Malcy’s Blog – Coro/Empyrean, Tower Resources, Seplat/Eland

Coro and Empyrean have announced this morning that their Tambak-2 well in the Duyung PSC, West Natuna Basin offshore Indonesia has reached TD of 503m and is confirmed as a successful appraisal of the Mako gas field.

By Malcolm Graham-Wood

The partners are continuing with DST which should firm-up some very decent numbers but despite that Coro CEO James Menzies said ‘a great result, significant step-out from the Mako South-1 proves reservoir continuity over a very large areal extent and adds material value to the asset.’

The amount added is yet to be determined but one could imagine say, 100 BCF which would add around 40% to 2C resources from 3C. Tom Kelly, CEO of Empyrean also commented This is excellent news and progress so early on in our drilling campaign and, with a further well with additional high impact exploration potential to come, we look forward to updating our shareholders of further progress.’ Investors should remember that a find like this plugs into existing infrastructure with effectively no additional cost at all and is therefore even more valuable. Both shares have added a modest 7.5% this morning but given what they have found here the rise, particularly given the exposure for Coro, should be much higher for both companies.

Tower Resources
Tower has raised £1.5m this morning at 0.325p per share plus 1 warrant per 3 shares held, the money raised is to cover ongoing operational costs and to work on the drill site. Jeremy Asher is putting in £700,000 as he continues to back the company to a significant degree. He said this morning ‘I am pleased to have received support of new and existing investors and I hope that my personal commitment to the placing and the facility serves as a demonstration of my own confidence in the Thali licence.’

I can think of few people who have continued to back a well campaign so personally and many that would have fallen at hurdles well short of this distance and Thali deserves to be drilled at least and give Jeremy some bang for his personal bucks. With the possibility of albeit at an early stage, major investor in Namibia things are looking up for him.

Eland has succumbed this morning to a cash bid of 166p per share, a 29% premium to last night’s price, and is all done and dusted.

By Malcolm Graham-Wood

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