It was a short trading week, but with no shortage of news. Eco (Atlantic) Oil & Gas (ECO) started on Tuesday, announcing the spud of the Joe-1 well, the drilling of which will take approximately three weeks.
ECO has now more than doubled in price since it was mentioned as a favourite in the 14 July blog and there could be significant further mileage in this still.
Providence Resources (PVR) and Lansdowne Oil & Gas (LOGP) made the now usual weekly announcement of a further backstop extension. Like the story of the Arab “sheikh” at ADM Energy (ADME), which announced last week that he never actually was a director after all, you either believe it or not, in this case the story from the Chinese that they have sent the money. Unfortunately, if the transfer doesn’t arrive soon, PVR is out of working capital and will have to raise, no doubt at a substantial discount to the current price and, since PVR is talking about going ahead with the site survey regardless, it will be looking to LOGP for its 20% share, which means LOGP probably will have to raise too, since with the farm-out gone, it’s unlikely the major shareholders are going to want to continue lending it money. Interesting times now for these two.
Reabold Resources (RBD) and Union Jack Oil (UJO) announced an update regarding their West Newton A-2 well. The extended well test has been paused in order to optimise the evaluation of a potentially significant oil column. There was much publicity, with news of a huge UK onshore oil discovery reported in the national press, yet the share price increases for both companies were relatively modest, perhaps because the oil discovery had leaked two weeks previously via the blogger, Daniel Levi, and one of the major UJO shareholders, Christopher Williams, turned out to be selling on the news. The two RNS announcements from the companies are virtually identical, although the RBD RNS is already talking about the next well.
Block Energy (BLOE) announced the mobilisation of the ZJ40 drilling rig to the 38Z well site. BLOE “will draw on the valuable experience gathered from the drilling of well 16aZ to optimise the completion design for well 38Z” which does not indicate that the “1,100 bopd” 16aZ well was the success that the company claimed, but now does not want to talk about.
Nevertheless, Block plans to horizontally sidetrack three other wells in addition to 38Z and 16aZ, and acquire a 3D seismic survey to pinpoint further optimal locations for production. The 16aZ story appears to have been just a spoof to ramp the share price and raise the £12 million needed, however, with that money raised, the shares trading at just over half the placing price and four drills pending, the share price is likely to now start moving higher.
Lekoil (LEK) announced a joint update with the OPL 310 operator, Optimum. They are targeting a two-well appraisal and development programme over the next 12 to 18 months. Key of course is securing the necessary funding.
Tower Resources (TRP) announced a Cameroon operational and financing update. TRP has signed a letter of intent to use the COSL Seeker rig to drill NJOM-3. With the aim of financing the well, TRP is engaged in farm-out discussions with multiple parties. If Jeremy Asher can pull this off without needing a placing, the share price will rocket.
Mosman Oil & Gas (MSMN) announced that exactly as expected, the Stanley-3 logs identified several potential pay zones. The $48,000 investment now requires the MSMN “executives” to travel to Houston for meetings there and at the drill site. However, this is just petty cash compared to The Parkmead Group (PMG) which announced the acquisition of 2,320 acres in Scotland from the Chairman’s wife for £8.5 million. They claim the land offers significant renewable energy opportunities, but so does much land in Scotland which can be purchased for a few hundred pounds an acre. Shareholders are not impressed.
In other news last week, Alba Mineral Resources (ALBA) announced its half-year report (it is open to selling its interest in Horse Hill), Regal Petroleum (RPT) announced an amendment to its agreement for gas sales to a related party (it is reducing the price which its majority shareholder has to pay).
Cadogan Petroleum (CAD) announced its half-year report, Ascent Resources (AST) announced a corporate update, Attis Oil & Gas (AOGL) announced a further contract for its oil services division, Tlou Energy (TLOU) announced final results, President Energy (PPC) announced a further update on Argentina, Serinus Energy (SENX) announced a broker agreement has ended, Falcon Oil & Gas (FOG) announced the filing of interim financial statements and PetroTal (PTAL) announced Q2 financial results and an operations update.
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