Share Talk Weekly Energy Sector News Round-Up, Sunday 22nd May 2022

Clontarf Energy plc (AIM: CLON) provides an operational update on the drilling of the Sasanof-1 exploration well on Wednesday (Valaris MS-1 rig transit time is expected to be approximately four days, weather dependent). The rig is secured to the GO Spica support vessel bridle for the tow to the Sasanof-1 exploration well location.

Valaris MS1 appears to have arrived on location looking at marine traffic posts across social media. Drilling operations (conductor jetting) are expected to start during the week starting Monday 23rd May.

ERCE estimates the Sasanof Prospect to contain a 2U Prospective Resource of 7.2 Tcf gas and 176 Million bbls condensate (P501), with a high case 3U Prospective Resource estimate of 17.8 Tcf gas and 449 Million bbls condensate (P101).

This one is on a few peep’s watchlists and further updates are expected this week.

Baker Hughes Co, an energy services company, reported that the oil and gas drilling rig count, which is an indicator of future output, increased from 14 to 728 during the week to May 20. This was its highest level since March 2020. Baker Hughes stated that this brings the total rig count to 273, or 60%, higher than it was at the same time last year.

U.S. oil production rose 13 to 576 this week, its highest level since March 2020. Gas rigs increased from one to 150, their highest point since September 2019.

UK Oil & Gas PLC (AIM: UKOG) announced that West Sussex County Council has approved, by a 7-2 majority vote, a 2-year planning permission extension to its Broadford Bridge-1z (“BB-1z”) Kimmeridge oil discovery, located in licence PEDL234 (UKOG 100%). The planning extension runs until 31st March 2024.

Will Sanderson deliver on the years of promises of jam tomorrow? Holders wait and watch, over the years the company promised so much but has yet to deliver any sustainable shareholder value.

Malcy’s Blog – Oil price, Chariot Ltd, Pharos Energy, Hurricane Energy, Getech Group & finally

China is at it again, are we surprised. According to oil traders and shipping data, China is quietly increasing its purchases of Russian oil at bargain prices.

According to Vortexa Analytics, China’s seaborne Russian oil imports from Russia will rise to near-record levels of 1.1 million barrels per daily (bpd), in May. This is up from 750,000 BPD in the first quarter, and 800,000. BPD in 2021.

China receives 800,000 barrels per day of Russian oil through pipelines that are part of government agreements. This would increase China’s May oil imports to almost 2 million barrels per day, or 15% of its total demand. Russia’s oil sales help to offset the economic damage from sanctions.



Union Jack Oil the company has seen significant financial transformations with positive indicators and substantial revenues updates, including Oil revenues, which increased by over 1,000% in 2021.

Share Talk invited David Bramhill, Executive Chairman, of Union Jack Oil (AIM: UJO) into the London studio to update holders and explained what the future holds for the company.

Prospex Energy PLC (AIM: PXEN) AGM Notice and Final Results for Year ended 31 December 2021. Successfully transitioned from an explorer to a gas-producing, electricity and income-generating investing company.

Commenting on the results, Mark Routh, Prospex’s CEO, said: It has been a transformational year for Prospex as we transitioned from being an investing company with interests in exploration assets to a company including interests in a gas-producing and electricity-generating asset. We have invested in the optimisation and automation of El Romeral enabling it to run 24 hours a day 7 days a week and allowing us to benefit from the unprecedented rise in electricity prices. In addition, our successful fundraising earlier this year enabled us to increase our stake in Selva to 37%, where a full production licence is anticipated during 2022.

Chariot Limited (AIM: CHAR) Result of Oversubscribed Placing and Subscription. The Company has conditionally raised gross proceeds of US$25.5 million (£20.4 million) through the successful Placing of, and Subscription for 113,333,334 New Ordinary Shares, in each case at the Issue Price of 18 pence per Ordinary Share.

Commenting on the Fundraising, Adonis Pouroulis, Acting CEO of Chariot, said:

“We are delighted to have completed this oversubscribed Placing and Subscription, subject to shareholder approval at the forthcoming General Meeting, and we welcome our retail investors who would like to also participate through the Open Offer. Management have further supported the Company in this fundraise so we remain fully aligned with our shareholder base, demonstrating our commitment and belief in the value and future growth of our business. We are excited about moving the Anchois development towards FID and we look forward to updating the market in this regard, as well as with our progress across our wider portfolio.”

Hurricane Energy plc (AIM: HUR) provides an update on Lancaster field operations and net free cash balances as of 30 April 2022.

As of 30 April 2022, the Company had net free cash(4) of $92 million compared to the last reported balance of $106 million as of 31 March 2022. During the month, there was a net movement of $3.2 million from free cash into restricted funds in line with the terms of the Aoka Mizu FPSO Bareboat Charter extension. $78.5 million of Convertible Bonds remain outstanding and are due in July 2022.

Arrow Exploration Corp. (AIM: AXL; TSXV: AXL) announced the results of the Rio Cravo Este-2 (“RCE-2”) well testing on the Tapir Block in the Llanos Basin of Colombia.

The RCE-2 well was spud on April 2, 2022. RCE-2 targeted a large, three-way fault bounded structure with multiple high-quality reservoir objectives on the Tapir Block in the Llanos Basin of Colombia. The well was drilled to a total measured depth of 9,600 feet and encountered six hydrocarbon-bearing intervals totalling 90 net feet of oil pay.

SDX Energy Plc (AIM: SDX) updated on the spudding of the MSD-24 infill development well on the Meseda field. This well is the fourth in a fully-funded 13-well development drilling campaign on the Meseda and Rabul oil fields in the West Gharib concession in the Egyptian Eastern Desert. The campaign is aimed at growing production to c.3,500 – 4,000bbl/d by early 2023.

The first two wells in the campaign, MSD-21 and MSD-25, have been successfully tied-in and are contributing to production. Operations at the MSD-20 well have been slower than expected due to the performance of the rig that was being used on this well. This rig has now been permanently replaced and the Company is confident of improved and accelerated performance in the campaign going forward. It is hoped that results from MSD-20 will be available in the next three to four weeks.

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

Valaris MS-1 rig has started mobilisation activities for departure to the Sasanof Prospect 200km away on the North West Shelf. Secondary anchors securing the rig at Dampier outer harbour, Western Australia, have been pulled, and the rig is secured to the GO Spica support vessel bridle for the tow to the Sasanof-1 exploration well location.

Primary anchors will then be recovered by the Far Senator, and the tow commenced. Transit time is expected to be approximately four days, weather dependent.

Union Jack Oil PLC (AIM: UJO) Oil revenues increased by over 1,000% during 2021, The Future Look Bright

Canadian Overseas Petroleum Limited and its affiliates (LON: COPL) announced financial results for the first quarter ending March 31, 2022.

COPL’s net crude oil sales before royalties remained consistent at an average of 1,114 bbl./d as compared to 1,094 bbl./d in the fourth quarter of 2021 (“Q421”) . Due to Cuda Energy LLC’s (“Cuda”) operating arrears liability, as a joint interest partner in the Wyoming assets, the Company has held Cuda’s average production of approximately 477 bbl./d in the first quarter of 2022 (“Q122”) and 506 bbl./d in Q421 to offset the ongoing arrears.

Thus, in aggregate, the Company’s total net average oil production in Q122 was 1,591 bbl./d as compared to 1,600 bbl./d in Q421.

Petroleum sales, net of royalties increased to $7.1 million from $5.8 million in Q421. Cuda’s petroleum sales, net of royalties was $2.7 million in Q122 and $2.3 million in Q421 for an aggregate amount to the Company’s account of $9.8 million for Q122 an increase from $8.1 million in Q421

Oilex Ltd (ASX:AIM: OEX) announce the appointment of Lisa Wynne as Company Secretary of the Company, with immediate effect.

Lisa is a Chartered Accountant and Chartered Secretary with 16 + years of experience as CFO & Company Secretary and Board level experience including with ASX & TSX listed companies and significant experience in the exploration and mining industries. Lisa is a Member of the Institute of Chartered Accountants and a Fellow of the Governance Institute of Australia and a member of the Australian Institute of Company Directors. Lisa does not currently hold shares or interest over shares in the Company.

2022 is going to be a transformative year for OEX, holding its own right now and once the news flow starts, l am sure we will be saying, told you so.

Malcy’s Blog – Oil price, Diversified Energy Company, Union Jack Oil & finally

UK Oil & Gas PLC (AIM: UKOG) following the Environment Agency’s Horse Hill production consent as announced on 4th May 2022, the North Sea Transition Authority (“NSTA”), formerly the Oil and Gas Authority.

Has now granted its formal consent for the recompletion (i.e., conversion) of Horse Hill-2z into a water reinjection well. The Company holds an 85.635% operated interest in the Horse Hill oil field and surrounding PEDL137 licence.

With both the Environment Agency and NSTA permissions in hand, UKOG can now further expedite its plans for produced saline formation water reinjection at Horse Hill during 2022, which, if implemented, would remove the need for costly transportation and disposal of produced water at distant third-party sites.



Pantheon Resources (AIM: PANR) Rig Contract Executed has formally executed contracts for the Nabors 105AC drill rig to drill the Alkaid #2 well, scheduled to spud in July 2022. If successful, Pantheon will commence a long term production test and truck and sell the produced oil to a nearby North Slope facility. The Alkaid #2 well has three objectives (from shallowest to deepest) To appraise the shallower Shelf Margin Deltaic horizon, which management believes contains a Contingent Resource of 2.6 billion barrels of Oil in Place and 404 million barrels of recoverable resource

Union Jack Oil PLC (AIM: UJO) Final Results for the Year Ended 31 December 2021.

Operational Highlights

• Successful proppant squeeze and coiled tubing exercise at Wressle resulted in an instantaneous flow rate of over 1,000 barrels of high-quality oil per day (“bopd”) being achieved with zero water cut

• Wressle-1 pressure test analysis by ERCE indicates potential flow rates of between 1,200 to 1,500 bopd are achievable

• Wressle Revised Field Development Plan submitted to the North Sea Transition Authority (“NSTA”) for approval

• Results from West Newton EWT confirm substantial hydrocarbon discoveries within the Kirkham Abbey formation

• Independent RPS Group (‘RPS’) review predicts initial average production rates of up to 35.6 million cubic feet of gas and 1,000 bopd from a horizontally drilled well at West Newton

• Planning granted at West Newton for both A and B site works and three year permit extension

• Completion of purchase of a further 15% interest in PEDL253 containing the Biscathorpe Prospect, bringing Union Jack’s interest to 45%

David Bramhill, Executive Chairman, commented: My confidence in Union Jack’s future remains highly positive.

In 2021 and to date, the Company has advanced a number of its key projects, especially at Wressle which, as stated earlier, have been transformational financially with substantial revenues and indications that the Wressle journey has only just commenced.

On a closing note, Clontarf Energy plc (AIM: CLON) will be grabbing a few headlines this week, spud date due and a lot of excitement, and anticipation as the drill bit hit the dirt.

Empyrean Energy Plc (LON: EME) is still in the game as we wait on the next update, as l keep saying. At that stage, a final decision to enter the second phase of exploration is likely to be made and further announcements will be made in due course.

The show goes on, folk, we watch to see how this unfolds.

Looking at this logically, they would need around £10m to £15m to drill Topaz but could raise these via a JV partner or sale of Mako gas asset, whatever they chose to do, it is not over yet folks.

Angus Energy PLC (AIM: ANGS) Brockham Oil Field  (PL 235) now has Surrey County Council’s blessing to go ahead, they approve the Company’s plan to abandon the Kimmeridge layer and reperforate the Portland layer in well BRX4-Z.

Saltfleetby (51% interest in the Saltfleetby Gas Field) (PEDL005) continues to aim for a short wet commissioning programme and a target date of First Gas of 1 June. Looking at the company’s official Twitter account, everything looks to be on track, with exciting weeks ahead for holders.

Finally a couple of charts for you, l backed PANR around 25p back in the day while l watched other commentators big up 88E, not knocking any company but the 1y Charts speak volumes.

Pantheon Resources (AIM: PANR) Rig Contract Executed, scheduled to spud in July 2022. If successful, Pantheon will commence a long term production test and truck and sell the produced oil to a nearby North Slope facility. The management believes contains a Contingent Resource of 2.6 billion barrels of Oil in Place and 404 million barrels of recoverable resource.

Mark that down in your diary.

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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