UKOG, I3E, HUR, IOG, MATD, ZEN, RBD, AAOG, PVR, RPT, AMER, CORO, IGAS, PVR, TRIN, TRP, GKP, 88E, RRL, ADME, UOG, INFA, MSMN, CASP, CERP, SEY, SOLO, ALBA, LOGP and TXP
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 opportunities and, so far, that's very much the case. (For those enquiring why no chance of success was stated for the LPt-02 well (more correctly the 13/23c-09 well), that is because it was a stratigraphic test well, drilled solely to gain structural information.)
Better news from Hurricane Energy (HUR) which announced the Lincoln Crestal 205/26b-14 well result. The well recorded a maximum stable flow rate of 9,800 bopd. The rig now moves to drill the 204/30b-A Warwick West well. Independent Oil & Gas (IOG) announced a Harvey update. Drilling is complete and the company is analysing the logs. Crucially, IOG also was able to announce the successful arrangement of a EUR 100 million bond issue, fulfilling the key condition to farm-out completion.
Petro Matad (MATD) announced the results of its Heron-1 well in Mongolia. They are sufficiently encouraged to run casing for a testing programme and the results of that are awaited. The rig next moves on to spud the Gazelle-1, hopefully before the end of September. Results for Red Deer-1 are expected any day. This one promises plenty of volatility.
Zenith Energy (ZEN) has found another way to promote itself with spoof trades being put through at multiples of the London price on the Oslo market. Perhaps the contents of their RNS announcements are equally unreliable? Also suggests a placing might be imminent.
Reabold Resources (RBD) are still at it in their RNS announcements with their appraisal wells making "discoveries" of the zones they are appraising. If they actually are making discoveries, then they are misdescribing what are exploration wells. They don't seem to realise that it just makes them look shifty.
Anglo African Oil & Gas (AAOG), another slippery company, announced that David Sefton has left with immediate effect. Perhaps surprisingly, the shares fell on the news. Reality is though, that with them claiming to have recommenced well re-entry operations, AAOG needs to get its share price up if it wants to receive the necessary financing to side track the TLP 103C well. But can they do what is necessary to promote the shares without a character like Sefton?
Providence Resources (PVR) has been floored by the continued non-arrival of the bank transfer from their Chinese partner, APEC. As a result, it was forced to raise $3.76 million last week to fund the site survey at Barryroe and provide general working capital until early next year. The placing price is less than half of where the share price was before this debacle. If the money does arrive from APEC, though, the share price will rocket. One to keep an eye on.
UKOG, I3E, MATD, ZEN, RBD, AAOG and PVR also are covered in my weekend podcast. You can listen to it here:
https://embeds.audioboom.com/posts/7369102-oil-man-jim-company-oil-gas-podcast-14th-september-2019/embed/v4
In other news, Regal Petroleum (RPT), Amerisur Resources (AMER), Coro Energy (CORO), IGas Energy (IGAS), Providence Resources (PVR), Trinity Exploration (TRIN), Tower Resources (TRP) and Gulf Keystone Petroleum (GKP) announced interim results, 88 Energy (88E) announced interim results and a placing to raise A$6.75 million, Range Resources (RRL) announced that it has raised approximately £750,000 via a subscription, ADM Energy (ADME) announced that it has raised £832,000 via a subscription, United Oil & Gas (UOG) announced the confirmation of an award of four blocks in the UK North Sea, Infrastrata (INFA) announced a Islandmagee gas storage project update, Mosman Oil & Gas (MSMN) announced Stanley-3 initial production flow rates, Caspian Sunrise (CASP) announced a BNG operational update, Columbus Energy Resources (CERP) announced an update on executive management fees, Sterling Energy (SEY) announced an extension to the Odewayne PSA, Solo Oil (SOLO) announced the disposal of its Burj investment and agreements with THREE60 and NRG, Alba Mineral Resources (ALBA) announced two Horse Hill updates, Lansdowne Oil & Gas (LOGP) announced a Barryroe farm-out transaction update and Touchstone Exploration (TXP) announced positive COHO-1 exploration well results.
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.
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 opportunities and, so far, that's very much the case. (For those enquiring why no chance of success was stated for the LPt-02 well (more correctly the 13/23c-09 well), that is because it was a stratigraphic test well, drilled solely to gain structural information.)
Better news from Hurricane Energy (HUR) which announced the Lincoln Crestal 205/26b-14 well result. The well recorded a maximum stable flow rate of 9,800 bopd. The rig now moves to drill the 204/30b-A Warwick West well. Independent Oil & Gas (IOG) announced a Harvey update. Drilling is complete and the company is analysing the logs. Crucially, IOG also was able to announce the successful arrangement of a EUR 100 million bond issue, fulfilling the key condition to farm-out completion.
Petro Matad (MATD) announced the results of its Heron-1 well in Mongolia. They are sufficiently encouraged to run casing for a testing programme and the results of that are awaited. The rig next moves on to spud the Gazelle-1, hopefully before the end of September. Results for Red Deer-1 are expected any day. This one promises plenty of volatility.
Zenith Energy (ZEN) has found another way to promote itself with spoof trades being put through at multiples of the London price on the Oslo market. Perhaps the contents of their RNS announcements are equally unreliable? Also suggests a placing might be imminent.
Reabold Resources (RBD) are still at it in their RNS announcements with their appraisal wells making "discoveries" of the zones they are appraising. If they actually are making discoveries, then they are misdescribing what are exploration wells. They don't seem to realise that it just makes them look shifty.
Anglo African Oil & Gas (AAOG), another slippery company, announced that David Sefton has left with immediate effect. Perhaps surprisingly, the shares fell on the news. Reality is though, that with them claiming to have recommenced well re-entry operations, AAOG needs to get its share price up if it wants to receive the necessary financing to side track the TLP 103C well. But can they do what is necessary to promote the shares without a character like Sefton?
Providence Resources (PVR) has been floored by the continued non-arrival of the bank transfer from their Chinese partner, APEC. As a result, it was forced to raise $3.76 million last week to fund the site survey at Barryroe and provide general working capital until early next year. The placing price is less than half of where the share price was before this debacle. If the money does arrive from APEC, though, the share price will rocket. One to keep an eye on.
UKOG, I3E, MATD, ZEN, RBD, AAOG and PVR also are covered in my weekend podcast. You can listen to it here:
https://embeds.audioboom.com/posts/7369102-oil-man-jim-company-oil-gas-podcast-14th-september-2019/embed/v4
In other news, Regal Petroleum (RPT), Amerisur Resources (AMER), Coro Energy (CORO), IGas Energy (IGAS), Providence Resources (PVR), Trinity Exploration (TRIN), Tower Resources (TRP) and Gulf Keystone Petroleum (GKP) announced interim results, 88 Energy (88E) announced interim results and a placing to raise A$6.75 million, Range Resources (RRL) announced that it has raised approximately £750,000 via a subscription, ADM Energy (ADME) announced that it has raised £832,000 via a subscription, United Oil & Gas (UOG) announced the confirmation of an award of four blocks in the UK North Sea, Infrastrata (INFA) announced a Islandmagee gas storage project update, Mosman Oil & Gas (MSMN) announced Stanley-3 initial production flow rates, Caspian Sunrise (CASP) announced a BNG operational update, Columbus Energy Resources (CERP) announced an update on executive management fees, Sterling Energy (SEY) announced an extension to the Odewayne PSA, Solo Oil (SOLO) announced the disposal of its Burj investment and agreements with THREE60 and NRG, Alba Mineral Resources (ALBA) announced two Horse Hill updates, Lansdowne Oil & Gas (LOGP) announced a Barryroe farm-out transaction update and Touchstone Exploration (TXP) announced positive COHO-1 exploration well results.
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.