Catching up on the last two weeks, Deltic Energy (DELT) announced the result of its open offer. Acceptances were received in respect of 27,395,708 shares, with a total of £15.96 million having been raised via the placing, subscription and open offer. Deltic is now funded for both the Selene and the Pensacola wells, the latter of which is scheduled to spud this month, targeting gross P50 prospective resources of 309 billion cubic feet of gas, with a 55% geological chance of success. DELT, with a 30% interest in Pensacola, is now standing at 3.475p, more than twice the level at which it first started being covered weekly in the private blog.
Pantheon Resources (PANR PTHRF) announced an operational update in respect of its Alkaid #2 well. The completion and stimulation phase has concluded and a workover rig is expected to arrive any day now to install production tubing prior to commencing flow testing operations. In preparation for those, Pantheon has applied to the Alaska Oil and Gas Conservation Commission for a long-term pilot production test. A hearing has been set for 27 October to consider gas flaring, which is permitted during testing but must be limited during regular production operations. Regardless, PANR now intends to reopen its data room subsequent to the completion of flow tests, with the aim of finding farm out partners for future project advancement.
Angus Energy (ANGS) announced Saltfleetby flow rates and an operations update. Total sales of 1.2 million therms were achieved during September, the flow rate is to be ramped up to 6 million cubic feet per day this month, a second compressor is to be delivered in December, allowing an increase up to 12 million cubic feet per day by January, and a side track is spudding imminently. It all sounds positive and, as was disclosed in a RNS issued after market close, one of the directors took the opportunity to cash in a few shares on Friday.
Eco (Atlantic) Oil & Gas (ECO) announced the commencement of operations on the Gazania-1 well, Block 2B, offshore South Africa. Eco holds a 50% working interest in the block and is operator. Gazania-1 is being drilled to a depth of approximately 2,800 metres through a multizone pay section, up dip of the AJ-1 discovery well, which proved approximately 50 million barrels of contingent resources. The prospect is targeting over 300 million barrels of light oil and, pending discovery in the vertical section, the joint venture partners have the option to directionally drill a second sidetrack well from the main well bore. The initial well is expected to take approximately 25 days to drill.
Tower Resources (TRP) announced its interim results. A more active market has prevented the company from finalising rig selection and timing for the NJOM-3 well. Tower says this may still result in a spud before year-end, but is more likely to be in the New Year. The company says it has made progress with the financing of the well. It received and agreed a non-binding term sheet for around $7 million of debt financing from BGFI, which says it is expecting to have binding approval and draft documentation available shortly. In the meantime, a non-binding term sheet for around $10 million of debt financing has been received from another bank, which the company is presently reviewing. No word yet about any equity financing.
Aminex (AEX) announced its half-yearly report. Ruvuma 3D seismic full acquisition of data is completing now, with processing and interpretation continuing into early 2023, spudding of the Chikumbi-1 well remains on schedule for November and the KNDL 3D seismic acquisition programme is expected to be completed before year end. Aminex holds a 25% interest in Ruvuma with a $35 million carry of its share of costs. The carry, equivalent to $140 million of gross field expenditure, is expected to see the company through to potentially significant volumes of gas production, with commensurate revenues.
Hurricane Energy (HUR) announced half-year results. Revenues for the first six months of the year were $159.5 million, with cash production costs of $35.40 per barrel. The company generated $110.1 million of operating cash flow and profit after tax for the period was $67.0 million, resulting in net free cash at the end of June of $126.9 million. Per the CEO, repaying the convertible bonds and becoming debt-free has enabled the company to consider multiple trajectories for Hurricane's future, all with the aim of creating additional value for shareholders.
Europa Oil & Gas (EOG) announced a corporate update, stated to be for the purpose of clarifying its recent announcements. Per the company, the SA02 appraisal well and contingent side-track are to help establish the extent of the reservoir and the amount of oil in place. SA02 has been designed to gather information and samples and so be drilled quickly and cost-effectively and, as such, it is not designed to be converted into a producing well. Many shareholders appear to have been upset by prior statements that the well would be plugged and abandoned, and not placed into immediate production. However, that’s just the way it works.
Finally, Petrel Resources (PET) announced its interim statement. The most positive aspect is that ratification discussions on the Tano 2A block are said to be underway with the Ghanaian authorities. Petrel is more about stock promotion than actual oil and gas activity, but timed right, there is money to be made with it. I highlighted PET as a favourite several times in 2019 at around 1p and it went as high as 26.5p thereafter, up over 25 times. I highlighted it again as ready to run earlier this year at 1.65p and it was up at 5.1p just a couple of weeks or so later. There’s more on how to play these types of companies in the private blog package.
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