U.S. energy companies added oil and natural gas drilling rigs this week as oil prices rose to an almost seven-year high. This prompted some drillers to return back to the wellpad.
In its closely watched report, Baker Hughes Co (BKR.N.) said that the oil and gas rig count, which is an indicator of future output, rose six per cent to 556 in a week to Nov. 12. This was its highest level since April 2020.
This brings the total number of rigs to 244, or 78%, more than last year.
Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) provided details on the preliminary petrophysical interpretation and mud gas composition data from the Velkerri 76 S2-1 vertical appraisal well (“Velkerri 76”) in the Beetaloo Sub-Basin, Northern Territory, Australia with our joint venture partner, Origin Energy B2 Pty Ltd., a wholly-owned subsidiary of Origin Energy Limited.
“The preliminary petrophysical interpretation of the Velkerri 76 wireline logs is excellent news with the Middle Velkerri B shale comparing favourably to some of the most commercially successful shale plays in North America. These results are further evidence of the increasing significance of the Velkerri play with results still to come from flow testing of two horizontal wells at the neighbouring Santos-operated blocks also targeting the Velkerri play.”
European spot gas prices eased on Friday after the Kremlin said that Belarus had not consulted Moscow before threatening to reduce flows of natural gas to Europe, adding that Gazprom remained a reliable gas exporter.
Belarusian President Alexander Lukashenko on Thursday warned of potential retaliation against any new European Union sanctions over a migrant standoff on the Belarus-EU border, including shutting down the transit of natural gas and goods via Belarus.
United Oil & Gas PLC (AIM: UOG), announced the spudding of the Al Jahraa-13 development (“AJ-13”) well in the Abu Sennan licence, onshore Egypt. Drilling of the AJ-13 development well, which will target stacked Upper and Lower Bahariya reservoir targets, has commenced. The well will take approximately 65 days to drill and complete and is fully funded from operational cash flow.
“Following the success of Al Jahraa-8, we are delighted to now be drilling the Al Jahraa-13 well, which can add immediate cash flow to the Company. There is extensive potential in the Abu Sennan licence as demonstrated by the drilling success so far and the Joint Venture partners are pleased to once again be testing this.
Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF), the Rocky Mountain oil and gas company focused on responsible resource development from carbon-neutral operations, is pleased to provide an update on the ongoing production testing at the State 16-2LN-CC well in Utah, and to report on third quarter (“Q3”) performance from its non-operated portfolio in the Williston Basin, North Dakota.
Colin Harrington, Zephyr’s Chief Executive, said: “I’m absolutely delighted that, after many years of hard work and investment in the Paradox Basin, we can finally announce the first flowing hydrocarbons from our Paradox project. As this represents the first production generated from a horizontal well in the Paradox Basin using modern hydraulic stimulation, today marks a historic moment and heightens our expectations regarding the future development potential of Zephyr’s lease holding.
Empyrean Energy PLC (AIM: EME) Drilling Contract Executed for Jade Prospect, Block 29/11, China -Empyrean and COSL Execute Final Drilling Contract for Jade Prospect. The company advised that the Integrated Drilling Contract (“IDC”) for the drilling of the Jade prospect exploration well on Block 29/11, offshore China, (the “Jade Prospect”) has been executed by Empyrean and China Oilfield Services Limited (“COSL”). China is the largest importer of oil in the world.
Maersk Drilling in Denmark and Noble Corp, the U.S. competitor, will merge in a $3.4B deal. They announced Wednesday that they would form one of the largest offshore oil drilling companies in the world.
The combined company will be able to save $125 million annually and it will adopt Noble Corporation’s name. It will be based in Houston, Texas and split 50-50 among the existing shareholders.
In a statement, Chuck Sledge, Noble board chair and Maersk Drilling chairman said that the combination would create an offshore drilling company with significant global scale and strong balance sheets.
Touchstone Exploration Inc. (TSX, LSE: TXP) announced the results of the first of three planned production tests at our Royston-1 exploration well which has confirmed a light oil discovery in the lowermost section of the well.
The first and deepest Royston-1 completion and exploration test were designed to evaluate an interval at the bottom of the well in the intermediate sheet of the Herrera Formation. The completion spanned a 92-foot gross interval (30 feet of net pay) below 10,434 feet that was identified on wireline logs as being hydrocarbon bearing.
“We are excited to discover a promising new light oil pool in the deepest test section of the Royston well, adding further potential to the future development opportunity in the Royston area, as light oil can be easily and economically developed alongside any gas development.
Ascent Resources PLC (AIM: AST) Non-Recourse Funding Secured for Claim against the Republic of Slovenia. The company has signed a binding damages-based agreement to pursue the Company’s ECT and Slovenia-UK BIT arbitration claim against the Republic of Slovenia.
“This agreement represents an important milestone for Ascent and its shareholders as it seeks to pursue its claim against Slovenia. Ascent has secured for itself a non-equity dilutive and, subject to completion, a fully funded non-recourse position through this damages-based arrangement which gives its shareholders no financial risk and potentially highly material reward. We will continue to work closely with Enyo to pursue our claim in as effective a manner as possible, and will keep investors updated as we progress the case.’
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