Malcy’s Blog – Oil price, PetroTal Corp, Europa Oil & Gas, Jadestone Energy & finally

WTI (July) $71.29 -$1.24, Brent (Aug) $75.96 -99c, Diff -4.67 +25c. 

Author @mgrahamwood

USNG (July) $2.35 +3c, UKNG (July) 64.0p +1.58p, TTF (July) €28.64 +€0.89. 

Oil price

PetroTal Corp

PetroTal has announced the following updates related to the illegal river blockade.

Illegal River Blockade Update

As of June 8, 2023, The Indigenous Association for Development and Conservation of Bajo Puinahua (“AIDECOBAP”) seized and are holding two oil transport convoys.  The first is an empty Brazilian convoy, with a crew of six and a total capacity of 70,000 barrels of oil that was traveling to the Bretana field.  The second was a Peruvian convoy which contained approximately 40,000 barrels of oil and was destined for the Iquitos refinery.  It has a crew of eight Peruvian nationals, none of whom are PetroTal employees.  The Company does not own or operate either convoy, both of which are being held near the town of 7 de Junio.  During the hostile takeover of the convoys, a Navy sailor was injured in the head with a spear requiring minor medical attention.  The Peruvian navy has been activated and will remain nearby to monitor the integrity of the vessels and health of the crew. 

AIDECOBAP continues to prevent the transit of ships in the Puinahua channel with a group of approximately sixty people and ten boats.  The residents of Bretana have expressed their strong opposition to the blockade of the river system which has halted PetroTal’s operations.  On June 8, 2023, The Presidency of the Council of Ministers (“PCM”) and the Ministry of Energy and Mines held a meeting with AIDECOBAP to better understand their claims and reasons for engagement.  PetroTal was also invited to this meeting and a de-escalation plan has been actioned which is a positive step towards reaching resolution. 

The Company has, and always will, strive for full alignment between all working table and social fund members to achieve the social fund’s objectives.  PetroTal is working with all parties to help the Government of Peru generate a rapid, peaceful, and safe resolution to the blockade.  The Company’s 2023 oil production forecast included planned downtime and a 5% social downtime contingency in its 2023 guidance to allow for social disruption.

Nothing much more to add to my previous comments but this is a buying opportunity to end all buying opportunities, I mean PTAL with all its production and long term growth AND a 15% yield?

Europa Oil & Gas

I attended the EOG meeting yesterday afternoon and a number of us where chatting about how different the prospects for the company were compared with a couple of years ago. 

A combination of current assets generating ‘significant’ revenues led by Wressle and with a work programme both there and at Broughton.  Offshore UK the company has its 25% stake in the Serenity field which has a number of potential development scenarios associated with it, the presentation yesterday gave good detail and is worth accessing. 

The Irish position of significant acreage in the 100% owned FEL 4/19 has been pretty much dormant for a while even with its exciting situation adjacent to the currently producing Corrib field. But Irish eyes are now looking at domestic hydrocarbon reserves and are smiling. Indeed now that the country appears to be realising that it won’t power itself with renewables, at least for a good while then this could be just what they want. 

Under slightly changed management who performed well yesterday, Europa is looking to expand its portfolio and ‘generate shareholder value’ what I see is a company looking very positive, cash in the balance sheet and throwing off more, with no debt and plenty of upside. Worth a turn of the head, as they say…

Jadestone Energy

Further to its announcements on 6 June 2023 and 7 June 2023 relating to its financing, Jadestone, an independent oil and gas production company focused on the Asia-Pacific region, is pleased to announce that the 94,081,826 new Ordinary Shares issued pursuant to the Placing and Subscription have today been admitted to trading on AIM. The Placing and Subscription together raised gross proceeds of US$52.6 million and net proceeds of US$50.0 million.

The Company is also pleased to confirm the commencement of its open offer of up to 14,887,039 new Ordinary Shares at an offer price of £0.45  to raise additional gross proceeds for the Company of up to approximately US$8.3 million before expenses.

In connection with the Open Offer, the Company will today post to Shareholders an open offer circular (the “Open Offer Circular”), together with an application form for the Open Offer. The Open Offer Circular contains a letter from Dennis McShane, the Chair of Jadestone, explaining the Open Offer and the full terms and conditions of the Open Offer, as well as the expected timetable of principal events (which is also set out below).  The Open Offer Circular will also be available on the Company’s website at www.jadestone-energy.com.

Qualifying Shareholders may apply for Open Offer Shares under the Open Offer at the Offer Price pro rata to their holdings of Ordinary Shares on the Record Date (being 6.00 p.m. on 7 June 2023) on the basis of:

1 Open Offer Share for every 30 Existing Ordinary Shares held

The Open Offer is aimed at those Qualifying Shareholders who were not given the opportunity to participate in the Placing or Subscription. Shareholders which have been allocated Placing Shares in the Placing have agreed pursuant to the Placing Terms and Conditions that they will not apply for any Open Offer Shares in the Open Offer in respect of any existing shareholdings and the Placing Shares and Subscription Shares will not qualify for the Open Offer, as the Record Date for the Open Offer was prior to the issue of the Placing Shares and Subscription Shares.

Any entitlements to Open Offer Shares not subscribed for by Qualifying Shareholders will be available to Qualifying Shareholders under the Excess Application Facility. The balance of any Open Offer Shares not subscribed for under the Excess Application Facility will not be available to the Placees under the Placing.

Subject to availability, the Excess Application Facility enables Qualifying Shareholders to apply for Excess Shares up to the maximum number of Open Offer Shares available less their Open Offer Entitlement.

Applicants can apply for less or more than their entitlements under the Open Offer, but the Company cannot guarantee that any application for Excess Shares under the Excess Application Facility will be satisfied, as this will depend, in part, on the extent to which other Qualifying Shareholders apply for less than or more than their own Open Offer Entitlements.

Qualifying Shareholders should note that the Open Offer is not a rights issue and therefore any Open Offer Shares which Qualifying Shareholders do not apply for will not be sold in the market for the benefit of Qualifying Shareholders. The Open Offer application form is not a document of title and cannot be traded or otherwise transferred.

Expected Timetable of Principal Events under the Open Offer

Notes

1.         Each of the times and dates mentioned above is subject to change by the Company in which event details of the new times and dates will be notified to London Stock Exchange and the Company will make an appropriate announcement to a Regulatory Information Service.

2.         References to times in this announcement are to BST unless otherwise stated.

3.         The Company prepares its financial statements in US dollars and therefore certain figures in this announcement have been expressed in US dollars. Where appropriate, figures in this announcement have been converted into pounds sterling for information purposes only using the following US dollars to pound sterling exchange rate: 1.24.

Capitalised terms used but not defined in this announcement shall have the meaning given to them in the announcement published by the Company on 6 June 2023.

I detailed my thoughts about Jadestone on Wednesday and am only adding this today so that potential investors would know all the details of the attractive Open Offer.

And finally…

A funny weekend sports-wise as we finally conclude the football season, the culmination of course is, was, the winning of the European Plate by the mighty Hammers on Wednesday night in Prague. With less than a minute of normal time to go Bowen scored and despite a nervy nine, minutes of injury time that is, the Irons won the day.

Tomorrow in Istanbul the Noisy Neighbours plan on doing the same to Inter Milan, they are hot favourites with the bookies and deserve to be so, they are the outstanding team in Europe, if not the world.

Author @mgrahamwood

Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. The writer may or may not hold investments in the companies under discussion