US oil climbed above $85 a barrel leading into the weekend for the first time since November as supply cuts tighten West Texas Intermediate has risen 2pc.
Brent, the international benchmark, also climbed 1.7pc above $88. Crude prices have surged over the summer as production curbs, primarily from Saudi Arabia and Russia boosted the market at a time when demand usually rises.
For the year, U.S. oil futures have witnessed a 6% rise, following a 7% gain in 2022. On the other hand, U.S. gas futures have seen a sharp decline of around 37% this year, even after an increase of approximately 20% the previous year.
i3 Energy PLC (AIM: I3E) has raised its earnings forecast for the current year in light of the recent surge in oil and gas prices and increased production. This follows the mitigation of disruptions caused by the wildfires in Alberta, Canada.
During the June quarter, daily production was cut by 3,100 barrels of oil equivalent per day (boepd) due to the combined impact of the wildfires, planned pipeline maintenance, and well workovers.
Norwegian company Equinor, in collaboration with BP, has approached the New York State Energy Research and Development Authority (NYSERDA) seeking approval to increase the power price from three proposed offshore US wind farms by 54%, as per a recent submission.
The duo secured the rights to construct the Empire Wind 1, Empire Wind 2, and Beacon Wind farms located off the New York shoreline. With a total capacity of 3,300 megawatts, these farms can potentially power several million households, as stated by Reuters.
Mosman Oil and Gas Ltd (AIM: MSMN) has successfully carried out a frac on the G-2 production well at the Cinnabar Project in Texas. This process effectively linked the First Wilcox reservoir zone with the production well, facilitating its flow.
Earlier this month, a comprehensive development strategy was finalized by the company for the three production wells on the Cinnabar lease. The production from these wells contributed to the total quarterly production figures of 1,775 barrels of oil equivalent (boe).
Europa Oil & Gas (Holdings) PLC (AIM: EOG) has begun operations to introduce an artificial lift at the Wressle-1 well. Europa, which concentrates on oil and gas exploration, development, and production in the UK and Ireland, owns a 30% stake in the Wressle initiative.
Information gathered from these tasks will be integrated into the continuous efforts by ERC Equipoise Ltd. The anticipated positive effect on production due to the artificial lift from the jet pump will be reflected in its independent Competent Person’s Report. The specifics of this report will be disclosed once the work is finalized.
Helium One Global Ltd (AIM: HE1, OTCQB: HLOGF) has announced its progress toward commencing drilling at the Rukwa well in Tanzania this September. The company revealed that a seasoned crew is now in place, and their newly procured rig is nearly fully assembled on site.
The company listed on AIM possesses exploration licenses covering nearly 3,000 square kilometres across three zones in Tanzania. In July, they secured a rig with the capability to drill up to 2,400 meters for their premier Rukwa project. Testing in 2021 had previously revealed an operational helium system at this site.
Union Jack Oil PLC (AIM: UJO) has indicated that they are in the process of installing a downhole jet pump and related surface equipment on the Wressle-1 well to enhance subsequent production. Union Jack, a company emphasizing onshore hydrocarbon production, development, and exploration in the UK, maintains a 40% financial stake in the Wressle project.
David Bramhill, executive chairman, commented: “Industry sources indicate that over 90% of oil wells employ artificial lift during their life-cycle, therefore, the natural sequence of the installation of a jet pump on the Wressle-1 well offers a reliable method of ensuring the continued operation and the optimisation of its future production performance.”
88 Energy (AIM: 88E, ASX: 88E, OTC: EMF) successfully finalized a placement for all shares that were not claimed during its latest rights issue. Together, the revenue from both the rights issue and the placement equals A$8.0 million (£4.1 million) prior to expenses. This complements the company’s cash on hand, which stood at A$7.3 million (around £3.8 million) as of 30 June 2023.
In other developments, the company has decided to co-finance its portion for the first two new wells in the recently purchased Bighorn Phase 2 land in Texas. This is estimated to require US$3 million (net) in developmental capital, and will be funded by issuing A$4.0 million in 88 Energy shares as a segment of the shortfall offer placement.
88 Energy clarified, “By releasing A$4 million in developmental capital shares, we anticipate a savings equivalent to that amount in cash expenditures on developmental wells for the growth of Project Longhorn. Consequently, the cumulative benefit to the company from both the rights issue and shortfall placement reaches A$12 million, or approximately £6.4 million (before expenses).”
Challenger Energy Group PLC (AIM: CEG, OTC: BSHPF) secured a £3.3 million convertible loan note funding from a UK-based alternative asset management and investment company. This fund is designed to bolster business expansion, primarily to expedite technical projects in Uruguay and explore business growth avenues in Trinidad.
Elsewhere in the corporate update, chief executive Eytan Uliel noted his intention to purchase an additional 60 million shares in the company, bringing his total shareholding to 6%.
Eco (Atlantic) Oil & Gas Ltd (AIM: ECO) announced its intention to invite new partners to join the Orinduik Block license and to actively engage in drilling operations. At present, the company holds a 15% stake in the Orinduik located within the offshore Guyana block. This stake is set to increase to 60% once the acquisition of Tullow Oil’s share is finalized.
At the moment, the company holds a 15% interest in the Orinduik block located offshore Guyana. This percentage is expected to climb to 60% after the successful acquisition of Tullow Oil’s portion.
Additionally, in South Africa, Eco confirmed the receipt of US$2.5 million from Africa Oil due to the farm-out of an additional 6.25% in Block 3B/4B.
Quadrise PLC (AIM: QED) saw a resurgence as they verified that Valkor intends to proceed with a pilot program to tap heavy oil in Utah. This decision comes even after a more extensive drilling program was denied by local regulators last week.
Valkor aims to employ Quadrise’s exclusive MSAR technology to manufacture shipping fuels and other products that have a lesser environmental impact. The pilot project serves as an initial move towards creating a base at Asphalt Ridge in Utah.
Arrow Exploration Corp (TSX-V: AXL, AIM: AXL, OTC: CSTPF) released its second-quarter results, showcasing that both revenue and underlying earnings have more than doubled compared to the same period the previous year due to a surge in oil production.
Operating in key Colombian hydrocarbon basins, the company reported positive operating cash flows amounting to $4.9 million for the quarter ending on June 30, 2023. This is a significant shift of $5 million, considering they had a negative cash flow of $0.1 million in the second quarter of 2022.
Pantheon Resources PLC (AIM: PANR, OTCQX: PTHRF) witnessed a surge after applauding an evaluation by independent analyst NSAI. This analysis validates Pantheon’s frequent claims about the substantial oil reservoirs underneath its licenses. NSAI’s evaluation placed the Kodiak field’s mid-range estimate close to one billion barrels, a significant finding considering Pantheon’s current market value of £123 million.
NSAI provided a central estimate of nearly one billion barrels for the Kodiak field, a prospect garnering significant attention in the region. Given Pantheon’s current market valuation of £123 million, this estimation is significant, especially considering it’s about a tenth of its value from the previous year. Although Pantheon faces the challenge of extracting the oil, this independent evaluation will significantly aid their pursuit of a well-funded partner, they remarked.
88 Energy Ltd (AIM: 88E, ASX: 88E, OTC: EEENF) intends to gather up to £4.5 million via a share placement priced at 0.31p per share. This follows a rights issue that accumulated £1.7 million. Initially, the company had set its sights on obtaining up to £6.29 million from this rights issue, which was earmarked for the Hickory-1 well’s flow testing in Alaska.
Two new wells and workovers are also planned at Project Longhorn in Texas.
Quadrise PLC (AIM: QED) in collaboration with Valkor Technologies has revised its Utah agreement. The adjusted terms now solely hinge on securing a minimum of US$15 million in project financing. Despite the Utah Board of Oil, Gas, and Mining’s dismissal of a unitization scheme for the oil deposit, an authorized pilot drilling scheme remains on track.
Pantheon Resources PLC (AIM: PANR, OTCQX: PTHRF) disclosed that an autonomous report projects roughly one billion barrels of oil in its Kodiak venture, previously dubbed Theta West, in Alaska. Netherland, Sewell & Associates (NSAI) executed this appraisal. They assessed the 2C or average contingent resources to be around 962.5 million barrels, with a conservative estimate of 437.8 million and an optimistic outlook pointing to 2.01 billion barrels.
Jay Cheatham, the CEO of Pantheon, remarked, “This is truly significant. For a company of Pantheon’s scale to receive a reliable third-party estimation of close to one billion barrels of retrievable liquids is a monumental validation of our geological framework.”
Bob Rosenthal, Pantheon’s technical director, further commented, “To provide some context, it’s uncommon to witness certified resources of this magnitude, especially when located onshore and in proximity to infrastructure.”
