Aminex (AEX) announced receipt of approval from the Tanzanian Government for the transfer of a 50% interest in, and operatorship of, the Ruvuma PSA to ARA Petroleum. As regular readers know, I said this was more likely than not to happen. ARA certainly believed it to be the case, since they advanced $5 million to AEX over the past 12 months. The Aminex share price has more than trebled. It’s good news too for Solo Oil (SOLO), who hold a 25% interest in Ruyuma, which they are aiming to sell. AEX retains a 25% carried interest.
Pantheon Resources (PANR) announced upgraded management resource estimates for Kuparuk. This an oil bearing formation at the Talitha project and PANR itself estimates this horizon to contain 1.4 billion barrels of oil in place and a prospective recoverable resource of 341 million barrels of oil as “a most likely case.” Some are dubious and question this company’s near quarter of a billion pounds market capitalisation, but let’s first see if anyone real actually bites on their current farm-out offer.
Zephyr Energy (ZPHR) (the old Rose Petroleum) announced a £2.25 million placing at 0.55p. The “upcoming drill” in fact is a vertical stratigraphic research well, part funded by the University of Utah's Energy & Geoscience Institute. The well has “been designed to facilitate re-use," though, which will allow the potential for future drilling of a horizontal appraisal lateral from the well-bore after the initial data acquired has been processed and evaluated. Most likely this will require significant further funding. The placing monies also are to be used for the funding of potential acquisitions, which to date have entailed paying top dollar for the directors’ own interests in somewhat out of favour US shale well acreage.
UK Oil & Gas (UKOG) announced that it has successfully executed the participation agreement and the joint operating agreement with Aladdin Middle East Ltd for a 50% interest in the 305 km² Turkish Resan licence and the respective oil appraisal and exploration programme. Further to its 2 October equity raise, UKOG will now fund the key initial preparatory operations so that the first oil appraisal well, currently planned as Basur-3 can be drilled as soon as practicable in early 2021. Noting, though, that the Basur-3 well and flow test gross costs are estimated by Aladdin at $3 million and that UKOG must pay the first $5 million of drilling and seismic costs on the licence, it is clear that yet another fundraising will very soon be needed.
That’s my take on the more interesting RNS announcements over the past week. More in the private blog at https://www.oilnewslondon.com/oilman-jim
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The author may hold 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.