Oil prices continued their most significant weekly increase in two months, driven higher by new attacks in the Red Sea that led numerous ships to choose longer, safer routes.
The international benchmark, Brent crude, saw a 1% rise, trading above $80 per barrel, marking its second consecutive weekly gain following a series of seven weekly drops. Meanwhile, the US benchmark, West Texas Intermediate, climbed 1.2%, surpassing $74 per barrel.
Harbour Energy PLC (LSE: HBR) experienced a 5% increase in its share price on Friday, following positive market reactions to its $11.2 billion acquisition of Wintershall. Analysts from Jefferies described the deal as “very compelling,” and Bank of America’s team regarded it as exceeding expectations.
Plexus Holdings PLC (AIM: POS), the AIM-listed oil and gas engineering services group, said there is “good momentum in the business” moving into 2024. In a statement ahead of the company’s AGM, chairman Craig Hendrie told investors there were several “positive” tender opportunities after it recently re-entered wellhead rental for exploration drilling from Jack-up rigs.
Harbour Energy shares soared 22% on Thursday after it announced it is set to purchase the upstream assets of the oil and gas company Wintershall Dea, owned by chemical conglomerate BASF and investment firm LetterOne, co-founded by the sanctioned Russian tycoon Mikhail Fridman. This acquisition will broaden Harbour’s operational footprint to include Norway, Germany, Denmark, Argentina, Mexico, Egypt, Libya, and Algeria. It also encompasses the company’s carbon dioxide capture and storage licenses in Europe.
88 Energy Ltd (AIM: 88E, ASX: 88E, OTC: EEENF) has reached an agreement to temporarily halt activities on the Project Peregrine leases for 12 months. This pause, sanctioned by the Bureau of Land Management Alaska (BLM), enables the exploration company to maintain control over its promising land holdings, encompassing approximately 125,735 acres.
Scirocco Energy PLC (AIM: SCIR) has announced the divestment of its holdings and investments in Energy Acquisitions Group Ltd for a total consideration of £2.6 million. As part of this transaction, Scirocco will transfer its interest to ONC Bidco 1 Ltd, a subsidiary of OrbeNovo, along with the associated loan obligations that were established in 2021.
Europa Oil & Gas (Holdings) PLC (AIM: EOG) has embarked on a new venture by acquiring a stake in an “exploration-ready” project offshore Equatorial Guinea. In a strategic move, Europa Oil & Gas is investing $3 million to secure a 42.9% ownership stake in Antler Global, which, in turn, holds an 80% interest in the EG-08 production sharing contract in partnership with Equatorial Guinea’s national oil company.
Helium One Global Ltd (AIM: HE1, OTCQB: HLOGF) has completed an oversubscribed placement and direct subscription offer of new shares, resulting in gross proceeds of £6.1 million. These newly issued shares were priced at 0.25p each, and the capital raised through this fundraising initiative will be allocated to fund the upcoming drilling program at the Itumbula West-A prospect located in Tanzania.
Petrofac Limited (LSE: PFC) saw its shares soar by 60% as investors who had bet against the stock started to withdraw their positions. This followed the announcement of a significant new order for the oil and gas installation company. Petrofac, known for its substantial debts, multiple profit warnings, and involvement in bribery scandals, has been heavily shorted in the London market. However, the recent news of a US$1.4 billion contract with TenneT indicates a potential shift in investor sentiment.
88 Energy has announced its anticipation of receiving the Hickory-1 flow test results by March 2024, marking a significant milestone as it becomes the first of its Alaska wells to successfully flow to the surface, according to the oil explorer’s latest communication. In their shareholder update, the company also highlighted that its Project Leonis is on track to have an independent, Certified Resource Estimate prepared before launching a formal farm-out program in the first half of 2024. This development paves the way for drilling the first well in the 2025/26 period.
Angus Energy (AIM: ANGS) stock rose over 21% on Wednesday. This increase came after the oil and gas company revealed a refinancing agreement for its £20 million debt.
While trading slowed towards the end of the week, Angus Energy still ended the week with a 10% gain.
Reabold Resources PLC (AIM: RBD) disclosed that its associate company, LNEnergy, holding a 26.1% stake, has submitted an Environmental Impact Study (EIS) for a new small-scale liquefied natural gas (LNG) project at the Colle Santo gas field. The EIS was filed with Italy’s Ministry of Environment and Energy Security, marking a step forward in LNEnergy’s efforts to gain approval for long-term testing and monitoring of the field.
Additionally, the London junior market welcomed a new entrant with the merger of EnergyPathways PLC into Dial Square Investments PLC (LSE: DSI). This reverse takeover resulted in a fundraising of £2 million, valuing the newly merged entity at £6.32 million.
Petrofac Limited (LSE: PFC) recently conveyed a positive outlook, supported by substantial orders in both its Engineering & Construction (E&C) and Asset Solutions divisions. According to its latest trading update, the company, specializing in the construction of oil and gas installations, has reported an order intake of approximately US$6.8 billion for the current year. Consequently, Petrofac expects its group backlog to reach around US$8.0 billion by year-end.
Diversified Energy Company PLC (LSE: DEC, OTCQX: DECPF) has addressed the recent fluctuations in its share price. The company acknowledged receiving inquiries from the United States House of Representatives Committee on Energy and Commerce. These inquiries pertain to the company’s well-retirement processes and emissions management. Amidst these developments, DEC’s shares in London witnessed a decline, dropping by 254p or 19.38%, trading at £1,056.50 per share.
In related industry news, despite the recent increase in attacks in the Red Sea region, analysts predict that oil and gas supplies will not face significant disruptions. Energy indexes, which forecast future prices, continue to show a contango, indicating an upward price trend. This suggests that the physical market maintains a consistent supply of oil and gas.
Union Jack Oil PLC (AIM: UJO) shared encouraging news about its Wressle-1 well in North Lincolnshire, in which it holds a 40% economic interest. The update, deemed positive for the UK onshore-focused group by its house broker ShoreCap, highlighted the well’s enhanced production capabilities. Following the implementation of a new environmental permit on 14 December, the well’s output has increased significantly, now reaching 670 barrels daily, up from the previous 550 barrels per day.
BP PLC (LSE: BP.) has announced a substantial £50 million donation for the renovation of the British Museum in Bloomsbury, London. This contribution spread over 10 years, is intended to support the museum’s ‘Masterplan’ renovation and is recognized as the largest corporate donation to UK arts to date. However, this move has reignited discussions around the concept of greenwashing by major oil companies and countries involved in fossil fuel production.
Genel Energy PLC (LSE: GENL, OTC: GEGYY) has informed its investors about the increasing production from the Tawke license. The company noted that the average production rate for December is nearing 90,000 barrels of oil per day (bopd). This marks a significant increase, with the projected output for the fourth quarter expected to be around 65,000 bopd, a substantial rise from the 26,000 bopd recorded in the third quarter.
Pantheon Resources PLC (AIM: PANR, OTCQX: PTHRF) is steadfastly committed to making final investment decisions (FID) on its Alaskan oil field projects within the next five years.
CEO Jay Cheatham outlined the company’s objectives, targeting the FID for the Ahpun field by the end of 2025 and for the Kodiak field by the end of 2028. The goal is to attain a market valuation of $5-$10 per barrel for 1P/1C recoverable resources.
Cheatham highlighted the significant strides and accomplishments Pantheon has made in the year leading up to June 30, 2023. He credits the extensive data collection and technical work conducted in 2023 for bolstering his confidence in the viability of the company’s ventures.
Europa Oil & Gas (Holdings) PLC (AIM: EOG) expressed optimism regarding the increased production at the Wressle field, terming it as “very encouraging.” The field has recently been granted regulatory approval to handle higher fluid volumes at the surface and adjacent water disposal sites. This development effectively enhances the potential for increased production, which had previously stabilized at an average of 550 barrels of oil per day (bopd).
Capricorn Energy PLC (LSE: CNE, OTC: CRNZF) is set to expand its portfolio by acquiring a stake in the North Sea’s Columbus gas field, following a revised agreement with Waldorf Production UK PLC. This move comes after Capricorn sold its interests in the Catcher and Kraken fields in 2021. The deal will see Capricorn acquiring Waldorf’s 25% non-operated working interest in the Columbus field, along with receiving a payment of US$72.5 million.
Harbour Energy PLC (LSE: HBR) experienced a positive development following the successful drilling by a partner in an Indonesian gas license, in which Harbour Energy holds a 20% interest. Operated by Mubadala Energy, the oil and gas division of Abu Dhabi’s Mubadala Investment Company, the Layaran-1 well in the South Andaman license achieved a production rate of 30 million cubic feet per day, equivalent to about 5,300 barrels of crude oil.
Touchstone Exploration Inc (AIM: TXP, TSX: TXP, OTC: PBEGF) is looking forward to a significant increase in production in the coming year, thanks to the successful operation of its new Cascadura project. The company projects its production to range between 9,100 and 9,700 barrels of oil equivalent per day (boepd) throughout 2024, with a substantial portion of this output expected to be natural gas.
Plexus Holdings PLC (AIM: POS) has successfully finalized two option agreements, as revealed in their latest update. These agreements, comprising a Primary and a Secondary option, were initially disclosed on September 18, 2023. They are associated with loan agreements amounting to £700,000 with lenders Ben van Bilderbeek and Plexus Property International Ltd (PPI).
BP PLC (LSE: BP.) has announced its decision to temporarily halt all shipments through the Red Sea due to escalating attacks on merchant shipping by Houthi militants. The company stated, “In light of the deteriorating security situation for shipping in the Red Sea, BP has decided to temporarily pause all transits through the Red Sea.”
Empyrean Energy PLC (AIM: EME) is keenly awaiting the completion of a long-term gas sale agreement for the Duyung PSC Project, located offshore in Indonesia. The company updated that bids for the sell-down process, aimed at funding the project’s development, are expected by the end of this calendar year. Methane production from the site is anticipated to commence by 2025.
Canadian Overseas Petroleum Limited (LSE: COPL, CSE: XOP, OTC: VELXF) has released a brief statement announcing the termination of the non-binding Cole Creek joint venture letter of intent. The company also noted that no further discussions are currently planned and promised to provide an update on its strategy for the Cole Creek and Barron Flats Shannon Units in Wyoming before the year’s end.
Chariot Ltd (AIM: CHAR, OTC: OIGLF), an energy firm, is well-positioned to benefit from the transition towards greener energy in South Africa’s power sector, according to analysts at Cavendish. The company recently announced the completion of a joint acquisition of Etana Energy, an electricity trading company.
In other news, Diversified Energy Company PLC (LSE: DEC, OTCQX: DECPF) has commenced trading on the New York Stock Exchange (NYSE) under the ticker ‘DEC’. The company maintains its listing on the London Stock Exchange and expects to continue as a member of the FTSE 250 index.
Tower Resources PLC (AIM: TRP) has marked a significant milestone by signing the rig contract for the NJOM-3 well, offshore Cameroon. This development brings the company and its investors closer to drilling the key well in 2024, as previously planned.
Deltic Energy PLC (AIM: DELT) informed its investors that they can expect two wells to be operational in 2024. The company highlighted that its partnership led by Shell in the Pensacola discovery has finalized a positive investment decision, approving the 2024 work program and budget.
Serica Energy PLC (AIM: SQZ) has announced a new US$525 million debt facility, intended to replace its current borrowing facilities. This new line of credit, which is available in multiple currencies and structured as a revolving credit facility, will support Serica’s investment plans and aid in its acquisition strategies in the North Sea drilling sector.
Lastly, Chariot Ltd (AIM: CHAR, OTC: OIGLF) has announced an increase in its investment in Etana Energy, a South African electricity trading company. Chariot will spend up to US$1 million from its cash reserves by March to increase its stake in the company from 25% to 49%.
