Oilman Jim

Another interesting week in the UK small-cap oil and gas company market: Hurricane Energy (HUR) announced an operational and corporate update.   It’s considering a new production well at an estimated cost of around $60 million and a water injection programme at an estimated cost of around $75 million.   Suitable funding arrangements will need to be entered into, which HUR says present a risk of dilution to existing shareholders from a possible restructuring and/or partial equitisation of the convertible bonds.   If no agreement can be reached with the stakeholders on additional investment, the field may then be decommissioned, with potentially no value returned to shareholders.   HUR is one I was cautioning about a year ago when it was in the low 30s and problems started to become apparent.  It’s now down to just over 2.5p.   Perhaps remember those touting this over the past year and recall the abuse they and their associates hurled at those who were menti...

A number of interesting announcements last week: Predator Oil & Gas (PRD) issued an end of year operational update.   The main event coming up is the Guercif drilling programme, onshore Morocco.   The Star Valley Rig 101 remains securely stacked in Morocco awaiting lifting of COVID-19 restrictions and PRD are seeking to optimise drilling programme synergies with SDX Energy (SDX) based on their MOU-1 being the first well to be drilled.   Spud is expected in the first half of next year. 88 Energy (88E) announced the execution of a rig contract for drilling at Project Peregrine.   Permitting and planning remain on track for a scheduled spud in February 2021.   The contract is with All American Oilfield for the use of Rig 111 to drill the Merlin-1 and Harrier-1 wells.   Funding details of the latter have not yet been disclosed to the market. United Oil & Gas (UOG) announced a new prospective resources report for the Walton Morant licence, offshore J...

Still no agreement for an EU-UK trade deal, but regardless of whether it happens, absent some unexpected last minute extension to the transition period, Great Britain is out of the single market and customs union on 1 January.   Those uncertain as to the reasons all the other countries in Europe want to be part of these are about to find out why.   With the outcome of the US Presidential Election now certain, it’s clear there will be no trade deal for the UK with the US for some considerable time and, absent a deal with the EU, Britain will lack trade arrangements with half of the world’s economy.   On the brighter side, there’s much positive news about Covid-19 vaccines, although countermeasures are still likely to continue for a large part of next year and, most importantly for the stock markets, Government creation of money will continue unabated. On to the week’s company news, and I’ll comment on the more interesting announcements, Block Energy (BLOE) announced a pla...