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LOGP, PVR, SAVP, EOG, UKOG, EDR, ANGS, UJO, CNE, UOG, FPM and ECHO

Landsdowne Oil & Gas (LOGP) announced on Friday a placing to raise £900,000, conversion of the £326,911 Brandon Hill capital loan into shares and partial conversion (£680,000) of the LC Capital Master Fund loan into shares, all at the placing price of 1.3p.  This will result in a total of 656,849,846 shares outstanding which, at Friday's closing price of 1.45p, gives a market capitalisation for LOGP of £9.52 million.

Providence Resources (PVR) closed on Friday with a market capitalisation of £62.9 million, so when it comes to Barryroe, LOGP at first appears the better option with its 10% compared to PVR's 40% if the Chinese farm out completes.  However, PVR reminded the market on Tuesday that it has many other licences in addition to Barryroe when it issued an announcement regarding Newgrange stating among other things that it is in dialogue with a number of third parties regarding a potential farm out of equity.  However, as I commented last week, I do not think there is any rush to buy here.

Savannah Petroleum (SAVP) announced on Tuesday the spud of the Bushiya-1 well in Niger. As I anticipated previously, there was no positive market reaction.  The shares are now down over 22% from the recent 35p placing place, having been emasculated by the Nigeria production acquisition.

Europa Oil & Gas (EOG) released interim results last Wednesday.  In addition to the Environment Agency being "minded to award" a bespoke environmental permit for drilling and testing the Holmwood exploration well (partners UKOG EDR ANGS UJO) in PEDL 143 in the Weald Basin, Surrey, EOG reported that it has mapped six prospects with combined potential of 2.5 trillion cubic feet of gas initially in place on LO 16/20 in the Slyne basin, adjacent to the producing Corrib gas field, and that the 3D seismic survey over Cairn Energy (CNE) operated LO 16/19 in the South Porcupine in which EOG has a 30% carried interest has been completed.  The same day, well known oil and gas investors David and Monique Newlands declared a 4.12% stake.  At a £10.4 million market capitalisation, EOG looks interesting.

However, if this is the current valuation level for this type of company, then others such as United Oil & Gas (UOG) (£11.67 million market capitalisation), which last week announced the commencement of seismic acquisition on its 20% owned Walton-Morant licence, Jamaica, really look quite expensive.

Faroe Petroleum (FPM) announced significant discoveries on Wednesday at its Hades and Iris prospects with estimated recoverable hydrocarbons of 19 - 113 mmboe and 19 - 132 mmboe respectively.  At the same time, DNO ASA announced it had purchased 15.37% of the company at a price of 125p per share and intended to acquire up to 10% of the outstanding shares in the Company through a reverse book building process.  One to keep an eye on.

Echo Energy (ECHO) announced Friday the mobilisation of the rig for a three well workover campaign at the Company's Fracción D asset, Argentina.  This project could do well, but the share price barely moved and at 12.6p remains down 28% from the 17.5p placing price in January.  The current problem here, in my opinion, is that the 64.5 million 3p warrants, blocklisted end February, are still being worked through.
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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.

 Also published on the Oil News London site at https://www.oilnewslondon.com/oilman-jim

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