Share Talk Weekly Energy Sector News Round-Up, Saturday 3rd September 2022

The rally call last week was to pick a stock with more than one delivering news this week, plus others on the cups of turning from exploration to producers.

Author @ABMckinley

We have to give Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO) the rumours across social media that the rig arriving/drill bit will be hitting the dirt around mid-September.

The Gazania-1 well is on Block 2B, 25km offshore of the Northern Cape in Orange Basin South Africa. The Gazania-1 prospect is targeting 300 million barrels of light oil resource. The well will take approximately 25 days to drill, and the JV partners plan to seal and plug the well after the test, with no equipment being left on the sea floor.

The partners have also approved the option to drill a sidetrack well contingent on a discovery in the main target. One for the watchlist. 

A war of words broke out after Gazprom, Russia’s state energy company, stated late on Friday that natural gas supplies via Nord Stream 1 would be cut off following the discovery of engine oil in the main gas turbine at Portovaya compressor station near St Petersburg.

“In the past, this type of leakage has not caused a shutdown of operations.” Siemens Energy does not have a contract to perform maintenance work at the moment, but is available for standby,” the company stated.

Siemens Energy stated, “Irrespective of this, we have already repeatedly pointed out that there are sufficient turbines at the Portovaya compressor stations for Nord Stream 1 operation to operate,”

Europa Oil & Gas (AIM: EOG) JV i3 Energy plc (AIM: I3E) a 25% working interest farmout of the Serenity discovery to Europa Oil and Gas (“Europa”) with Europa funding 46.25% of the cost of the upcoming appraisal well, up to a gross capped well cost of £15 million.  Preparations remain on track for a mid-September spud

Serenity SA-02 Operations Drilling operations at the Serenity prospect using the Stena Don. PFML plan to drill the Serenity SA-02 well using the Stena Don semi-submersible drilling rig with operations starting around the 10th of September. The operations should last approximately 30 days.


Share Talk had an unusual exchange of emails with Angus Energy (AIM: ANGS) IR representatives on Friday. The company issued an update on the official website and we jumped on it straight away, only issue was that ANGS had not published an official market (RNS) update, hence the IR panic about the update being published on our website, main Twitter feed.

We informed them that the info was all over social media, so it would be pointless removing the Twitter post. Obviously, the only way after the slip-up was for an RNS to be published, which followed about an hour later.

Jump forward to today and we have once again ahead of the curve, with the National Grid website detail regarding the Saltfleetby gas field connection. Currently, the flow rates are not set up on the platform however they will be available from next week.  Going to be fun and games, with investors checking the National Grid site ahead of an RNS update.

Serinus Energy plc (AIM: SENX), announced that the drilling operations at the Canar-1 exploration well in Romania have been completed.

The Canar-1 well was drilled to a total depth of 1,570 metres, targeting three prospective hydrocarbon zones. Well, logging and gas show readings determined that these zones had indications of residual gas, but they do not contain sufficient gas resources to justify proceeding with the testing and completion program for the well.

The well will now be suspended for potential future use as a water disposal well and the drilling rig mobilized to the Moftinu Nord-1 well location. The Company will now focus on successful drilling operations on the Moftinu Nord-1 well. This well targets multiple sands within a different structure type to Canar-1. The well is located 5.2 km to the northwest of the Moftinu gas plant.

TomCo Energy PLC, (AIM: TOM) stated that it has obtained an unsecured facility for up to £750,000 via a convertible loan instrument and the associated securities.

Novum Securities, the broker for the company, presented the funding package to the company. It is designed to help the company meet its financing needs as the board continues to make progress and negotiate with potential lenders to increase its debt financing.

Scirocco Energy PLC (AIM: SCIR) provided investors with an update on its legacy asset in Tanzania. Partner ARA Petroleum is advancing negotiations with authorities for a gas sales agreement.

stated that details were being shared simultaneously by Aminex in Tanzania. Aminex is Scirocco’s partner in Tanzania. It confirmed that seismic data capture continues at Ntorya. With around half the programme complete, it is anticipated that the campaign will be complete by mid-October.

Oracle Power PLC (AIM: ORCP) said that further to the announcement of 3 August 2022, the Company has received confirmation from the Directorate of Alternative Energy of the Government of Sindh that the Letter of Intent has been approved.

The LOI will be issued in a prescribed format on the finalisation of the US$600,000 performance guarantee by Oracle Energy, which is being negotiated by the Joint Venture parties with certain banking institutions and is expected to be concluded in September 2022. A further announcement will be made in due course.

Reabold Resources PLC (AIM: RBD) informed investors that the process of potentially acquiring exploration and appraisal licenses from Corallian Energy continues.

In a statement, the company stated that negotiations are ongoing.

Angus Energy PLC (AIM: ANGS) First Gas – extraction and condensate processing facility at Saltfleetby.

Last Thursday, ANGS said that Well B2 has alone been delivering at an equivalent rate of 5 million standard cubic feet per day, surpassing the Company’s internal expectations, although we expect deliverability to normalise with time. The Company will introduce the stream from the A4 well shortly.

The stream has been passed through the whole process plant including condensate stabilisation and storage tanks as well as gas analysis. Specification gas has been achieved in short tests to date as has an export pressure of approximately 60 barg sufficient for entry into the national transmission system, or “grid”

Union Jack Oil plc (AIM: UJO) announced that the Capital Reduction exercise that is being pursued following the passing of a special resolution of the Company at its Annual General Meeting on 23 June 2022, has been approved (“Capital Reduction”).

This follows the confirmation of the Capital Reduction by the High Court of Justice, on 30 August 2022. The Capital Reduction will become effective once the Court order has been registered with the Registrar of Companies, which is expected to happen on 31 August 2022.

Subject to the filing of the Court order with the Registrar of Companies, the Capital Reduction creates additional reserves to the value of £21,553,557. This provides the Company with further flexibility to deliver shareholder returns in the form of dividends and/or share buybacks.

Mosman Oil and Gas Limited (AIM: MSMN)  update on the drill schedule of the Cinnabar-1 well in Tyler County, Texas.

The drilling rig will move to the site and commence drilling Cinnabar-1 when it has completed the third party well it is currently drilling, anticipated to be in the next week or two.

The Cinnabar well is planned for a vertical depth of 9,900 feet. The primary targets are the Wilcox sands, which produce oil and gas in nearby wells. The drilling is expected to take about two weeks.

Mosman owns a c.75% working interest in the well. Mosman Operating LLC, a 100% owned subsidiary of Mosman, is the Operator of the lease.

If Liz Truss is elected prime minister, she will give the green light for further North Sea drilling.

Kwasi Kwarteng (the Business Secretary) and Jacob Rees Mogg (the Brexit opportunities minister) are working together to maximize domestic production in the lead-up to winter.

According to The Times, they have been involved in discussions with global giants Shell, Total, and Perenco regarding plans for a new round of drilling licenses.

Author @ABMckinley

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