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CHAR, 88E, ECHO, ADL, CLNR, UJO, SRSP, ROSE, HNR, NTOG, AAOG, SAVP, BPC, OPHR and ZEN

The week started with Chariot Oil & Gas (CHAR) announcing a dry hole offshore Morocco and the shares crashed down to around 8p, compared with a recent placing/open offer price of 13p. All is not lost, however, and next up is the Prospect S exploration well in Namibia with a spud date of October this year being talked about.  This is a much more important well to Chariot than Morocco, with a gross mean prospective resource of 459 million barrels of oil and a 65% CHAR interest.  Chariot is fully funded to drill this well.

88 Energy (88E) raised A$17 million in an oversubscribed placing.  Now it will reopen the Icewine-2 well this month to see if it can flow more than the 2 mcd/d (around $5 a day of gas) that it achieved last year.  Echo Energy (ECHO) announced that its rig will arrive soon for the four well exploration drilling campaign in Argentina.  The results from these two will be fascinating.

Andalas Energy and Power (ADL) announced it is acquiring a 14.75% equity interest in Eagle Gas Limited, which in turn owns a 66.67% interest in Southern North Sea Licence P2112.  Meanwhile Cluff Natural Resources (CLNR) announced it is still seeking partners for Southern North Sea drilling.  The excitement with CLNR will come when the results of the UK's 30th Offshore Licensing Round are announced.

Union Jack Oil (UJO) announced it is prepared for the drilling of two significant conventional prospects, Biscathorpe-2 and Holmwood-1.  UJO is starting to build up a head of steam now and the shares could move well in the run up to the spud.  Sirius Petroleum (SRSP), though, doesn't know what is happening and announced that it is awaiting clarification from COSL on timing for completion of mobilising of the rig.

Amongst the US operators, Rose Petroleum (ROSE) announced it has raised £1 million at 3.25p per share with warrants exercisable at 6.5p per share, Highlands Natural Resources (HNR) announced the spudding of its fourth well at the East Denver Niobrara shale oil and gas project and Nostra Terra Oil & Gas (NTOG) announced the commencement of drilling of its second well in the Permian basin, in Mitchell County, Texas.

Anglo African Oil & Gas (AAOG) delivered yet another shocker, announcing that the TLP-103 well will not spud until a financing solution is in place.  Savannah Petroleum (SAVP) meanwhile announced a one year extension to its R1/R2 production sharing contract.  Bahamas Petroleum Company (BPC) announced it has entered into a confidentiality and exclusivity agreement with a major international oil company.  BPC will be paid $250,000 per month while the negotiations continue, so it appears a deal may well happen.

Ophir Energy (OPHR) announced it has agreed to acquire material producing assets in Vietnam and Indonesia.  OPHR's strategy is to become free cash flow positive and regularly return capital to shareholders.  Finally, Zenith Energy (ZEN) announced that its CEO, Mr. Andrea Cattaneo, has now fully swapped his 2018 salary for ZEN shares, thus setting an example to all of them.

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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.

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