It was a short week and started with Echo Energy (ECHO) announcing the commencement of drilling of their second exploration well in a four well back-to-back campaign in Argentina. Shame that they destroyed any prospect of a share price increase for investors with a heavily discounted placing the week before. Companies at present seem to find it hard to resist taking advantage of pre-spud interest and, instead of allowing their investors to profit, are placing at sometimes large discounts into the price rise and volume. Something to watch out for.
Prospex Oil & Gas (PXOG) and United Oil & Gas (UOG) announced the application for a production concession application in Italy. Based upon the experience of other companies, this will not be granted for many years, if ever. Oil and gas exploration is virtually grinding to a halt in Italy, principally as a result of local environmental activism and inertia at the bureaucratic level, regional and national, which is why Sound Oil (SOU) and Po Valley Energy (PVE) both gave away their Italian assets to Coro Energy (CORO), which now doesn’t really want to do anything in Italy either, just see their announcement last week.
In adversity lies advantage, though, and another company with an announcement last week, Cadogan Petroleum (CAD), could clean up in Italy with its directors’ deep connections, experience and knowledge. This isn’t your usual board for a small oil company with minor production: http://www.cadoganpetroleum.com/about/bod.aspx. Think about it. Net cash at CAD also significantly exceeds market capitalisation.
Finally, Cluff Natural Resources (CLNR) announced the continuation of its Southern North Sea licences until 30 November, 2018, allowing it time to continue the farm out process on these two permits and Tower Resources (TRP) issued a new presentation, stating its goal is to begin drilling in the coming months. Once confirmation of funding is in place, there is huge potential with TRP. See the recent interview.
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 This post does not constitute investment advice or a recommendation to buy or sell and may be incorrect or outdated.