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...

Another interesting week.  I3 Energy (I3E) announced news which appears to have confused many.  Key point is that the warrant and management option strike prices are being reset to the nominal value of I3’s shares (£0.0001/share), which means that the I3 equity is being deemed worthless.  The Canadian acquisition and any future North Sea activity therefore is of academic interest only now to existing shareholders.  You can perhaps see why a well-known group was pumping I3E so hard before the suspension, trying to get the stock away. As expected the TomCo (TOM) “short squeeze” ran out of steam and the price has retreated significantly.  Next up here will be a new placing.  Let's be clear, associated company Petroteq (PQE PQEFF) is a promotion.  No one is expecting it to achieve commercial success.  The purpose of its announcements is to sell shares.  Any company doing "business" with it is the same.  Mayan Energy (MYN) (now ...

Quite a busy week for news.  Petrel Resources (PET) announced preliminary results for the year ended 31 December 2019.  The Chairman’s statement is a grand read and John Teeling just tells it all frankly as it is.  This was a blog favourite last year around 1p and is now nearly 4p, having been many times higher.  It could move strongly upwards again with positive Iraq news. PetroTal (PTAL) announced 2019 year-end financial and operating results, reporting a "difficult trading environment” plus a placing to raise £14 million, which will allow them to continue the development of the Bretana oil field, but at a slower pace.  I’ve been warning about this one in the blog all the way down from the 30s.  It’s now just over 10p. 88 Energy (88E) declared its XCD Energy takeover offer to be unconditional.  This was another blog favourite last year around 0.7p, which ran up over 100% before the drill.  But, unless you’re into gambling, remember n...

Stock market and oil prices gave back some of their recent gains last week, with plenty of uncertainty still remaining on the international macroeconomic front due to virus related demand concerns.  Domestically, the main issues now are Coronavirus and its economic impact, Brexit and the “no deal” possibility which will soon come into focus, plus whatever the BLM protests and counter protests might turn into over a long, hot summer.  It all makes for interesting (and potentially dangerous) times. Moving on, there were a couple of grumbles last weekend regarding negative coverage of companies.  Just to clarify, these blogs and associated podcasts cover the news being issued by the more speculative oil and gas companies each week.  Some issue good news, some issue mediocre news, some issue bad news, and some pretend that their bad news is good.  It’s different to the other blogs and podcasts, because I don’t accept compensation from the companies, so I can sa...