It was a nervous week for the shareholders of Providence Resources (PVR) and Lansdowne Oil & Gas (LOGP).
The companies updated on Monday regarding the delayed payment from a farm-out partner, APEC, announcing that an HSBC remittance notification had been received with a payment date the next day and, therefore, the backstop had been extended until Wednesday.
On Thursday, they reported again. No funds had been received, nor had they received any paperwork to verify the transfer. A final extension of the backstop was made until close on business on Friday. PVR stated that they do not envisage giving any further extensions, so now it’s do or die. All will be revealed first thing Monday morning.
Meanwhile, the truth continues to be exposed at Anglo African Oil & Gas (AAOG). Stung by criticism, AAOG started the week with a “clarification” of its financing “denying that any of its directors had a relationship with the controversial European High Growth Opportunities Securitisation Fund (EHGOS).
Criticism of AAOG continued nevertheless and, by the end of the week, it had to admit that its directors did indeed have a private business relationship with EHGOS. It’s difficult to know how far the authorities will go with this. Investigators undoubtedly would start at the beginning with the purchase of Tilapia. The reality is that a loss-making, fag-end licence with decommissioning liabilities, even with exploration potential (they all have that) can be obtained for next to nothing, so why did Sefton pay $2.5 million cash and £3.27 million in shares for it? Who exactly benefited from this transaction? Regarding EHGOS, the directors only confessed when confronted with the facts. How many other breaches of fiduciary duty and misleading RNS announcements are there?
The equally uninvestable Zenith Energy (ZEN) announced the sale of shares by its CEO, Andrea Cattaneo, at 3p per share and the reinvestment of those funds in the company via the exercise of Canadian $0.12 (c. 7p) options. Unless the company urgently needs cash (and that may well be the case), a CEO buying shares at more than twice the market price is what in North America would be called a manipulative or deceptive device or contrivance.
Block Energy (BLOE) announced a related party deal with its shareholder, Georgia Oil & Gas, a British Virgin Islands company, for the supply of drilling and workover equipment. But still no statement from BLOE about the water cut.
Cabot Energy (CAB) announced a subscription to raise just over £400,000. It’s running on fumes now and, even following receipt of the subscription, it only has sufficient funds until the end of August. Nostra Terra Oil & Gas (NTOG) announced an operations update. No mention anymore of all the proved undeveloped drilling locations in Mitchell County; instead, Matt Lofgran now has a new pipe dream with his “Mesquite play.” Expect further substantial seven-figure losses.
Back in the world of real oil and gas companies, Hurricane Energy (HUR) announced the spud of the Lincoln Crestal 205/26b-B well. A further update will be made following the completion of drilling and testing operations. Gulf Keystone Petroleum (GKP) announced the commencement of its share buyback programme. Further announcements last week showed it solidly buying around a quarter of million pounds worth of shares most days.
SDX Energy (SDX) announced an operational and corporate update. The 12-well drilling campaign in Morocco is expected to commence in Q4 2019. PetroTal (PTAL) also announced an operations update. The company is having to curtail production due to limits to storage capacity.
Pantheon Resources (PANR) announced an Alaskan update. The company is preparing its data room for the farm-out process. Without a farm-out, nothing really is going to happen here. Caspian Sunrise (CASP) announced the receipt of a production licence, allowing it to sell 70% of the licence’s oil production on the international market. They are only achieving $19 per barrel locally, so this should allow them to increase their revenue significantly. Chariot Oil & Gas (CHAR) announced an AGM statement. The company remains fully funded for its work commitments, which are less than $1 million.
Attis Oil & Gas (AOGL) also announced an AGM statement. From a standing start less than three months ago, the average net daily production now is around 93 barrels of oil equivalent. Rose Petroleum (ROSE) announced that Jon Fitzpatrick of Glasgow has acquired 5% of the company. Its share price moved up sharply. Tlou Energy (TLOU) announced a gas flow testing update. Whilst saying they are very pleased, the wording in the RNS announcement somehow doesn’t sound that confident.
Closing on a more positive note, Eco (Atlantic) Oil & Gas (ECO) now is drilling the Jethro Lobe prospect on the Orinduik Block. This will be immediately followed by the drilling of an exploration well on the Joe prospect. ECO also is fully funded for its share of up to six potential exploration or development wells on the Block in addition to the Jethro Lobe and Joe exploration wells. With gross unrisked prospective resources P50 of nearly 4 billion barrels of oil equivalent on the Block, this project is huge.
Other favourites currently are I3 Energy (I3E) and UK Oil & Gas (UKOG), both of which will be drilling soon too, plus Petrel Resources (PET) (see earlier blog posts) which started to move on Friday. Significant share price rises with all four can be expected.
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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.
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