WTI $70.87 +14c, Brent $73.88 +18c, Diff -$3.01 +4c, NG $3.92 +17c, UKNG 335.0p +11.6p
By Malcolm Graham-Wood
Its all about Omicron and rate calls, yesterday the Fed didnt move nor did the ECB today but the Bank of England did hike today by a quarter of a point. The market is also better as the EIA inventory stats were very positive, crude drew by 4.58m b’s, gasoline fell by 719/- and distillates followed down 2.85m. In total products overall drew some 16m barrels and distillers were working hard to make 23.2m b’s, the highest ever.
Wentworth has provided an operational update for the Mnazi Bay gas field and on other corporate initiatives. Following a successful first half of the year, demand for natural gas in Tanzania has again remained strong throughout the second half. This strengthening in demand in 2021 is due to sustained economic growth, continued demand in the industrial sector and partly due to lack of supply from hydro-electric generation as a result of poor rainfall over the catchment areas of the hydro dams.
The Company, through its partnership in the Mnazi Bay Joint Venture, continues to provide a reliable source of natural gas for domestic electricity generation, thereby supporting Tanzania to secure energy that is critical for its ongoing development and growth.
The average gross daily production rate from the Mnazi Bay gas field in December 2021 to date has been approximately 102 MMscf/day and, as a result of the stronger overall demand during 2021, the Company expects to achieve a milestone average production rate for the calendar year of over 80 MMscf/day – exceeding the high-end of the already upwardly-revised guidance from June 2021.
· The health and safety of employees remains paramount and robust precautionary measures have been and continue to be implemented to mitigate against the risk of COVID-19 both in the field and in the Dar es Salaam office. There has been no operational disruption due to COVID-19 to date
· The Company expects to achieve an annual average production rate for 2021 of more than 80 MMcf/day, above the high-end of revised guidance for the year and significantly above the average rate in 2020
o Updated guidance as of June 2021 was 70 – 80 MMcf/day (gross), raised from 65 – 75 MMcf/day (gross)
o 2021 average daily production is approximately 23% higher than the average daily production rate in 2020, which was 65 MMcf/day
· Operational costs of production remain low due to continued focus on cost efficiencies and high degree of operational leverage at Mnazi Bay
· The Mnazi Bay JV Partners have delivered on the 2021 work programme, which was focused on ensuring reliability and sustainability of supply. Highlights include:
o Slickline operations on the MB-4, MB-2 and MS-1X wells
o Refurbishment of the MB-1 well site superstructure, which was completed significantly under budget
o Pre-Front End Engineering and Design (FEED) Study on installing a compressor station to the Gas Production Facility at Mnazi Bay
· Subject to regulatory approval of the 2022 budget, the JV partners expect to continue with standard slickline operations to optimise the capacity of the Mnazi Bay field and to progress the compression project which is due for completion in 2023, as well as further evaluating opportunities to deliver additional gas supplies
· The Company intends to explore and evaluate growth opportunities both within the Mnazi Bay licence and the greater geographical region to support increasing in-country demand for natural gas
Strong and growing demand outlook, TANESCO announced in November that natural gas will be used to address a 345MW shortage gap of power to the National Grid to compensate for the lack of capacity from its hydro-electric power stations due to low water levels in the dams and rivers of the catchment areas
· As part of the plan, TANESCO intends to increase production by fast-tracking maintenance of its natural gas-plants at Ubungo and expediting the completion of the Kinyerezi I Extension Generation Facility
· Record financial results announced in September 2021, placing the Company in the strongest financial position in its history, with record revenue, EBITDAX, and cash on hand
· Tanzania Petroleum Development Corporation continues to remain fully current with all invoices for gas sales; Tanzania Electric Supply Company has repaid in full its outstanding arrears and is now fully up to date with due invoices
· Strengthening financial position with $24 million cash in hand at 30 November 2021 2021, after payment of both $2.6 million final dividend for 2020 in July 2021 and $1.32 million interim dividend in October, an increase from $22.5 million cash as at 30 June 2021
· Strength of financial performance enabled an increased interim dividend to be declared of of GBP 0.52 pence per share, 10% higher than the 2020 Interim distribution of $1.2 million
· Wentworth expects a 2021 final dividend of US$2.64 million in line with the company’s policy of a 1/3 : 2/3 split between the interim and the final dividend – which would bring total capital returns for FY2021 to US$3.96 million
· Planned Board succession and refresh continued throughout the year with the appointment of Tim Bushell as Non-executive Chairman and Juliet Kairuki as independent Non-Executive Director
· As part of the ongoing process of Board refreshment, John Bentley will be stepping down at the end of this year, to be replaced by an additional independent Non-Executive Director, with the Company in advanced stages of this search
· Existing management team strengthened with the appointment of Aaron LeBlanc as Chief Operating Officer, bringing extensive technical and managerial experience as well as a strong track record in Tanzania
· Growth within Tanzania continues to be a key focus to capitalise on in-country track record, proven improving demand dynamics and operational performance
· Stakeholder engagement is key to Wentworth’s sustainability strategy; strong relationships with in-country partners including the Government of Tanzania and local communities are evidenced by ongoing demand growth, operational performance and payment of receivables
· To further formalise its strategic focus on climate action and its broader ESG priorities, Wentworth formed a Board Sustainability Committee in September of this year with Juliet Kairuki appointed as Chair, providing greater oversight of the business’ ESG risks and opportunities
· Maintaining its robust ESG framework remains a priority following the launch of the inaugural Sustainability Report this year. The publication of the 2021 report is expected in April 2022
· Measurement and mitigation of climate-related impacts is a critical component of Wentworth’s climate strategy. In November, a new agreement between Wentworth and Vitol SA was established to jointly develop new community-focused carbon credit programmes in Tanzania aligned to the UN Sustainable Development Goals
o Immediate objective is for Wentworth to offset all scope 1 and 2 emissions and partially offset scope 3 emissions by 2022
o Wentworth’s emissions footprint remains one of the lowest in the UK-listed E&P sector on a scope 1 and 2 basis with an emissions intensity in 2020 of 0.42kg/CO2 boe (1,676.9t CO2 e)Wentworth’s priority is to take continuous action to reduce emissions as swiftly as possible with further progress made in 2021 on reduction initiatives to be outlined in the 2021 Sustainability Report.
Katherine Roe, CEO, commented:
“As we reach the end of 2021, at Wentworth we have been delighted to reflect on our many successes of the year. Our most recent being our expectation to beat our revised guidance and to achieve a milestone average production rate for 2021 of over 80 MMscf/day.
The demand dynamics in Tanzania are becoming increasingly compelling with an ambitious economic growth plan set to accelerate energy demand further over the coming years. And whilst driving up energy access through our natural gas production has a transformational role to play on the socio-economic outcomes for our communities in Tanzania, we have also used this year to ensure we are playing a responsible role in mitigating and minimising our impacts as much as we can and as quickly as we can. Our carbon offset partnership with Vitol is evidence of this and we are excited about taking this journey with them for the benefit of our communities in country.
We thank John Bentley for his invaluable contribution and many years of being part of our Wentworth team. He has been an integral part of the Board during his tenure and he will be missed on both a professional and personal level.
Looking ahead to year end, we remain in the strongest position in our corporate history, with half the Company’s market capitalisation backed by cash. Our robust fundamentals have ensured that we remain financially and operationally resilient allowing us to increase our returns to shareholders year on year. We remain committed to our sustainable and progressive dividend policy and look forward to reporting back on full year performance in 2022.”
This is an outstanding operational update by any measure, it ticks all the boxes that I or any investor could possibly ask for. Thus, demand is strong with sustainable economic growth, as well as in the industrial sector and the call for gas for domestic power generation set against a reduced output from local hydro-electric power supply.
In that context Mnazi Bay produced 102 MMscf/d in December giving average calendar production of over 80 MMscf/d already up on previously upped guidance and which is a 23% increase on 2020. Finances are incredibly strong, TPDC is up-to-date with payments and TANESCO has also fully paid its invoices so no receivables either. The balance sheet is thus incredibly strong with the outlook as positive as could be imagined and with excellent fcf is ‘placing the Company in the strongest financial position in its history’, with record revenue, EBITDAX, and cash on hand.
I could go on, this strength has given the board the scope to be generous with the dividend if appropriate, other distributions or even acquisitions are possible but the board has recently demonstrated its desire to stick to its knitting at which it is exemplary. Finally it also ticks the ESG box, its emissions footprint ‘remains one of the lowest in the UK-listed E&P sector on a scope 1 and 2 basis with an emissions intensity in 2020 of 0.42kg/CO2 boe (1,676.9t CO2 e)’.
Wentworth must be one of the best value plays in the market, its cash of $24m post divvi payments looks incredibly strong against a market cap of £40m and the outlook is incredibly positive, investors should take another look at Wentworth set against any value metrics, a doubling of the share price would not make them look expensive, a jewel in the sector indeed.
PetroTal provides Operational Update; Oil production reaches 20,000 bopd and a pipeline Settlement Framework for Pump Station 5.
PetroTal has achieved a trailing 5-day unconstrained production rate ending December 15, 2021, of approximately 20,200 barrels of oil per day. With wells 8H and 9H producing over 6,300 bopd and 8,200 bopd respectively, PetroTal was able to achieve its long-standing goal of exceeding 20,000 bopd much earlier than anticipated and previously guided. PetroTal has reached this milestone only four years after commencing operations at the Bretana oil field in early 2018, an indication of operational excellence, perseverance and teamwork.
Robust Production from Well 9H shows that well 9H is delivering a strong initial production profile having averaged approximately 8,200 bopd over the last 10 days, and trending very close to the performance of well 8H. In addition, well 10H Commences Drilling as PetroTal commenced drilling well 10H on December 11, 2021. This long-reach horizontal well is similarly located to well 9H and is estimated to cost $13.9 million with a targeted completion date in early February 2022.
PTAL also announced a settlement Framework Reached at Pump Station 5 whereby it advises that a joint framework was reached between the communities, Ministry of Energy and Mines, and Petroperu, that demonstrates trust and a commitment to ongoing dialogue, which has resulted in the expected return of Pump Station 5 back to Petroperu on December 16, 2021, as a gesture of goodwill toward longer term solutions.
Once Petroperu restarts operations at Pump Station 5, it will take approximately one week to complete the required inspections needed to fully recommence oil throughput in the Northern Peruvian Pipeline. Based on this forecast, it is still likely PetroTal will have to constrain production after December 16, 2021, for up to two weeks, to manage storage capacity, at which time it expects to go back to levels near 20,000 bopd.
In November and December, PetroTal will export nearly 320,000 barrels of oil through the Brazil sales route. Commencing in January 2022, estimated Brazilian oil exports will be approximately 240,000 barrels monthly and expected to increase further in Q2 2022.
Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented
“We are very pleased at the progress made at Pump Station 5 and the demonstration of trust and goodwill shown by the communities. This, together with the initiatives PetroTal is pursuing, is expected to lead to long term stability for the region at a critical time for the new Talara refinery that is expected to start operation in 2022, Peruvian producers, the local communities, and Petroperu. I would also like to thank our team for their dedication and perseverance over the past four years enabling PetroTal to achieve our original 20,000 bopd goal. I am humbled by the expertise and drive our team continues to demonstrate through unprecedented operating conditions. Additionally, I’d like to thank our shareholders for their ongoing support, patience and confidence as we continue development of the prolific Bretana oil field.”
PetroTal end the year on a very strong note with production smashing the target with more to come and also having a settlement at Pump Station 5 which assists stability in the area at a time when there is plenty of upside. My 60p target is very much achievable given the gearing effect of crude going through the PetroTal system, 2022 looks like a good time to be a shareholder of PetroTal.
Union Jack Oil/Egdon Resources
Union Jack notes that the Operator (“Egdon Resources plc”) of several projects in which the Company holds material interests has today updated the market on their progress.
· The Wressle-1 well continues to comfortably exceed initial expectations of 500 barrels of oil per day (gross) since the successful completion of the proppant squeeze and subsequent coiled tubing operations on 19 August 2021
· Works completed to upgrade the gas incineration system
· Production site upgrades ongoing
· Well flowing under a highly restricted choke of 20/64 of an inch
· Well has produced high quality oil at a constrained rate during ongoing upgrades at an average rate of 666 barrels of oil per day (“bopd”) following the upgrade of the gas incineration system (266 barrels net to Union Jack) plus 368,000 cubic feet of gas (147,200 cubic feet net to Union Jack) over the past seven days, equating to a gross 727 barrels of oil equivalent per day
· Zero formation water produced to date
· Secondary separator system has been designed and manufactured and is expected to be installed before the year end to optimise gas/oil separation
· Early 2022 will see completion of testing of the full potential of the well
· Decisions will be made in Q1 2022 on the plateau production rate, to match with longer-term operational objectives and prudent reservoir management
· Downhole pressure data has been acquired and is currently being interpreted to further inform these decisions
· Focus during 2022 will move to progressing the optimal method of gas monetisation and finalising plans for the development of other hydrocarbon bearing zones to access the identified material contingent resources, with particular focus on the Penistone Flags reservoir
Keddington PEDL005(R) (Union Jack 55% interest)
· An independent detailed sub-surface review of the Keddington oil field and the surrounding licence area has highlighted an opportunity to increase production via a new development side-track well for which planning is already in place
· Reservoir engineering work has been completed by ERCE confirming a target area in the south-east of the licence area which would add up to 85,000 to 120,000 barrels of recoverable oil which could be produced and monetised using the existing production equipment already in place and being utilised on site
· Well specific modelling and detailed planning will be completed in the coming period with a view to being in a position to drill the side-track well during 2022
· Additional near-field exploration opportunities have been identified at Keddington South, (gross Mean Prospective Resources of circa 635,000 barrels of oil (350,000 barrels net to Union Jack) and the Louth Prospect (gross Mean Prospective Resources of circa 600,000 barrels of oil (circa 330,000 barrels net to Union Jack) which could be accessed from the existing well site in due course
Biscathorpe PEDL253 (Union Jack 45% interest)
· On 1 November 2021, the planning application for a side-track drilling operation, associated testing and long-term oil production at the Biscathorpe site, was refused by Lincolnshire County Council (“LLC”), despite being recommended for approval by the Council`s planning officers
· The formal decision notice was issued on 6 December 2021 and the Operator is currently reviewing in detail the reasons for refusal with their planning and legal advisers and considering other options which is likely to lead to an appeal
North Kelsey PEDL241 (Union Jack 50% interest)
· Planning applications were submitted to LLC in early December 2021, to extend the existing planning consents by 12 months and amend the bottom hole target location for the planned North Kelsey well
· The applications have now been validated and the consultation period has begun
· Subject to receipt of planning consent the North Kelsey well could be drilled later in 2022
· As of 16 December 2021, cash balance of £6,068,000
· As of 16 December 2021, revenue and investment receivables are an additional circa £600,000 (principally oil production and North Sea royalty)
· Projected revenues to 31 December 2021, expected to be in-excess of £1,760,000 (2020 audited, £241,467)
· Net asset value as at 16 December 2021 is £20,281,000
· Debt free
Executive Chairman of Union Jack, David Bramhill, commented:
“This timely operational and financial update provides tangible confirmation of the progress being made by Union Jack.
“Wressle is still in the infancy of its development and despite restricted flow and continuing site upgrades, net revenues to Union Jack have been material since mid-August 2021. We announced on 27 October 2021, that Wressle had generated US$1,000,000 of net revenues to the Company and we look forward to announcing the next net revenue milestone early in 2022.
“When the planned site upgrades are complete, we await, with anticipation, the scale of the net revenues available from Wressle in respect of a full year of production as we believe these contributions will be transformational for Union Jack. Keddington and Fiskerton oil fields also provide additional revenue which support our projected year end 2021, net revenues.
“This operational and financial update provides information on the assets where Union Jack is in Joint Venture with Egdon Resources plc. It is prudent to mention our 16.665% investment in West Newton, of which drilling results and a series of extended well tests have confirmed the presence of substantial onshore hydrocarbon resources, within the Kirkham Abbey formation of the West Newton A-1,A-2 and B1z wells. As previously announced, a number of external studies are currently in process, encompassing a wide range of reservoir analysis in order to offer direction on how to achieve satisfactory and commercial flow rates from these wells. Preliminary reports are encouraging and we would expect to be in a position to offer a comprehensive update to the market in early 2022, on this material project that represents significant value potential in our portfolio, once the first phase of this work has been finalised.
“With the planned activity across our material projects, we believe that there will be a steady stream of RNS announcements, updates, research publications and reports published throughout 2022.
“Union Jack is in a sound position both operationally and financially and we look forward to the future with enthusiasm.”
Union Jack has had by pretty much any standards a very good year operationally which is by no means reflected in the share price which has underperformed significantly. You only have to look at the numbers in the update above to see that as owner of a substantial portfolio of onshore UK assets some of which are throwing off meaningful cash in particular Wressle which has exceeded all expectations. As and when it can shake off this malaise I expect the share price to rise dramatically which would be only what they deserve.
Petrofac issues the following pre-close trading update for the year ending 31 December 2021.
Continued strong performance in EPS but Covid-19 disruption continues to impact E&C project schedules and costs
Group net profit broadly in line with market expectations for 2021, supported by tax provision releases of US$17 million in H1 and approximately US$35 million in H2
New order intake (1) of US$2.0 billion in the year to date (increased from US$0.5 billion at half year) with EPS on track to deliver a book-to-bill of 1.0x for the full year
Comprehensive refinancing completed following resolution of SFO investigation
Year-end net debt (2) expected to be broadly flat versus Q3, at approximately US$0.2 billion
On track to deliver cost saving target of c.US$250 million by year-end (3)
Well positioned with a Group pipeline of US$40 billion for award in 2022, of which $7 billion is in New Energies
Sami Iskander, Petrofac’s Group Chief Executive, commented:
“In 2021 Petrofac has taken an important step forward, closing out the SFO investigation and embedding a strategy focused on future growth. During this period we have continued to deliver projects and operations safely for our clients worldwide, despite the ongoing challenges of the Covid-19 pandemic which continue to impact our current E&C portfolio.
“Earlier this year I set out a plan to rebalance, reshape and rebuild Petrofac. The recent refinancing has provided a long-term, stable capital structure for the business and largely completes the work to rebalance the Group. Operationally, we are making good progress in reshaping the organisation to consistently deliver to best-in-class global standards through local execution. Our priority is to now rebuild our order backlog. We secured US$1.5 billion of new awards in the second half to date and the outlook for awards is improving in a more supportive macro environment. Petrofac’s cost competitive model and strong client relationships mean that we are well positioned with a healthy pipeline of opportunities scheduled for award in 2022.
“While challenges will persist in 2022, I remain confident about the prospects for Petrofac over the medium-term as we capitalise on our strong positions in attractive and growing markets and accelerate our progress in New Energies, where we see significant near and long-term growth in exciting areas such as offshore wind, carbon capture, waste to value and hydrogen.”
I listened to the Petrofac conference call this morning and I was pleased but not surprised to hear the management to be very upbeat. Since the SFO investigation ended and the new management moved in there is much upside, not just in areas where they have been effectively banned but as the effects of $75 oil and a boom in the Middle East should feed through to the order book. The shares are exceptional value at 110p and if allowed I would be tucking in.
Hunting has today issued a year-end trading update. The Group will be reporting its 2021 Full Year Results on Thursday 3 March 2022. Trading during the final quarter of 2021 has remained in line with management’s expectations, with a broadly break-even EBITDA result anticipated for the full-year.
US onshore activity continues to strengthen, benefiting the Hunting Titan operating segment whose results remain ahead of expectations. Within the North America operating segment, the US Manufacturing, Subsea and Trenchless businesses have reported improving revenues which has led to a higher absorption of fixed costs and stable operating profits during the quarter. The EMEA operating segment continues to report subdued trading, however, cost management measures implemented earlier in the year are now significantly narrowing trading losses. In Asia Pacific, the segment has also seen an improvement in sales leading to a broadly break-even result being reported in November.
The Group’s order book has strengthened by c.20% in the three months to 30 November 2021 with a significant uptick reported in North America and Europe. The order book will increase further in December following strong contract wins by Hunting’s Subsea business, coupled with a general increase in successful bidding within the Group’s US and Asia Pacific businesses.
Overall, management believe that the Group has seen a notable improvement in its trading performance during the quarter, supported by the current pricing of oil and natural gas, which is anticipated to continue to the year-end and into 2022. Trading momentum is further supported by the ongoing drive to secure non-oil and gas sales.
The Group’s balance sheet remains strong, with a cash and bank position of $77.2 million as at 3 December 2021. Capital expenditure outflows remain low and management continues to closely manage working capital as market conditions stabilise. Further, the Group is now likely to conclude the arrangements for its new Asset Based Lending facility in the coming weeks, as due diligence is completed by the lending group.
Following further due diligence, the Board has also decided to postpone its plans to launch a level two American Depositary Receipt programme, however, this decision may be revisited at a later date.
Jim Johnson, Chief Executive of Hunting, commented:
“While the speed of the oilfield services recovery during the year has been hindered by COVID-19, strong capital controls by our end user clients and geopolitical volatility, the Group exits 2021 with a more stable trading outlook, supported by the strong pricing of oil and gas, coupled with management’s ongoing actions to address Hunting’s cost base.
“We expect 2022 to show further improvements to revenue and profitability with our technology, service offering and quality assured products being in demand by clients, as new projects commence and activity levels improve.”
Seeing Hunting produce such a positive statement and particularly the way it is weighted towards the end of the year is very exciting indeed. And that’s not just from a Hunting geek either. Firstly this is a genuinely good quarter and many good things are coming together, from a strong market due to $75 oil, made better by the company’s continuing attack on costs which must see very attractive margin growth.
Secondly, those of us followers who have over the years christened Hunting as a company that goes home for Christmas after Thanksgiving are now pleasantly surprised at how good things are getting and might well be even better for next year. As they say over there, I would bet a dollar to a wet doughnut that these shares will at least double in the next few months, and they will work up to Christmas Eve this year.
Jim Johnson has a really good team together in the Woodlands and I will be asking Santa to get them to do an analysts visit next year and to include me, my recent visit to Houston made me think the oil sector is buzzing, it certainly is…
Jadestone Energy provide the following update on operations and Company guidance for 2021.
Achieved the target of delivering around 20,000 boe/d of production by year-end 2021, driven by strong performance from the Montara H6 well and initial flows from Skua-11 post workover.
2021 average annual production expected to be around the midpoint of the 11,500-13,500 boe/d guidance range.
2021 unit production cost guidance is unchanged at US$25.50-29.50/boe, with unit opex at year-end expected to be significantly below the lower end of this range due to the recent increase in production.
2021 major spending is now expected to be toward the upper end of the previous guidance range of US$105-115 million, as a result of additional work undertaken to successfully complete the Montara activity programme.
During the fourth quarter of 2021 to date, Company production has averaged approximately 17,800 boe/d.
This has been largely driven by strong performance from Montara, reflecting ongoing steady production from the Montara H6 infill well and, more recently, the addition of Skua-11 following its successful workover, which included reperforating the heel of the well with the aim of enhancing its production potential.
Production from Montara has been impacted by some rig-related downtime at the field associated with the activity programme. The Skua-11 workover also took longer than anticipated due to the need to replace the subsea tree, while a downhole component failed to function at the later stages of the Skua-10 activity. However, the Skua-10 workover operation is now practically complete, with the Montara subsea wells currently shut in to facilitate the rigging down and hook-up of the Skua-10 well and safe departure of the rig. Prior to this shutdown, group production averaged 20,000 boe/d over a five day period and is expected to increase further once both of the Skua wells are brought back onstream.
Paul Blakeley, President and CEO commented:
“We are very pleased to be concluding the Montara activity programme with no safety incidents to date, and, with the addition of Skua-11 production, we have already met our target of delivering 20,000 boe/d production by year-end 2021. We now expect to reap the benefits of higher production and attractive pricing, given ongoing oil price strength, our unhedged position and recent improvements in the Tapis differential.”
I’m very happy with the performance at Jadestone, it is based on top quality management doing what they do, deliver the goods and despite the adversity of Covid and various corporate shenanigans have stuck to their plans and the share price is a testament to that.
The only piece of bad news is that due to the management being holed up in Australia and Singapore they havent been seen, I’m looking forward to their next presentation over here.
Orcadian Energy has announce its audited results for the twelve months ended 30 June 2021.
- Primary activity was preparing for the Company’s admission to trading on AIM.
- Following the end of the period under review:
- Orcadian admitted to AIM in July 2021 raising gross proceeds of £3 million
- Receipt of Letter of no objection from the Oil and Gas Authority (“OGA”) and entry into the authorisation phase of development planning for the Pilot Field
- Received three expressions of interest for the provision of an FPSO for the Pilot Development
- Entered into a non-binding Heads of Terms with Carrick Resources Limited (“Carrick”) in respect of a sub-area of Licence P2320 which covers the Carra prospect (“Carra”)
- Cash position as at 15th December 2021 of over £1.5 million
- Selected by the OGA to evaluate an approach to the electrification of North Sea oil and gas platforms which will dramatically cut carbon emissions.
Steve Brown, Orcadian’s CEO, said:
“The last financial year has been transformational for the Company.
“Whilst these results record our position at the end of June 2021, the rest of this year has seen the Company make significant progress in delivering its strategy.
“We were admitted to trading on AIM, a market of the London Stock Exchange. On Admission we raised gross proceeds of £3m and since then we have finalised the Concept Select process and moved to the ‘authorisation phase’ for our flagship Pilot development, whilst earlier this month we surpassed twenty-six other companies, or consortia, to win funding of £466,667 in the OGA Electrification Competition.
“The publishing of results is often a time for reflection, but from our perspective time spent resting on laurels is time wasted. Our focus for 2022 will be to seek to secure the financing for the Pilot project and to secure a customer for the platform electrification solution we will design in the coming months.
“We are determined to show the industry and the world that it is possible to produce the oil and gas, that regular customers need, in a cost effective way and with much, much lower emissions. We will do this on Pilot and we believe our electrification system will offer an opportunity for other operators on the UKCS to reduce emissions as rapidly as possible.
“North Sea businesses can show the world how to produce oil and gas with much lower emissions, helping to drive out high cost and high emissions production elsewhere in the world. We are proud of the role we are playing in this.
“We look forward to 2022 with optimism and energy and look forward to a sea change in attitudes to responsible oil and gas development projects and to the market continuing to recognise the significant value in our projects.”
Steve Brown is right and it is the work that has been completed since the results date that makes Orcadian such a compelling investment. This is a stock for the future, a lower emissions play that will make their projects world class. Another with a really top quality management team with high technical ability in their specialist area.
Last night in the Prem the Seagulls lost 0-1 to Wolves, the Eagles drew 2-2 with the Saints and the Gooners beat the Hammers 2-0. Tonight its Chelski hosting the Toffees and the Magpies visit fortress Anfield.
In the cricket Australia won the toss and batting were 221-2 at the close.
The opinions expressed here are those of the author
Malcolm Graham-WoodRead More
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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