Share Talk Weekly Energy Sector News Round-Up, 27th December 2021

According to data from Gascade, the Yamal-Europe pipeline, which usually delivers Russian gas to Western Europe, was sending the fuel back home to Poland for the sixth consecutive day on Sunday.

Data showed that flows from the Mallnow metering station on the German-Polish border were flowing eastward into Poland at an hourly rate of almost 1.2 million kilowatt-hours (kWh/h) Sunday. These levels are expected to remain at this level throughout the day.

Just a decade ago, Europe was at the edge of a fracking boom.

There is a lot of shale oil in the North of England. And even more in France and Poland. Our political leaders gave in to a few environmental extremists and allowed it to continue. Now, we are paying a heavy price for this. The least we can do to learn from it is to not repeat the same mistakes.

In the US, gas prices have barely moved despite European highs. US gas prices are slightly higher than the equivalent of an oil barrel, at just over $70, as compared to more than $220 across the Atlantic.

LEKOIL (AIM: LEK), the oil and gas exploration and production company with a focus on Nigeria and West Africa, is pleased to provide the following corporate and operational updates. Operational Development for the month of November 2021 taken from information provided by Lekoil Nigeria

  • Oil production in November 2021 of 4,118 bopd (gross)/1,647 bopd (net).
  • Oil production in November was impacted by well production control to arrest developing water and the shut in of several conduits to prevent tank tops.

Malcy’s Blog – Oil price, Far Limited, Genel Energy, Hunting, Jadestone Energy, President Energy, Reabold Resources, SDX Energy, Victoria Oil & Gas & finally

President Energy (AIM: PPC), updated on its drilling operations in Salta, Argentina and workover in Louisiana.

Salta drilling: Drilling of the DP-2003 well has reached a target depth of 3,228 metres with encouraging mud log data obtained whilst drilling.

Electric logs, which offer much greater and accurate information and analysis, will be run over the Christmas period with results expected to be announced before the New Year.

Louisiana: Due to continued downhole issues out of President’s control, it has now been determined to plug back the well and perforate the next oil-bearing interval which had live oil shows in the logs and cores taken at the time of drilling the well. Due to holidays combined with the continued pandemic in Louisiana where only 50% of the population has been vaccinated this will now take place at the start of January. The previous post workover production prognosis remains valid.

The 2021 Bucket List

It is a year since I ran the new Bucket List after the traumas of 2020 and included some changes. This is the order they have come out in and I have a few comments below. The 2022 List will be out in the next day or two but will likely not have many changes as it hasn’t been quite such a year.

Malcolm Graham-Wood Oil & Gas Stock Bucket List 2021 – Video & Top 20 List

Victoria Oil & Gas Plc, (AIM: VOG) announce that its wholly-owned subsidiary Gaz du Cameroun S.A. (“GDC”) has received, as the operator, approval from the Minister of Mines, Industry and Technological Development for the extension of the Matanda Block licence.

The exploration phase of the licence has been extended by one year from 17 December 2021. This has been approved by the Minister and the associated Arrêté (Decree) has been received.

Europa Oil & Gas (Holdings) plc (AIM: EOG) updated the market on progress related to the potential of West Firsby as a test site for sustainable, clean geothermal energy systems.

Europa is pleased to note yesterday’s announcement by Baker Hughes and CausewayGT entitled, ” Baker Hughes and CausewayGT agree to collaborate on geothermal energy projects and technology development “, indicating that the consortium will be undertaking a geothermal clean heat project at West Firsby. The release states that, if this project is successful, it ” will prove the operational ability to extract and use geothermal heat throughout Europe”.

Malcy’s Blog – Oil price, Advance Energy, Longboat Energy, Touchstone Exploration & finally

Rockhopper Exploration plc (AIM: RKH), update on its international arbitration against the Republic of Italy in relation to the Ombrina Mare field.

As announced in the Company’s half-year report on 30 September 2021, Italy made a request, and the Tribunal agreed, to admit a recent European Court of Justice judgment related to intra-EU Energy Charter Treaty disputes, and to reconsider its 2019 decision to reject Italy’s intra-EU jurisdictional challenge in the arbitration. The Tribunal had requested Rockhopper’s legal advisers to respond by 6 October 2021.

On 21 December 2021, the Company was informed that the Tribunal had rejected Italy’s request.

Oil prices rose after traders evaluated the outlook for demand in light of the rapid spread of omicron.

London futures rose above $72 per barrel on Tuesday in volatile trading after falling about 5% in the previous two days. The new virus variant caused 73% of all Covid-19-related infections in the U.S. but traffic in Europe was stable over the same time period, which suggests that there has been a limited demand impact.

Crude’s gains were made against the backdrop of rising gas prices and high power prices in Europe. France even used fuel oil to keep the lights on. Expectations of a shift in power consumption to crude oil earlier in the year gave rise to oil prices. On Tuesday, natural gas prices in Europe were at $300 per barrel.

Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF), provided an update on its proposed acquisition of non-operated working interests in the Williston Basin, North Dakota, U.S. (the “Acquisition”).

On 22 November 2021, Zephyr announced the Acquisition and outlined a proposed closing date of 22 December 2021. However, given the ongoing disruption caused by the global pandemic, and in particular the rapid advance of the Omicron variant since the initial announcement of the Acquisition, the Company now anticipates that completion of the Acquisition will occur during January 2022 (the “completion”).

Although the completion has been delayed, the Company has made excellent progress towards securing the structured debt funding necessary for completion, and the Company’s Board of Directors (the “Board”) looks forward to providing further updates in the New Year.

Kistos (LSE: KIST), notes recent press speculation in relation to Kistos and confirms that it is a participant in a process being run by TotalEnergies S.E. (“Total”) to sell interests in certain of Total’s West of Shetland gas assets.

Kistos’ participation in this process is in keeping with its stated strategy of growth through acquisition and this is one of a number of opportunities that has been actively considered over the past six months.

i3 Energy plc (AIM:I3E) (TSX:ITE), announced its 2022 Canadian capital programme and dividend guidance.

Majid Shafiq, CEO of i3 Energy plc, commented:  “Following an intense period of technical work to evaluate our portfolio in Canada, we look forward to a very busy 2022, when we will embark on an extensive drilling program of 17 gross wells, 15 of which i3 will be operating. The programme will target low risk, high return production, including wells in our Clearwater and Simonette Montney acreage designed to accelerate value creation in these key plays. All these wells have high rates of return and payback metrics equivalent to what we achieved on our major production acquisitions in Canada. We are also very pleased to be able to give clear guidance on the minimum level of cash dividends to be paid during 2022.”

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