Highlights from the small-cap Oil & Gas sector this week
Union Jack Oil PLC ( UJO.L) Executive Chairman David Bramhill started the week with the important progress the company had made in the company’s three main projects, Wressle, West Newton, and Biscathorpe, and then would release an RNS’s updated on Friday evening after the markets had closed to confirms that it is considering a potential equity fundraising
Recent highlights include the optimization of Wressle’s production. Field performance has exceeded expectations after a proppant squeeze program on the Ashover Grit. Rates are currently higher than the 500 barrels per day target at Wressle. Union Jack, which has 40% of the field, sees the asset being financially transformative for the company if its impressive cash flow can be sustained.
David Brahmill comments, “The potential revenue from Wressle, our wider appraisal testing, and planned drilling activities all bode well for our strategy to deliver material growth in the medium-term and achieve our goal of creating a UK-focused, profitable, sustainable, cash-generating, and profitable mid-tier conventional hydrocarbon manufacturer.”
Oilex Ltd (OEX.ASX.L) Cambay Update and UK Exploration Licence P2446 Oilex’s Chief Executive Officer, Roland Wessel said: “Regarding the Cambay field, and following the extended hiatus in production, the Company is focussed on the resumption of both production and field development activities to exploit the 926 BCF of contingent gas resources in a market of strengthening gas prices and demand. Subject to GoI ratification, the Company now has a 100% working interest in the Cambay field following the Acquisition with a commensurate increase in net contingent resources.
The decision to relinquish UK exploration licence P2446 is in line with Oilex’s new strategy to focus on mature gas field acquisitions and CCS opportunities. The Company is committed to achieving carbon-neutral gas production in the UK via the implementation of CCS projects, which will be leveraged by the management team’s experience and expertise with respect to gas storage in depleted reservoirs.”
Dukemount Capital (DKE.L) Completion of Gas Peaker Funding, Balance Sheet Restructured and New Leadership Team.
Igas Energy PLC (IGAS.L) Agreement signed with CeraPhi for repurposing onshore assets for geothermal energy.
Karl Farrow, CeraPhi Energy, CEO said: “The repurposing of oil and gas wells to access subsurface thermal heat to produce baseload clean energy has to become a primary step to developing a wider appreciation of what geothermal can provide us. This agreement with IGas is yet another demonstration of the energy transition harnessing existing skills and expertise that we have in the UK to support a net zero target.”
i3 Energy plc (AIM:I3E) (TSX:ITE), announced that it will be releasing its Half Year Results for the six months ended 30 June 2021 on Monday 27 September 2021. The management team will host an investor and analyst webcast at 15:00pm, (London) and 10:00am (Toronto) on the same day, Monday 27 September 2021, including a question and answer session
Tullow Oil PLC ( TLW.L) Chief Rahul Dhir described the strong operational performance in the company’s first-half financial results. Although sales revenue was slightly lower, it made a profit after last year’s loss.
Dhir noted that Tullow’s transformational debt refinancing this year put it on “a firm foundation to deliver its business plans”. Tullow produced 61.230 barrels of oil equivalent per day during the first half, as opposed to full-year guidance of 58,000 to 61,000 boepd.
The sales revenue was US$727mln. This is a decrease from US$731mln during the last year. However, gross profit was US$321mln and not US$164mln. The company earned US$93mln, compared to US$1.32bn in losses during the first half 2020.
Hurricane Energy PLC (HUR.L) Operational and Financial Update. As of 15 September 2021, Lancaster was producing c.10,800 bopd from the P6 well alone with an associated water cut of c.33%.
As previously announced, the 24th cargo of Lancaster oil, totalling approximately 505 Mbbls, was lifted in late-August 2021. Over 10 million barrels of Lancaster crude have now been produced and sold from the Lancaster field. The next cargo is expected to be lifted in early- to mid-October 2021.
Financial Update: As of 31 August 2021, the Company had net free cash(4) of $144 million, compared to the last reported figure of $122 million as of 31 July 2021.
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