Oilman Jim

Interesting news this week.   Rose Petroleum (ROSE) announced a new CPR covering around 20% of its 80,000 acre land position in  the Paradox Basin, Utah, U.S.A .  Gross 2C Contingent resources are 15.61 MMBO and 31.23 BCFG with a net present value to Rose of $122.4 million.  By comparison, the current market capitalisation is £4.5 million.  Cantor Fitzgerald Europe now have been appointed as financial advisor and joint broker to  assist Rose in assessing the potential funding options for the drilling of the first wells. Echo Energy (ECHO) announced that significant hydrocarbons had been interpreted in its third well, EMS-1001.  They're talking about a hydrocarbon column of some 500m.  More will be confirmed in due course.   SDX Energy (SDX) announced a gas discovery at its SD-4X well in Egypt.  Subsequently, SDX released a new presentation which can be found at  www.sdxenergy.com/investors-presentation . Savannah Petroleum ...

Perhaps the most interesting share of the week was UK Oil & Gas Investments (UKOG) .  Following confirmation the previous Friday evening that it was considering raising funds, the UKOG share price fell sharply on Monday to just over 1p.  It stayed down until Thursday, when an announcement was issued that regulatory approval had been given for a 150 day production test of the Horse Hill discovery, to be followed by a HH-2 appraisal well in the event of a successful test.  It then spiked to over 2p and collapsed again on Friday, after a placing to raise £5.5 million at 0.9p was announced.  Use of proceeds of the placing includes funding UKOG's share of the planned Portland and Kimmeridge Holmwood exploration well, but does not include paying off the outstanding £3.75 million "death spiral" financing.  Won't be buying yet, but it's one to keep an eye on. Note: Solo Oil (SOLO) , Alba Minerals (ALBA) , Primorus Investments (PRIM) and Gunsynd (GUN) also hav...

Lots of news last week, a lot of which was fluff.   Sound Energy (SOU)  alone issued five announcements, one each day.  There wasn't really much of substance in any of them, but they succeeded in moving the price up and, perhaps, helped a little to enable the "cornerstone investor" and the CEO to dispose of their shares.  Stablemate, Echo Energy (ECHO) announced the completion of its ELA-1 well in Argentina.  The results were disappointing and the shares retreated below their recent 12p placing price. Savannah Petroleum (SAVP) announced an oil discovery with its Amdigh-1 well.  Next up is the Kunama-1 well, which should spud before the end of this month.   SDX Energy (SDX) announced the spud of its SD-4X appraisal well in Egypt.  The well is anticipated to take up to 30 days to drill.   Pantheon Resources (PANR) announced its intention to sidetrack the VOBM#1 well and spud could be as early as late July this year.   Zenith...

It was a short week and started with Echo Energy (ECHO) announcing the commencement of drilling of their second exploration well in a four well back-to-back campaign in Argentina.  Shame that they destroyed any prospect of a share price increase for investors with a heavily discounted placing the week before.  Companies at present seem to find it hard to resist taking advantage of pre-spud interest and, instead of allowing their investors to profit, are placing at sometimes large discounts into the price rise and volume.  Something to watch out for. Prospex Oil & Gas (PXOG) and United Oil & Gas (UOG) announced the application for a production concession application in Italy.  Based upon the experience of other companies, this will not be granted for many years, if ever.  Oil and gas exploration is virtually grinding to a halt in Italy, principally as a result of local environmental activism and inertia at the bureaucratic level, regional and nation...