Oil Man Jim Company Oil & Gas Blog, 26th July 2020

Mainly positive news this week (excluding the lifestyle companies helps a lot with that).

88 Energy (88E) announced a new presentation.  Permitting has commenced and farm-out discussions are underway for the drilling of two wells in the first half of 2021 on the newly acquired Peregrine acreage.  Obviously, there will first be financing.

Providence Resources (PVR) announced that binding term sheets are in place with the six consortium members participating in the Barryroe appraisal and development project.  PVR is now working with SpotOn Energy and the members of the consortium to finalise a farm-out 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) has 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 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.

The CERP merger with BPC does appear to be happening though.  Bahamas’ shareholders gave their approval on Friday; the Columbus shareholder meeting to obtain approval is tomorrow.  Key for investors here now is how everything is going to be financed and I think the BPC board, who will end up in control, maybe quite happy to do a deal for FRAM on PRD’s terms.

Another shareholder meeting coming up, on Wednesday in this case, is that of Aminex (AEX).  They announced late on Friday after market close that John Bell, Chairman, and Linda Beal, senior non-executive director, have “stepped down” as directors of the company with immediate effect.  No reasons were given and the speculation is that they were dismissed.  Why may be revealed in a few days time?

Chariot Oil & Gas (CHAR) announced that Larry Bottomley, CEO, also has “stepped down” with immediate effect.  In light of the current lack of market appetite for exploration activity, Chariot 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 an NPV10 of $287.7 million.  Development costs for those are estimated at $11.6m, so it looks commercial, but at a market capitalisation of £135 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 £1.3 million 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.  The big question, of course, is can they raise the finance to drill it?

IGas (IGAS) commenced water injection at its Scampton North site.  Mid-case economics for the project have an IRR of over 40%.  IGas’s second water-flood opportunity in the southern section of the Welton Field remains on track to be online late summer 2020.  Estimated base-case project economics for that one have an IRR of over 100%.  So some potential solid progress here.

If you enjoy reading this blog, it might be time for my fact-based trading course, which really will open your eyes.  It vastly expands on some of the principles I expound here and provides information that most will never have heard before.

I cover everything you won’t read elsewhere, particularly subjects which others either don’t understand, or even know about, or even if they do, are unwilling to talk about openly.  I set out exactly how it all works in detail.  Exactly how the insiders make their profits.  And how you can profit too.  Lots of money can be made if you know how it all actually works, and what goes on behind the scenes may be completely different from what you think.

I’ve been involved in the markets for a long time.  I bought my first shares in the 1970s and I’ve worked in the financial sector since the early 1980s.  My particular knowledge is of the stock markets and I’ve been actively involved in these, both in the UK and the US for over 40 years from both sides of the fence.  I’ve also had significant involvement in the oil and gas industry along the way, from drilling wells to negotiating farm-outs to majors.

It’s not a theory in this course, rather how it all actually works in the real world, keeping it practical and realistic, so that everyone can use the information for their own advantage regardless of the level of their trading or investment.

Small-cap speculative companies exist to enrich their insiders, not their investors, and everything those involved do is for their benefit, not yours.  The vast majority lose with these companies, but for the whole scheme to work, some investors have to profit, and you can be one of those too.  The link is https://www.oilnewslondon.com/course

Contact me on Twitter @Oilman_Jim

Click “SUBSCRIBE” to receive posts by email

The author holds one or more investments in one or more of the companies mentioned so this post cannot be viewed as independent research. This post does not constitute investment advice or a recommendation to buy or sell and may be incorrect or outdated.


Linking Shareholders and Executives :Share Talk

If anyone reads this article found it useful, helpful? Then please subscribe www.share-talk.com or follow SHARE TALK on our Twitter page for future updates.

Terms of Website Use

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

Share via
Copy link
Malcare WordPress Security