Share Talk Weekly Energy Sector News Round-Up, Saturday 28th May 2022

What a week, so much going on and news due next week on CLON, ANGS is within touching distance, plus a monster drill to spud in July when PANR go after the Alkaid #2 well, to appraise the shallower Shelf Margin Deltaic horizon, which management believes contains a Contingent Resource of 2.6 billion barrels Oil in Place and 404 million barrels recoverable resource.

Author @ABMckinley


Share Talk has been in contact with David Horgan, chairman of Clontarf Energy, and we hope to catch up with him early Monday morning (7 hours + Western Australia) to be able to update holders, fingers are crossed we get him on the platform. We are also in talks with Angus Energy PLC and will be making a phone call on Monday morning to see if we can get George Lucan on the record.

U.S. energy companies cut oil and natural gas drilling this week for the first time in 31 weeks. However, the rig count increased for the record 22nd consecutive month.

As the U.S. publicly traded companies continue to pay down debt and return money to shareholders, the weekly decline in rig counts is a sign that production is not increasing as much as it has been declining.

In its closely watched report Friday, Baker Hughes Co stated that the U.S. oil-and-gas rig count, which is an indicator of future output, dropped by one to 727.

This one went slightly unnoticed as it was released late on Friday afternoon, saying that the SP did hit a High of 38.76, settling at a 4.86% rise on the day. Savannah Energy Plc (AIM: SAVE) the signing of an agreement with the Ministry of Petroleum and Energy of the Republic of Chad for the development of up to 500 megawatts (“MW”) of renewable energy projects supplying electricity to the Doba Oil Project and the towns of Moundou and Doba in Southern Chad, and the capital city, N’Djamena.

On Friday morning, delivery of Russian gas to Europe via Ukraine was slightly lower while flows from Germany and Poland via the Yamal Pipeline were also lower.

According to data from the Ukrainian transmission operator, the nominal flows into Slovakia via Ukraine’s Velke Kapusany border point were 420,009,181 Kilowatt hours per annum (kWh/h) as of the last day. This is down from 421,945122kWh/h the previous days.

On the same news thread, Naftogaz, Ukraine’s state gas company, announced Friday that it had initiated a pre-arbitration process against Gazprom, its Russian counterpart. Gazprom claimed Gazprom underpaid contractually agreed to gas transit charges.

“There’s a time when we can try to resolve the issue prior to arbitration. If we don’t resolve it – (we) will start) new arbitration,” Naftogaz CEO Yuri Vitrenko said to Interfax Ukraine on Friday.

In the past two days, Pantheon Resources (PANR) has updated the official Twitter account with images, and news of the progress on the Dalton highway.

Work on the Alkaid #2 drill pad begins. The short distance to the Dalton highway (seen in the foreground) offers tremendous advantage, allowing year-round drilling.

Work continues at the Alkaid 2 pad, immediately adjacent to the Dalton Highway (& pipeline) with a geotextile pad laid before laying gravel. In development scenarios, the advantages of such a location can be measured in years!

Clontarf Energy PLC (AIM: CLON) Sasanof-1 well spudding. The well was spudded with the jetting of the 36″ conductor at a water depth 1,068.3 metres (below mean sea level “BMSL”).

ERCE estimates the Sasanof Prospect to contain a 2U Prospective Resource of 7.2 Tcf (Trillion Cubic Feet) of gas and 176 Million barrels of condensate (P50), with a high case 3U Prospective Resource estimate of 17.8 Tcf gas and 449 Million bbls condensate (P10).

The current schedule expects drilling through the target reservoir occurring, at earliest, between Thursday 2nd and Sunday 5th June.

Oilex Ltd (ASX:AIM: OEX) updated with respect to the re-classification of Cambay gas and condensate volumes to reserves and increase in resources.

A review of Oilex’s net reserve and resource position in the Cambay PSC by an independent reserves auditor has resulted in the return of 206 BCF of gas and 8 million barrels of condensate to the 2P Reserves category from Contingent Resources.

Oilex’s participating interest in the reserves and resources has increased from 45% to 100% following its purchase of GSPC’s share of the project.

Onwards and upwards for the management team, sure we will be updating a few more positive results as 2022 unfolds.

Angus Energy PLC (AIM: ANGS) Notice of General Meeting (“GM”). On 24 May 2022 the Company announced that it had executed a share purchase agreement to acquire, for consideration paid partly in Angus Energy shares, the entire issued share capital of the Company’s current joint venture partner in the Saltfleetby Project, Saltfleetby Energy Limited (the “Acquisition”), which owns a 49% working interest in the Project thereby giving Angus Energy a 100% interest in the Project.

The GM will be held at the offices of Fladgate LLP, 16 Great Queen Street, London WC2B 5DG on Monday 13 June 2022 at 11.00 a.m.

Malcy’s Blog – Oil price, PetroTal Corp, Gulfsands Petroleum, Egdon Resources, Union Jack Oil, Challenger Energy Group, Petrofac & finally

METALNRG PLC (LON: MNRG) Update re legal proceedings against Brit Energy Holdings LLP, Pierpaolo Rocco and BritNRG Limited. As this case continues, the upshot is the recovery from those defendants of monies paid to the LLP totalling £1,019,999, plus interest and costs.

Holders will be happy once a conclusion is reached for sure for everyone involved.

More cash in the kitty Union Jack Oil PLC (AIM: UJO) Repayment of £1m Loan by Egdon Resources plc (AIM: EDR) the £1,000,000 loan made to Egdon Resources plc by the Company, announced on 26 November 2020, has been repaid in full as per the agreement.

Predator Oil & Gas Holdings (AIM: PDR) Launch of Mag Mell Floating Storage and Regasification Unit (“FSRU”) white paper.

Paul Griffiths, Executive Chairman of Predator Oil & Gas Holdings Plc commented:

“Shareholders are encouraged to download the Mag Mell white paper which gives a clear and concise explanation and analysis of the potential for an FSRU solution to Ireland’s security of energy supply”.

Caspian Sunrise plc (AIM: CASP) Operational update, report the successful workover of Well 142 on the MJF structure, which has added a further approximately 1,400 bopd (at 8mm choke) to the BNG production capacity, which including the existing South Yelemes wells, is now approximately 4,000 bopd.

Clive Carver, Chairman said

“Our focus on maximising production from the shallow structures at BNG has resulted in a more than doubling of production capacity since the beginning of the year. We plan to continue the programme of drilling and re-drilling shallow wells using a horizontal drilling approach which we believe should result in reaching a production capacity solely from the shallow structures at the BNG Contract Area of 5,000 bopd before the year-end.

Gulf Keystone Petroleum (LON: GKP) announce that the Board has approved the declaration of a special dividend of $50 million.

Following payment of $115 million of dividends year to date, we are delighted to declare today a special dividend of $50 million, consistent with our strategic commitment to balance investment in growth with shareholder distributions. The declaration brings total dividends for shareholder approval at the upcoming AGM to $75 million and increases total dividends declared in 2022 to $190 million.

Gulf Keystone will be seeking shareholder approval at the Annual General Meeting (“AGM”) on 24 June 2022 to pay total dividends of $75 million, comprising the previously declared $25 million annual ordinary dividend and the $50 million special dividend declared.

Malcy’s Blog – Oil price, Angus Energy, Coro Energy, Helium One Global & Trinity Exploration & Production

Chariot Limited (AIM: CHAR) Completion of Pre-Feasibility Study and Framework Agreement Signed for Large-Scale Green Hydrogen Project. Confirms Mauritania’s potential as a world-class green hydrogen producer and exporter.

The Government of Mauritania through the Ministry of Petroleum, Mines & Energy and Chariot, the Africa-focused transitional energy group, are pleased to announce that the Pre-Feasibility Study (“PFS”) for the large green hydrogen project “Project Nour” in Mauritania has been completed and a Framework Agreement has been signed, mapping out the next phases of development.

Adonis Pouroulis, Acting CEO of Chariot, said: ” Green hydrogen is a strategic priority for Chariot and will form a substantial part of the global energy transition going forward. We also believe that progressing this project will result in significant investment in Mauritania and benefit the region as a whole.

SIMEC AtlantisEnergy (AIM: SAE) signs a £40m contract for one of the UK’s largest Battery Storage Projects at Uskmouth.

The company announced that it has entered an agreement with Energy Optimisation Solutions and Quinbrook Infrastructure Partners via their portfolio company Uskmouth Energy Storage Limited.

The project will deliver to SAE c.£40m in revenue over 30-years, of which c.£11m will be paid within the next 18 months, subject to the achievement of certain milestones.

Technology Minerals (AIM: TM1) Recyclus Receives Lithium-ion Environmental Permit and Given Priority Status. The EA permit at its Wolverhampton plant will provide the critical legal foundation from which Recyclus can receive the variation of licence required to enable the Wolverhampton site to be fully operational. This variation of licence is required due to the novelty of recycling lithium-ion batteries within the UK.

Robin Brundle, Chairman of Technology Minerals, said: “Receiving the EA permit for our Wolverhampton plant is a critical step for the recycling facility to become fully operational which, for the first time, will bring industrial scale recycling capability for lithium-ion batteries in the UK. To be awarded priority status and be categorised as an organisation critical for environmental protection is fantastic. This high-level of recognition from the EA is reflective of the importance of Recyclus’ ambition to recycle batteries and establish a circular economy for battery metals in the UK. With the increasing demand for critical battery metals, we are pleased to be seen as integral to ensuring a domestic supply through recycling.”

Angus Energy Plc (AIM: ANGS) announced that it has executed a share purchase agreement to acquire the entire issued share capital of the Company’s current joint venture partner in the Saltfleetby Project, Saltfleetby Energy Limited, which owns a 49% working interest in the Project (the “Acquisition”) thereby giving Angus Energy a 100% interest in the Project.

George Lucan, CEO, comments: “An opportunity has arisen to consolidate our partners’ 49% holding in the Saltfleetby asset for up to £14.052 million which represents a significant discount to the October 2021 P90 valuation of our own 51% interest at £25.4 million.

Project progress at Saltfleetby is excellent with all major equipment on-site, electrical and pipework tie-in underway, and select dry commissioning already begun. With a conservative estimate for wet commissioning, we are confident of being able to make initial nominations, or First Gas, toward the middle of June. We aim to focus on new opportunities as soon as this milestone is achieved.

Reabold Resources (AIM: RBD) North Sea – Presentation on New Licences Detailing Significant Prospective Resources and Value Creation Opportunities.

Provide additional details on the new licences which it is to acquire from Corallian Energy Limited for a consideration of £250,000, per the conditional sale and purchase agreement announced by the Company on 4 May 2022 and further to the potential sale of the entire issued share capital of Corallian.

Malcy’s Blog – Oil price, Union Jack Oil, IOG Ltd, Reabold Resources & finally

Angus Energy plc (AIM: ANGS) said that it has recommenced oil production and water reinjection at its Brockham oil field (PL 235) in the Portland reservoir, in which Angus has an 80% interest.

Current average rates of production from the BRX2-Y well are 50 barrels of oil per day with an approximately equal amount of formation water produced and reinjected daily into BRX3. Presently the site now has over 400 barrels stored for sale. Some further minor additions to site equipment are planned to optimise production over the coming weeks.

Plans for a reperforation of the BRX4-Z well in the Portland reservoir, which would also involve abandonment of the Kimmeridge layer in that well, for which planning permission was recently obtained, are being discussed with our other regulators.

IOG plc (AIM: IOG) confirmed that the issue has been temporarily addressed and the Blythe well, therefore, reopened, alongside ongoing Elgood production. A further permanent modification on the Blythe platform has been designed and will be installed when materials are available. This permanent modification is not anticipated to involve material downtime.

At Southwark, over last weekend the Noble Hans Deul rig was successfully moved into position alongside the platform, with the legs positioned securely on the newly installed rock pads. Preparations have been underway since then to resume development drilling at Southwark in the course of the next week.

Clontarf Energy plc (AIM: CLON), on Monday the company updated on the following operational update on the drilling of the Sasanof-1 exploration well, and will issue further updates upon the completion of campaign milestones:

The Valaris MS-1 rig has arrived at the Sasanof-1 exploration well location on the Australian North West Shelf. The MS-1 semi-submersible drilling rig completed the 190 Nautical Miles mobilisation safely and efficiently under tow from the support vessel, GO Spica.

While under tow, the support vessel, Far Senator, continued logistical support operations, mobilising drilling mud, bulk equipment and supplies from the Port of Dampier. Primary anchors are now being run and will be followed by deployment of secondary and tertiary anchors; a total of 12 anchors will be set.

Once anchoring is complete, spudding of the prospective Sasanof-1 well, targeting multi Tcf (Trillion Cubic Feet) of gas , will start with jetting of the 36″ conductor. This will be followed by drilling the 17-1/2″ intermediate hole section.

Europa Oil & Gas (Holdings) plc, (AIM: EOG) the AIM traded UK, Ireland and Morocco focused oil and gas exploration, development, and production company, is hosting a retail investor ‘Meet the Team’ reception at the Ye Olde Cock Tavern, Holborn, London, EC4Y 1AA, on Thursday, 16 June 2022 between 3.00-5.00 p.m. BST.

First published on the 19th May 2022

Union Jack Oil PLC (AIM: UJO) US$6 Million Net Revenues Landmark Reached at Wressle Production Development.

Material landmark net revenues of US$6 million have been achieved from the Wressle hydrocarbon development, located within licences PEDL180 and PEDL182 in North Lincolnshire on the western margin of the Humber Basin.

Union Jack holds a 40% economic interest in this producing hydrocarbon development.

Executive Chairman of Union Jack, David Bramhill commented: “Another period of stellar performance from the Wressle-1 development has been achieved.

“Union Jack is now on a material growth trajectory which augers well for the future of the Company and its shareholders.”

Author @ABMckinley

The opinions expressed here are those of the author

Disclaimer: This blog is provided for general information and It does not constitute investment advice, not buy or sell shares, warrants or bonds in any companies written about within the blog. Information is taken from publicly available sources and any comment is that of the author.

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