Share Talk Weekly Energy Sector News Round-Up, Sunday 7th August 2022

On Friday, oil prices closed higher, recovering some of the losses from this week’s weak U.S. job growth data. However, they closed the week at their lowest level since February due to worries about a possible recession.

Author @ABMckinley

Baker Hughes reported that the number of oil rigs, a sign of future output, dropped seven to 598. This is the first weekly drop in 10 weeks.

They call it inflation for consumers, profit for the corporations and their shareholders!

The OPEC+ producer group reached an agreement this week to increase its oil production goal by 100,000 barrels per daily (bpd), in September. However, this was one of the smallest increases since 1982 when such quotas were first introduced, according to OPEC data.

This increase is equivalent to 86 seconds of global oil demand. This is only a small fraction of the output of its members and would not increase Saudi Arabia’s target enough to fill one supertanker per month.

Tullow Oil, a company that focuses on Africa, announced Friday it would cease drilling operations at an exploratory well off Guyana. Results showed the well bore water. This sent its shares lower.

Drilling operations at the Beebei-Potaro exploration well, drilled in the Kanuku licence, offshore Guyana, have been completed. The well encountered good quality reservoir in the primary and secondary targets but both targets were water-bearing.

AMTE Power PLC (AIM: AMTE) MoU with Cosworth to Supply UHP Cells partnership to develop next-generation engines for electric vehicles.

AMTE Power has recently announced a series of commercial opportunities as it scales up production of its next-generation battery cells to support the net-zero transition and continues its pathway towards commercialisation. To support this growth, the Company announced last week the location for its first Megafactory in Dundee, Scotland, which will enable AMTE Power to produce its cells in the UK at an industrial scale and get its high-value products to market quickly and efficiently.

Canadian Overseas Petroleum Limited (LON: COPL) is an international oil and gas exploration, production and development company with production and development operations focused in Converse and Natrona counties, Wyoming, USA.

The document was compiled by Ryder Scott Consulting and confirms that the deep discovery contains total oil instead of 993.5mln barrels. COPL noted that the estimates were compliant with Canada’s National Instrument 51-10 reporting standards, and therefore naturally conservative.

The report highlights the potential of 118 horizontal wells in Converse and Natrona counties in the US state of Wyoming.

COPL stated that it plans to drill three horizontal wells in three locations as part of the 2022-23 drilling campaign, which will begin in the fourth quarter. Investors were told by CEO Millholland that the independent report confirms the announcement made at the beginning of the year and highlights the enormous potential of our Wyoming asset.

A consortium headed by Petrofac Limited (LON: PFC) has won a provisional contract worth US$300mln for engineering, procurement, and construction work on the Tinrhert EPC2 project in Algeria.

Petrofac, which is leading a consortium along with Genie Civil et Batiment, received notification from Sonatrach (Algeria’s state-owned oil firm and operator of the Tinrhert gasfield).

The development project is located in Alrar, approximately 1,500 km southeast of Algiers. It aims to increase natural gas production and extract CO2 from the gas reserves.

Serinus Energy plc (AIM: SENX) announced that the drilling of the Canar-1 exploration well in Romania commenced

The Canar-1 well will be drilled to a depth of 1,600 metres, targeting three prospective hydrocarbon zones. The Canar prospect is located on the northern flank of the Carei Basin, approximately four kilometres to the west of the Company’s Moftinu Gas Plant. The Canar-1 exploration well is seeking to discover further hydrocarbons on the migration path from the Carei Basin source kitchen. With success, production from this well will be connected to the Moftinu Gas Plant, utilizing existing plant capacity.

Malcy’s Blog – Oil price, Touchstone Exploration, Scirocco Energy, Orcadian Energy, Gulf Keystone, Block Energy & finally

i3 Energy plc (AIM: I3E) an independent oil and gas company with assets and operations in the UK and Canada, is pleased to announce the following update.

Monthly Dividend: i3 announces its monthly dividend totalling £1.6996 million and confirms the following:

Payment to shareholders holding their shares on the TSX will be made in Canadian dollars using the exchange rate from the Bank of England at close on the Dividend announcement date, 3 Aug 2022.

Further to Synergia Energy Ltd’s (ASX/AIM: SYN) (formerly named Oilex Ltd) announcement on 4 May 2022, advising of an equity fundraise of £2.5 million (A$4.4 million), before costs, to fund the refraccing of the Cambay 77H well in India and the continued development of the Company’s plans to undertake a drilling and testing appraisal program on the Cambay field.

Orcadian Energy (AIM: ORCA), the company updated that, further to the announcement of 11 October 2021, the Company has now executed a formal agreement with Carrick Resources Limited in respect of a sub-area of Licence P2320 which covers the Carra prospect.

Under the terms of the SPA, the consideration for the transfer of the Carra interest is to be satisfied by the fulfilment of certain work milestones (there is no cash consideration). Carrick will review existing data, acquire a licence to, and reinterpret, the seismic data currently being reprocessed by TGS relating to the Carra prospect, and remap the prospect.

Oracle Power PLC (AIM: ORCP) announced that the Company has received a letter from the Directorate of Alternative Energy of the Government of Sindh confirming that it will issue a Letter of Intent to Oracle regarding the establishment of a 1,200MW hybrid solar/wind, green hydrogen/power project (the “Project”) in Pakistan.

Being advanced by the Company’s joint venture company, Oracle Energy Limited, subject to the provision of a US$600,000 performance guarantee by Oracle Energy.

Malcy’s Blog – Flash Blog, Genel Energy, IGas Energy, Tower Resources & Jadestone Energy

BP posted its largest profit since 2008, thanks to soaring energy prices. The latest forecasts indicated that household bills could rise to more than £3,600 in the winter.

The profit for the oil giant was $8.5bn (£6.9bn), which beat estimates and is three times greater than last year’s second quarter.

The company increased its dividend by 10pc, to 6 cents per share, and announced that it will purchase back $3.5bn in shares within the next three months. This adds to the $3.8bn that it purchased back in the first quarter.

BP follows in the footsteps of Shell’s rivals by increasing shareholder returns as Russia’s war in Ukraine causes surging prices to create a windfall for major energy companies

Touchstone Exploration Inc. (AIM: TXP) shares surged after the onshore oil producer informed residents about the Coho gas facility/pipeline that it will be launching commissioning operations.

The group sent a notice to the residents of Trinidad and Tobago stating that it would begin pre-commissioning and commissioned operations.

According to the Coho Certification of Environmental Clearance, the notification must be received at least five business days prior to operations begin.

Helium One Global Ltd (AIM: HE1) will have plenty of time before the rainy season to finish its phase-two drilling campaign at Rukwa, Tanzania. It hopes to prove that it has the largest primary helium source in the world.

Although rig audit activities lost about a week due to an electrical fault in the rig management system, what we have seen to date gives us confidence that no major faults will be found with the Rig which we believe is fit for purpose to deliver the drilling programme that we have planned

The OTC-listed AIM company, announced Tuesday that it has completed an independent audit of its drilling rig. All key components have been tested and successfully operated.

Enquest PLC (AIM: ENQ) is looking at new investments in order to take advantage of the tax reliefs provided by the so-called “windfall tax” on UK oil and natural gas companies.

London-listed independent producer, which today confirmed first-half production of 49.726 barrels per hour from the North Sea, Malaysia and US$332mln in cash flow, is focusing on de-leveraging but expressed a desire for greater UK investment.

This comes just after the introduction of the “Energy Profits Levy” by Rishi Sunak (at that time chancellor for the exchequer). It saw taxes on oil profits rise sharply, but also provided greater tax relief on new investments.

Igas Energy PLC (AIM: IGAS) RBL Redetermination Completed & Notice of Results. The company confirmed it has completed its scheduled six-monthly RBL facility redetermination process.

  • The redetermination exercise confirms $22 million (£18.1 million) of debt capacity.
  • Cash balances as at 29 July 2022, were £2.4 million with net debt of £8.2 million.

A total of 95,000 bbls are currently hedged in 2022 using swaps at an average price of $77/bbl and 55,000 bbls using puts with an average guaranteed minimum price, net of premiums, of $44/bbl. We have also hedged 60,000 bbls for H1 2023 using swaps at an average price of $95/bbl.

Tower Resources PLC, (AIM: TRP). stated that it has secured equity funding of £1.5mln by issuing new shares at 0.125p each. During the fundraiser, Chairman Jeremy Asher purchased £250,000 worth of stock.

The company will use the proceeds of the placing to fund its preparations for drilling the NJOM-3 appraisal offshore Cameroon.

Tower Resources Cameroon SA, the company’s local subsidiary is currently working on final details for a US$7.1mln loan to BGFI Bank Group. Additionally, Tower Resources Cameroon SA is evaluating additional funding options within the “US$5-10mln” range.

Ascent Resources Plc (LON: AST) announce an agreement of PG-10 and PG-11A hydrocarbon revenues and an update on its previously announced JV and operator disputes in Slovenia.

Agreement with JV partner for Ascent to recognise €1.68 million of hydrocarbon revenues from the PG-10 and PG-11A wells for the period April 2020 through to June 2022. Mediation is scheduled for September to resolve Ascent’s claim to significant additional hydrocarbon revenues produced in the concession area

JV partners seeking to resolve a dispute with the JV service provider in relation to disputed fixed fee operating invoices.

The RAC claims that motorists in Britain are paying more for petrol than anywhere else in Europe, except Finland. This is despite the Government’s inability to lower fuel duties.

The UK’s petrol prices are more expensive than those in 26 of the 27 EU countries.

Prices are at least 20p less per litre in the Eurozone’s four major economies, Germany, France, Italy and Spain, while many other countries have made larger cuts to fuel taxes, according to the motoring group.

Prospex Energy PLC (AIM: PXEN) provide an update on the production and income from the El Romeral power plant in southern Spain (‘El Romeral’).

El Romeral continues to provide a very healthy income stream from selling electricity into the spot market in Spain. The Company holds a 49.9% working interest in El Romeral through its interest in Tarba Energía S.L.

i3 Energy plc (AIM: I3E) announced, following the fulfilment of all conditions precedent in the Farm-in Agreement (“FIA”), the completion of the farmout of a 25% working interest (“WI”) in Block 13/23c North (Licence P2358).

Which contains the Serenity discovery, to Europa Oil and Gas Limited. Under the terms of the FIA, Europa will fund 46.25% of the cost of the upcoming Serenity appraisal well up to a gross capped well cost of £15 million. Any well costs exceeding £15 million will be funded by the companies in proportion to their respective working interests.

i3 retains a 75% interest in the Serenity project, whilst Europa is earning a 25% stake by paying 46.25% of the cost of the planned well.

 Scirocco Energy PLC (AIM: SCIR ) and Aminex PLC (LON: AEX) highlighted that the project in Tanzania “approaches exciting times” because a seismic program undertaken by operator ARA Petroleum confirmed enough data to determine a final drilling location for the upcoming Chikumbi-1 well.

The well is scheduled to be spudded in November, and AIM-quoted firms today informed investors that the well continues on schedule.

Charles Santos (Aminex’s executive chairman) stated that “We are approaching an exciting time for Aminex.”

“The seismic acquisition program is nearing completion of results in the Ntorya core area with the delineation and final location of the CH-1 well. We are happy to report that November 2022 is still the target date for the well’s spud.

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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