It was a ‘summerish’ week in the oil and gas sector, though a number of project updates and financial results keep investors engaged.
Author Jamie Ashcroft
88 Energy Ltd (LON:88E) shares jumped higher on Wednesday after the firm revealed that the farm-out process for Project Icewine’s conventional portfolio is advancing. The company, in a statement, said that the farminee has now completed its internal approvals, including board sign off.
It added that the completion of the deal is now subject to the execution of closing documents and other conditions relating to the transfer of working interests. Now, the company is ramping-up well planning and permitting for a proposed drill programme in 2020.
Union Jack Oil PLC (LON:UJO) raised £2.25mln as it works to follow up the West Newton appraisal success with an extended well test. It is selling 1.32bn new shares priced at 0.17p each in a share placing arranged by broker SP Angel.
“The board is delighted with the result of the oversubscribed fundraising and, given current testing equity market conditions,” said David Bramhill, Union Jack executive chairman.
Bramhill added: “Given the successful West Newton A-2 appraisal well result, and our improved financial position resulting from this fundraising, we keenly await the results of the planned extended well test in the third quarter of 2019 that will be expanded to test the liquid and/or gas intervals evident in the well.
SDX Energy Plc (LON:SDX) told investors that it has made a new oil discovery, as the Rabul-7 well encountered 134 feet of pay.
Rabul-7 is located in the West Gharib concession in Egypt. The well was drilled down to a depth of 5,323 feet and it encountered two formations of heavy oil pay, Yusr and Bakr, totalling 134 feet.
The well was completed as a producer and has been connected to the central processing facilities at the Meseda field. Production has been measured at 415 barrels of oil per day at a stabilised rate, over five days.
Rose Petroleum PLC (LON:ROSE) boss Matthew Idiens is to step down from his position at Rose once the company has completed its current transitional period.
Rose, in a statement, said that it continues to evaluate roles and needs at the executive and board levels, as it appointed Rick Grant as non-executive director. Grant is presently co-founder and Chairman of Origin Creek Energy LLC (OCE), a vehicle which makes US$2mln to US$20mln foundational investments in the domestic US energy sector.
Recently appointed Rose chairman Colin Harrington also has ties to OCE which last month agreed to invest in the AIM-quoted firm.
Rose also this morning released its financial results for 2018. The exploration company reported a US$2.49mln comprehensive income, including a US$2.39mln gain coming from the translation of currency. It ended 31 December 2018 with US$616,000 of cash and equivalents.
Mosman Oil And Gas Ltd (LON:MSMN) confirmed that drilling on a third well at its part-owned Stanley project in Texas is to begin in August.
AIM-quoted Mosman, which has a 16.5% working interest in the Stanley-3 well, said it will fund its share of the drilling costs from existing cash reserves. The third well comes after some success with the two previous wells at the project.
Stanley-1, in which Mosman also has a 16.5% stake, was first drilled last summer and was recompleted in March.
Eland Oil & Gas PLC (LON:ELA) told investors that production averaged 9,880 barrels of oil per day, up 32%, over the first five months of 2019. The company, in a statement, noted that system uptime was recorded at 88% for the period.
At the Gbetiokun project the company continues to work on the start-up of the field via an early production facility (EPF) which is expected in July.
The Gbetiokun EPF is expected to begin with an initial production rate of 12,000 bopd (5,400 bopd net) from two wells, Gbetiokun-1 and Gbetiokun-3. In line with the company’s early monetisation strategy the EPF output will go-to-market via the shuttling of crude tankers between Gbetiokun and the main OML 40 export pipeline. The operation has been designed with a modular approach and Eland highlighted that this allows production volumes to increase over the next 12 to 18 months.
Author Jamie Ashcroft
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