Weekly oil news round up by Oilman Jim – PANR PTHRF I3E ITE SENX SEN SNUYF MATD PRTDF HE1 HLOGF 88E EEENF PRD SDX SDXEF HUR HRCXF ZPHR VNHLF BOIL IOG CHAR OIGLF ADV LBE DELT AEX AEXFF TRP RTWRF PVR PVDRF LOGP PPC PPCGF BOIL EME

Pantheon Resources (AIM PANR OTC PTHRF) announced a management resource upgrade on its Shelf Margin Deltaic sequence encountered in the the Talitha #A well.  It estimates that the SMD-B zone has the potential to contain 2.6 billion barrels of oil in place and a P50 contingent resource (recoverable) of 404 million barrels of oil.  Analysis is not yet complete on the SMD-A and SMD-C zones, although it is anticipated that the SMD-A will experience a reduction, whereas the SMD-C is broadly in line with previous analysis.  Crucially, Pantheon confirmed that discussions have commenced with a number of groups for the purpose of seeking the farmout of a working interest percentage in one or more of its Alaskan projects, the aim being to complete a farmout or funding in the fourth quarter to provide sufficient capital for future drilling and testing.  PANR‘s objective for winter 2021 / 22 is for an active work programme to test all zones of the Talitha #A well and to drill at least one other well at either Alkaid or Theta West.

i3 Energy (AIM I3E TSX ITE) announced an operational update.  Drilling operations on the second well in the Marten Hills Clearwater drilling programme have been completed and eight horizontal lateral sections, totalling approximately 12,644 metres in length, were drilled from the wellbore.  Production from both wells is anticipated to commence later this month.  Upcoming is the second phase of drilling, targeting an additional seven possible locations.  Production is expected soon to be over 10,000 barrels of oil equivalent per day.

Serinus Energy (AIM SENX WSE SEN OTC SNUYF) announced that the Sancrai-1 well has discovered gas.  The company will now proceed to perforate and test the Pliocene sand zone prior to completing the well for future production.  The “newly discovered gas field” lies approximately 7.8 km to the south of the Moftinu gas development project and, Serinus says, provides it with a similar high value, high return development opportunity.  The discovery further confirms SENX’s belief that there are multiple shallow gas fields within the Satu Mare concession area.  Many ask why the share price is so much higher in Warsaw than London.  The simple answer to that is only a small fraction of the issued share capital is registered for trading on the Polish stock market.

Petro Matad (AIM MATD OTC PRTDF) announced it has raised approximately $10.4 million at 3.5p per share via a placing and retail offer.  It also intends to raise up to approximately $2 million through an open offer.  Stated use of the funds is to allow MATD to commence production from the Heron Field, with the completion of the Heron-1 well plus the drilling of the Heron-2 and Heron-3 wells.  It has to be said that the level of the placing price surprised many (the share price was as high as 9p the previous week) and it appears to some that a large number of placing shares may have been pre-sold.

Helium One (AIM HE1 OTC HLOGF) announced a further helium gas show in drilling mud from the Tai-1 well.  This followed the loss of the drill string at 561 metres.  The drilling company has been unable to recover the lost drill pipe and the plan now is to sidetrack from above the lost pipe and continue drilling to test both the Red Sandstone (source of the gas show) and priority target horizons beneath.  Gas shows demonstrate a working helium system and support helium prospectivity, but wireline logging is required before any pay zone can be determined.

88 Energy (AIM & ASX 88E OTC EEENF) announced an update in relation to the ongoing testing programme following the drilling of the Merlin-1 well.  Additional Phase 1 geochemical analysis of fluid extracts from core samples again demonstrates the presence of hydrocarbons and results from Phase 2 of the side-wall core trim analysis are expected in the next few weeks.  VAS and gas analysis results also are expected in the coming weeks, with final analysis and results from the Merlin-1 post well testing program expected to be concluded by the end of July.  Announcement of the full results summary is targeted for early August.  Currently just under 2p, 88 Energy has been covered in the private blog from the 0.40s and reached a high of 4.7p in March.

Predator Oil & Gas (LSE PRD) announced the appointment of Mr. Lonny Baumgardner as chief operating officer with immediate effect.  Since 2015, he has been the country manager and general director for SDX Energy (AIM SDX OTC SDXEF), another company active in Morocco.  Encouragingly for PRD shareholders, he says “the success of MOU-1 in finding gas is, in my extensive experience of management of drilling operations and a downstream gas business in Morocco, the beginning of the journey to appraise and develop gas for early monetisation.”  Predator Oil & Gas has been covered in the private blog from as low as 1.3p and reached a high of 22.5p prior to the MOU-1 spud.

SDX Energy issued news itself last week, announcing that it is completing its recently drilled Ibn Yunus-2 well in Egypt, before moving the rig to the Hanut-1X exploration well site for a planned spud early in August.  The Hanut-1X is targeting gross unrisked mean recoverable volumes of 139 billion cubic feet of gas with a 33% chance of success, a well described by the company as potentially transformational.

Hurricane Energy (AIM HUR OTC HRCXF) announced an update.  Immediately prior to the maintenance shutdown in early July 2021, the field was producing from the P6 well at 10,900 bopd with an associated water cut of 32%.  Zephyr Energy (AIM ZPHR OTC VNHLF) announced the commencement of drilling of the State 16-2LN-CC well.  Drilling is expected to take approximately 20 days.  Finally, Baron Oil (BOIL) announced a resource update for the Chuditch PSC.  An independent review, validated to SPE PRMS 2018 industry standards, indicates gross mean prospective resources of 3,368 billion cubic feet of gas and 30 million barrels of condensate, equivalent to a total of 592 million barrels of oil equivalent.

In the private blog this evening, IOG CHAR OIGLF ADV LBE DELT AEX AEXFF 88E EEENF PRD TRP RTWRF PVR PVDRF LOGP PPC PPCGF BOIL and EME (but please note that commentary on all of these is not necessarily positive).  More 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. 

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