Share Talk Weekly Energy Sector News Round-Up, Saturday 20th May 2022

Union Jack Oil PLC (AIM: UJO) appears more promising following a lucrative takeover offer received by its partner and fellow firm, Egdon Resources PLC (AIM: EDR), according to Shore Capital.

Egdon declared the reception of a cash proposal to purchase the company, valuing it at £26.6mln at a substantial 96% premium over the previous day’s price.

Diversified Energy Company PLC (LSE: DEC, OTCQX: DECPF) enjoyed an advantageous financial situation after its network of 14 banks assessed the borrowing base of this North American oil and gas company and gave their approval. The sustainability-linked loan facility had its borrowing base maintained at US$375mln.

The corporation gained unanimous approval from its 14-bank lending group for the sustainability-linked loan facility’s US$375mln (£300.8mln) borrowing base, reflecting its ongoing commitment to ESG improvement.

Pantheon Resources PLC’s (AIM: PANR, OTCQX: PTHRF) recent US$22mln equity funding, which was oversubscribed, is a strong sign of support and could result in a revaluation of the explorer’s shares, as per stockbroker WH Ireland.

This morning, Pantheon reported the successful conclusion of a quick and effective bookbuild process that originally aimed to raise US$10.5mln. It plans to issue 104.17mln new shares priced at 17p each.

Chariot Ltd’s (AIM: CHAR, OTC: OIGLF) Anchois gas project is poised to change Morocco’s energy security landscape amid prolonged instability in European gas markets, according to Liberum Capital analyst Sam Wahab.

Starting its coverage with a ‘buy’ recommendation, Wahab sets a price target of 45p, indicating significant potential growth from the current price of 16.12p.

Egdon Resources PLC (AIM: EDR) joined the growing list of companies departing from the UK public market after agreeing to a takeover.

The AIM-listed UK onshore oil producer and explorer have been valued at £26.6mln in the deal, a 96% premium to its valuation at Tuesday’s close.

Pantheon Resources PLC (AIM: PANR, OTCQX: PTHRF) said on Wednesday it plans to raise £22mln of new capital through a swiftly oversubscribed share placing and subsequent retail offer.

The Alaska-based oil explorer announced its fundraising intentions after the market closed on Tuesday, launching an expedited bookbuild targeting at least US$10.5mln. It confirmed this morning that the book build was a success.

The first quarter of 2023 concluded with a robust cash position of $10.7mln for Canadian Overseas Petroleum Limited (COPL) (LSE: COPL, CSE: XOP), a significant increase from $4.0mln reported at the end of 2022.

The international oil and gas firm, operational in Wyoming, released its Q1 results ending 31 March 2023. Despite a strong cash position, it experienced a drop in crude oil sales and petroleum revenue, with average crude oil sales before royalties falling to 974 bbls/d from the 1,177 bbls/d reported in the previous quarter.

Zephyr Energy PLC (AIM: ZPHR, OTCQB: ZPHRF) disclosed its portfolio’s financial performance for its good assets in the Williston Basin in North Dakota. The Q1 2023 net revenue reached US$6.3mln, marking a decrease from US$7.4mln in the last quarter due to falling commodity prices and regular production decline.

Tower Resources PLC (AIM: TRP) secured £2.3mln through share subscription and placement to bolster the company’s finances as it edges closer to crucial milestones with its flagship Cameroon asset.

The Prime Minister of Cameroon, in a letter received by the company, has instructed the Minister of Mines, Industry and Technological Development to expedite the license extension process. This move is set to allow project advancements and the completion of partnering efforts.

Africa Oil Corp (TSX: AOI) disclosed its Q1 2023 financial results while maintaining its management guidance for 2023. It also underscored promising exploration opportunities in Equatorial Guinea and the Orange Basin.

Keith Hill, Africa Oil’s president and CEO, accentuated the advancements of the Venus appraisal program and the company’s increased stake in Impact Oil and Gas Ltd in the results statement.

Apollo Global Management (NYSE: APO), a private equity firm, appeared ready for two significant takeovers after THG PLC (LSE: THG) and Wood Group (John) PLC (LSE: WG.) disclosed that merger discussions were underway last month.

However, the firm, managing over US$90bln in assets, has now ceased buyouts at both companies in the past week.

Shares of IOG PLC (AIM: IOG) surged 30% after the company announced the successful isolation of a previously reported “well control event” in the Blythe H2 well without the necessity to drill a sidetrack well.

The company further stated that the gas production from the Blythe H2 well is anticipated to begin by the end of Q2.

Shares of Orcadian Energy PLC (AIM: ORCA) plummeted around 16% in the early deals of Monday, following the UK government’s rejection of an application to prolong a North Sea license (License P2320) that expired on 14 May.

Consequently, certain asset divestment agreements will not proceed further.

In the final results statement issued for the year ending 31 December 2022, David Bramhill, executive chair of Union Jack Oil PLC (AIM: UJO), expressed optimism about the company’s future performance. He believes that forthcoming updates from the firm’s portfolio will consistently enhance shareholder value.

Bramhill emphasized the financial strength of Union Jack, pointing out its robust balance sheet, freedom from debt, and significant cash reserves. Furthermore, he reassured us that there is no need to procure capital for the company’s planned operations for at least the coming year.

In other news, Arrow Exploration Corp (TSX-V: AXL, AIM: AXL, OTC: CSTPF) has verified the successful finding of approximately 148 feet of net oil pay across three zones in the Carrizales Norte 1 (CN-1) well.

The exploration firm disclosed in a statement that drilling in the Llanos basin, Colombia, reached the target depth in CN-1. The well was drilled to a depth of 9,190 feet.

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