Skip to main content

Reabold Resources (RBD), Upland Resources (UPL), Baron Oil (BOIL), Chariot Oil & Gas (CHAR) and Petro Matad (MATD)

Good news today for - and from - Reabold Resources (RBD) as Upland Resources (UPL) and Baron Oil (BOIL) both confirmed their farm in to the North Sea Wick prospect.  "Upland Resources' and Baron Oil's farm-in to the P2235 Licence are two of multiple farm-in processes which have been facilitated by the execution of Reabold Resources' stated strategy.  We look forward to updating shareholders on further progress on the Colter and Wick licences which Corallian Energy, who are fully funded for both well projects and which Reabold have a 35.4% interest in, anticipate to begin drilling in Q2 and Q3 2018 respectively." said Stephen Williams, Co-CEO.

BOIL will now enter into a fully-termed farmout agreement under which, subject to necessary regulatory consents, it will pay 20% of the costs of the Wick well (currently estimated at £840,000), plus £6,500 in back costs, to earn a 15% interest in the licence.  "As noted when we announced the Option Agreement, the Wick Prospect offers a rare opportunity to drill a low cost and relatively low-risk well in the near term.  Our share in the Prospect has significant potential at current oil prices for Baron shareholders and it provides the possibility of an early, low cost, development opportunity.  Success in this well will provide shareholders with a meaningful uplift in the asset value of the Company." said Bill Colvin, Chairman.

UPL notified that it has sufficient funds to satisfy its obligations under the farm-in agreement dated 29 November 2017 entered into for a 40% working interest in Wick and further announced  that the UK Oil & Gas Authority has agreed to the appointment of Fraser Well Management Limited as the well operator for the Wick well, due to spud in Q3 this year.  "The appointment of Fraser Well Management is another important step towards realising our goal of spudding the Wick well in Q3 this year.  Good progress is being made, the environmental survey work over the surrounding area being completed earlier this month.  This near term drilling opportunity opens Upland up to potentially transformative value growth and I look forward to updating shareholders on further progress when appropriate." said Steve Staley, CEO.

Chariot Oil & Gas (CHAR) meanwhile confirmed yesterday's news of a Conditional Placing and Open Offer to raise approximately £15.1 million to deliver a second well in 2018 targeting a giant potential prospect increasing the Group's ability to create transformational stakeholder value through the discovery of material accumulations of hydrocarbons.  Success in either the fully carried RD-1 well in Morocco or Prospect S in Namibia has the potential to create transformational value for the Company.  Drilling of Prospect S (Namibia) is targeted for the second half of 2018 and will be funded by net proceeds of the Placing, alongside the Company's existing cash resources.  Netherland Sewell & Associates estimate that Prospect S has a gross mean prospective resource at current equity levels of 300mmbls net to Chariot, plus a potential upside of 1.4Bnbbls in other prospects within this licence.  "This fundraise will represent another major step forward for Chariot, and one which allows the Company to participate in two giant-scale wells in this calendar year whilst capturing the bottom of the cost cycle for drilling.  Success in either well would be transformational, and would also de-risk significant additional portfolio in the relevant licence.  This comes after continued investment throughout the portfolio during the industry downturn which has allowed Chariot to build a drilling and prospect inventory of giant-scale opportunities.  We will continue to progress operations in Namibia to drill Prospect S in H2 this year to benefit from synergies with third-party operations, and, in combination with our other partners, we continue to support Eni in their operations on the RD-1 well in Morocco which is scheduled to spud in March 2018." said Larry Bottomley, CEO.

CHAR further announced today the  mobilisation of the Saipem 12000 drillship to drill the RD-1 well with expected arrival in Morocco in approximately 10 days.  The RD-1 well is anticipated to spud shortly after its arrival

RBD's placing news (and details of their possible major acquisition) is still awaited and the placing is rumoured to be in the region of £9 to £12 million.  Neither placing is small, but the recent Petro Matad (MATD) placing of £12.1 million at 6.5p shows what can happen, even short term, and the price action there may barely have yet started.

Contact me on Twitter @Oilman_Jim

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.

Popular posts from this blog

HUR HRCXF SENX SEN.WP SNUYF RBD UJO PTAL TAL.V PTALF BPC BSHPF IOG PRD DELT 88E EEENF LBE AEX AEXFF TRP RTWRF PVR PVDRF LOGP RKH RCKHF ADV CVN.AX CVONF MATD PRTDF

Hurricane Energy (London HUR US OTC HRCXF ) announced an update on its proposed financial restructuring.   Subject to directions of the court, a meeting of the bondholders is to be held on 4 June 2021 to consider and, if thought fit, approve the restructuring plan.  Hurricane is warning shareholders and bondholders that in the event the restructuring plan is not approved, either by the bondholders or the court, it is likely that there would be a controlled wind-down of operations followed by an insolvent liquidation of the company. Even if approved, in return for releasing $50 million of the principal amount outstanding under the convertibles, bondholders will receive ordinary shares comprising 95% of the fully diluted pro forma equity of the company, which values the existing equity at less than 0.1p per share.   I’ve been warning about HUR all the way from the low 30s down and all that was necessary to see what was going to happen here was to read and understand the consequences
Read more

PANR PTHRF I3E ITE SENX SEN SNUYF MATD PRTDF HE1 HLOGF 88E EEENF PRD SDX SDXEF HUR HRCXF ZPHR VNHLF BOIL IOG CHAR OIGLF ADV LBE DELT AEX AEXFF TRP RTWRF PVR PVDRF LOGP PPC PPCGF BOIL EME

Pantheon Resources (AIM PANR OTC PTHRF ) announced a management resource upgrade on its Shelf Margin Deltaic sequence encountered in the the Talitha #A well.   It estimates that the SMD-B zone has the potential to contain 2.6 billion barrels of oil in place and a P50 contingent resource (recoverable) of 404 million barrels of oil.   Analysis is not yet complete on the SMD-A and SMD-C zones, although it is anticipated that the SMD-A will experience a reduction, whereas the SMD-C is broadly in line with previous analysis.   Crucially, Pantheon confirmed that discussions have commenced with a number of groups for the purpose of seeking the farmout of a working interest percentage in one or more of its Alaskan projects, the aim being to complete a farmout or funding in the fourth quarter to provide sufficient capital for future drilling and testing.   PANR 's objective for winter 2021 / 22 is for an active work programme to test all zones of the Talitha #A well and to drill at least
Read more

UKOG MATD BLOE 88E EEENF CASP IOG ORCA RECO.V RECAF PPC EOG CHAR ADV LBE DELT AEX PRD TRP PVR LOGP BOIL EME

Challenges raising funds are now becoming apparent for lower calibre companies and managements.   UK Oil & Gas (UKOG) ’s recent open offer, aiming for £4.7 million, raised only £462,554, while Petro Matad (MATD) had to announce last week that it managed to raise only £76,000 of the $2 million hoped for.   The $9.7 million previously raised by MATD through a 3.5p placing and subscription had already come at a terrible price to shareholders, with the shares apparently “pre-sold” by insiders all the way from 8.8p down.   The price now is 2.9p. The fun and games continue at Block Energy (BLOE) , where a management previously unable to distinguish water from oil (that’s the innocent explanation) is trying to stop a shareholders’ resolution to commission an independent forensic investigation into the affairs of the company.   Among other things, the shareholders are looking for failures to disclose information to the market in a timely manner and inappropriate trading of shares by dire
Read more