Oilman Jim

Mainly positive news this week (excluding the lifestyle companies helps a lot with that). 88 Energy (88E) announced a new presentation.  Permitting has commenced and farm-out discussions are underway for the drilling of two wells in the first half of 2021 on the newly acquired Peregrine acreage.  Obviously, there will first be a financing. Providence Resources (PVR) announced that binding term sheets are in place with the six consortium members participating in the Barryroe appraisal and development project.  PVR is now working with SpotOn Energy and the members of the consortium to finalise a farm-out work programme.  Providence also has been informed by R. O’Riordan and S. O’Driscoll that they hold 3.56% of the issued ordinary share capital.  So things seem to be moving along here.  Lansdowne Oil & Gas (LOGP) has a 20% interest in Barryroe, so anything positive for Providence in this regard is positive for them too. Deltic Energy (DELT) anno...

Interesting week.  Reabold Resources (RBD) initiated a take over attempt for Deltic Energy (DELT) , effectively saying to their shareholders swap your cash for a share of our assets.  The DELT board was unimpressed and retaliated, saying they had a detailed understanding of a number of Reabold's investments, in particular, the West Newton project, which gave them serious concerns in relation to the technical viability, materiality and limited potential upside associated with various of these projects.  Essentially what I’ve been saying about RBD and its assets for some time from much higher share prices than today. DELT’s assets aren’t great either (Shell really only paid option money for its interests), but it does have a substantial cash balance, which is what RBD is after.  It would appear Reabold are unable to carry out any further substantial placings now, perhaps because none of their “investments” have returned one single penny for the shareholders....

The week started well with a recommended cash offer for RockRose Energy (RRE) of 1,850p per share, which takes virtually all investors out at a substantial profit.  I first bought a couple of tranches of RRE around 130p and received a 150p per share “return of capital” a few months later.  RockRose is a rare company that actually generates cash. Perhaps to follow in its footsteps is Longboat Energy (LBE) , which announced founders incentive plan awards under which "participants are eligible to receive 15% of the growth in returns of the company from the date of admission should a hurdle of doubling of the total shareholder return be met.”  LBE was highlighted in the private blog three months ago in the 50s and it’s already double that. PetroTal (PTAL) announced first quarter 2020 financial and operating results.  The Bretana field is currently shut-in and they’re hoping to reopen it this month.  Planned capital expenditure for this year has been defer...

After its recent run, UK Oil & Gas (UKOG) announced the disappointing news on Monday that planning consent had been refused for the Loxley Portland gas appraisal project, then followed through on Tuesday with a hard dose of reality in the form of interim results.  Those who had been buying based upon an organised social media ramp saw the share price back to where it started and lost half or more of their investments; those who engaged the rampers to clear the placing stock and warrants had already taken their money.  They’re quite open in last week’s RNS that "raising funds from equity remains the most prudent and only feasible way to fund projects” so further large placings are certain.  I said last weekend regarding TomCo (TOM) that next up would be a new placing and that’s exactly what happened on Thursday, when exactly as expected a new placing was announced on exactly the same terms as the previous cancelled one, which had created the “short squeeze” stor...