Reabold Resources and Union Jack Oil started the week advertising upgraded potential volumes at West Newton in a pre-market RNS.
After spiking the early investors, the shares moved down once the small print was digested. To quote: “The information contained herein is the Operator’s internal assessment of hydrocarbons in place and should not be construed as an indication of ultimately recoverable resources in accordance with an internationally recognised standard.” There’s no flow test either. That was previously cancelled.
Anglo African Oil & Gas announced that it has entered into a rig option agreement, but the rig might not be available until 30 March 2020. Unfortunately, November turned out to be the date for a rig agreement, not the rig arriving as investors had hoped. The problem for them though is that paying for the drill depends on Riverfort selling shares at a higher price than now and how does that situation come about? Slippery language isn’t working anymore for these companies and I see only one way for the Anglo African share price now, which is down.
Sound Energy announced that James Parsons and Simon Davies have confirmed their decision to leave the Company. This follows on from the announcement that the CFO is leaving and not being replaced. Yesterday’s announcement was deliberately drafted to make people think the sale of the Morocco assets is a certainty. So, it’s the end game here now and it appears that they’re trying one last ramp before lights out.
I’m sorry if all of the above is negative, but that’s what we’ve had this week and I’m not even including Eco (Atlantic) which I will cover in the Saturday podcast.
Finishing on a brighter note though, UK Oil & Gas announced the successful completion of its Horse Hill horizontal drill. A total of approximately 2,500 ft of horizontal trajectory was drilled within the reservoir’s most oil productive zone, which gives around 70 times greater exposure than in the vertical discovery well.
This is why HH-2z is capable of delivering significantly greater flow rates than those seen in the vertical well. HH-2z is now being prepared for an extensive extended well test, which is expected to commence in the coming weeks and I expect to see some impressive numbers being reported here soon.
Moving forwards, news from all the other companies who made announcements last week will be covered in the
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