Kistos (KIST) announced the acquisition of Tulip Oil Netherlands, which owns an operating interest in the Q10-A offshore gas field, interests in other fields in the Dutch North Sea, including the Q10-B, Q11-B and M10/M11 discoveries, and further exploration and appraisal projects. Total upfront consideration for the acquisition is EUR 220 million, comprised of a combination of cash, the assumption by Kistos of an existing bond instrument issued by Tulip’s offshore subsidiary, the issue of a new debt instrument and the issue to the seller of equity in Kistos (the amount of which is as yet undisclosed). In addition, contingent consideration of up to EUR 163 million is payable on certain development milestones. It is anticipated that KIST will carry out an equity placing. The shares are now suspended (up 67.5% from the IPO price last year) pending publication of an AIM admission document Next up in this category perhaps is Longboat Energy (LBE). More on that in the private blog.
Canadian Overseas Petroleum (COPL) announced a £14 million placing at 0.32p. Net proceeds will be used for working capital required post completion of the acquisition of Atomic Oil and Gas LLC, fees and expenditures related to the Atomic acquisition and for general corporate purposes. Atomic's assets are located in the Powder River Basin in Wyoming, where it holds operated interests in 58,552 gross acres of contiguous leasehold, with two oil production units within the lease block, the Barron Flats Shannon Miscible Flood Unit (57.7% working interest) and the Cole Creek Unit (66.7% working interest), as well as one unitised exploration area, the Barron Flats Federal Unit (deep). Atomic also has two affiliates, Southwestern Production Corp. (the operating entity) and Pipeco (holding the pipeline and facility assets). COPL expects to close the deal tomorrow.
Predator Oil & Gas (PRD) announced a £1.785 million placing at 10.5p. Some of the funds raised will be used to provide a contingency for the increase in certain MOU-1 well costs occasioned by the 12-month long COVID-19 pandemic, enable long lead items necessary for a potential well testing programme to be pre-purchased, prepare additional follow-up drilling locations based on the new seismic interpretation over the past 12 months and commission a front end engineering study to supply compressed natural gas to the Moroccan industrial market to support early monetisation of gas and an eventual plan of development submission. The share price took the placing news in its stride and closed the week at 12p. Predator is one of the shares I’ve been covering in the private blog each week from as low as 1.3p.
United Oil & Gas (UOG) announced the spudding of the ASD-1X exploration well in Egypt. The company holds a 22% working interest. The well will take up to 60 days to drill and is funded entirely from operational cash flow. The UOG share price now appears to have overcome what appeared to be continuous selling at around the 3p level and has moved ahead strongly on the back of recent positive announcements.
88 Energy (88E) announced an operations update. Drilling has now commenced at Merlin-1, with results expected within the next 4 weeks, although given operational delays, it is now considered unlikely that the Harrier-1 well will be drilled this season. The share price responded positively, closing the week at 0.875p, having been as high as 0.945p, delivering yet another 100% return for those who participate in this company’s regular placings. 88E is another one I cover each week in the private blog.
Nostrum Oil & Gas (NOG) announced a reserves update. Total proven plus probable reserves at 31 December 2020 were 39 mmboe, the proven case at 28.9 mmboe comprising 27.7 mmboe for proved developed producing from 45 current wells and 1.2 mmboe in the proved undeveloped category. The audit also confirmed Chinarevskoye contingent resources of 146 mmboe, plus management estimates of the Rostoshinskoye contingent resources of 31 mmboe. The market cap for this lot, producing around 17,000 boepd, is £17 million, the only problem being net debt of around $1.1 billion.
Aminex (AEX) announced a Ruvuma operations update. Seismic acquisition is taking place over 480 km² during the second and third quarters of 2021 with processing being completed thereafter. The Chikumbi-1 well is planned to spud in early 2022 with mobilisation of the rig and other services planned for the second half of this year. Assuming a successful outcome, first gas from the project is anticipated to occur in September 2024. Aminex is carried for its share of the associated field development costs up to $35 million, equivalent to gross development expenditure of $140 million. Further on AEX in the private blog.
In other news, Jersey Oil & Gas (JOG) issued a response to media speculation. The company confirmed that it is in discussions regarding a fundraising of £10 million to £15 million. Ascent Resources (AST) announced a Slovenia operation and joint venture partner update. Production at the PG-11A well has restarted and average production in excess of 20,000 scm/day has initially been recorded. Westmount Energy (WTE) announced the commencement of drilling operations at Jabillo-1. It holds a 1.3475% effective interest. Angus Energy (ANGS) announced final results. Loss for the year was £2.516 million. Petroneft Resources (PTR) announced an operational update. Production has commenced from the Cheremshanskoye field on Licence 67 and is currently over 240 bopd. Prospex Energy (PXEN) announced a placing to raise £750,000. It’s issuing 50 million new shares at 1.5p. Cadogan Petroleum (CAD) updated on its loan to Proger Managers & Partners. It has agreed to postpone the loan reimbursement until 19 March. Finally, Pantheon Resources (PANR) announced an operational update for the Talitha #A well. The company has decided to kick off a completely new sidetrack hole and estimates that drilling and testing operations through this initiative will take 15 to 18 days.
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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.