The week got off to a good start with SDX Energy (SDX) announcing a gas discovery at the LMS-1 well and the spud of the Kelvin-1X exploration well, targeting 150 BCF of prospective resources in Morocco. The shares continue to move higher. Savannah Petroleum (SAVP) announced the spud of its second well, the Amdigh-1 in Niger. Its shares are now starting to firm up a little, but remain well down on the 35p placing price, due to the vast number issued to acquire the Seven Energy assets.
Amongst the US operators, Empyrean Energy (EME) announced commercial gas flows at last from Dempsey, Highlands Natural Resources (HNR) announced the spudding of its sixth and seventh shale wells at East Denver, Nostra Terra Oil & Gas (NTOG) announced the spud of its third well in the Permian Basin and Mayan Energy (MYN) announced it is now producing 137 net barrels of oil per day.
In Georgia, Frontera Resources (FRR) announced its T-45 well now is flowing at the rate of 270 barrels of oil per day. Results from their other wells are still awaited. Next door in Azerbaijan, Zenith Energy (ZEN) also announced an update regarding its work overs of deep Soviet era well bores. There is huge theoretical potential in these old fields. FRR has a market capitalisation of £72.5 million; ZEN has a market capitalisation of £9.73 million. Worth checking out.
Providence Resources (PVR) announced that at Newgrange, it is getting this prospect drill ready by accelerating plans for a site survey this summer, whilst also continuing to run a major farm-out campaign. Tower Resources (TRP) announced its preliminary results and a firm drilling plan for Thali should be ready in the third quarter of this year.
Echo Energy (ECHO) announced the spud of its first exploration well in Argentina, but its shares tread water, down well over 20% from the placing price. Anyone wondering why the ECHO share price is going nowhere, particularly with the oil price climbing, only needs to look at the admission document and see the hundreds of millions of ultra cheap shares, options and warrants issued to the group. Meanwhile, stablemate Coro Energy (CORO) announced the distribution of Po Valley Energy (PVR)‘s CORO shareholding to the PVR shareholders. Along with the Sound Energy (SOU) CORO shares distributed free to the SOU shareholders, there are a lot of people holding CORO at zero cost and its hard to see much, if any, potential here.
Amerisur Resources (AMER) announced it is gearing up for a busy period of exploration drilling, targeting 26 million barrels of gross resource. Bowleven (BLVN) announced the arrival of the Topaz-Driller rig in Camaroon waters. Its IM-6 appraisal well is expected to spud at the end of May. Both are well worth watching
Finally, IGas (IGAS) (market capitalisation £105 million) announced that in addition to net production of around 2,300 – 2,400 barrels of oil equivalent per day, its shale appraisal and development plan is covered by up to c. $240 million carried work programme. Another one to keep an eye on.
The author holds one or more investments in one or more of the companies mentioned so this post cannot be viewed as independent research. This post does not constitute investment advice or a recommendation to buy or sell and may be incorrect or outdated.