Share Talk Weekly Energy Sector News Round-Up, Sunday 8th May 2022

Baker Hughes Co, an energy services company, reported that the oil and gas rig count, which is an indicator of future output, rose from 7 to 705 in the week to May 6. This was its highest level since March 2020.

Baker Hughes stated that this brings the total number of rigs up to 257 or 57% over last year.

U.S. oil production rose to 557 this week, its highest level since April 2020. Gas rigs grew to 146, their highest level since September 2019.

Pantheon Resources (AIM: PANR) is listed on the AIM market with a market cap that has been hovering around £1b. Jay Cheatham, CEO, and Bob Rosenthal, Technical Director, are here to give an update.

 

 

PANR will spud the Alkaid #2 well this July. Huge resource upgrades for its projects on the North Slope, containing over 23 billion barrels OIP.

Shell obtained injunctions from a UK court that allow protestors to be fined and/or put in prison for blocking or damaging petrol stations in England or Wales. The firm announced Friday.

This follows several protests by climate activists like Just Stop Oil and Extinction Rebellion in recent weeks.

This is similar to the steps taken by Exxon and other oil companies, which were supported by Britain’s business department. It says that protest shouldn’t disrupt people’s daily lives.

Petrofac Limited, (LSE: PFC) has joined forces with the decommissioning company Promethean Decommissioning Company in order to decommission 200 offshore oil wells located in the US Gulf of Mexico.

According to the oilfield services company, South Pass 60, South Pass 6 and East Breaks 160 legacy offshore fields and assets comprise nine platforms and 32 pipeline segments.

ADM Energy PLC (AIM: ADME) provides an update on the legal proceedings in respect of its interest in the Barracuda oil field.

ADM and KONH’s application for an interlocutory injunction on which the above interim order was based, argued that the restraining order of the court is maintained against the Defendant until the final determination of the suit. The Court found the following

Malcy’s Blog – Oil price, IGas Energy, Reabold Resources, Empyrean Energy, Gran Tierra Energy & finally

LEKOIL (AIM: LEK) provides a summary of ongoing litigation with Mr Akinyanmi and Lekoil Nigeria Limited (“Lekoil Nigeria”) and notes the following with respect announcement of Lekoil Nigeria dated 3 May 2002.

What a week for Baron Oil (AIM: BOIL) since announcing a fundraise on the 29th of April,  conditionally raised £1.65 million at a price of 0.06 pence per share. The Directors anticipate the following indicative use of funds, based on the net Fundraising proceeds of approximately £1.5 million.

Two major projects progressing towards key evaluation points – Chuditch PSC (Timor-Leste) and P2478 (UK) with relatively short timelines for potential drill decisions

The share price returned 100% for those who took part in the placing the week before. An expected sell-off followed, well if you are sat on that profit, surely it would be wise to derisk and be in for a free ride? Next week will be interesting to watch to see if liquidity, and momentum continue.

i3 Energie PLC (AIM: I3E) shareholder Cairn Capital via Bybrook Capital has sold 60mln shares in secondary placing at 27p each share to generate £16.2mln proceeds.

Brokers Tennyson Securities, Shard Capital and Stifel Nicolaus organized the sale of shares.

Union Jack Oil PLC (AIM: UJO) Announced back in late April it had hit the magic number “US$5 Million Net Revenues Landmark Reached at Wressle Production Development” now investors’ attention turn to the update on the published full-year results.

With a high possibility of added net revenue, don’t forget this company is in production at the Wressle development, not forgetting this is onshore, and all planning permission is in place, this well will continue to follow revenue into the foreseeable future.

Not forgetting this company is not a one-trick pony, one for the watchlist as the company has projects on multiple fronts that can add value to the Mkt cap of only £31.87m

Petro Matad’s shares fell 13% after the Mongolian oil company warned Covid-19 about China’s travel restrictions that have severely affected its operations.

Shell PLC, (LSE: SHEL; NYSE: SHEL) has posted record quarterly profits. The record-breaking earnings were a result of soaring oil prices, which led to earnings of US$9.1bn for the three months.

Earnings for the first quarter were almost doubled year-on-year and up 50% compared to the previous quarter. Cash flow from operations was US$14.81bn, and free cash flow was US$10.5bn.

Reabold Resources PLC, (AIM: RBD), saw its market value increase by a fifth after Corallian Energy, its 49.99%-owned affiliate, received a takeover offer from what was described to be a credible bidder.

Corallian’s board indicated that they find the offer attractive and have begun discussions with potential buyers about a sale.

Ascent Resources PLC (AIM: AST) formally notified the Government of the Republic of Slovenia of further breaches under the UK – Slovenia bilateral investment treaty (the “BIT”) and the Energy Charter Treaty (the “ECT”).

In particular, the Government of Slovenia has been notified of the fact that their latest actions, which include amendments to the mining law which specifically prohibit holders of mining rights from carrying out the exploration or exploitation of hydrocarbons with the use of any hydraulic stimulation, have caused further considerable harm to the Investors’ investments in Slovenia.

After the Environmental Agency issued a full production permit to Horse Hill, the company’s shares in UK Oil & Gas PLC (AIM: UKOG) were deemed ‘off to the races.

After the contentious project which was located in the heart of Surrey’s stockbroker district, the green light was given, and the shares rose 23% in the early deals. This ended a two-and-a half-year-long saga.

Stephen Sanderson UKOG’s CEO commented:

” This long-awaited EA permit finally enables UKOG to return Horse Hill’s produced saline formation water back to the oil-bearing Portland rocks where it originated, lowering operating costs per barrel, removing HGV tankers from congested roads and reducing the field’s overall carbon footprint. The ability to reinject makes both environmental and economic good sense.”

BP (BP.L.) said Tuesday that it expects to pay as much as 1 billion pounds ($1.25 trillion) in taxes in Britain for its 2022 profits. This is despite reporting a large write-down due to exiting Russian businesses.

BP did not disclose how much British tax it paid for 2021. These comments were made amid calls to impose a windfall tax upon energy companies in order to support consumers facing rising fuel prices. BP’s 2020 tax reports revealed that it paid $263 Million in UK taxes that year.

According to the company, it plans to invest as much as 18 billion pounds in Britain by 2030 to produce oil and gas, wind power and other projects.

Empyrean Energy PLC (AIM: EME) Block 29/11, China – Proposed drilling of Topaz Prospect following Jade well results.

Based upon the preliminary assessments of the Jade well results and the ongoing agreement with its partner, China National Offshore Oil Company (” CNOOC “), to further cooperate with regards to follow up post well analysis, it is Empyrean’s current intention to proceed with the second phase of exploration at Block 29/11 and to participate in the drilling of the Topaz prospect.

Looking at this logically, they would need around £10m to £15m to drill Topaz, but could raise these via a JV partner or sale of Mako gas asset, whatever they chose to do, it is not over yet folks. One for the watchlist.

Oilex Ltd (ASX:AIM: OEX) I said last week that the uncertainty of a placing and at what price the company will raise was just a matter of wait and see. We finally got the answer with an update with respect to its operations in India, as well as the completion of a £2.5 million fundraise. GBP 0.20 pence (AUD 0.35 cents) per share.

The placing price of GBP 0.20 pence represents no discount to the current price so a few across social media are eating humble pie. Now that Oilex is fully funded, in production, drill programme lined up for 2022, the company can now focus on the business and start to build on delivering shareholder value.

 

Operational Update

After a lengthy shut-in of production on the Company’s Cambay field (WI 100%), gas production and sales have been stabilised from one well (C-73) at circa 0.3 mmscfd, with circa 21 bopd of gas condensate. Current C-73 production rates (c. 0.3 mmscfd) demonstrate stable wellhead pressures. The Company plans to co-mingle production from the C-77H horizontal and fracced well while ramping up to higher sustainable production rates.

Fundraise

The Company has arranged an equity capital raising, with existing sophisticated, institutional and other shareholders, led by Republic Investment Management Pte Ltd (Republic) and clients of Novum Securities Limited (Novum), of £2.5 million (approximately AUD$4.4 million) before expenses, through the issue of 1,250,000,000 new fully paid ordinary shares (Placement Shares) at GBP 0.20 pence (AUD 0.35 cents) per share (Placement).

The Placement will be completed in two tranches: the first on 27 May 2022 and the second on or about 20 June 2022, subject to approval by Oilex Shareholders.

On Tuesday, Russian President Vladimir Putin notified the West that he would cease exports and contracts. This was the Kremlin’s most severe response to the US and its allies’ sanctions on Russia for their invasion of Ukraine.

Putin, Russia’s supreme leader since 1999 signed Tuesday a broad decree prohibiting the export of raw materials and products to individuals and entities listed on a list of sanctions he ordered the government to create within 10 days.

Gazprom has not booked Q3 capacity via Yamal pipeline – EU energy ministers meet for emergency talks

Two EU officials stated Monday that the European Commission might spare Hungary and Slovakia from an embargo against Russian oil purchases. This was in preparation because of their dependence on Russian crude.

On Tuesday, the Commission will finish work on the sixth and final package of EU sanctions against Russia for its actions in Ukraine. This would include a ban to buy Russian oil, which is a major source of revenue source for Moscow.

Hungary is heavily dependent upon Russian oil and has repeatedly stated that it will not agree to energy sanctions. The EU’s most dependent country on Russian fossil fuels is also Slovakia.

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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