A number of interesting announcements last week:
Predator Oil & Gas (PRD) issued an end of year operational update. The main event coming up is the Guercif drilling programme, onshore Morocco. The Star Valley Rig 101 remains securely stacked in Morocco awaiting lifting of COVID-19 restrictions and PRD are seeking to optimise drilling programme synergies with SDX Energy (SDX) based on their MOU-1 being the first well to be drilled. Spud is expected in the first half of next year.
88 Energy (88E) announced the execution of a rig contract for drilling at Project Peregrine. Permitting and planning remain on track for a scheduled spud in February 2021. The contract is with All American Oilfield for the use of Rig 111 to drill the Merlin-1 and Harrier-1 wells. Funding details of the latter have not yet been disclosed to the market.
United Oil & Gas (UOG) announced a new prospective resources report for the Walton Morant licence, offshore Jamaica. They and the former operator Tullow Oil (TLW) have been trying to farm out this licence for some years now. It’s not a popular view, but the way I see it, Tullow simply binned a work programme liability into United. A lot of people like this company and many get angry with me for not sharing their enthusiasm. No apologies for that and I’d suggest fans work out for themselves why the UOG share price is never able to hold over 3p.
UK Oil & Gas (UKOG) “Energy for Britain” continued its transition into a Turkish oil and gas company with the announcement that its has applied for three new licences in Turkey. It’s undoubtedly an easier operating environment than the UK, but it’s going to lose the “patriotic” shareholder support it previously enjoyed. Other than the RNS news tucked away, there’s still no mention of any of this on its web site.
Union Jack Oil (UJO) announced the expected encounter of a hydrocarbon column in the Kirkham Abbey formation. Reabold Resources (RBD), who appear not to know too much about these matters, announced another “Discovery,” which in fact contradicts the claim of a successful appraisal well. Next up in determining the actual development potential of the West Newton project is the testing programme. There’s no date for that yet.
Bahamas Petroleum Company (BPC) announced that an application has been made to the Supreme Court of The Bahamas by a number of environmental activists, for leave to make an application for judicial review of the decision taken by the Government of The Bahamas to grant Environmental Authorisation for BPC’s Perseverance #1 well. Obviously, Bahamas Petroleum say the application is entirely without merit and BPC will vigorously oppose it. Along with possible selling by the loan note holders, it’s another factor now preventing a pre-spud run.
Independent Oil & Gas (IOG) announced a technical and portfolio update. The most interesting part of this is that they’ve received a formal offer from the OGA of licence P2589, which includes two gas discoveries, Panther and Grafton, with management estimated recoverable gas resources of 46 Bcfe and 35 Bcfe respectively. Some other licences are being part or fully relinquished. Also reported last week was that the LOG administrators have increased their holding from 28.74% to 29.88%. It’s worth thinking about that.
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The author may hold 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.