Skip to main content

Posts

I3E AAOG PRD UOG TLW RKH HUR ECO EOG PANR RRE

Plenty of excitement last week and not just with the election.  The week started with I3 Energy (I3E) seeing its price collapse back down on Monday after readers of the blog and listeners to the podcast were alerted last weekend to the false statements being made about the previous week's announcements.  I started challenging the misstatements on Friday and a crescendo of abuse built up right through the weekend, only finishing on Monday morning after what I said would happen did.  Most of this was from those promoting the false interpretations of I3's announcements, but some was from genuine investors who having been deceived and bought the shares, now wanted to believe the lies.  
The same thing happened with Anglo African Oil & Gas (AAOG) who announced on Thursday no further repayments from SNPC, lower than expected payments under the investor sharing agreement and yet another rig delay.  This proved too much even for core investors and the price collapsed 70% to 0.7p.  …
Recent posts

HUR I3E CLNR UKOG ALBA ANGS ECHO CORO ZEN PVR RBD RMP

It was another interesting week.  Getting the bad news out of the way first, Hurricane Energy (HUR) announced a disappointing well result and the share price fell around 25%.  I mentioned HUR two weeks ago as a gamble for those who prefer to ignore what I say about only going for the "certainties," the small number of shares each year which, absent a "black swan" event, look virtually certain to perform.  Hurricane also illustrates the law of diminishing returns as a company develops and requires more capital.  It's now trading below the 34p placing price three years ago.
A further North Sea focussed company, I3 Energy (I3E) confused many people with its two RNS announcements on Friday.  The first RNS announced that "it is expecting to complete the subscriptions for 14,285,715 new ordinary shares in the Company at 35 pence per share...and expects the admission of the new shares to be on or around 9th December"  Unfortunately, certain social media poste…

88E BPC CLNR EDR GBP I3E IOG LBE MNRG PET PMO PTAL PVR RBD RPT UJO UKOG

It turned out to be quite an exciting week.  Global Petroleum (GBP) announced a new prospective resources estimate of 964 million barrels of oil for its petroleum exploration licence 94 in Namibia.  One reservoir is estimated to have best estimate unrisked gross prospective resources of 772 million barrels of oil with a 15% chance of geologic discovery.  It's worth a go, yet at the same time it's worth nothing to them unless they can drill it, which will require either a farm-out or a large financing.  News of that is still awaited.
Regal Petroleum (RPT) announced a memorandum of understanding to acquire licences in the Ukraine with estimated oil initially in place of approximately 675 million barrels.  They intend to appraise the licences with the drilling of up to three wells.  Existing 3P reserves for RPT currently are estimated at 3.89 million barrels of oil equivalent, so this transaction, if it proceeds, could represent a very significant uplift.  Generally I'm cautio…

PET ECHO CORO SOU ECO HUR UKOG and making money in the markets (part 2)

Interesting second half to the week.  Petrel Resources (PET) announced that the issue of new shares to friends and business acquaintances of the new control parties has been approved.  It is anticipated that a flow of potential investment proposals now will be offered to the company.  I suggested Petrel and stated it as a favourite numerous times around 1p earlier this year (see https://oilmanjim.blogspot.com and numerous posts on Twitter) and it closed at 8.75p yesterday, up 775%.  There's more shares with this sort of potential in the private blog.
James Parson's "Holy Trinity" had a busy week.  Echo Energy (ECHO) announced the commencement of drilling of the CLM x-1 well.  This is the first of an expected four-well exploration drilling programme.  It's expected to take approximately four weeks, plus a further five to six weeks if logging supports completion.  Maybe at last they will have a success, but so far at ECHO it's been only failure.  Now 2.95p, it&#…

AAOG AEX ALBA AMER ANGS BOIL CAB CAD CERP COPL CORO ECHO ECO EME LEK NTOG OEX PMG PPC PRD RBD RRL SAVP SDX SENX SOLO SOU TLW TXP UJO UKOG ZEN

It’s been an interesting week, with some very good news and some very bad.  To start off, Savannah Petroleum (SAVP) was able to announce that, at last, it has completed the Seven Energy transaction.  This now gives Savannah a material producing asset base to complement its Niger exploration and development assets, in respect of which it aims to recommence activity in 2020, with expected delivery of first oil from R3 East and a multi-well exploration drilling campaign.  This was financed by institutions two years ago at 35p per share and I expect to see the share price now start to work its way up from the current level of 26p.
Reabold Resources (RBD) and Union Jack Oil (UJO) advertised upgraded potential volumes  at West Newton in a pre market RNS first thing Monday morning and spiked the early buyers.  Union Jack slid down from nearly 30p to under 20p by the end of the week and the coup de grace was delivered just after market close on Friday when it announced that it is in the proces…

88E ADL AEX ALBA AOGL BOIL BPC CAB CAD CASP CORO ECHO EDR EME EOG HUR I3E IGAS PANR PTAL RBD RKH ROSE RRL SAVP SOLO SOU UJO UKOG ZEN

UK Oil & Gas (UKOG) started the week with a Horse Hill update.  So far they've successfully drilled 2,016 ft within the Portland reservoir's most oil productive zone.  It's a clever PR, because the news last weekend was that of a rig engine fire.  However, they’ve fitted a new rig engine now and are drilling the remaining 1,200 ft horizontal section. Drilling is expected to be completed by mid-November, at which point they will immediately complete, clean-up and flow test the well. The share price is still held back by Riverfort selling, but as this eases up I expect UKOG to go higher.
Rose Petroleum (ROSE) announced a placing to raise £1.25 million at 1.1p.  The directors are buying a 10% interest in a 317 acre lease from themselves, but it actually equates to just a 2.217% working interest in the spaced drilling unit.  It's a shale project, an area in which US companies are trying to divest, yet they’re paying over $9,500 an acre for it.  It's also worth remem…

AAOG ADL ADME ANGS AOGL AST BLOE BOIL BPC CAB CAD CERP ECHO ELA EOG GBP HDY I3E IGAS INFA IOG LEK MSMN NOP OEX PET PPC PTR RBD RGO RRE RRL SAVP SOU TRP TXP UKOG UOG UPL ZEN

I've mentioned Independent Oil & Gas (IOG) positively several times recently both in the blog and on the podcast and they issued an excellent RNS on Monday confirming progress.  As anticipated, they announced the completion of the farm-out transaction with CalEnergy Resources and the final investment decision on phase 1 of the core project, comprising 410 billion cubic feet of 2P+2C reserves and resources across six discovered UK Southern North Sea gas fields.  The core project is projected to deliver over half a billion pounds in pre-tax cash flow net to IOG and, with the shares still trading below the 20p offered by RockRose Energy (more on them later), I think there's still quite a lot to go for with IOG.
Not such good news for shareholders at Reabold Resources (RBD) unfortunately.  Certain legal and administrative issues have caused a delay to entering into a binding equity swap agreement with the Rathlin shareholders. Indeed, after completing a 24 million pound placing…