There was plenty of oil company news last week, much of it quite interesting. President Energy (PPC) announced a six-eight well workover programme at Puesto Flores in Argentina to commence during May 2018 to be followed by an accelerated three well drilling programme also at Puesto Flores which is now being planned to commence in Q3 2018 with the applications for surface permits underway. Amerisur Resources (AMER), another South America producer and explorer, announced significant revenue growth of 96% to $92.5 million with an adjusted EBITDA of $19.8 million, up from $0.4 million. Amerisur has up to 14 fully funded exploration and development wells planned for 2018.
Columbus Energy Resources (CERP) announced the potential acquisition of the remaining 50% interest in the Icacos field in Trinidad from Touchstone Exploration (TXP). This will give Columbus 100% operational control over a large area (approximately 8,700 acres) in the South West Peninsula, which includes multiple prospects of 20-400 million barrels of oil in place, which CERP intends to explore. Eco (Atlantic) Oil & Gas (ECO), also operating in the region, offshore Guyana, announced that Gustavson Associates is producing a new Independent Resource Report in accordance with AIM and TSX guidelines which is expected to be concluded and published in May. I suspect the new numbers will be large. Also with an interest in the Caribbean, United Oil & Gas (UOG) announced a £2.5 million fundraising at 4.25p partly to fund the 3D Seismic work on the Colibri Project under a farm-in agreement with Tullow Jamaica and partly to fund Colter, which interestingly now is being referred to as an exploration well.
Frontera Resources (FRR) announced the successful completion of drilling operations at the Dino-2 well, the second well of the three-well drilling campaign at Frontera's Taribani complex in Georgia. Drilling and wireline logging data confirmed the presence of 78.8 m of combined pay interval and the drilling rig will be moved to the T-39 well location to commence sidetracking/drilling operations. SDX Energy (SDX) also announced drilling results and a gas discovery with an un-risked mid-case volume of 10.2 Bscf of conventional natural gas and 55 thousand barrels of condensate. The shares have now broken out of their recent trading range and are starting to move considerably higher.
Falcon Oil & Gas (FOG) announced that following the decision by the Northern Territory government to lift the moratorium on hydraulic fracturing, exploration will be resuming in the Beetaloo Basin, Australia targeting an OGIP of 61 TCF and a 6.6 TCF gross contingent resource. Meanwhile, Providence Resources (PVR) announced that, along with the operator Total E&P Ireland, it has applied to convert Licensing Option 16/27, the "Avalon" exploration permit, into a Frontier Exploration Licence.
Cluff Natural Resources (CLNR) announced a subscription to raise £0.75 million at a price of 1.6p per share. Cluff is looking to secure farm-in partner(s) and/or strategic investors to fund drilling on its North Sea licences P2248 and P2252 and is also exploring various additional forms of financing which will support its ultimate aim of drilling one or more wells on these licences in 2019. CLNR has made a substantial application for additional licences in the UK's latest licensing round. These applications, over multiple blocks, contain a number of drilled discoveries, undrilled prospects and leads and, if awarded, have the potential to build scale, significantly enhancing Cluff's resource base. Awards are expected to be made before the end of the second quarter of 2018.
Rockhopper Exploration (RKH) announced its 2017 final results. Highlight here is that the funding package for the Sea Lion Phase 1 development in the Falkland Islands is progressing, working towards a final investment decision by year end 2018. This is a massive project in the context of Rockhopper's £116 million market capitalisation and RKH is very much one to keep an eye on. Independent Oil & Gas (IOG) announced the completion of the acquisition of the Thames Pipeline, which should allow for the export of their 100% owned gas reserves that were otherwise stranded. Peak production from the Blythe and Vulcan Satellite hubs is expected to be 180 million cubic feet per day. At a £19 million market capitalisation, there is huge potential here.
Mayan Energy (MYN) continues to redevelop and enhance its old oil and gas wells in Oklahoma and Texas, announcing an operations update from its Stockdale field. It appears they are steadily moving the production levels up. Key will be the level of the operating expenses. Rose Petroleum (ROSE), operating in Utah, announced it has assembled a highly experienced subsurface and surface operational team with extensive experience and a successful track record in the Paradox Basin. The operational team has now largely completed the subsurface assessment, well location selection and basic well design and engineering for Rose Petroleum's first proposed horizontal well, the GVU 29-1, and the application for a permit to drill is underway. ROSE also has decided to proceed with the permitting of a second well location, the 22-1, a horizontal well with an estimated ultimate recovery of 894,000 barrels of oil equivalent.
Finally, Highlands Natural Resources (HNR), operating in Colorado, announced it has divested 49.5% of its 57% working interest in the Wildhorse and Powell wells and will assign 49.5% of its 57% interest in future East Denver wells to True Oil. In return, Highlands receives an immediate payment of US$5.0 million and retains a 7.5% carried interest in all current and future East Denver wells. The entire capital costs of future East Denver wells will now be funded by Highlands' partners. It doesn't sound a bad deal from a commercial point of view, but I suspect the company's shareholders may be disappointed, hence the news being released after market close on Friday. We shall find out tomorrow.
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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.