After its recent run, UK Oil & Gas (UKOG) announced the disappointing news on Monday that planning consent had been refused for the Loxley Portland gas appraisal project, then followed through on Tuesday with a hard dose of reality in the form of interim results.
Those who had been buying based upon an organised social media ramp saw the share price back to where it started; those who engaged the rampers to clear the placing stock and warrants had already taken their money. They’re quite open in yesterday’s RNS that “raising funds from equity remains the most prudent and only feasible way to fund projects” so further large placings are certain.
Brighter news from Predator Oil & Gas (PRD), which updated on its forthcoming drill in Morocco. The state of emergency there in response to the COVID-19 pandemic is being extended to 10 July, but the rig remains securely stacked in the country ready for mobilisation when circumstances permit. They’ve also identified a new additional target for the first exploration well.
Tower Resources’ (TRP) drill also has been delayed. They have the added complication of also requiring finance. The first payment from one potential partner has been delayed with the now popular Coronavirus excuse, but even if received, more will be required. It doesn’t look great, but let’s see.
Baron Oil (BOIL) issued its AGM statement. Again, and as with many others currently, the theme is delay. There is no obligation to drill before 2022 in Timor-Leste and there are no plans to drill in the UK in the foreseeable future. In Peru, where they have been attempting to facilitate the drilling of the El Barco-3X well, it is now becoming clear that the impact of COVID-19 will push any proposed drilling into 2021. In the meantime of course, the bloated overheads that these small public companies like to carry consume all the cash.
Solo Oil (SOLO) announced a $5 million investment facility, but it’s death spiral finance. They do have a plan, but so far that’s all it is and it’s difficult to say that Monday’s strategy, corporate and operations update inspires confidence. The main focus appears to be compensating management.
Delays at SOLO’s partner Aminex (AEX) too. They’ve agreed to extend the long stop date for satisfaction of the conditions to the farm-out from 30 June to 14 July, but in this case, such a short extension may be a positive sign.
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A short blog today since its mid-week. I’ll be back on Sunday covering all the rest of the news.
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