UJO, EDR, RBD, PVR, LOGP, AAOG, ANGS, AST, TRIN, PPC, UOG, ZEN, MATD, JKX, CAD, VGAS, BLOE, AEX, SOLO, CORO, ADME, MSMN, LEK, PANR, AMER and RRE
It's not only West Newton onshore UK, Union Jack Oil (UJO) and Egdon Resources (EDR) started the week's news flow, announcing a Biscathorpe-2 well update. Further detailed technical analysis of the data has been undertaken, confirming the likely presence of a 35 metre column of good quality oil within the Dinantian interval. Biscathorpe thus remains one of the UK's largest onshore un-appraised conventional hydrocarbon prospects and adds additional speculative appeal to both of the quoted companies involved.
Meanwhile, Reabold Resources (RBD) which is indirectly connected to West Newton via its ownership of a minority shareholding in the operator, Rathlin Energy, announced the farm-out of an interest in Romania owned by another company, Danube Petroleum, in which it also has a minority stake. The interesting company here is the 100% owned Gaelic Resources, acquired by RBD just a few months after its incorporation in the Isle of Man, for which they issued 420 million shares to an unknown party, paid them $1 million cash and into which $7 million cash is flowing from RBD this year. Check out in addition the unknown operator, Integrity Management Solutions, who also provides the numbers used in RBD's RNS announcements. This smells bad.
Providence Resources (PVR) and Lansdowne Oil & Gas (LOGP) provided yet another update regarding the non-payment from their Chinese investors. The cheque remains in the post (in this case as a supposed electronic transfer), but they now have a letter from the legal representatives of the funder advising that the remittance is expected to be completed shortly. A further extension of the backstop was made until Friday and it is assumed that there will be another announcement from PVR and LOGP on Monday. [Update 22 July 2019: "received further documentation showing the mechanics of the transfer," backstop extended again to 26 July 2019]
The charade continued at Anglo African Oil & Gas (AAOG) which announced on Monday that their unpaid drilling contractor had obtained a court order freezing all the assets at Tilapia plus AAOG's Congo bank account. Matters improved for them slightly on Wednesday when they were able to announce a £2.56 million placing at 5.2p with existing shareholder, Miton. What's really going on is far from certain though, since a second RNS on Wednesday disclosed Miton selling shares the day before when the bid was in the 3s.
The Anglo African Oil & Gas financing RNS also had a second part. 109 million shares are being issued to Riverfort, who will sell up to 20% of the volume each day and pay over 75% of the sale proceeds to AAOG. Quite frankly, anyone could do this and agreeing that 25% of the sale proceeds are retained by Riverfort is simply a gift. Unless of course, Riverfort actually have to do something else other than just press "Sell" such as creating the necessary buying, without which the share price would go to virtually zero. More about how this will be done next week.
Angus Energy (ANGS) directors tried to assuage shareholder anger by buying some shares themselves. The Chairman bought £25,000 worth and the Finance Director bought £20,000 worth. Shareholders are still talking about legal action though. Ascent Resources (AST) also updated regarding its difficulties. AST is filing an appeal to the Slovenian Administrative Court regarding the decision of the Slovenian Environmental Agency to require a full environmental impact assessment, and is also working to prepare legal claims for damages against the Republic of Slovenia for breaches of EU law which will be pursued in domestic and international courts.
Trinity Exploration (TRIN) announced an operational update. The second half of the year is expected to be extremely active with the recommencement of its offshore drilling programme. Well known oil investors, David and Monique Newlands, declared a 3.24% stake last week and TRIN has lined up a strong investor awareness programme for the Autumn. It could be interesting. Also in Latin America, President Energy (PPC) announced an update on its frac operations in Argentina. The first well fracked has increased production by more than three times and PPC is now planning fracs for its other wells.
United Oil & Gas (UOG) announced the proposed sale of North Sea Licence P2366 to Anasuria Hibiscus UK Limited for an initial consideration of $950,000, with a further $3.8 million possible on the completion of various future milestones, including the commercial production of hydrocarbons. Zenith Energy (ZEN) announced a "confirmed date" of 26 July for the commencement of its well deepening operations. Petro Matad (MATD) announced the spud of the Heron-1 exploration well, "an appraisal of the T19-46 oil field immediately to the north." The well is expected to take up to 40 days to complete.
JKX Oil & Gas (JKX) announced the IG142 test results. Their new well in the Ukraine tested at 1,606 boepd. Fellow Ukraine operator, Cadogan Petroleum (CAD), announced the resignation of Guido Michelotti, its CEO. Russian operator, Volga Gas (VGAS), issued an operational update. Reserves will have to adjusted down by approximately 20% due to results from testing of the VM#2 and VM#3 wells. In Georgia, Block Energy (BLOE) announced it has increased its working interest in the West Rustavi licence to 100%. Core investor, Miton, followed through by selling nearly half its stake - to help fund its acquisition of the placing shares from AAOG, or perhaps just because BLOE is looking expensive.
Aminex (AEX) announced a Ruvuma farm-out update. All parties have agreed to extend the long stop date to 31 October if necessary. Government approvals in Tanzania are taking longer than expected. This also impacts Solo Oil (SOLO) who own a 25% interest in the project. Coro Energy (CORO) announced a long stop extension too. They are experiencing regulatory approval delays relating to the Bulu PSC acquisition. The opportunity has also been taken by CORO to restructure the acquisition terms and delay the payments.
ADM Energy (ADME) announced the appointment of Osemede Okhomina as CEO. Not quite the big hitter many were hoping for. Mosman Oil & Gas (MSMN) announced modest initial production from the Stanley-2 well in Texas. Lekoil (LEK) announced an operational and trading update. Plans are underway, subject to finalisation of funding, for a multi-well drilling programme. Pantheon Resources (PANR) announced a placing and raised $10.7 million at an issue price of 18p per share. Notwithstanding its dire operational record it continues to raise money easily.
Amerisur Resources (AMER) announced a strategic review including a formal sale process under the Takeover Code. Two price benchmarks which takeover offers may have to surpass are the 18p share price paid by some directors earlier this year and the 25p placing price in 2016. The shares closed on Friday at 16.5p and could be worth a look at. [Update 22 July 2019: offer of 17p per share received from Maurel & Prom, immediately rejected by the Board of AMER] Finally, RockRose Energy (RRE) announced the publication of its prospectus. Dealings in the shares will commence on Wednesday morning and could present some interesting trading opportunities.
Contact me on Twitter @Oilman_Jim
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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.
Meanwhile, Reabold Resources (RBD) which is indirectly connected to West Newton via its ownership of a minority shareholding in the operator, Rathlin Energy, announced the farm-out of an interest in Romania owned by another company, Danube Petroleum, in which it also has a minority stake. The interesting company here is the 100% owned Gaelic Resources, acquired by RBD just a few months after its incorporation in the Isle of Man, for which they issued 420 million shares to an unknown party, paid them $1 million cash and into which $7 million cash is flowing from RBD this year. Check out in addition the unknown operator, Integrity Management Solutions, who also provides the numbers used in RBD's RNS announcements. This smells bad.
Providence Resources (PVR) and Lansdowne Oil & Gas (LOGP) provided yet another update regarding the non-payment from their Chinese investors. The cheque remains in the post (in this case as a supposed electronic transfer), but they now have a letter from the legal representatives of the funder advising that the remittance is expected to be completed shortly. A further extension of the backstop was made until Friday and it is assumed that there will be another announcement from PVR and LOGP on Monday. [Update 22 July 2019: "received further documentation showing the mechanics of the transfer," backstop extended again to 26 July 2019]
The charade continued at Anglo African Oil & Gas (AAOG) which announced on Monday that their unpaid drilling contractor had obtained a court order freezing all the assets at Tilapia plus AAOG's Congo bank account. Matters improved for them slightly on Wednesday when they were able to announce a £2.56 million placing at 5.2p with existing shareholder, Miton. What's really going on is far from certain though, since a second RNS on Wednesday disclosed Miton selling shares the day before when the bid was in the 3s.
The Anglo African Oil & Gas financing RNS also had a second part. 109 million shares are being issued to Riverfort, who will sell up to 20% of the volume each day and pay over 75% of the sale proceeds to AAOG. Quite frankly, anyone could do this and agreeing that 25% of the sale proceeds are retained by Riverfort is simply a gift. Unless of course, Riverfort actually have to do something else other than just press "Sell" such as creating the necessary buying, without which the share price would go to virtually zero. More about how this will be done next week.
Angus Energy (ANGS) directors tried to assuage shareholder anger by buying some shares themselves. The Chairman bought £25,000 worth and the Finance Director bought £20,000 worth. Shareholders are still talking about legal action though. Ascent Resources (AST) also updated regarding its difficulties. AST is filing an appeal to the Slovenian Administrative Court regarding the decision of the Slovenian Environmental Agency to require a full environmental impact assessment, and is also working to prepare legal claims for damages against the Republic of Slovenia for breaches of EU law which will be pursued in domestic and international courts.
Trinity Exploration (TRIN) announced an operational update. The second half of the year is expected to be extremely active with the recommencement of its offshore drilling programme. Well known oil investors, David and Monique Newlands, declared a 3.24% stake last week and TRIN has lined up a strong investor awareness programme for the Autumn. It could be interesting. Also in Latin America, President Energy (PPC) announced an update on its frac operations in Argentina. The first well fracked has increased production by more than three times and PPC is now planning fracs for its other wells.
United Oil & Gas (UOG) announced the proposed sale of North Sea Licence P2366 to Anasuria Hibiscus UK Limited for an initial consideration of $950,000, with a further $3.8 million possible on the completion of various future milestones, including the commercial production of hydrocarbons. Zenith Energy (ZEN) announced a "confirmed date" of 26 July for the commencement of its well deepening operations. Petro Matad (MATD) announced the spud of the Heron-1 exploration well, "an appraisal of the T19-46 oil field immediately to the north." The well is expected to take up to 40 days to complete.
JKX Oil & Gas (JKX) announced the IG142 test results. Their new well in the Ukraine tested at 1,606 boepd. Fellow Ukraine operator, Cadogan Petroleum (CAD), announced the resignation of Guido Michelotti, its CEO. Russian operator, Volga Gas (VGAS), issued an operational update. Reserves will have to adjusted down by approximately 20% due to results from testing of the VM#2 and VM#3 wells. In Georgia, Block Energy (BLOE) announced it has increased its working interest in the West Rustavi licence to 100%. Core investor, Miton, followed through by selling nearly half its stake - to help fund its acquisition of the placing shares from AAOG, or perhaps just because BLOE is looking expensive.
Aminex (AEX) announced a Ruvuma farm-out update. All parties have agreed to extend the long stop date to 31 October if necessary. Government approvals in Tanzania are taking longer than expected. This also impacts Solo Oil (SOLO) who own a 25% interest in the project. Coro Energy (CORO) announced a long stop extension too. They are experiencing regulatory approval delays relating to the Bulu PSC acquisition. The opportunity has also been taken by CORO to restructure the acquisition terms and delay the payments.
ADM Energy (ADME) announced the appointment of Osemede Okhomina as CEO. Not quite the big hitter many were hoping for. Mosman Oil & Gas (MSMN) announced modest initial production from the Stanley-2 well in Texas. Lekoil (LEK) announced an operational and trading update. Plans are underway, subject to finalisation of funding, for a multi-well drilling programme. Pantheon Resources (PANR) announced a placing and raised $10.7 million at an issue price of 18p per share. Notwithstanding its dire operational record it continues to raise money easily.
Amerisur Resources (AMER) announced a strategic review including a formal sale process under the Takeover Code. Two price benchmarks which takeover offers may have to surpass are the 18p share price paid by some directors earlier this year and the 25p placing price in 2016. The shares closed on Friday at 16.5p and could be worth a look at. [Update 22 July 2019: offer of 17p per share received from Maurel & Prom, immediately rejected by the Board of AMER] Finally, RockRose Energy (RRE) announced the publication of its prospectus. Dealings in the shares will commence on Wednesday morning and could present some interesting trading opportunities.
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.