United Oil & Gas PLC (LON:UOG) has expanded its asset portfolio, adding a frontier exploration project in West Africa.
The company has inked an option deal which will allow it to acquire a 20% stake in the Bénin Onshore Block B. It is a coastal block covering some 4,590 square kilometres, which has only seen limited seismic exploration activity.
United highlighted that the Block is a frontier area and no wells have been drilled to date. There is, however, encouragement taken from non-technical indicators.
Block B is surrounded by prolific hydrocarbon producing regions, and there are excellent positive indications of a working petroleum system, the company said. It noted that oil and gas seeps have been reported from water wells within Benin Block B, and an extensive tar belt has been reported to the northeast of the area.
The explorer highlighted that the decision is based on its focus on its portfolio of exploration licences in Atlantic Ireland and its pursuit of new opportunities across the Atlantic seaboard in North Africa and North West Europe.
UKOG holds a 40% interest in the project and the broader PEDL 143 Licence. Europa said that its partner’s direct experience in the successful Horse Hill project will help inform a forward plan for the licence.
FinnCap analyst Jonathan Wright, in a note, said: “This makes sense given UKOG has specific experience in the Weald basin that positions it well to take the work programme forward. “It also frees up [Europa’s] management time to focus on its Irish acreage farm-outs, UK producing assets and new venture opportunities.”
Touchstone Exploration Inc (LON:TXP, TSE:TXP)
Touchstone highlighted strength in terms of production as new wells drilled during 2019 continue to boost oil sales.
Ahead of 2018 results, due to be released on 27 March, the company has updated on its performance during the first two months of the current financial year. It reported oil sales of 1,994 barrels of oil per day in January, and, an increase to 2,179 bopd in February.
Production presently (based on seven preceding days in March) stands at approximately 2,358 bopd.
Touchstone highlighted that the eleven wells drilled in 2018 have accounted for some 993 bopd of current production.
88 Energy Ltd (LON:88E)
The explorer revealed final results from the Winx-1 well, which will disappoint investors as multiple zones that were seen to have oil potential have not warranted further testing.
The explorer said in a statement that it had successfully completed a programme of wireline logging and it had started a full petrophysical analysis and review.
Initial results from zones in the primary target formation, the Nanushuk, found low oil saturations while reservoir quality and fluid mobility are described as being insufficient to warrant production testing.
Zones in the deeper secondary target area, the Torok formation, similarly exhibited low oil saturation. They did not flow hydrocarbons in the initial tests.
Mosman Oil And Gas Ltd (LON:MSMN)
The Stanley-1 well recompletion programme is now underway. The work is expected to take three to four days, the company said.
The Stanley-1 well was the first to be drilled under Mosman’s alliance with Baja Oil & Gas and it highlighted it had been flowing gas and some oil from the Wilcox formation since initial completion but output had been constrained by limited gas infrastructure.
By recompleting the Stanley well, the plan is to produce oil from the separate Sparta zone, meanwhile, the Wilcox zone will be cemented off to potentially be re-entered at a later time.
Tlou Energy Limited (LON:TLOU)
Tlou received confirmation that the technical stage of the Request for Proposal (RFP) for Development of CBM fuelled power plants in Botswana has been passed.
It means that the Botswana Public Procurement and Asset Disposal Board (PPADB) has now approved a request to open the financial proposal in relation to Tlou’s gas to power tender, as well as the rival proposal from Sekaname.
The two companies last year submitted the proposal for a 100 MW project. Tlou highlighted that its proposal received a technical score of 89.8% in the tender, while Sekaname was marked at 86.4%.
Columbus Energy Resources PLC (LON:CERP)
The company told investors that it is expecting a second-quarter start to gas injections for the pilot project with Predator Oil & Gas and Heritage Petroleum at the Inniss-Trinity IPSC area.
The pilot project aims to inject carbon dioxide into wells as part of an enhanced oil recovery project.
Existing agreements enable Predator to acquire the AIM-quoted company’s FRAM Exploration subsidiary, which holds the interest in the Inniss-Trinity, for US$4.2mln. Predator is funding the pilot project.
Author Jamie Ashcroft
Source Link www.proactiveinvestors.co.uk
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