Sunday Blog, 9 January 2022
ADV LBE PANR and more
Another shortened trading week, although meaningful news was issued by ADV, LBE and PANR. London markets should start to get back to normal tomorrow and a resumed flow of news can be expected next week.
Advance Energy (ADV) announced a Buffalo-10 well drilling update. The 17.5 inch hole has been drilled down to planned section total depth of approximately 804 metres, the rig is now setting and cementing the casing and installing the wellhead, then drilling ahead in the 12.25 inch hole section to approximately 2,800 metres, after which the 9.625 inch casing will be set and the Elang reservoir interval will be drilled and logged. Target depth is approximately 3,500 metres. Advance holds a 50% interest in the Buffalo PSC and the well is designed to test the presence of an attic oil accumulation remaining after the original development, converting the 2C resources of 34.3 million stock tank barrels to 2P reserves following re-certification. Chance of success is stated as an 85% probability of confirming a sanctionable development project based on the minimum economic field size. ADV claims that in the success case, there is potential to deliver a gross production rate of around 40,000 barrels per day.
Longboat Energy (LBE) announced the spud of the Ginny and Hermine exploration well, in which it holds a 9% interest. The well spud on 31 December and is the first of four wells to be drilled in 2022 targeting 75 million barrels of oil equivalent net to Longboat. The Ginny and Hermine prospects are estimated to contain gross mean prospective resources of 41 million barrels of oil equivalent for Ginny and 27 million barrels of oil equivalent for Hermine, with geological chances of success of 27% and 22% respectively. The well is expected to take up to five weeks to drill. Three wells in the programme were drilled last year, one of which, Egyptian Vulture (15% Longboat interest), is believed to be commercial with a preliminary recoverable resources estimate of 19 to 63 million barrels of oil equivalent.
Pantheon Resources (PANR) announced an operations update. The ice road from the Dalton Highway to the Talitha #A location, together with the pad at Talitha #A have both been completed and the camp set up. Construction of the eight mile ice road from Talitha #A to the Theta West #1 location is also approximately 50% completed. Meanwhile, the Nordic Calista #3 rig has mobilised from Deadhorse to the Talitha #A location, where it will prepare the Talitha #A well bore for testing operations. When completed, the rig will mobilise to the Theta West #1 location and be used for drilling operations. Pantheon has raised gross proceeds of approximately $41 million through a placing, subscription and retail offer at a price of 65 pence per share, plus a further $55 million from the issue of convertible bonds to fund the work. Billions of barrels of oil are touted, but these are Pantheon’s own numbers and not independently assessed.
More in the private blog this evening, where the trading ideas are covered (I’m rarely wrong with these). Also remember you can try it out free for the next 14 days: