IGas Energy The decision by the Government for a moratorium on fracking in the UK has obviously put the cat amongst the pigeons, coming as it did from left field.
By Malcolm Graham-Wood
An abrogation of responsibilities can only be expected during an election campaign, about this, which we are reminded is an ‘interim’ statement so don’t bet on this having gone forever.
For IGas whilst this is yet another disappointment one must bear in mind a few points, firstly its substantial conventional E&P business which has a 2P NPV10 of $160m is not impacted at all. Secondly, the OGA indicate ‘that susceptibility to seismicity depends strongly on a location’s specific geology with the mere presence of faulting or the parameters of the injection possibly of less importance’ which I take to mean that an area such as the East Midlands, being less faulted could be relatively unaffected by this moratorium.
All will unfold and the OGA, which will add more evidence in due course, has plenty more to say in this debate. For IGas where the shares have fallen substantially this morning putting them on a ludicrous discount to core and deliverable NAV.
Rose has signed an LOI with Captiva (CEH) for a 10% NWI in the 317 acre McCoy lease in the Denver-Julesburg Basin in Colorado with the option to buy a further 80% of CEH’s 89.5%. This is a near term, low-risk horizontal development drilling being done by a management team with significant experience and clearly determined to move Rose into a different risk profile.
Alongside this announcement, Rose has raised £1.25m at 1.1p with warrants, modest but the first in what might be a further restructuring of the business. Indeed, it shows that significant steps are being taken to reshape the company with a new strategic and operational focus. I will add more after I have spoken to the management.
Echo Energy has an extension to its Acquisition Agreement whilst waiting on a waiver…Coro Energy has announced that has spudded its Tambak-1 well, expect about 33 days drilling…At PetroTal the highly respected former Bankers Petroleum CFO and already on the PTAL board Douglas Urch takes over as CFO.
Website Link www.malcysblog.com
All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned