Serinus Energy (SENX) announced the flow-test results of the Moftinu-1008 well in Romania. Approximately 667 boe/d, a decent result from a 1,000 metre well. SENX is traded on both the London and Warsaw markets, with the share price in the latter being several times that of the former. The company has attempted to explain this by pointing out that while all 1,140,660,629 issued and outstanding shares are eligible to be traded on AIM, only 78,629,941 of these shares are eligible to be traded on the Warsaw Stock Exchange. Regardless, some still prefer to ignore the implications of the “float” numbers and continue to insist the Warsaw price proves that the London price is a bargain.
i3 Energy (I3E) announced an operational update. Production at its newly acquired Canadian portfolio remains stable with November 2020 to January 2021 averaging 9,150 boe/d. Forecasted 2021 net operating income (revenue minus royalties, opex, transportation and processing) is approximately $27.6 million based on mid-February strip pricing and an estimated maintenance capital budget of approximately $2.4 million. I3E’s stated intention is to declare a maiden dividend in Q1 2021 and many think it looks cheap, but after the North Sea debacle this management has to earn back a lot of trust.
88 Energy (88E) announced a Project Peregrine prospective resources report. It’s a historic one previously announced by XCD Energy (now a 100% owned subsidiary of 88 Energy), completed in January 2020 by ERC Equipoise, which assessed the prospective resources associated with 88E’s 100% owned Project Peregrine at over 1.6 bbo in the mean case (unrisked net entitlement). Spud of the first Merlin-1 well is scheduled this coming week. Further on 88E in the private blog.
PetroTal (PTAL) announced 2020 year-end oil reserves. Proved reserves increased by 4% to 22.3 mmbo, proved plus probable reserves increased by 7% to 51.0 mmbo and proved plus probable and possible reserves increased by 25% to 106.1 mmbo. NPV-10 is calculated at $317 million for proved reserves and $830 million for probable reserves. I mentioned PTAL positively last November at 7.6p, after having been rather negative from the low 30s down. It’s now more than doubled to 17.75p.
Chariot Oil & Gas (CHAR) announced it has signed a collaboration agreement with Subsea Integration Alliance to work together to enable the front-end design, engineering, procurement, construction, installation and operation of the Anchois gas development project in Morocco. Key now is whether they can actually obtain development debt finance as previously announced. Estimated capex required to bring the development online is anticipated to be in the region of $300 to $500 million.
Coro Energy (CORO) announced a proposed acquisition, placing and open offer. It has agreed to acquire Global Energy Partnership Limited, but all this company appears to have done is to have “screened” some renewable energy projects. CORO is issuing 142,500,000 new shares (current value over £575,000) to pay for this £2 capital company, whose 31 January 2021 accounts filed at Companies House show it to be insolvent with assets of £136 and liabilities of £2,715. The placing raised £4.5 million gross, though, and a further £500,000 is hoped for from the open offer, but I suspect most of this will be used to “restructure” CORO’s debt and enable a “divestment” of the Italian assets (they’ll most likely be paying someone to take them). Along with its stablemates, Echo Energy (ECHO) and Sound Energy (SOU), CORO is one I’ve been negative about for some time and from much higher prices.
In other news, Reabold Resources (RBD) announced an increased investment in Corallian. It’s intended to be used to support “workstreams” related to the submission of a draft field development plan for the Victory gas field and for general working capital purposes. Angus Energy (ANGS) announced a Balcombe field-planning recommendation and meeting, a Saltfleetby loan facility update and a re-evaluation of the Lidsey field. It keeps on trying. Mosman Oil & Gas (MSMN) announced updated six monthly production. Net production attributable to Mosman was 54 boe/d.
Enwell Energy (ENW) announced results of the SV-25 well and spud of the SV-29 well. SV-25 is producing at a stabilised flow rate of approximately 452 boe/d and SV-29 has now been spudded with a target depth of 5,450 metres. United Oil & Gas (UOG) announced an ASH-3 well test update. On a 30/64″ choke, expected to be representative of the producing flow rates, the well flowed at 910 boe/d net to UOG. Finally, Baron Oil (BOIL) announced that its extension request for the Chuditch PSC has been approved. It now expects completion of the commitment work programme in a timely manner.
More in the private blog, including my actual trading ideas. Further on that at https://www.oilnewslondon.com/oilman-jim
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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.