Share Talk Weekly Energy Sector News Round-Up, Sunday 12th June 2022

The week started with Longboat Energy PLC (LON: LBE) and Clontarf Energy PLC (AIM: CLON) well’s dry with no commercial hydrocarbons were intersected, plugged and abandoned.

Author @ABMckinley

Not the news punters wanted to hear early doors on Monday after the extended markets closed for the Jubilee celebrations.

Onto the weekly roundup, with the big news, today being strike action looks to be averted on the continental shelf, for now.

Bowleven PLC (LON: BLVN) an Africa-focused oil & gas company, was the best performer this week after it announced it had a new partner for its Etinde permit, which is located off Cameroon.

New Age (African Global Energy Limited), the operator of Etinde, informed the company that New Age had signed a definitive agreement with Perenco SA’s subsidiary to transfer all New Age’s participation in the Etinde permit and the operatorship of Etinde JV to Perenco.

Bowleven will still be entitled to a final decision payment of US$25mln by its Etinde JV Partners, which would include Perenco after the transaction is completed.

The company’s shares rose 80% after the news.

 

 

The great British rip-Off. The UK has the second-highest petrol prices among the Group of 20 members — only French drivers pay more. With Britain’s petrol prices aren’t just high, they’re rising at the fastest rate in 17 years.

Drivers in the UK are experiencing record petrol prices. Yet, the country exports millions of litres of fuel every month to the US where they pay less than half the price. This should be top of the political agender in the UK, fuel poverty is rife and the government has the power to help consumers.

On the news front, Southern Energy Corp (AIM: SOUC) Successful Initial Results from Generation 3 Well Design, with successful early flowback results from the first well of the three-well horizontal padsite located in the Gwinville Field.

The GH 19-3 #2 well was opened to flowback following the stimulation operation. After approximately one week of clean-up, the well is flowing at 7.7 MMcf/d (1,280 boe/d) at a highly restricted flowing pressure of 1,100 psig. Production from the well is flowing directly to sales creating significant additional cash flow for the Company.

The well continues to produce over 2,000 bbl/d of load fluid, with approximately 24% recovered to date. Throughout the first week of production, as more load fluid is recovered, the well’s gas rate has consistently increased day over day.

Powerhouse Energy Group plc (AIM: PHE) announced that its UK channel partner Peel NRE, part of Peel L&P, has been granted planning approval for a hydrogen facility in West Dunbartonshire, Scotland.

The £20m 13,500 tonne facility at the site at Rothesay Dock on the north bank of the River Clyde, will be the second site in the UK planning to use Powerhouse’s technology to turn waste plastic into hydrogen. The hydrogen will be used as a clean fuel for vehicles, with plans for a linked hydrogen refuelling station on the site.

Kistos PLC (LON: KIST) Trading and Operations Update, Kistos has started the year strongly, delivering a solid operational performance and benefiting from high gas prices.

With almost €130 million of cash at our disposal, we have the financial strength, capital discipline and track record to grow the business and deliver shareholder value.

SDX Energy Plc (AIM: SDX) announced a gas discovery at the MA-1X well that targeted the Mohsen prospect, within the Exploration Extension Area of South Disouq.

MA-1X (SDX WI: 67%) spudded on 21 May 2022 and reached TD at 6,400 feet MD on 31 May 2022. The primary basal Kafr El Sheikh target was encountered at 5,762 feet MD and discovered 56.3 feet of net pay gas sand with an average porosity of 31.9%. MA-1X will now be completed and tested, with the results of the test being communicated in due course.

Now the waiting game Arrow Exploration Corp. (AIM: AXL; TSXV: AXL) is a further update on the Rio Cravo Sur-1 well located on the Tapir Block in the Llanos Basin of Colombia.

Spud on May 23, 2022, the RCS-1 well was drilled to a true vertical depth (“TVD”) of 8,105 feet on June 3rd. The well has been successfully cased and cemented as of June 6th. Initial technical evaluation indicates six separate oil-bearing reservoirs, two of which were not evident in RCE-1 or RCE-2. Cumulative net pay in all zones exceeds 55 feet. The six separate reservoirs were found in the C7, the Gacheta and the Ubaque, between 7,077 feet and 8,105 feet.

Comprehensive testing of these individual zones will commence in the next few days. It is anticipated that each zone will require five days of testing that includes perforating, flowing and shut-in for pressure buildup and analysis. The well will be put on production immediately following the testing program.

METALNRG PLC (AIM: MNRG) The legal wrangle continues and is now starting to make its way across social media. The Company is currently awaiting a date for the hearing of its application for summary judgment against Brit Energy Holdings LLP and BritNRG Limited in the proceeds brought by it against those entities and Mr Rocco personally.

On a more positive note i3 Energy PLC (AIM: I3E) July 2022 Dividend Declaration. i3 announces its July 2022 dividend totalling £1.6996 million and confirms the Dividend: 0.1425 pence/share.

Payment to shareholders holding their shares on the TSX will be made in Canadian dollars using the exchange rate from the Bank of England at close on the Dividend announcement date, 8 Jun 2022.

UK Oil & Gas PLC (AIM: UKOG) said it was delighted to announce that the Right Hon Stuart Andrew MP, Minister for Housing acting for the Secretary of State (“SoS”) for Levelling Up, Housing and Communities has overturned Surrey County Council’s (“SCC”) refusal of planning consent for its wholly-owned Loxley conventional gas and hydrogen feedstock project.

With both planning and environmental consent in hand, the Loxley gas project can now, finally, proceed ahead.

Malcy’s Blog – Oil price, Zephyr Energy, Challenger Energy Group, Savannah Energy & Predator Oil & Gas

Predator Oil & Gas Holdings Plc (AIM: PRD), the Jersey-based Oil and Gas Company with operations in Trinidad, Morocco and Ireland provides, arising from a series of positive meetings in Trinidad held with stakeholders during the period 31 May to 3 June 2022.

Initiation of a litigation process for the repayment of the FRAM Loan. Recompense is sought as a result of the termination of the approved Inniss-Trinity CO2 EOR project with Further progress on rolling out multiple CO2 EOR projects.

i3 Energy PLC (AIM: I3E) Publication of 2021 ESG Report. The company said it is committed to being net-zero for Scope 11 and Scope 22 emissions for its operating assets by 2050, with accelerated targets to be set following additional pathways analysis.

The Company is considering a range of decarbonisation options including operational efficiency and nature-based solutions.

Zephyr Energy PLC (AIM: ZPHR) Paradox Project Update; Production from State 16-2LN-CC well to recommence, facilitated by co-located crypto-mine facility currently under development, update on the forthcoming three-well drill programme.

Following the completion of a successful well test on the State 16-2LN-CC well in December 2021, and after a detailed evaluation of the various natural gas sales and export options, the Board has elected to recommence production from the State 16-2LN-CC well in conjunction with the completion of a Zephyr owned crypto-currency mining facility now under development. Yes, you read that correctly.

Caspian Sunrise PLC (AIM: CASP) appears to be not as Russian-looking as one might think. This cheered up the market.

The shares rose 28% to 5.05p, back to pre-invasion levels. This was because the company stressed that its oil was Kazakh oil and not Russian oil.

We are now into the fourth month of Russian sanctions and we have received several requests to set out in greater detail how these sanctions have affected us to date and our expectations for the future.

It is only an accident that the current delivery system takes it through Russia. We sell oil in Kazakhstan to international oil traders who can then export it anywhere in the world. The company stated that the Kazakh government will soon rename the oil from Kazakhstan in order to distinguish it from Russian oil.

“To date, we have not had any problems accessing the Russian pipeline network to transport our international oil. We don’t believe that there will be many obstacles in this regard no matter how many sanctions are in place.” It stated that no matter what happens, it is unlikely that these pipelines will be closed.

Savannah Energy PLC (AIM: SAVE) updated on the Company’s 80% indirectly owned subsidiary, Accugas Limited, has entered into a new gas sales agreement with TransAfam Power Limited in relation to the provision of gas for use at its power plants in Rivers State, Nigeria.

Andrew Knott, CEO of Savannah Energy, said: “I am delighted to add TAPL as a new customer of Accugas. This represents the second new GSA we have signed this year, bringing our total number of gas customers to seven, as we deliver on our objective to be the gas supplier of choice to the power sector in Nigeria.”

Prospex Energy PLC (AIM: PXEN) announce that Po Valley Energy Limited (ASX: PVE) (‘Po Valley’ or the ‘Operator’) has received penultimate approval for production at the Podere Maiar gas field located in onshore northern Italy.

Which lies within the Selva Malvezzi Production Concession (‘Selva’). Prospex holds a 37% working interest in the Podere Gallina Exploration Permit with the Operator holding the remaining 63%.

Longboat Energy (LON: LBE) announces that the Cambozola exploration well in licence PL1049 offshore Norway (Company 25%) was dry and will now be plugged and abandoned.

Exploration well 34/9-1S operated by Equinor Energy AS, was targeting Lower Cretaceous turbidite sand lobes in the Northern North Sea and had the potential to be a play opener. The well was drilled to a total vertical depth of 4,393 metres below sea level. Background gas readings were recorded throughout the overlying section, but the well failed to encounter any effective reservoir. Analysis of the data collected remains ongoing to understand the observed bright seismic amplitude anomaly and any remaining Lower Cretaceous prospectivity in the area.

The drilling operations were carried out within the time schedule and below budget.

Serica Energy PLC (AIM: SQZ) provides a corporate update covering operational and financial performance and the recently announced Energy Profits Levy.

Operational performance in May 2022 continued to be strong and Serica’s net production for the month averaged in excess of 28,000 boe/d with an average net production YTD in excess of 26,000 boe/d. 2022 production is benefitting from the investments made in our portfolio, including the R3 well and the Columbus development, which were executed in a period of much lower gas prices.

It is safe to say that the results of the drilling of Clontarf Energy‘s (AIM: CLON) exploration well in Western Australia’s Sasanof-1 by PLC were a disappointment.

The well was plugged and permanently abandoned after no commercial hydrocarbons were found. De-mobilisation activities then commenced.

The shares were quickly abandoned by investors and the oil exploration company lost around three-quarters of its value.

Oilex Limited (ASX:AIM: OEX) Production for the month of May on the Company’s Cambay field (WI 100%), averaged 0.24 mmscfd gas production and 18.5 BPD condensate production. The majority of the production has been from the C-73 well but production from the C-77H well has been intermittently co-mingled to provide a route to higher production levels. However, low pressure grid constraints have limited production rates to the current c.0.3 mmscfd level. The low pressure grid constraints are being addressed by the grid operator which will allow for higher production rates from the field.

Operations Update: All major service and equipment have been secured for the planned C-77H re-frac operation. Currently, the workover rig is scheduled to be mobilised mid-June 2022 in order to prepare the C-77H well for fraccing operations, scheduled for mid-July 2022.

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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