Oil News Round Up – ECHO, SDX, SOU, 88E, UKOG, EDR, EOG, UJO, ANGS, UPL, ROSE and CLNR

Echo Energy (ECHO) and SDX Energy (SDX) both announced well spuds last week: ECHO’s CSo-2001d well is targetting 19.0 BCF (gross best case) contingent resources, in addition to a further 18.7 BCF (gross best case) of prospective resources; SDX’s SD-3X well is the second of two appraisal wells in the Company’s 2018 drilling campaign at South Disouq.  The well is anticipated to take up to 30 days to drill.

Sound Energy (SOU), now a Moroccan focused upstream gas company, announced a placing of new ordinary shares to raise US$15 million before costs. The net proceeds of the placing will strengthen the Company’s cash position as it initiates its three well exploration programme.  Following disappointing (virtually non-existent) hydrocarbon flow rates, 88 Energy (88E) announced its decision to suspend its Icewine#2 well.  Future evaluation of the 88E acreage now is planned to be accomplished via farm-out.

UK Oil & Gas Investments (UKOG) had a good week strengthening its balance sheet: it announced the conversion of the outstanding £1.75 million convertible loan, a £5 million “institutional” placing and a further placing to raise £2 million.  Meanwhile, Egdon Resources (EDR), Europa Oil & Gas (EOG) and Union Jack Oil (UJO) announced the submission of a new Wressle planning application, which they believe comprehensively addresses the reasons for the refusal of the original planning applications and the subsequent appeals.

Angus Energy (ANGS) announced the resignation of its Chairman with immediate effect.  Upland Resources (UPL) did the same.  Make what you will of the reasons given.

On the bright side, Rose Petroleum (ROSE)  announced that Cantor Fitzgerald Europe has initiated equity research coverage with the release of a research report on the company.  The report includes a Buy recommendation, with a target share price of 9.0p based on the assumptions set out in the report.  Also demonstrating confidence, Cluff Natural Resources (CLNR) announced that IPGL Limited, a company controlled by Michael Spencer, the founder of ICAP and NEX Plc has increased its holding in CLNR to 54,355,500 Ordinary Shares, equivalent to 10.1% of the company’s issued share capital.

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.