Share Talk Weekly Energy Sector News Round-Up, Sunday 3rd July 2022

Here we go, new galore short-term, Angus Energy PLC (AIM: ANGS) is within touching distance of being a producer. The A4 well has been reconnected.

Author @ABMckinley

Commissioning is expected to take between one and two weeks with a target date for the first gas export (ie sales) between the “7th & 12th” of July remember it now has 100% of Saltfleetby which is accretive to shareholders.

Over the past month, the share price is up by over 18% and with the expected output during that period from existing wells B2 and A4, assuming a start date of 1 July is approximately 5 million therms and comfortably exceeds the hedged amount.

Deltic Energy (AIM: DELT) saw a significant rise after Shell, the oil giant, made a decision to set up the AIM-quoted group for an enormous opportunity in a new gas exploration venture off the English east coast.

Deltic holds a 30% stake in Pensacola’s exploration well. Shell signed up Maersk to its Resilient Jack-up drill rig this week. Seabed operations are expected to begin later in the month and then the spudding in September.

Investors in small-caps were quick to notice the news. At 2.61p, the share has risen just shy of 11% over the past five days. This is due to the fact that it will be a prominent well with the potential for significant new domestic gas resources in Britain.

Malcy’s Blog – Oil price, San Leon Energy, Hunting, Serica Energy, Lamprell & finally

JPMorgan analysts Natasha Kaneva said that Russia’s strong fiscal position means the nation can cut daily crude production by 5,000,000 barrels without causing economic damage.

The results could prove disastrous for much of the rest of the world. Analysts wrote that a 3 million-barrel reduction in daily crude oil supplies would drive benchmark London crude prices up to $190.

A worst-case scenario, which could see crude prices rise to $380 per barrel, could lead to a “stratospheric,” $380 crude.

ADM Energy PLC (AIM: ADME) notes that Panoro Energy ASA (OSE Ticker: PEN), and PetroNor E&P Limited (“PetroNor”) (OSE Ticker: PNOR), have agreed to further extend the long-stop date for Panoro to sell 100% of its ownership in OML 113 to PetroNor.

It is expected that the transaction will now formally close within 14 days.

This one caught my attention this week, Egdon Resources PLC (AIM: EDR) Significant Shareholders and Concert Party – Relevant Changes. Waiver by the Takeover Panel – Associated TR-1 Forms.

Shareholdings held by Petrichor Holdings Cooperatief U.A. and other members of the Concert Party have now been transferred to Petrichor Partners LP as the registered holder of the 237,924,452 Ordinary Shares in Egdon representing 46.04% of the issued ordinary share capital in Egdon. The shareholdings held by members of the Concert Party were transferred to PPL at the Egdon Ordinary Share price at the close of business on 23 June 2022, being 4.35 pence.

Watching with interest to see how this unfolds.

Putin signed a decree to seize Shell’s Russian gas project rights. This could make it more difficult for the British energy giant Shell to invest in Russia. According to the Kremlin, the rights to Sakhalin-2 were to be transferred to a Russian company. This was due to threats to national security and national interests.

Shareholders have one month to decide whether or not they want to take stakes in the company. They were also warned that they might not receive full compensation if they do so.

Shell, which owns a 27.5pc share in Sakhalin-2, shareholdings worth $4.1bn (£3.4bn) could be lost?

San Leon Energy PLC (AIM: SLE) Update in respect of its potential follow-on investment in the Oza oil field in Nigeria.

San Leon’s announcement on 3 May 2022 noted that the Company had an option until 30 June 2022 to provide a further loan of US$2.5 million to Decklar Resources Limited, in order to increase its shareholding in Decklar from 11% to 15% (or otherwise accept the pro-rata reduction in its shareholding in Decklar to 11%).

San Leon is in discussions with Decklar in respect of potentially extending the Option Period. The Company will release further announcements as and when appropriate.

Active Energy Group (AIM: AEG) Completion of the agreement for the sale of Lumberton.

The gross consideration for the Lumberton Site is $4.65 million, before the deduction of deferred maintenance fees and transaction expenses.

Gazprom, Russia’s largest gas company, has decided to not pay dividends on its last year’s results. This is the first time that it has not paid out dividends since 1998. Its shares plunged 27%.

Gazprom intends to spend 526 billion rubles ($10 billion) in 2025 to boost Russia’s gasification, which is currently at 72%.

Gazprom didn’t mention the G7 proposals for limiting gas prices nor the reduction in flows to Europe in its Thursday statement. These are both factors that could have a negative impact on its revenue and tax payments.

Providence Resources PLC, (AIM: PVR)  executive chairman James Menton stated today in today’s annual results that the Barryroe project could have a significant effect on Ireland’s energy security.

This comes at a time when Barryroe’s timeline is stalled. The company still needs to get approval from the Irish government for an extension of the offshore license that will be used for the project.

Tower Resources PLC (AIM: TRP) informed investors that it had signed a term sheet with Central African brank BGFI to obtain a 4.42bn Cameroon francs loan. This amount is equivalent to approximately US$7.1mln. It was part of its financing arrangements for the NJOM-3 well, which will be located on the Thali block offshore Cameroon.

According to a statement issued after Wednesday’s close, the company stated that the loan would cover approximately 40% of the well cost (US$18mln). The remainder will be covered by Tower’s Cameroon subsidiary.

Under an emergency plan, the UK will cut gas supplies to Europe if Russia’s energy crisis worsens.

According to the Financial Times, one of the first measures in the plan would be to shut down the interconnector pipelines linking Belgium and the Netherlands. National Grid could also be involved if supplies drop further.

The emergency plan would include the supply cut-off as part of a four-stage plan. This could include gas rationing for large industrial users, and encouraging households to reduce their consumption.

Union Jack Oil plc (AIM: UJO) announced that following the passing of a special resolution of the Company at its Annual General Meeting on 23 June 2022, the Company is now pursuing a reduction of capital exercise through the court procedure

Capital Reduction involves an application to the High Court of Justice, followed by two court hearings, where the Courts will consider whether any creditors will be prejudiced by the Capital Reduction.

Once the Capital Reduction is complete and a positive result is obtained, the Company will issue a further announcement outlining details of a share buyback scheme or the payment of a maiden dividend.

Deltic Energy PLC (AIM: DELT) announced that Shell UK Ltd, the Operator of Licence P2252, has confirmed that a rig contract has been signed for the drilling of the Pensacola exploration well.

Pensacola will be drilled using the Maersk Resilient, a high-efficiency jack-up rig, which has been under contract to Shell since the start of June and is currently drilling a production well in the Southern North Sea. Use of the Maersk Resilient should bring significant operational efficiencies that are naturally associated with being part of an extended programme of wells.

Drilling of Pensacola remains scheduled to commence in the second half of September with seabed operations for placing of the rig due to commence towards the end of July.

Angus Energy (AIM: ANGS) announced the conclusion of leak testing and the commencement of commissioning of the Saltfleetby Gas Field. The duration of commissioning is expected to take between one and two weeks with a target date for the first gas export (ie sales) between the 7th and 12th of July.

The hedged volume for July to September inclusive is 3.375 million therms. The expected output during that period from existing wells B2 and A4, assuming a start date of 1 July is approximately 5 million therms and comfortably exceeds the hedged amount.

Chariot (AIM: CHAR) announces that its Annual Report and Accounts for the year to 31 December 2021 have been posted to shareholders.

The Annual General Meeting (“AGM”) will be held on8 September 2022 at 11.00 am at the May Fair Hotel, Stratton Street, London, W1J 8LT.

Baron Oil PLC (AIM: BOIL) AGM Statement. The significant progress made since the beginning of the year in relation to Chuditch has largely been in the technical sphere. The main element of the work programme has been the reprocessing of the 3D seismic covering the Chuditch discovery and adjacent analogous prospects and lead.

We continue to engage with multiple potential farm-in partners by hosting a continuously updated dataroom, not only with ‘traditional’ exploration and production industry players but also with companies seeking the security of gas supply and infrastructure providers.

Savannah Energy Plc (AIM: SAVE) First Gas Sales to TransAfam Power Limited.

Announce that Accugas Limited, the Company’s 80% indirectly owned subsidiary, has commenced gas sales to TransAfam Power Limited in relation to the provision of gas for use at its power plants in Rivers State, Nigeria.

Inspirit Energy Holdings Plc, (LON: INSP) provides an update on its Waste Heat Recovery (WHR) system.

The WHR is a major component in the application for the Volvo Marine engine and other heat recovery applications the Company has been working on whereby waste heat exhaust is recycled and converted to energy.

The unit is being built and tested in Poland and with the current issues in neighbouring Ukraine, sourcing materials and components have been challenging.

However, we are pleased to report that on the first phase of the development of the WHR unit and with limited testing, the unit has provided the highest recorded output of over 30 kW in the first stage build test period. This is a remarkable achievement in Inspirit’s history.

Oracle Power PLC (AIM: ORCP) announced that it has signed a non-binding Memorandum of Understanding with Nuvera Fuel Cells LLC to jointly explore opportunities for de-carbonised heavy-duty transport and port infrastructure in Pakistan powered by green hydrogen.

Nuvera, headquartered in Massachusetts, is enabling hydrogen vehicle adoption. Nuvera manufactures heavy-duty, zero-emission fuel cell engines for mobility applications. With teams located in the U.S., Europe and Asia, Nuvera provides clean, safe and efficient products designed to meet the rigorous needs of industrial vehicles and other transportation markets.

Mosman Oil and Gas Limited (AIM: MSMN) provide the following operations update.

Production for the three months ending 31 March 2022 was 22,409 boe (Gross), and 11,756 boe (Net attributable to Mosman). Final June quarter numbers will be announced in late July and in the interim Mosman advises the preliminary numbers for the two months ending 31 May 2022 are 15,682 boe (Gross), 6,276 boe (net attributable to Mosman).

Mosman emphasises that these numbers are still preliminary as formal receipts from the purchases are not yet available for May. Boe is a barrel of oil equivalent based on calorific value as opposed to dollar value.

Arrow Exploration Corp. (AIM: AXL; TSXV: AXL) announced the results of the Rio Cravo Sur-1 (“RCS-1”) well testing on the Tapir Block in the Llanos Basin of Colombia.

The RCS-1 well was spud on May 23, 2022. RCS-1 targeted a 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 8,656 feet (8,105 feet true vertical depth) and encountered six hydrocarbon-bearing intervals totalling 55 net feet of oil pay.

Eco (Atlantic) O&G (AIM: ECO) Eco Acquires Additional Interest in Block 3B/4B, South Africa.

On completion of the Acquisition, Eco Atlantic will, through Azinam, hold a 26.25% Participating Interest in Block 3B/4B, with strategic alliance partners, Africa Oil Corp., the Operator of the block, holding a 20% Participating Interest, and Ricocure, which holds the remaining 53.75% Participating Interest.

Block 3B/4B, is located between 120-250kms offshore South Africa in the Orange Basin directly south of the prolific multibillion barrels discoveries offshore Namibia announced earlier this year by Shell (Graff-1) and TotalEnergies (Venus-1).

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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