Share Talk Weekly Energy Sector News Round-Up, 19th February 2022

The British bank Natwest (NWG.L.) has cut its lending to clients in oil and gas by 21% in 2021. It plans to reduce it further in efforts to decarbonise the loan book and achieve net-zero emission, it stated on Friday.

Global warming is being addressed by financial firms worldwide. However, many have not yet put in place firm plans, especially for the short term.

Pantheon Resources (AIM: PANR) announces that it has received a Notice of Conversion in respect of US$2 million of the US$55 million unsecured convertible bond. Accordingly, the principal remaining under the convertible bond will be reduced by US$2 million to US$53 million.

France taxpayers forced to pump almost £2bn into EDF after capping energy prices. The French state will purchase the majority of the shares being sold by the energy giant. It is trying to stabilize its fragile balance sheet. After ordering the sale of power at market prices, French President Emmanuel Macron was forced to put more than EUR2bn (£1.7bn), into EDF.

The UK division reported millions of pounds in lost profits in France‘s biggest energy firm. Posted a £21m loss in earnings before interest, taxes, depreciation and amortisation last year, a major drop from its £712m gain the year before.

UK Oil & Gas PLC, (AIM: UKOG) stated that it was delighted by a Court of Appeal ruling which protects the company’s Horse Hill production for the rest of its commercial life.

Stephen Sanderson, UKOG’s Chief Executive commented: ” I’m delighted that justice has again prevailed for UKOG in this matter. This latest judgment in UKOG’s favour comes after more than two years in which Finch et al have sought to stop the Company’s oil production at Horse Hill. Given that during this time five judges have found against their case, one cannot help but wonder why they have been permitted so many repeated bites at the same legal cherry. That seems at very least unfair and perhaps is also somewhat unjust.”

Nostra Terra (AIM: NTOG) announce that a second well in the Cypress farm-out area at the Company’s Pine Mills oil field has now spudded. Drilling is permitted to a total depth of 6,000 feet and is estimated to take approximately 10 days. The primary target is the prolific Woodbine Sand, but the well will also evaluate several other up hole formations prior to reaching total depth. Nostra Terra owns a 32.5% working interest (“WI”) in the well. Drilling will be followed promptly by logging and then completion operations.

Zephyr Energy plc (AIM: ZPHR) announced the completion of its US$36 million acquisition of non-operated working interests in currently producing and near-term production wells in the Williston Basin, North Dakota, U.S. (the “Acquisition”).

According to Rocky Mountain oil and natural gas company, the acquisition includes working interests in 163 wells that are currently producing with an average working rate of 4%. A further 18 uncompleted but drilled wells will be online before June 2022. 47 additional locations are also planned to be drilled.

Tullow Oil PLC(LON: TLW) shares traded higher Wednesday following a morning of announcements. The company announced that it had received a US$75mln contingent payment as part of its 2020 deal with Total in Uganda. This was because the Tilenga project has reached a ‘final investment decision.

Powerhouse Energy Group plc (AIM: PHE) noted the announcement made by its development partner Hydrogen Utopia International PLC regarding an update on its discussions with Mitsubishi Heavy Industries Ltd.

Helium One Global Ltd, (AIM: HE1) referred to a “transformational” year when it released its final results statements for the twelve months ended June 30, 2021.

The exploration company developed its flagship asset, Rukwa in Tanzania, during the reporting period. It is considered to have world-class helium resource potential. In the period it completed the first drill program, discovered proof of helium in Tanzania and gathered key data points.

Malcy’s Blog – Oil price, Sound Energy, Kistos, Hurricane Energy, EDR & finally

Hurricane Energy PLC (LSE: HUR) stated to investors that Lancaster continues to produce oil at a rate of around 9,500 barrels per hour. The company produced 299,000 barrels of crude oil in January, at an average rate of 9,639 barrels per hour. The average water cut was 40%, which equals 196,000 barrels.

On Wednesday, oil prices recovered losses as investors considered conflicting statements regarding the possible withdrawal from Ukraine of some Russian troops. This was despite tight global supplies and rising fuel demand.

Brent crude oil was up 1.4% at $94.56 per barrel, after sliding 3.3% overnight following Russia’s partial withdrawal of troops from Ukraine. U.S. West Texas Intermediate crude (WTI), was $1.14 higher at $93.21 on Tuesday, after the session ended with a decline of 3.6%. Both benchmarks reached their highest levels since September 2014 Monday with Brent at $96.78 while WTI at $95.82.

LEKOIL (AIM: LEK) notes that on 6 January 2022, the Company announced that it had been served with a writ of summons in the Grand Court of the Cayman Islands by Mr Olalekan Akinyanmi (the “Claim”) challenging the validity of certain resolutions duly passed at the Company’s Annual General Meeting held on 21 December 2021 (the “AGM”).

According to industry sources, Shell is preparing for the sale of stakes in two gas fields clusters in the southern British North Sea. This is part of a continuing retreat of long-time producers out of the ageing basin. According to three sources, Shell plans to sell its 50% stake in the Clipper hub’s cluster of fields and the Leman Alpha complex. The assets could be worth up to $1 billion.

Shell declined to comment on the plans for the fields. The two supply natural gas via a pipeline from the east coast Bacton gas processing facility in eastern England.

Caspian Sunrise plc (AIM: CASP) Proposed Debt Conversion and General Meeting; announce that it will shortly be posting to Shareholders a Circular regarding a proposed Debt Conversion in respect of the Company’s Oraziman Family Loan of approximately US$6.2m, first announced in August 2021.

Clive Carver, Chairman commented, “On completion of the Debt Conversion the Group will be free of debt and therefore better placed to further develop the Group’s assets and to commence dividend payments.”

Pantheon Resources PLC, (AIM: PANR). shares gained more on Tuesday following its latest well results in Alaska. The AIM-quoted Explorer has risen 12% to trade for 139.18p and is now close to a market capitalisation in excess of £1bn.

Bloomberg reported that Glencore Plc has made a 40 million-pound ($54.2 Million) investment in Britishvolt Ltd. for the development of Britain’s first large-scale electric vehicle battery plant.

Britishvolt announced Tuesday that the battery plant developer has initiated a series C fundraising of 200 million pounds led by Bank of America Securities.

San Leon Energy PLC, (AIM: SLE) has extended a loan of US$2mln to Energy Link Infrastructure, (ELI), which is the owner and operator of the ACOES (Alternative Crude Oil Evacuation System).

London-listed company will be eligible for a 14% coupon annually on the loan over 4 years. The quarterly repayments will be made quarterly. Additionally, additional shares in ELI will be acquired, representing 2% of its equity, bringing its stake to 13.323%.

EQTEC plc (AIM: EQT) announced, Haverton WTV Limited a wholly-owned subsidiary of EQTEC, and Scott Bros. Enterprises Limited have reached an agreement to extend the existing, conditional Land Purchase Agreement relating to the land on which the proposed, up to 25 MWe Billingham waste gasification and power plant at Haverton Hill, Billingham, UK, will be constructed.

Pantheon Resources PLC, (AIM: PANR) informed investors that it had drilled Theta West down to its total depth. It also encountered the Upper Basin Floor Fan and Lower Basin Floor Fan targets. The two reservoirs measure approximately 1,160 gross feet. Extreme cold temperatures in Alaska have hampered operations. Temperatures as low as -55 Celsius have made it impossible to carry out a typical analysis program. Although wireline logging is not possible, the company has done logging while drilling and it has provided excellent quality data.

For the ninth week, East-bound gas flows through the Russian Yamal-Europe Pipeline in reverse. Russia holds back gas supplies to keep the gas market in check.

Gas flowing via the Yamal Europe pipeline, which normally travels west from Russia to Europe, was in reverse Monday, according to data from Gascade, a German network operator. Volumes were in line with last week’s levels.

President Energy (AIM: PPC) announces unaudited 2021 trading highlights together with an updated Argentine reserves report as of 31 December 2021.

· Turnover of approximately US$34.2 million, without any consistent contribution from the Louisiana assets

· Average Group production of 2,473 boepd (2020: 2,714 boepd) with no material contribution from Louisiana

· Estimated adjusted EBITDA in Argentina of US$9.5 million (calculated on the basis of Group financial reporting)

· US$14.5 million of free cash generation from operations (after workovers) and treasury income

After hitting their highest level in seven years, oil prices were steady Monday in seesaw trading. This was despite fears that Russia’s invasion of Ukraine could result in sanctions from the United States and Europe that would affect exports of one of the top producers in the world. Brent crude oil was at $94.33 per barrel, down 0.1% by 0910 GMT. It had previously reached a peak of $96.16, which was the highest level since October 2014.

U.S. West Texas Intermediate crude oil (WTI), rose 0.1% to $93.11 per barrel. This was a close session high of $94.94, which is the highest since September 2014.

Mosman Oil and Gas Ltd, (AIM: MSMN) has been granted a suspension and an extension for its work program conditions for the EP145 license in Australia’s Northern Territory.

In a statement, the company stated that it was extending the suspension to allow the company additional time to complete the year 3 work program by 21 August 2023. The deadlines for the next phases of the license are also extended.

88 Energy Ltd (AIM: 88E) informed investors that its share placing was oversubscribed and increased to raise A$32mln prior to costs.

Along with existing cash resources, proceeds will be used to finance the Merlin-2 well, including drilling, testing, and contingencies.

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