Oilman Jim

Three companies currently are underway with their exploration drilling programmes:  I3 Energy (I3E) , Petro Matad (MATD) and  Hurricane Energy (HUR) , the latter of which announced the spud of its Warwick West well last week. MATD awaits the test results of Heron-1 and the initial drill results of Gazelle-1. I3E is awaiting the spud of its Serenity exploration well, with the Liberator appraisal well delayed pending the processing and interpretation of new seismic data. Pending the outcome of the drills, I think the latter two are purely for trading. Another company operating in the North Sea, Independent Oil & Gas (IOG) announced the settlement of its 100 million Euro bond raise, fully funding them for their core project next year. In the meantime, data acquired from the Harvey well is now undergoing analysis to generate a revised technical assessment of reservoir gas volumes and deliverability. IOG also announced interim results a...

Bahamas Petroleum Company (BPC) now has passed the necessary shareholder resolutions to enable a financing for their targeted upcoming drills. They're hoping for a farm-out, but more likely is a large discounted placing. I don't think it's a buy now (it looks quite expensive at an un-financed market cap of £41million), but it could be quite interesting once the fund raising is done. Europa Oil & Gas (EOG) announced the award of a large exploration licence, offshore Morocco. They claim it has a number of 250 million barrel prospects and they're aiming for one or a number of farm-outs. The shares remain at their lows though and there's still no news of what were expected farm-outs in Ireland. At a £10 million market cap, there's huge potential upside here, but some patience may be necessary. Chariot Oil & Gas (CHAR) announced a CPR on additional prospects offshore Morocco. They now have an audited total remaining recoverable resource in excess ...

Three announcements from UK Oil & Gas (UKOG) last week. They've completed the acquisition of Magellan Petroleum, taking their interest in Horse Hill to 85.635%, obtained long-term production consent to produce 3,500 bopd from six wells for 25 years, and the rig arrives at Horse Hill later this month. There's going to be solid news flow moving forward, perhaps press and TV coverage too, and notwithstanding any reservations regarding the valuation case, with its huge investor audience I think the share price will be going higher. I3 Energy (I3E) had a troubled week, providing a useful reminder that nothing is ever risk free in the oil business. The expected sands were not present at the location of the pilot well and the share price halved. There are two further wells coming up, one appraisal and one exploration, both with around a 70% chance of success, so continuing volatility is ensured. I said in the blog three weeks ago that I3E was going to offer serious trading opp...

Interesting news last week. Petro Matad (MATD) announced a half-year report, confirming the current status of its three exploration drills in Mongolia. The results of Heron-1 will be announced this coming week, results of Red Deer-1 will be announced mid-September, and Gazelle-1 will follow Heron-1, taking approximately 35 days to drill and log. Plenty of excitement coming up with this one. A number of other drill results are close too. Eco (Atlantic) Oil & Gas (ECO) currently is drilling the Joe-1 exploration well, offshore Guyana. Results are expected mid-September. Touchstone Exploration (TXP) is drilling the COHO-1 exploration well in the Republic of Trinidad and Tobago. Results are imminent. Independent Oil & Gas (IOG) is drilling the Harvey appraisal well in the UK Southern North Sea. Results expected mid-September. I3 Energy (I3E) is drilling its North Sea LPt-02 pilot well. Results are due later this month and this well is to be followed with two further wells...

It was a short trading week, but with no shortage of news. Eco (Atlantic) Oil & Gas (ECO) started on Tuesday, announcing the spud of the Joe-1 well, the drilling of which will take approximately three weeks. ECO has now more than doubled in price since it was mentioned as a favourite in the 14 July blog and there could be significant further mileage in this still. Providence Resources (PVR) and Lansdowne Oil & Gas (LOGP) made the now usual weekly announcement of a further backstop extension. Like the story of the Arab "sheikh" at ADM Energy (ADME) , which announced last week that he never actually was a director after all, you either believe it or not, in this case the story from the Chinese that they have sent the money. Unfortunately, if the transfer doesn't arrive soon, PVR is out of working capital and will have to raise, no doubt at a substantial discount to the current price and, since PVR is talking about going ahead with the site survey regardless, it...