Share Talk Weekly Energy Sector News Round-Up, Sunday 23rd October 2022

France, Portugal, and Spain announced that they would build a sea-based pipe to transport hydrogen and gas from Barcelona to Marseille. This will replace plans to extend the MidCat pipeline across France.

Author @ZaksTradersCafe

Europe is trying to find alternative energy sources in the face of Russia’s pressure. Russia has gradually cut gas flow after sanctions were imposed by the West in response to Russia’s invasion of Ukraine in February.

Reabold Resources (RBD) Requisition of General Meeting, as announced on 17 October 2022, the Board of Reabold received a letter from Pershing Nominees Limited, which owns approximately 6.93% of the Company’s issued share capital on behalf of five beneficial shareholders, requesting the Board to convene a general meeting

This was noteworthy as one of the potential new directors was set to be Cathal Friel. Given his record with creating Open Orphan (ORPH), soon to be hVIVO (HVO) as a flourishing business over the past couple of years, one would be watching closely to see whether the value in RBD is truly realised going forward, however things pan out.

Although the government won the vote on fracking on Thursday, the chaos in parliament as well as the overwhelming opposition suggested that this sector might be in trouble.

There were reports that MPs were “manhandled” during a contentious vote about fracking there were 315 ‘no’ votes on whether to ban fracking for shale gas, versus 228 ‘ayes’ in favour

As far as the small-cap end of the stock market was concerned, the highlight of the week had to be regarded as the rise of Baron Oil (BOIL), especially on Thursday. In fact, you could say that the stock was partying like it is 1999. So much so I was more interested in its rise, than the political news of the day.

This was important as the first sign of a lasting turnaround in the small-cap space will be the return of the half-bagger, bagger stocks on a daily basis. In the case of Baron Oil, it is to be hoped that the basis of the rise, of North Sea oil and gas production, and the reverse of the disastrous move to Green, will cause the stock to be a sustained riser.

Technically, at least while above the 0.2p, it may not be too much to expect the stock to retest the 0.4p zone from a couple of years back. Three-year resistance is at 0.6p – maybe by the end of the year?


A company punching above weight story (more about this later) was delivered this week by Oracle Power (ORCP), as the international natural resources project developer, announced the appointment of thyssenkrupp Uhde, part of a €3bn conglomerate. Oracle Energy is targeting a 400MW capacity green hydrogen production facility, with an annual production of 55,000 tonnes of hydrogen – quite a lot of gas. So far, ORCP’s shares are mysteriously unchanged since the news.

IOG PLC, (IOG). shares fell by 55% following the downgrading of production guidance and the suspension of a well due to “fluid loss”. In a statement, the North Sea firm stated that the Southwark A1 well had been “securely suspended”. Its plan to resume, complete and produce A1 after bringing A2 onstream.

That pushed the company to announce Board and executive changes.

Synergia Energy Ltd (SYN) updated with respect to its Cambay India operations. The Company has been analysing and optimising the C-77H gas production rates. The well continues to clean up with flow rates have increased steadily from 150,000 SCFD at the end of September to the current rate of 276,000 SCFD and 17 BPD gas condensate. A commensurate increase of flowing wellhead pressure to the current 950 psi has also been observed.

The consistent increase in gas production from the two newly perforated and fracced zones in the C-77H well confirms the Company’s belief that a fracking methodology has been established that will underpin a full field development.

TomCo Energy (TOM), the US operating oil development group focused on using innovative technology to unlock unconventional hydrocarbon resources, announces that the company has received a conversion notice from certain Convertible Loan subscribers to convert £137,500 principal amount of the second tranche of the Convertible Loan and the associated interest of £6,875 (5%), into new Ordinary Shares.

Trinity Exploration (TRIN), the independent E&P company, provided an update on operations for the three-month period ended 30 September 2022. The Company said it maintained robust production in the Period, leading to a 25% increase in operating cash flow. The first two wells of the six-well, fully-funded onshore drilling campaign were brought into production during the Period. These wells commenced production at an initial aggregate rate of approximately 113 bopd. The third well in the programme has subsequently been drilled successfully and is in the process of being completed, with production anticipated to commence within the next two weeks.

Europa Oil & Gas (EOG), the AIM-traded oil and gas company, announced that it has repaid in full the £1,000,000 loan facility provided by Union Jack Oil (UJO) which was announced on 9 September 2022. The Loan was secured against a 10% interest in the Wressle field (PEDL180 and PEDL182), and this security will now be released at which point the Company will be completely unencumbered and debt-free.

Cloudbreak Discovery (CDL), a natural resources project generator, announced that it has completed a reconnaissance surface programme at the Foggy Mountain Project in the Toodoggone region in north central British Columbia, located immediately east of the past producing Kemess Mine. The Property was initially generated and staked in April 2022.

Oracle Power (ORCP), the international natural resources project developer, announced the appointment of thyssenkrupp Uhde to lead the technical and commercial feasibility study for the green hydrogen and ammonia project, being developed by Oracle Energy Limited. The study is planned to commence shortly with the final report expected to be delivered in H1 2023. Oracle’s share of the cost for the study is expected to be funded from current cash resources. Oracle Energy is targeting a 400MW capacity green hydrogen production facility, with annual production of 55,000 tonnes of green hydrogen.

It would appear that some still have faith in the idea of a stock market listing, despite all the barriers to entry, the cost, the red tape and the current “volatile” conditions. Ithaca Energy (IAE), a UK independent exploration and production company focused on the UK North Sea, announced that it intends to publish a Registration Document and is considering proceeding with an initial public offering. Ithaca Energy is considering applying for admission of its ordinary shares to the premium listing segment of the Official List of the FCA and to trading on the main market for listed securities of the London Stock Exchange.

Wildcat Petroleum (WCAT), a company targeting investment opportunities within the upstream sector of the petroleum industry. It announced that it has signed an MOU to work in collaboration with the Sudanese Oil Ministry to advance the development and commercial exploitation of hydrocarbon assets in Sudan. The MOU is for an initial period to 31 December 2022 and can be extended upon both parties approval. The ultimate aim is to increase overall oil production by 100,000 barrels per day – something which is likely to have quite an impact on a company whose present market cap is only £26m, if we are looking to revenues of some $10m a day.

ADM Energy (ADME), a natural resources investing company, announced that it has raised a total of approximately £725,000 through a subscription and a loan from Tennessee Black Gold LLC. The company also announced that Osa Okhomina will step down from the Board of Directors and his position as Chief Executive Officer upon receipt of the total Subscription amount expected to be by 28 October 2022.

The final reprocessed data is continuing to be interpreted and the results received to date are leading to a step change in confidence in the Company’s understanding of the structural configuration of the Chuditch reservoirs at target depths

Baron expects to be in a position to provide a comprehensive update on the interpretation of the 3D seismic data along with the progress being made elsewhere on the Chuditch PSC project on or before 26 October 2022.

Mosman Oil and Gas Limited (MSMN) announces that the Cinnabar development well in Tyler County, Texas has completed drilling. The well was drilled to a depth of 9,900 feet. The mud log confirmed multiple oil-bearing Wilcox sands from 9,050 feet to 9,850 feet. The Wilcox sands are the primary targets which notably have a long production history in nearby wells (mainly oil with some associated gas).

The next steps are to run wireline logs followed by run and cement production casing, and then proceed to put the well on production. Flow tests are not required as the production capability is already demonstrated at the existing production wells in the lease area.

Author @ZaksTradersCafe

Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. The writer may or may not hold investments in the companies under discussion.

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