Share Talk Weekly Energy Sector News Round-Up, Sunday 26th June 2022

Picking up from last week’s blog, UJO, OEX delivered news, PANR‘s Twitter feed is on fire along with ANGS, updating holders, the two best Twitter feeds in my humble opinion right now to follow.

Author @ABMckinley

PTAL  announced a sales update, ECO announced a spud date for Gazania-1 in September and said the well will take approximately 25 days to drill. A lot going on in the next couple of months, for investors to follow.

Share Talk spoke to David Horgan, Chairman of Clontarf Energy plc for an update on the Sasanof-1 well results, and if they have plans to explore deeper targets in the block? Plus what does the future hold for the company and investors? On the same day of the interview, David was making preparations to fly to Bolivia.

Phoenix Global Resources PLC, (AIM: PGR) stood out as a small-cap that is heading higher. It confirmed that Mercuria Energy Group, 84% shareholder, was considering purchasing the company and making it private.

After Phoenix announced that any offer would be around 7.5p per share, shares rose 29% to 6.475p

The record-breaking 23 months in which the US has added oil and gas drilling rigs – Baker Hughes.

U.S. energy companies added oil and natural gas drilling rigs this week for the second consecutive week, a record 23-month run of increases. This was due to high crude prices and government prodding.

Baker Hughes stated that this brings the total number of rigs up to 283, or 60%, compared to last year.

Argos Resources Limited (AIM: ARG), released an update on Licence PL001, Funding and Publication of Results.

Update on Funding Position: Mr Ian Thomson, OBE, Chairman of Argos, has agreed to provide a loan facility of up to £110,000 to the Company.

Drawdown from the Loan Facility can be made at the Company’s request. The Loan Facility is available until 31 January 2023 with no interest accruing on borrowed amounts. If the Company carries out a share issue by way of fund-raising, the lender shall be entitled to convert the loan then outstanding into new shares issued on the same terms as those available to other participants in the issue.

Investors did not like the update with the share price losing over 25% on the news release.

San Leon Energy PLC (AIM: SLE) Further update on the Potential Transaction. Considerable progress has been made by the Company in progressing the Potential Transaction and the Company is now expecting to publish an AIM admission document (the “Admission Document”) in respect of the Potential Transaction by 8 July 2022, following which point the Company intends to seek the restoration of trading of its ordinary shares on AIM.

Germany risks falling into an “outright recession” business confidence fell as a result of growing concerns about Russia cutting off its gas supply.

According to Germany’s network regulator, consumers may see their energy prices double or triple due to the current crisis.

Prospex Energy PLC (AIM: PXEN) announced that the first of two projects in solar generation diversification at the El Romeral power plant in southern Spain (‘El Romeral’) has commenced. The Company holds a 49.9% working interest in El Romeral through its interest in Tarba Energía S.L. (‘Tarba’). The remaining 50.1% working interest is owned by Warrego Energy Limited (ASX: WGO).

Installation work to place solar panels on the roof of the power plant (‘Project Apollo’) was approved by Tarba earlier this month and is expected to be completed by the end of July.

Malcy’s Blog – Oil price, Zephyr Energy, Sound Energy, Longboat Energy, Cornerstone Resources Group & finally

ADM Energy PLC, (AIM: ADME) chief executive Osamede Okhomina told investors that 2021 was a year of great progress as it released its financial results for the 12 months ended 31/12.

Osamede Okhomina stated that it was their first year after almost double our Aje Field interest which resulted in a significant increase in revenues over the previous one.

Southern Energy Corp (AIM: SOUC) announced that it plans to raise C$38.9million (£24.5million) through a proposed prospectus offer and concurrent placing.

According to the company, the net proceeds of the offering will be used to accelerate and extend the planned drilling program at Gwinville, as well as for general working capital purposes such as increasing financial flexibility in anticipation of potential accretive acquisitions.

Union Jack Oil plc (AIM: UJO)  Annual General Meeting (“AGM”) was held on Thursday, 23rd June. All resolutions as set out in the Notice of AGM in the Company’s 2021 Annual Report and Financial Statements, were duly passed. The proxies received in respect of all resolutions were as follows.

Many European countries have plans in place for managing gas supply, and even rationing power in the event that Russian gas flows cease after supplies through the Nord Stream 1 pipeline are curtailed.

Last week, Russian gas supplies to Europe via the pipeline were cut and Moscow warned that delays in repairs could result in all flow being suspended.

Zephyr Energie PLC (AIM: ZPHR) chair Rick Grant describes 2021 in Thursday’s financial results as “a period of substantial progress in the continuing transformation of Zephyr”.

Grant stated that the group transformed from a single exploration company to a self-sustaining, cash-generating oil-producing group with a balanced portfolio consisting of both operated and unoperated assets in two well-established oil-producing basins in the US.

Orcadian Energy PLC (AIM: ORCA) announced that the North Sea Transition Authority (“NSTA”) published, the full report prepared by the Company and its partners, for the Platform Electrification competition launched in September 2021.

The competition sought electrification concepts that could minimise carbon emissions for existing North Sea platforms. “Orcadian’s Microgrid Concept” aims to dramatically cut carbon emissions, ensuring that the oil and gas that features in our future energy mix is as sustainable as possible.

Oilex Ltd (ASX:AIM: OEX) Cambay C-77H Re-frac Operations Update. The workover rig arrived on location at the C-77H wellsite on June 20th 2022 and is being rigged up in preparation to pulling the completion string from the C-77H wellbore.

Civil works to prepare the wellsite for the re-fraccing operations have been completed. All major services and equipment have been secured for the hydraulic fraccing operation which is scheduled to commence in mid-July 2022.

The fraccing operation is anticipated to last 7 days and will be followed by flow-back and testing. We currently expect to be able to announce the results of the re-frac operation in August 2022.

Chariot Ltd (AIM: CHAR) reiterated its intent to make a prompt final investment decision (FID), on the Anchois gas project, offshore Morocco.

This would give the green light to construction and production. It would also unlock “material cash flows”, as the group called them.

Hurricane Energy PLC, (AIM: HUR) stormed 17% higher at 7.375p after Robin Allan was appointed as an independent, non-executive director. Robin Allan is a former Premier Oil director.

The relationship between the company and the City has been difficult. Allan’s appointment was welcomed warmly.

Allan will be the chair of the Environmental, Social and Governance Committee (ESG), and will also become a member of the Technical Committee.

Gulf Keystone Petroleum Limited (LSE: GKP) informed investors that it received a US$62mln Gross Payment, US$48.5mln Net, from the Kurdistan Regional Government.

It is for oil sales from Shaikan fields in March, the company stated in a short statement.

Malcy’s Blog – Flash blog, Wentworth Resources, Chariot, Eco (Atlantic) Oil & Gas & Savannah Energy

Eco (Atlantic), Oil & Gas Ltd. (AIM: ECO. TSX:V: EOG) Eco through its wholly-owned subsidiary Azinam South Africa Limited Operates and holds a 50% working interest (“WI”) in Block 2B, plans to spud the Gazania-1 well, 25km offshore the Northern Cape in South Africa in September 2022. The well will take approximately 25 days to drill.

In a statement, the company stated that the well would be drilled in 150m of water, approximately 25 km from shore.

Scirocco Energy PLC, (AIM: SCIR) chair Alastair Fergusson has informed shareholders that it is in their best interest to approve the sale at the upcoming EGM of the company’s Tanzanian assets.

This month, Scirocco and Wentworth Resources reached an agreement to sell 25% of the Ruvuma asset (primarily the Ntroya gasfield development project) to Scirocco. A shareholder vote is scheduled for Wednesday 29 June.

Clontarf Energy (AIM: CLON) the oil and gas exploration company focused on Ghana, Bolivia and Australia announce its preliminary results for the year ending 31 December 2021.

The Company expects to shortly publish its 2021 Annual Report & Accounts and a further update will be made in this regard as and when appropriate.

Union Jack Oil PLC (AIM: UJO) welcomes the concept development plan for the West Newton field at PEDL 183 on Humberside, released today by operator Reabold Resources PLC (AIM: RBD).

The plan envisions a gas-based development project, with eight recoverable volumes totalling 35mln barrels of oil equivalent and a sales gas component of at least 203bn cubic yards (Bcf).

David Bramhill, Executive Chairman of Union Jack commented: “We are delighted by the results of work completed by RPS Group and CoreLab and the resulting Conceptual Development Plan, which has demonstrated West Newton’s potential as an extremely valuable gas development opportunity.

United Oil & Gas PLC, (AIM: UOG) announced the spudding of the Al Jahraa-14 well on the Abu Sennan license, onshore Egypt.

The drilling for the AJ-14 well is underway. It targets the Abu Roash C reservoir within the Al Jahraa field along with the secondary Abu RoashG target. It will take approximately 60 days to drill and finish, and it will be completely funded by operational cash flow.

On Monday Ukrainian forces attacked drilling platforms in the Black Sea that were owned by a Crimean oil-and-gas company, according to the pro-Russian head of the annexed peninsula. He did not give details about the weapons used.

Three people sustained injuries and seven others were missing from Chernomorneftegaz, Sergei Askyonov (the Russian-installed head in Crimea) said in a Telegram post.

Officials from Crimea said that work on three drilling platforms was suspended following the strike and that there were fires.

Jadestone Energy PLC (AIM: JSE) shares fell in Monday’s early trades after the company reported that operations were suspended at Montara, Australia. This was due to oil being detected on the ocean floor adjacent to the floating production storage and offloading vessel (FPSO).

The tank’s bottom was leaking, revealing a hole measuring 30mm in diameter. According to the company, it had stopped the oil from leaking and will now apply temporary repairs before further inspection and repair.

Harbour Energy PLC (LSE: HBR) lashed out at the “seriously flawed” windfall tax in an open letter to the Chancellor Of Exchequer.

Rishi Sunak was urged by the UK’s largest oil and gas producer to reconsider the £5bn windfall income tax on large companies’ profits.

Chariot Ltd, (AIM: CHAR) has signed an agreement for front-end engineering design (FEED), with Schlumberger with the trio to form a consortium in order to accelerate the Anchois gas project in Morocco.

Adonis Pouroulis (Chariot’s acting chief executive) added: “Signing the agreement with Schlumberger, Subsea 7 and other companies is more evidence that we have accelerated our development plans for Anchois Gas Project. This was a key tenet in our recent fundraising.”

Union Jack Oil PLC (AIM: UJO) reported net sales from Wressle of US$7,000,000 have been achieved from the Wressle hydrocarbon development (“Wressle”), located within licences PEDL180 and PEDL182 in North Lincolnshire on the western margin of the Humber Basin.

A landmark US$7,000,000 revenue was generated for Union Jack since the re-commencement of production on 19 August 2021

40% of the economic interest in the development is held by the UK-based on-shore hydrocarbon producer, developer, and explorer.

The current daily production figures were also constrained at 750 barrels per day (bopd) which is well above the 500 bopd Ashover Grit reservoir.

Energean PLC (LSE: ENOG) stated to investors that it will drill more wells off-shore in Israel because it has extended its rig contract.

In a statement, the company stated that it had exercised an option under its contract with Stena Drilling to drill two additional wells. These will be added to the 2022 campaign.

Cloudbreak Discovery PLC, (LSE: CDL) announced that it has contracted Precision GeoSurveys for high-resolution helicopter-borne magnet surveys over its Northwestern Portfolio in British Columbia, Canada. This includes the Northern Treasure, Rizz and Icefall projects.

Surveys are designed to locate prominent structures that could be mineralised and help to determine potential targets for ground-based exploration.

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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