the level at which it was first covered in the private blog.
Hurricane Energy (HUR) announced repayment of its convertible bonds, amounting to a total of $78,515,000 plus $1,500,000 accrued interest. This leaves the company debt free, with significant cash on hand, further cash due from the July lifting and ongoing substantial cash generative production from the Lancaster field. Having been almost written off by the board not too long ago, now comes the task of building a long-term future for the company and significant acquisitions can be expected.
The Parkmead Group (PMG) announced the launch of its Greater Perth Area farm-out. Gneiss Energy has been retained to manage the process of finding a suitable partner in relation to the company's 100% interest. The core Perth field holds approximately 55 million barrels of recoverable oil equivalent on a most likely, P50 basis and the area is one of the North Sea's largest undeveloped oil projects, having been fully appraised and the fields flow tested at rates of up to 6,000 barrels per day.
Longboat Energy (LBE) announced the spud of the Oswig exploration well, targeting two formations estimated to contain combined gross unrisked mean resources of 93 million barrels of oil equivalent (19 million barrels net to Longboat). Geological chance of success is estimated to be 36% and the well is expected to take up to seven weeks to drill. This is the first of three fully-funded, gas-focused exploration wells, with the second well, Copernicus, also anticipated to spud this quarter.
Pantheon Resources (PANR) announced an operational update for its Alkaid #2 well. The pilot hole reached a total vertical depth of 8,584 feet, at which level it was stopped on instruction from the Alaska Oil and Gas Conservation Commission. It is said by the company to have encountered multiple oil bearing reservoirs in all three targeted formations. Next comes drilling of the horizontal section, the outcome of the flow test of which will be critical to determine the actual commerciality of the project.
Tower Resources (TRP) announced a placing and subscription to raise £1,500,000. The raise was done at a price of 0.175p per share and its purpose is stated to be for the preparation of drilling of NJOM-3 later this year. Meanwhile, TRP is continuing to discuss financing options at the asset level for amounts in the $5,000,000 to $10,000,000 range in order to complete the well funding. Confidence is shown by Jeremy Asher, Chairman and CEO, subscribing for £250,000 worth of placing shares.
Rockhopper Exploration (RKH) announced a Sea Lion update. All regulatory consents required for the transaction between the company, Harbour Energy (HBR) and Navitas Petroleum (NVPT: Tel Aviv) have been received from both the Falkland Islands Government and the UK Secretary of State. A two-year extension to all the licences held by Rockhopper in the North Falkland Basin has been granted and they will now run until 1 November 2024. Potential is significant: over half a billion barrels.
Kistos (KIST) announced revised terms for its proposed combination with Serica Energy (SQZ). The new offer is 0.4 Kistos shares, plus cash of 213p, which at Friday’s closing price for KIST values each SQZ share at 404.6p. As mentioned in the last issue of the blog (with a Tweet from 2015 displayed) I first bought SQZ at under 5p a share. Seasoned investors know that many of the London listed oil and gas companies are of questionable value, but as Serica proves, there are still good ones out there.
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