Skip to main content

RRE, SQZ, HNL, JOG, ARG and ENOG

Rockrose Energy (RRE) announced an update on "incremental development projects" today.  It is looking to exploit what it believes is significant upside in terms of recoverable discovered hydrocarbons which could extend the life of the fields and postpone decommissioning.  This is what the game is about since the companies who gave RRE millions of pounds to take thousands of barrels of oil production off their hands did this to discharge what they believed were huge decommissioning liabilities.  Serica Energy (SQZ) already has done such deals, Hague and London Oil (HNL) is expected to return to the market soon with such deals done and Jersey Oil & Gas (JOG) is looking to do some of these deals too.  Obviously, it's all a question of persuading auditors to agree to changes in accounting assumptions, turning what were huge liabilities into huge assets overnight, but for the time being the market is buying this financial alchemy and the "sector" looks to have further upside.

Argos Resources (ARG) announced its 2017 financial results.  The company reported a $118,000 profit and cash reserves of $758,000 at year end.  Argos retains an overriding royalty interest of 5% of all oil and gas produced over the life of Licence PL001 in the North Falkland Basin from all hydrocarbon discoveries developed within the licence area and all future expenditures incurred on the Licence will be at no cost to the company.  ARG will receive future cash payments of $405,000 per annum from Noble Energy Falklands Limited and Edison International S.p.A which will be sufficient to meet its ongoing running costs until first oil production.  A three year extension of the Licence was approved in 2016 which extends the current Second Phase of the Licence to November 2019.  Effectively a "sleeper", but it might be worth tucking away.

Energean Oil & Gas (ENOG) commenced trading today with a market capitalisation of nearly £700 million.  It raised £330 million in the IPO and the bulk of the proceeds will go towards the development of the Karish and Tanin gas fields, offshore Israel, which hold a huge 2.4 trillion cubic feet gas resource.  Trading now at around a 5% discount to the £4.55 offer price, it might be worth keeping an eye on.

Contact me on Twitter @Oilman_Jim
Click "SUBSCRIBE" to receive posts by email

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