Management changes, fundraisings, and financial results were among the highlights this week in the small cap oil and gas sector this week.
United Oil & Gas PLC (LON:UOG) on Friday appointed David Quirke as the company’s new chief financial officer.
Quirke wiil join the company on 24 June. He was previously with Tullow Oil, leading the oiler’s ‘treasury function’ between 2003 and 2017, and more recently was advising Assala Energy following its acquisition of Shell’s assets in Gabon.
“We are delighted to persuade someone of David’s calibre and experience to join us for the next phase of our development,” said Brian Larkin, chief executive. “We are building a team that will enable United to fulfil the undoubted potential of our asset base and to further grow this company.”
Earlier in the week, United O&G’s financial results statement had highlighted a “year of considerable progress.”
Cadogan Petroleum PLC (LON:CAD) shares jumped higher on Thursday after the explorer revealed a successful outcome from its well testing programme at the Blazh-10 well in western Ukraine. Blazh-10 produced some 275 barrels of oil per day (bopd) during testing and the company has now decided to continue producing from the well in natural flow.
With the well’s addition, the company is now producing over 500 bopd from the assets within the Monastyretska licence. The company said that the Blazh-10 well result gave it “a more accurate picture of the sustainable rate of production” from the asset.
Jersey Oil & Gas PLC (LON:JOG) told investors on Tuesday that it has agreed to a full and final settlement payment from Total after a farm-in partnership termination in 2013.
It will receive £750,000 from the French oil giant’s UK E&P arm. The settlement is the result of the termination of a farm-in partnership for licence P2032. “We are pleased to have reached agreement on this legacy issue regarding the farm-out of our former interest in Licence P2032, which was relinquished in 2015,” said chief executive Andrew Benitz.
SDX Energy PLC (LON:SDX) formerly known as SDX Energy Inc, confirmed the completion of its re-domicile transaction which saw an exchange of shares and a subtle renaming.
Though the transaction had several moving parts the outcome is quite simple – the company is now deemed to be a British company and its shares have been concurrently delisted from the Toronto venture exchange.
The company’s management team is based in London and its assets are in North Africa. Earlier this year, SDX told investors that the benefits of maintaining a dual listing and retaining its Canadian domicile status didn’t justify the additional costs.
Canadian Overseas Petroleum Limited (LON:COPL) topped up its working capital this week with a £497,000 share placing, as it continues to progress field development and financing planning for the OPL 226 project in Nigeria.
In a statement, the company revealed it will be issuing 497mln new shares priced at 0.1p each to investors via the placing arranged by Shard Capital. At OPL 226 the intention is to develop an oil field with three or four wells in order to deliver some 6,000 to 10,000 barrels of oil per day by the end of 2020.
Drilling is expected to start in late 2019, subject to regulatory approval, and will be followed by a second phase of wells. A ‘performance bond’ is already in place to allow the company to begin the programme.
ADES International Holding PLC (LON:ADES), meanwhile, highlighted a strong start to the year, with the oil and gas services business performing in line with expectations.
“We delivered a strong operational performance in the first quarter of the year, significantly accelerating revenue growth which increased by almost threefold compared to Q1 2018,” said Dr Mohamed Farouk, ADES chief executive. “Our results were supported by the steady ramp up of utilisation rates and the increasing contribution from the 2018 acquisitions.”
The first quarter results statement, the first since ADES acquired US$288mln worth of rigs from Weatherford International, revealed revenue of US$108.7mln, up from US$41.2mln in the comparative period of 2018 and US$79.7mln for the whole of the first half last year.
ADES added that its margins were in line with expectations, and said it had US$1.5mln of backlog at the end of March. The company noted that integration of the former Weatherford rigs – located in Saudi Arabia, Algeria, Kuwait and Iraq – continues to be ‘on-track’.
Author Jamie Ashcroft
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