Mainly positive news from the first half of the week.
Providence Resources (PVR) announced that binding term sheets are in place with the six consortium members participating in the Barryroe appraisal and development project. They’re now working with SpotOn Energy and the members of the consortium to finalise a farmout work programme. Providence also has been informed by R. O’Riordan and S. O’Driscoll that they hold 3.56% of the issued ordinary share capital. So things seem to be moving along here. Lansdowne Oil & Gas (LOGP) have a 20% interest in Barryroe, so anything positive for Providence in this regard is positive for them too.
Deltic Energy (DELT) announced a statement of support from IPGL, the largest shareholder in Deltic, who have stated their intention not to support the Reabold Resources (RBD) offer. As Deltic say, it does not reflect the commercial and technical risks associated with the RBD portfolio, which was rather confirmed by Reabold’s own update on Romania well flow test operations. To date, all they have are “indications” of methane gas.
Predator Oil & Gas (PRD) announced an offer to acquire FRAM Exploration (Trinidad) Ltd. from Columbus Energy Resources (CERP). This is pursuant to a prior agreement, but is complicated by the proposed merger between Columbus and Bahamas Petroleum (BPC). CERP though says that the offer is not acceptable regardless, since it is not consistent with the terms of PRD’s option. On Morocco, Predator also announced that ConocoPhillips ($COP) had been awarded the Mesorif Reconnaissance Contract adjoining to the west the PRD Guercif licence. Main news awaited here is of the drill rig mobilisation.
Chariot Oil & Gas (CHAR) announced that Larry Bottomley, CEO, has stepped down from the Company with immediate effect. In light of the current lack of market appetite for exploration activity, Chariot also plans to evaluate other opportunities available to it. Their previously announced 2019 final results highlighted that exploration in frontier regions has fallen out of favour and there now is a need for nearby / adjacent discoveries to unlock basin potential.
Touchstone Exploration (TXP) announced a significant Cascadura reserves evaluation. 1P (proven) reserves have a NPV10 of $287.7 million. Development costs for those are estimated at $11.6m, so it looks commercial, but at a market capitalisation of £123 million, professional oil and gas investors, David and Monique Newlands, are selling.
Canadian Overseas Petroleum (COPL) announced that ShoreCan and Essar Mauritius have agreed to extend the backstop date to 4 August and the parties continue to work amicably towards completion. In the meantime they’ve got away a £1.3m placing and a $1.6 million shares for debt conversion.
Global Petroleum (GBP) announced that 881 million barrels of un-risked gross prospective resources (best estimate) has been estimated in PEL0094 in two prospects, of which 687 million barrels is net to Global. Big question of course is can they raise the finance to drill it?
I’ll be back on Sunday with more.
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