Experts warn that the forthcoming early election poses a significant threat to the North Sea oil industry. Labour’s pledge to expand the Government’s windfall levy is anticipated to accelerate the sector’s demise.
Analysts caution that a potential win for Sir Keir Starmer could compel operators to abandon operations in British waters, potentially leading to the abandonment of some of the UK’s largest oil and gas reserves. “If Labour fulfils its commitments, it could spell the end for the UK continental shelf,” they cautioned.
Union Jack Oil plc (AIM: UJO) (OTCQB: UJOGF) published the positive conclusions of a Carbon Intensity Study on the West Newton gas development, located within PEDL 183 onshore UK in East Yorkshire. This study was undertaken on behalf of Union Jack and Reabold Resources plc (AIM: RBD), by GaffneyCline & Associates Limited (“GaffneyCline”), an international petroleum and energy consultancy.
John Wood Group has declined a third bid of 220p per share from Sidara, an increase from earlier bids of 212p and 205p this month. The company stated that the latest offer “significantly undervalues the group and its prospects.”
North Sea engineering group turns down third takeover offer valued at £1.5 billion. Based in Aberdeen, the company is a significant force in the oil, gas, and renewable energy sectors, and in mining critical minerals such as lithium, essential for achieving net zero emissions. It has a workforce of about 35,000 across 60 countries.
Despite the rejections, the company’s shares have risen 10% since the initial takeover offer was revealed on May 8.
UK Energy bills to drop by 7pc from July
Orcadian Energy PLC (AIM: ORCA) witnessed a 20% surge in its shares as it disclosed a non-binding agreement with a potential farm-in partner for its new venture in the southern North Sea of the UK. The identity of the potential partner remains undisclosed.
European Green Transition (AIM: EGT), a company developing green economy assets in Europe which aims to capitalise on the opportunity created by the green energy transition, is pleased to announce it has entered into an exclusive option agreement (the “Option”) to investigate the potential to develop a peatland carbon sink programme and in turn generate carbon credits (the “Carbon Credit Project”) at the Altan farm in Donegal, Ireland.
European energy firms mulling over shifting their primary listing to the vibrant market of New York might find such a move “counterproductive,” according to UBS. However, there could be certain short-term valuation advantages. The Swiss bank acknowledged that the US market “applies a lesser discount on oil & gas assets, offers greater access to capital with fewer ESG constraints.”
Brookside Energy Ltd (ASX: BRK, OTC: RDFEF) completed the drilling of the surface hole at Rocket Well, part of the Flames-Maroons Development Plan (FMDP) in Oklahoma’s Anadarko Basin. The company is currently drilling the intermediate section. Brookside confirmed the safe and timely progress of operations within budgetary constraints.
Panmure Gordon noted that Union Jack Oil Plc’s (AIM: UJO, OTCQB: UJOGF) decision not to disclose production figures for the previous year complicates the assessment of revenue declines. However, lower commodity prices are believed to have played a significant role. Despite this, reserves were augmented at Wressle with further development in the pipeline.
Chariot Ltd (AIM: CHAR, OTC: OIGLF) garnered attention as it commenced drilling at a new well in Morocco. The endeavour is expected to de-risk and unlock similar neighbouring projects. The company confirmed the initiation of drilling at the OBA-1 well, situated in the Loukos Onshore license, on the Dartois prospect.
Serica Energy PLC (AIM: SQZ) secured approval for a new North Sea field and urged the UK government to reform the oil and gas tax regime. Serica highlighted the heavy tax burden, around 75%, on oil operations, which was exacerbated by the introduction of a ‘windfall’ tax during the period of heightened crude oil and gas prices due to the Ukraine conflict.
Oracle Power PLC (AIM: ORCP), the international project developer, announced that the Company’s joint venture company, Oracle Energy Limited (“Oracle Energy” or the “Joint Venture”), has been granted an extension in the validity period of the Letter of Intent (“LOI”) by the Directorate of Alternative Energy of the Government of Sindh for the development of its proposed 1.3 GW renewable energy power plant in Jhimpir, Sindh Province in Pakistan. The LOI, originally issued on 13 September 2022, expired on 13 March 2023. It has now been extended up until 23 January 2025.
Malcy’s Blog – Oil price, Chariot, Union Jack Oil, Serica Energy, Nostra Terra Oil & Gas & finally
Union Jack Oil PLC (AIM: UJO, OTCQB: UJOGF) expressed confidence and optimism in its final results statement for the year, with executive chair David Bramhill outlining opportunities for further business expansion. The company cited positive developments at the Wressle field and early success in its American ventures.
In just a few months, the company’s initial successes in the USA highlight the ease of entry and ability to execute business in that country, justifying the Board’s decision to seek further growth opportunities internationally to bolster its flagship production and appraisal assets in the United Kingdom.
Nostra Terra (AIM: NTOG), the oil & gas exploration and production company with a portfolio of development and production assets in Texas, USA, announces changes to its board of directors with effect from Monday, 20th May 2024.
Matt Lofgran, Nostra Terra’s long-serving CEO, has stepped down from the role to concentrate on other interests. Matt has led the Company since 2009 and he will continue to provide support to the Company as an advisor for a 6 month transition period.
Baron Oil gearing up for a promising venture campaign in Timor-Leste in 2024
Chariot Ltd (AIM: CHAR, OTC: OIGLF) announced the commencement of drilling at the OBA-1 well, situated in the Loukos Onshore license in Morocco. The Dartois target holds an estimated recoverable prospective resource of 12 billion cubic feet (Bcf).
