A busy week in the energy sector, let’s take a look at some of the announcements made across the sector.
After gas prices in Europe soar, UK energy gas bills will rise by £139
UK Oil & Gas PLC (UKOG.L) Turkey: Basur-3 drilling update #3 (UKOG 50% interest) That the rig has performed a successful recovery or ‘fishing’ operation to free a directional drilling assembly stuck in its 12¼” hole section and return it safely back to surface. The incident occurred after the well had made good progress, reaching a drilled depth immediately above the Garzan and Mardin target objectives, which remain untested.
Rockhopper Exp plc (RKH.L) Ombrina Mare arbitration update Further to the Company’s announcement of 2 July 2021 in which Rockhopper reported that the Tribunal had informed the Company that it expected to complete its work in July, the Company can confirm it has yet to receive news of the outcome of the process.
Italy could be required to pay multi-million-pound damages to UK oil firm
Rockhopper continues to believe it has strong prospects of recovering very significant monetary damages – on the basis of lost profits – as a result of the Republic of Italy’s breaches of the Energy Charter Treaty. All of Rockhopper’s costs associated with the arbitration to date have been funded on a non-recourse (“no win – no fee”) basis from a specialist arbitration funder.
Orcadian Energy PLC (ORCA.L) announced that the Company has licensed a 3D seismic dataset, covering the Company’s Pilot and Blakeney discoveries and the Bowhead prospect within block 21/27, from TGS. The dataset received was shot during 2011 and 2012 and was reprocessed to focus on the Tay discoveries and prospects during 2018 and 2019.
The Directors believe that this newly reprocessed survey has the potential to provide improved imaging of the Tay sands and that the seismic attributes may provide valuable indications about potential fluid fill of those sands.
Diversified Energy Company PLC (DEC.L) chief executive Rusty Hutson stated that he was thrilled by the performance of what is being called an active first half 2021.
The firm also launched a new segment in its growth strategy during this period. It established the “central” focus area, which includes territories in Louisiana, Texas and Oklahoma. The firm added three asset packages to its portfolio, totaling US$342mln.
DEC’s production continued to be strong, setting a new record at 106,000 barrels of oil equivalent per day over the six-month period. It also exited half the year with 116,000 boepd.
United Oil & Gas PLC has released the latest positive well results for Egypt. The Al Jahraa-8 well (AJ-8) produced up to 2,819 barrels of oil equivalent per day during testing.
President Energy PLC (PPC.L) provided an operational update in relation to its oil and gas activities in Argentina and Paraguay as well as the contemplated listing of Atome on the London Stock Exchange. The new oil treatment plant at Puesto Flores Field, Rio Negro Province, Argentina, is fully operational with cost savings currently as envisaged at US$4 per barrel.
The first of the three new vertical oil wells to be drilled at the Dos Puntitas field, Puesto Guardian, Salta Province is on track to spud in the first two weeks of October, with wells two and three being drilled back to back thereafter in Q4 2021.
Preliminary short term tests showed a maximum rate at 2,819 boepd. This includes 2,093 bopd with 3.63mln cubic feet of gas per daily, and 1,433 boepd when using a constrained choke. The company’s expectations for the well have been exceeded by the results, and the well will be put into production.
Europa Oil & Gas Holdings (PLC) has initiated a formal process to farm out a stake of the Inezgane Offshore permit, which covers an area of 11,228 km offshore Morocco. It is a “high-impact exploration chance in a highly unexplored area”, according to the company. They also highlight the fact that the acreage follows the same geological trend as major oil and gas discoveries on the west coast of Africa. Europa has identified more than 2bn barrels worth of exploration potential in its top 5 ranked prospects.
Senegal Moves Towards Economic Prosperity With Offshore Oil Exploration
88 Energy Ltd (AIM 88E, ASX 88E) has been granted a 2-year extension to its obligations at Umiat, up to August 2023. This is to allow it to continue to improve its knowledge of the acreage. It plans to continue its analysis of extensive historical data and the results of the Merlin-1 well data from the adjacent Project Peregrine permit. Umiat Oil Field – Upside Potential As part of the acquisition of the Umiat Unit Leases, Emerald House, a wholly-owned subsidiary of 88 Energy, received the Umiat data pack which includes the Umiat 3D seismic data. The Umiat 3D survey abuts the southern edge of the Project Peregrine lease blocks. Previously, only 2 seismic lines-controlled interpretations across the Umiat structure.
The company appointed Philip Byrne, a non-executive chairman of the company, to replace Michael Evans who is retiring after seven years. Two more appointments were made by the company to strengthen its management team. Robert Benkovic was appointed the new chief operating officer of the company, while Joanne Kendrick has been named a non-executive director.
Quadrise Fuels International PLC (QFI.L) has received a sample from Greenfield Energy LLC in Utah. It will then conduct its own analysis. Three drums of oil were produced at the Petroteq Oil Sands Plant, and they arrived at the Quadrise research facility in Essex. The extensive testing that will be required to ensure its safety is completed by August’s end.
Quadrise will assess whether oil can be used to produce commercial MSAR or bioMSAR fuel products. It will also evaluate whether the oil is suitable for potential marine and power end-user markets.
SDX Energy PLC (SDX.L) spudding of the Hanut-1 exploration well the second well in the Company’s 2021 two-well drilling campaign in South Disouq following the successful IY-2 well announced in July.
The HA-1X exploration well on the Hanut prospect spudded on 4 August. HA-1X is targeting a Basal Kafr El Sheikh prospect at approximately 5,200 feet TVDSS. The Hanut prospect is estimated to contain gross unrisked mean recoverable volume of 139bcf (23.2 million boe) with a 33% chance of success. SDX has a 55% working interest in the well and the Company’s audited working interest 2P reserves as at 31 December 2020 equated to 11.1 million boe. The well is expected to take approximately one month to drill, and the Company will update the market on completion of drilling (and if successful, testing) operations.
Israel Declares It Is Ready To Attack Iran Following Oil Tanker Drone Strike
Caspian Sunrise plc (CASP.L) The Board of Caspian Sunrise provided the following strategic, financial and operational updates together with details of new shares to be issued and a reorganisation of the shareholding of the Oraziman family.
Dividends It has been a long-held objective of the group to be a regular payer of dividends. Accordingly, at the General Meeting referred to above, shareholders will also be asked to approve a capital reduction required to allow the payment of dividends
Sound Energy, (SOU.L) the Moroccan focused upstream gas company, announces that it has received a written notification by the Moroccan General Tax Administration (the “Moroccan Tax Administration”) of a re-assessment in respect of Moroccan taxes (the “Notification”) pursuant to a tax audit undertaken on Sound Energy Morocco East Limited (“SEME”), the Company’s wholly-owned subsidiary, by the Moroccan Tax Administration during 2020 and related to the fiscal periods 2016 to 2018.
