UJO, RBD, MATD, PVR, LOGP, SLE, AMER, CHAR, HUR, SOU, ECHO, ANGS, ALBA, UKOG, GKP, PET, PTAL, TLOU, TRP, ADL and I3E
Plenty of news over the past week, some good, some bad, some meaningless. Union Jack Oil (UJO) and Reabold Resources (RBD) started the week with announcements regarding the West Newton appraisal drill. Normally such announcements are virtually identical, but not this time. UJO correctly announced West Newton A-2 appraisal well preliminary results; RBD, however, went much further announcing a "discovery" and was forced to correct this two days later. In fact, the actual discovery was made years ago and the reality is that the viability of the discovery remains unknown until the flow test of the appraisal well in Q3 2019. Share prices perhaps have got ahead of themselves here.
Petro Matad (MATD) announced final results and confirmed the Heron 1 and Red Deer 1 are expected to spud in July. The share price is looking a little weak and with $16.6 million cash and four wells planned, I suspect a placing may be on the cards. Bad news for Providence Resources (PVR) and Lansdowne Oil & Gas (LOGP) (plus San Leon Energy (SLE) who own a 4.5% net profit interest). The funds from APEC did not arrive again and it appears they may be having problems with their investors. If they can get Barryroe moving, then the share prices of PVR and LOGP should be a easy double; if not, they'll easily half. A pure gamble as of today.
Amerisur Resources (AMER) announced the completion of logging operations on the Sur-1 exploration well. Testing operations are now underway, after which the rig will move to drill the Indico-2 appraisal well. AMER also announced that it has entered into a conditional agreement with Occidental to dispose of a 50% interest in the Put-8 exploration licence for a cash consideration of $19.1 million. Amerisur will retain operations. Chariot Oil and Gas (CHAR) announced the completion of a development feasibility study for the Anchois gas field, a Morocco gas market and Anchois field monetisation assessment and the initiation of an environmental impact assessment to facilitate appraisal operations in 2020. Can they now farm it out is the question.
Hurricane Energy (HUR) announced the sale of its first cargo of oil, marking the generation of HUR's first revenue. This is important, because very few companies with big exploration targets ever actually get to this point. At the other end of the ability spectrum, Sound Energy (SOU) which "continues to explore the marketing of its Eastern Morocco portfolio" announced a $3 million placing at 10p per share to pay the executive director's six and seven figure salaries for the next six months. The market was not impressed and the share price fell 20% over the course of the week to close on Friday at 8.72p, well below the placing price. It has been noted with amusement the various excuses over the years for the CEO selling his shares and the eventual target price for SOU remains zero. The same eventual target price is set for its stablemate Echo Energy (ECHO), which last week announced completion of the Tapi Aike seismic acquisition. Like SOU, this company is a serial failure, whose only real commercial activity has been selling shares.
Angus Energy (ANGS) announced the acquisition of a 51% interest in the Saltfleetby gas field, Lincolnshire. ANGS are being paid £2.5 million to take this interest, so the seller must view it as a liability rather than an asset. Alba Mineral Resources (ALBA), owner of a 11.765% effective interest in the Horse Hill oil field, announced that it has decided not to contribute to the most recent cash call of which its share is £261,000. Essentially, that is because it does not have the money and it may be that ALBA's stake will be the next to be acquired by UK Oil & Gas (UKOG) to increase its current 50.635% effective interest.
Gulf Keystone Petroleum (GKP) announced an operational and corporate update. They expect their 55,000 bopd production target to be achieved in Q2 2020. Another company interested in Iraq, Petrel Resources (PET) also updated. They are re-establishing operations in Baghdad and are awaiting government approval for their licence interest in Ghana. Capitalised at just £1.12 million, PET is worth a look at. PetroTal Corp (PTAL) announced an operations update too. Production now is over 5,000 bopd and they are readying the field for production to increase up to 10,000 bopd later in the year.
Tlou Energy (TLOU) announced that the Lesedi 3 production pod has reached critical desorption pressure, the pressure that gas begins to come out of the coal after a dewatering process. The primary objective remains to demonstrate a commercial gas flow rate. Tower Resources (TRP) placed 15 million new shares at 1p each with its CEO to raise £150,000. A further, much larger, placing undoubtedly will be necessary if TRP is to spud the NJOM-3 well on its Thali licence in Q3 2019. Finally, Andalas Energy & Power (ADL) announced an awful farm-in deal with death spiral financing, guaranteeing further losses to shareholders. No surprises there, since all that matters to the insiders at this company is keeping the lights on and paying their fees.
To conclude, for those interested, my current favourite remains I3 Energy (I3E). Expect a strong move up as news starts to be released ahead of the three forthcoming drills.
Petro Matad (MATD) announced final results and confirmed the Heron 1 and Red Deer 1 are expected to spud in July. The share price is looking a little weak and with $16.6 million cash and four wells planned, I suspect a placing may be on the cards. Bad news for Providence Resources (PVR) and Lansdowne Oil & Gas (LOGP) (plus San Leon Energy (SLE) who own a 4.5% net profit interest). The funds from APEC did not arrive again and it appears they may be having problems with their investors. If they can get Barryroe moving, then the share prices of PVR and LOGP should be a easy double; if not, they'll easily half. A pure gamble as of today.
Amerisur Resources (AMER) announced the completion of logging operations on the Sur-1 exploration well. Testing operations are now underway, after which the rig will move to drill the Indico-2 appraisal well. AMER also announced that it has entered into a conditional agreement with Occidental to dispose of a 50% interest in the Put-8 exploration licence for a cash consideration of $19.1 million. Amerisur will retain operations. Chariot Oil and Gas (CHAR) announced the completion of a development feasibility study for the Anchois gas field, a Morocco gas market and Anchois field monetisation assessment and the initiation of an environmental impact assessment to facilitate appraisal operations in 2020. Can they now farm it out is the question.
Hurricane Energy (HUR) announced the sale of its first cargo of oil, marking the generation of HUR's first revenue. This is important, because very few companies with big exploration targets ever actually get to this point. At the other end of the ability spectrum, Sound Energy (SOU) which "continues to explore the marketing of its Eastern Morocco portfolio" announced a $3 million placing at 10p per share to pay the executive director's six and seven figure salaries for the next six months. The market was not impressed and the share price fell 20% over the course of the week to close on Friday at 8.72p, well below the placing price. It has been noted with amusement the various excuses over the years for the CEO selling his shares and the eventual target price for SOU remains zero. The same eventual target price is set for its stablemate Echo Energy (ECHO), which last week announced completion of the Tapi Aike seismic acquisition. Like SOU, this company is a serial failure, whose only real commercial activity has been selling shares.
Angus Energy (ANGS) announced the acquisition of a 51% interest in the Saltfleetby gas field, Lincolnshire. ANGS are being paid £2.5 million to take this interest, so the seller must view it as a liability rather than an asset. Alba Mineral Resources (ALBA), owner of a 11.765% effective interest in the Horse Hill oil field, announced that it has decided not to contribute to the most recent cash call of which its share is £261,000. Essentially, that is because it does not have the money and it may be that ALBA's stake will be the next to be acquired by UK Oil & Gas (UKOG) to increase its current 50.635% effective interest.
Gulf Keystone Petroleum (GKP) announced an operational and corporate update. They expect their 55,000 bopd production target to be achieved in Q2 2020. Another company interested in Iraq, Petrel Resources (PET) also updated. They are re-establishing operations in Baghdad and are awaiting government approval for their licence interest in Ghana. Capitalised at just £1.12 million, PET is worth a look at. PetroTal Corp (PTAL) announced an operations update too. Production now is over 5,000 bopd and they are readying the field for production to increase up to 10,000 bopd later in the year.
Tlou Energy (TLOU) announced that the Lesedi 3 production pod has reached critical desorption pressure, the pressure that gas begins to come out of the coal after a dewatering process. The primary objective remains to demonstrate a commercial gas flow rate. Tower Resources (TRP) placed 15 million new shares at 1p each with its CEO to raise £150,000. A further, much larger, placing undoubtedly will be necessary if TRP is to spud the NJOM-3 well on its Thali licence in Q3 2019. Finally, Andalas Energy & Power (ADL) announced an awful farm-in deal with death spiral financing, guaranteeing further losses to shareholders. No surprises there, since all that matters to the insiders at this company is keeping the lights on and paying their fees.
To conclude, for those interested, my current favourite remains I3 Energy (I3E). Expect a strong move up as news starts to be released ahead of the three forthcoming drills.
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The author holds one or more investments in one or more of the companies mentioned so this post cannot be viewed as independent research. This post does not constitute investment advice or a recommendation to buy or sell and may be incorrect or outdated.