Malcy’s Blog – Oil price, PetroTal Corp, Union Jack Oil, Reabold Resources, Eco (Atlantic) Oil & Gas & finally

WTI $78.10 -29c, Brent $82.22 -3c, Diff -$4.12 +26c, NG $5.12 +1c, UKNG 228.98p +0.98p

By Malcolm Graham-Wood

Oil price

Covid has reappeared on the oil price with today’s news of a potential further Covid variant which has closed borders again.  As I write and ahead of next week’s Opec+ meeting crude is down some $4 per barrel.

PetroTal Corp

Gran Tierra has announced that it has sold its stake in PetroTal to ‘multiple entities’ for US 21.98c per share raising some $30.1m, the deal was done at a 10.8% discount to the market price.

Union Jack Oil/Reabold

Both companies have made statements about West Newton this morning, I have copied that of UJO as it is more detailed.

“Following recent activities, we are pleased to provide an update regarding ongoing plans for the West Newton A production development and the West Newton B wellsite.

As you may be aware, some councillors on East Riding of Yorkshire Council’s planning committee raised concerns with the scale of our West Newton A application during the 30 September 2021 meeting. Despite the officers’ recommendation for approval, the application was refused, with the scale of the development being an important factor in the committee’s final determination.

While we continue to receive legal advice regarding an appeal of the decision, re-submitting a revised application is a viable option. Having received the decision document explaining the reasons for refusal, we are now working on a revised approach for the proposed development, in line with the comments made by your Council representatives. Taking on board the concerns regarding the scale of the development, and other points raised by the local community, we now intend to submit a new application, with the intent of addressing the scale of the development by reducing the site footprint and reducing the number of wells to be drilled.

We will also be providing a more detailed landscape and planting proposal to enhance the screening of the site and will examine more extensively the potential for passing places along Pasture Lane and other traffic management proposals. The revised timeline for approving our application will now allow us to present our development in more detail and to provide additional information to you and the committee.

As the proposed planning application is of smaller scope than previously assessed, the environmental assessments required to accompany the planning application should only need minor amendments which will allow us to submit the revised application by the end of 2021. We shall take on board comments from the last application and will circulate more information to you once it is available.

At West Newton B our current planning permission has a condition that requires operations to be completed by April 2022. Despite our continued operational efforts since site construction was initiated, it is unlikely that the originally proposed work scope will be finished before the expiration date. We therefore we will be applying to the East Riding of Yorkshire Council to vary this condition.

The original development was approved to allow for two wells to be drilled and tested, and after the encouraging results from the West Newton B1z well, as well as the A site wells, we are requesting further time to drill and test the second well at the site. The application will not make any changes to the proposed development activity.

We will aim to submit this application by the end of the year so that the WNA and WNB applications can run along the same timeline.

Hydrocarbons will continue to play an ongoing and essential role in UK, for both energy supply and as a raw material, now and for the next generation of East Riding of Yorkshire residents and businesses. Over the next 25 years there will be a co-ordinated and concerted effort to reduce emissions and we are absolutely committed to supporting the UK government in this transition phase. Using locally sourced resources will not only help to reduce the risks associated with being a net hydrocarbon importer, but it will also act as a more environmentally friendly stepping-stone to support the evolution to a more sustainable future. We are committed to working with East Riding of Yorkshire Council and the local community to bring about the production of local hydrocarbons in a responsible manner.”

Eco (Atlantic) Oil & Gas

Six months results for Eco Atlantic this morning, cash and cash equivalents of US$6.22 million and no debt as of 30 September 2021. They raised US$4.9m in the form of a private placement in July 2021.  Total assets of US$19.9 million, current liabilities of US$626,381 and total equity of US$16.7 million as of 30 September 2021.

Gil Holzman, President and Chief Executive Officer of Eco Atlantic, commented: 

“We are pleased to report on another active period for the Company, where we have worked hard to offer a string of exploration and corporate catalysts, to create value for shareholders, and simultaneously maintain our balance sheet strength in anticipation of a busy 2022.

 “We are extremely upbeat about our operational outlook for 2022; in the near-term, we look forward to updating the market on technical results of the Sapote-1 well and updated drilling plans on the Canje Block, and we are confident that our investment in JHI will generate considerable opportunity and value going forward. On our Orinduik block we are close to finalising the drilling targets selection process and continue to see substantial prospectivity in the light oil cretaceous section on the Block.

 “Elsewhere across our portfolio, we see the current third-party exploration programmes in Namibia as potential catalysts for wider regional success. The near-term will be exciting, with TotalEnergies Venus-1 and Shell’s Graff-1 wells and in Guyana, with ExxonMobil’s Fangtooth-1 well, just north and down dip of Orinduik on the Stabroek Block testing some of the deeper sections. 

 “It is also encouraging to see the progress that Eco’s renewable energy arm, Solear, is making with a number of strategic partnerships, including potential monetisation of assets and further acquisitions together with its JV partners.

 “Lastly, with increasing oil prices and with active M&A activity in the industry, we continue to review various opportunities with a view to broadening our asset inventory.

 “We look forward to updating shareholders on our various workstreams across our world-class asset base, as well as other corporate activities through which we’re confident will deliver long-term value.”

And finally…

In haste this morning I’m afraid, last night’s results saw West Ham & Rangers through in Europa League with Celtic knocked out, Leicester go top of group, Tottenham lose in Europa League Conference.

This weekend in the Prem the big game I suppose is Manager less Red Devils going to Stamford Bridge, the Hammers go to the Emptihad and Liverpool host the Saints.

Racing is at Doncaster, Newbury and Newcastle.

The opinions expressed here are those of the author

Malcolm Graham-Wood

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Disclaimer: Malcy’s Blog is provided for general information about the international oil and gas industry and the companies that operate within it. It does not constitute investment advice and Malcy does not buy or sell shares, warrants or bonds in any company written about within the blog. Information is taken from publicly available sources and any comment is that of the author who does not take any third party comment in the blog


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