Weekly oil news round up by Oilman Jim – PVR LOGP IOG HUR PPC PTAL BPC CERP UJO SAVE TLOU AEX SOLO ENW

Another interesting week.  Providence Resources (PVR) and Lansdowne Oil & Gas (LOGP) announced the names of the Barryroe development consortium members.  In addition to SpotOn Energy, there’s Schlumberger, Aker Solutions, AGR, Maersk Drilling, Keppel FELS and Aibel AS.  It’s not a done deal yet though.  “When agreed, the work programme will form the basis upon which commercial and funding arrangements are finalised.”

One offshore gas development which definitely appears to be proceeding though is that of Independent Oil & Gas (IOG), who issued a detailed update.  They and their “contractors and suppliers continue to work hard across the board to safely and efficiently execute the four key project elements and bring Phase 1 into production in Q3 2021.”  It’s not a company many appear to know about.

Hurricane Energy (HUR), President Energy (PPC) and PetroTal (PTAL) I covered in the private blog on Friday, so I’ll leave my comments about last week’s news from those three there.  HUR of late and PTAL in particular tend to arouse controversy and fact based comments often draw considerable abuse, which is another good reason for leaving them out of this blog.

The merger of Bahamas Petroleum Company (BPC) and Columbus Energy Resources (CERP) appears to be proceeding.  Both companies’ shareholders now have given their approval.  The only thing they appear to have in common is a liking for convertible loan note finance, so unless that changes and we see normal financing plus the retirement of the existing notes, there’s only one way really for this new entity’s share price and unfortunately that’s down.

Union Jack Oil (UJO) announced OGA approval for their PEDL253 Biscathorpe acquisition.  They’re ”pleased to complete this transaction, following which the company will hold a meaningful 30% interest in what [they] consider to be a key, potentially high-impact project.”  Main interest here though is the upcoming works at West Newton and fundamentally that will be the driver of the share price.

Savannah Energy (SAVE), the old Savannah Petroleum (SAVP), was once a promising exploration company about to drill in Niger, with a share price in the 40s.  Unfortunately, the naive, young CEO though he could use the hope value in his shares to finance the acquisition of production assets from a bankrupt company in Nigeria.  I warned strongly about it at the time and the share price is now down in the 7s.  SAVE announced a loss after tax of $96.8 million last week.  

Another African disaster, Tlou Energy (TLOU), announced an operational report outlining its continuing disappointing progress.  “Increased sustained gas flow rates are anticipated to take some considerable time.”  It’s really just turning into a lifestyle company now.

Aminex (AEX) announced yet another Ruvuma farm-out update.  “The parties to the Ruvuma Farm-Out Agreement have agreed to extend the long stop date for satisfaction of the conditions to the Farm-Out from 31 July 2020 to 31 August 2020.”  I do think this farm-out is more likely than not to happen though.  It impacts Solo Oil (SOLO) too.

Finally, a cautionary tale from Enwell Energy (ENW), the old Regal Petroleum (RPT), which announced a “Legal Dispute Update.”  Amongst other things, the company’s offices have been visited by officers of the National Anti-Corruption Bureau of Ukraine and they diplomatically say that the documentation sought is “generally related” to the company’s acquisition of Arkona in March 2020.  ENW looked very cheap to some and I’ve warned about it a few times recently.

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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.

Weekly oil news round up by Oilman Jim – 88E PVR LOGP DELT RBD PRD CERP BPC COP AEX CHAR TXP COPL GBP IGAS

Mainly positive news this week (excluding the lifestyle companies helps a lot with that).

88 Energy (88E) announced a new presentation.  Permitting has commenced and farm-out discussions are underway for the drilling of two wells in the first half of 2021 on the newly acquired Peregrine acreage.  Obviously, there will first be a financing.

Providence Resources (PVR) announced that binding term sheets are in place with the six consortium members participating in the Barryroe appraisal and development project.  PVR is now working with SpotOn Energy and the members of the consortium to finalise a farm-out work programme.  Providence also has been informed by R. O’Riordan and S. O’Driscoll that they hold 3.56% of the issued ordinary share capital.  So things seem to be moving along here.  Lansdowne Oil & Gas (LOGP) has a 20% interest in Barryroe, so anything positive for Providence in this regard is positive for them too.

Deltic Energy (DELT) announced a statement of support from IPGL, the largest shareholder in Deltic, who have stated their intention not to support the Reabold Resources (RBD) offer.  As Deltic say, it does not reflect the commercial and technical risks associated with the RBD portfolio, which was rather confirmed by Reabold’s own update on Romania well flow test operations.  To date, all they have are “indications” of methane gas.

Predator Oil & Gas (PRD) announced an offer to acquire FRAM Exploration (Trinidad) Ltd. from Columbus Energy Resources (CERP).  This is pursuant to a prior agreement, but is complicated by the proposed merger between Columbus and Bahamas Petroleum (BPC).  CERP says that the offer is not acceptable regardless, since it is not consistent with the terms of PRD’s option.  On Morocco, Predator also announced that ConocoPhillips (COP) had been awarded the Mesorif Reconnaissance Contract adjoining to the west the PRD Guercif licence.  Main news awaited here is of the drill rig mobilisation.

The CERP merger with BPC does appears to be happening though.  Bahamas’ shareholders gave their approval on Friday; the Columbus shareholder meeting to obtain approval is tomorrow.  Key for investors here now is how everything is going to be financed and I think the BPC board, who will end up in control, may be quite happy to do a deal for FRAM on PRD’s terms.

Another shareholder meeting coming up, on Wednesday in this case, is that of Aminex (AEX).  They announced late on Friday after market close that John Bell, Chairman, and Linda Beal, senior non-executive director, have “stepped down” as directors of the company with immediate effect.  No reasons were given and the speculation is that they were dismissed.  Why may be revealed in a few days time.

Chariot Oil & Gas (CHAR) announced that Larry Bottomley, CEO, also has “stepped down” with immediate effect.  In light of the current lack of market appetite for exploration activity, Chariot plans to evaluate other opportunities available to it.  Their previously announced 2019 final results highlighted that exploration in frontier regions has fallen out of favour and there now is a need for nearby / adjacent discoveries to unlock basin potential.

Touchstone Exploration (TXP) announced a significant Cascadura reserves evaluation.  1P (proven) reserves have a NPV10 of $287.7 million.  Development costs for those are estimated at $11.6m, so it looks commercial, but at a market capitalisation of £135 million, professional oil and gas investors, David and Monique Newlands, are selling.

Canadian Overseas Petroleum (COPL) announced that ShoreCan and Essar Mauritius have agreed to extend the backstop date to 4 August and the parties continue to work amicably towards completion.  In the meantime they’ve got away a £1.3 million placing and a $1.6 million shares for debt conversion.

Global Petroleum (GBP) announced that 881 million barrels of un-risked gross prospective resources (best estimate) has been estimated in PEL0094 in two prospects, of which 687 million barrels is net to Global.  Big question of course is can they raise the finance to drill it?

IGas (IGAS) commenced water injection at its Scampton North site.  Mid-case economics for the project have an IRR of over 40%.  IGas’s second water-flood opportunity in the southern section of the Welton Field remains on track to be online late summer 2020.  Estimated base-case project economics for that one have an IRR of over 100%.  So some potential solid progress here.

If you enjoy reading this blog, it might be time for my fact based trading course, which really will open your eyes.  It vastly expands on some of the principles I expound here and provides information that most will never have heard before.

I cover everything you won’t read elsewhere, particularly subjects which others either don’t understand, or even know about, or even if they do, are unwilling to talk about openly.  I set out exactly how it all works in detail.  Exactly how the insiders make their profits.  And how you can profit too.  Lots of money can be made if you know how it all actually works, and what goes on behind the scenes may be completely different to what you think.

I’ve been involved in the markets for a long time.  I bought my first shares in the 1970s and I’ve worked in the financial sector since the early 1980s.  My particular knowledge is of the stock markets and I’ve been actively involved in these, both in the UK and the US for over 40 years from both sides of the fence.  I’ve also had significant involvement in the oil and gas industry along the way, from drilling wells to negotiating farm-outs to majors.  

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Weekly oil news round up by Oilman Jim – RBD DELT UJO UKOG PVR LEK COPL UPL PRD ADME PPC ENW TRIN ECO AEX SOLO

Interesting week.  Reabold Resources (RBD) initiated a take over attempt for Deltic Energy (DELT), effectively saying to their shareholders swap your cash for a share of our assets.  The DELT board was unimpressed and retaliated, saying they had a detailed understanding of a number of Reabold’s investments, in particular, the West Newton project, which gave them serious concerns in relation to the technical viability, materiality and limited potential upside associated with various of these projects.  Essentially what I’ve been saying about RBD and its assets for some time from much higher share prices than today.

DELT’s assets aren’t great either (Shell really only paid option money for its interests), but it does have a substantial cash balance, which is what RBD is after.  It would appear Reabold are unable to carry out any further substantial placings now, perhaps because none of their “investments” have returned one single penny for the shareholders.  But salaries (£600,000 each for the couple running it) have to be paid and DELT’s cash is needed.

Union Jack Oil (UJO) was collateral damage.  Having got the share price nicely up on the back of a decent director buy, DELT’s statement pushed it back down.  It’s a timely reminder though that these types of companies really should be seen only as plays on upcoming drills.  Of course, they can be good.  UJO’s shares have more than trebled in the last few months and I explain in my new book exactly how to spot these types of companies in advance, while at the same time excluding any potential loss makers.  UJO was featured in the private blog a few months ago at less than one third of its current price.

A few changes in this blog.  I’m going to reduce commentary on the small, lifestyle companies, unless there’s something particularly interesting or important upon which to comment, so it’s goodbye to the likes of AAOG, AST, MSMN, NTOG, ZEN, etc.  Some do have amusement value, but they shouldn’t be legitimised or given an appearance of equivalence by being covered alongside other companies in the blog which have actual, potentially commercial, operations and projects.  Also, henceforth, any comments about individuals will be in the private blog only.  I’m also eliminating the podcast (which is essentially just a spoken version of the blog) and instead will put out on Twitter a possibly more useful two minute audio summary at the end of the day.

Back to the companies, UK Oil & Gas (UKOG) announced it has completed the purchase of the Horse Hill surface production equipment for £1.65 million.  Interestingly it’s being paid as would a convertible loan note, so plenty more potential dilution to come.

Providence Resources (PVR) reported that Thomas Anderson holds 28.7 million shares, representing 3.4% of the issued ordinary share capital.  The PVR share price has been firm of late, possibly indicating good progress in the Barryroe farm-out discussions.

Lekoil (LEK) announced execution of agreements covering the comprehensive infrastructure upgrades and field management services in relation to the planned upstream drilling programme in Nigeria.  This one will all come down to the terms of the financing.

Actual financings announced were from Canadian Overseas Petroleum (COPL), which issued 68.5 million shares at 0.3p in a debt to equity conversion and Upland Resources (UPL) which announced a capital raise for its Asian and North African initiatives in the amount of £470,000 at 0.7p.  Both though will require much more.

Predator Oil & Gas (PRD) announced the board appointment of Louis Castro, former chief finance officer at Eland Oil and Gas.  The main news that’s awaited here is regarding the Morocco drill rig mobilisation.  ADM Energy (ADME) announced the appointment of two oil and gas veterans, Darrell McKenna and Dr Satinder Purewal, as non-board advisory members to the company’s technical team.  They say big news is awaited.

President Energy (PPC) announced a drilling and work-over update.  This is one I was warning about when it was being ramped to around 2.5p pre-placing when the oil price was down.  The oil price has now recovered, but President’s share price has collapsed.  What’s going on in these situations is something else I explain fully in the new book.

Enwell Energy (ENW) announced the spud of the SV-25 well.  It has a target depth of 5,320 metres, with drilling operations scheduled to be completed by the end of the first quarter of 2021, eight and a half months away.  For those wondering why it takes so long, the time to drill a well increases almost exponentially the deeper it goes.

Trinity Exploration (TRIN) issued a Q2 2020 operational update.  Production levels were maintained and with operating breakeven at $22.60 a barrel, the company is now contemplating new investment opportunities.  They want to focus on scaling the business.

Eco (Atlantic) Oil & Gas (ECO) announced audited results for the year ended 31 March 2020 and an update.  It plans, subject to JV partner approval, to drill at least two exploration wells into light oil targets in 2021.  This of course currently is aspirational, but let’s see.

Aminex (AEX) announced that the parties have agreed to extend the long stop date for satisfaction of the conditions to the farm-out from 14 July 2020 to 31 July 2020.  Aminex and ARA Petroleum Tanzania remain hopeful that government approval for the farm-out will be received this month.  The announcement is of relevance to AEX’s working interest partner, Solo Oil (SOLO), too. 

My new book, mentioned above, explains exactly how it all works and exactly how you can make money out of these markets, using a method where risk doesn’t actually matter in the end from a trading perspective.  The book is exceptionally frank and I think virtually all will find it extremely useful.  You’ll certainly learn a lot.  Details of how you can obtain a free copy and a trial of the private blog are 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.

Weekly oil news round up by Oilman Jim – RRE LBE PTAL I3E MSMN NTOG NUOG TOM ZEN SOLO HUR UKOG 88E

The week started well with a recommended cash offer for RockRose Energy (RRE) of 1,850p per share, which takes virtually all investors out at a substantial profit.  I first bought a couple of tranches of RRE around 130p and received a 150p per share “return of capital” a few months later.  RockRose is a rare company that actually generates cash.

Perhaps to follow in its footsteps is Longboat Energy (LBE), which announced founders incentive plan awards under which “participants are eligible to receive 15% of the growth in returns of the company from the date of admission should a hurdle of doubling of the total shareholder return be met.”  LBE was highlighted in the private blog three months ago in the 50s and it’s already double that.

PetroTal (PTAL) announced first quarter 2020 financial and operating results.  The Bretana field is currently shut-in and they’re hoping to reopen it this month.  Planned capital expenditure for this year has been deferred and it will be interesting to see what the field can produce without continuous development expenditure.  It’s one I’ve been warning about all the way down from 30p and it’s now trading just over 10p.  Remember with this one, the bullish commentary actually is only coming from those paid to put it out.

I3 Energy (I3E) updated on the Gain Energy production acquisition.  ”Completion of the transaction [still] remains subject to…financing to raise the cash consideration and working capital,” which of course is the hard part.  Even if they can get it financed (and I think it’s a big if), it’s doubtful the financiers would be willing to give anything away to the existing shareholders, whose shares have already been written down to an effective zero by management.  I warned about this one all the way down from 20p and its shares are now suspended.

Further down the trough, Mosman Oil & Gas (MSMN), Nostra Terra Oil & Gas (NTOG), Nu-Oil & Gas (NUOG), TomCo (TOM) and Zenith Energy (ZEN) all issued news.  It’s grim stuff.  MSMN obtained a suspension of work programme conditions, NTOG announced that its principal shareholder has dumped half their stake, NUOG announced their proposed RTO transaction has fallen through, TOM gave its punters a further nasty spiking and ZEN announced yet another possible/potential/conditional acquisition, plus of course another financing.  The more tangible Solo Oil (SOLO) announced the sale of its Canadian gas assets, but unfortunately it didn’t get any cash for them.

Hurricane Energy (HUR) announced an operational and corporate update.  The water cut is now at 21%.  I was cautioning about HUR towards the end of last year when it was in the low 30s.  It’s now down to 6p.  The most money that’s lost in the market is by those who think they’re buying bargains and most exposed to this are those who think they understand how to analyse these companies, but don’t, often simply because they’re not aware of the myriad technical issues and potential complications involved in their operations.  There’s always a reason why what appears to some to be a “bargain” may not in fact be mis-priced. 

UK Oil & Gas (UKOG) announced a two year planning permission extension to its Broadford Bridge oil discovery.  It didn’t help the share price, which after the last ramp has now broken down under 0.2p.  Absent a new promotion, the inevitable next financing will be at a price even lower than this.  It’s not good when the best you can say about a company is that its share price might get ramped temporarily.

88 Energy (88E) announced a XCD Energy takeover update.  It “has now reached a level of ownership in shares and options of XCD Energy that guarantees it will reach the minimum threshold required for compulsory acquisition.”  88E has been a multiple winner for me from the various share price runs up to its drill spuds and we’re now just waiting for the next well.

I’ve written a new book “UNDERSTANDING THE LONDON SPECULATIVE MARKETS and THE SECRETS OF HOW TO PROFIT FROM THEM” which explains in detail exactly how it all works and exactly how you can make money out of it.  The book is exceptionally frank and I’m not aware of anything else like it.  I’m certain that it will be an eye-opener.  For a limited time, I’m offering a complimentary, pre-publication copy in electronic format to all new private blog subscribers.  If you read the book, you’ll understand my approach to the market and see how I apply the principles in the private blog.  I believe you’ll learn a lot.  A first month trial subscription (including the book) costs just £23.75 and if it’s not for you, you can cancel anytime you wish.  The link is 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.

Weekly oil news round up by Oilman Jim – UKOG TOM MSMN PRD TRP BOIL SOLO AEX COPL RBD PVR

After its recent run, UK Oil & Gas (UKOG) announced the disappointing news on Monday that planning consent had been refused for the Loxley Portland gas appraisal project, then followed through on Tuesday with a hard dose of reality in the form of interim results.  Those who had been buying based upon an organised social media ramp saw the share price back to where it started and lost half or more of their investments; those who engaged the rampers to clear the placing stock and warrants had already taken their money.  They’re quite open in last week’s RNS that “raising funds from equity remains the most prudent and only feasible way to fund projects” so further large placings are certain. 

I said last weekend regarding TomCo (TOM) that next up would be a new placing and that’s exactly what happened on Thursday, when exactly as expected a new placing was announced on exactly the same terms as the previous cancelled one, which had created the “short squeeze” story enabling the actual placing to be sold into the market in advance at a huge profit for those inside.  The shares had traded up to 2.3p and the real shorts would have been covered in the placing at 0.4p, so 80%+ losses for some here.

Similar shenanigans at Mosman Oil & Gas (MSMN).  I said that a placing was imminent and inevitable when it conducted its last ramp, which took the share price up to 0.25p.  The usual horde of idiots who’d bought it then came on then screaming that Mosman was a profitable producer and required no placing, even saying they’d been assured of such by the company, who would finance everything using their current oil revenues.  I tried to explain the facts to them, but they were having none of it.  Reality perhaps only dawned for them on Thursday when they were hit with news of a 0.08p placing, less than a third of what some of them had paid.

Short term losses for ill-informed investors on these three are massive, but always remember that in cash terms the market is a zero sum game and what came out of the victims’ pockets went straight into those of the professional operators.  It really does amaze me, though, the number of people coming on and arguing that I’m wrong about these things, even resorting to insults.  Whether it might be better just to start sharing what is consistently correct information with those who appreciate it is something I’m seriously thinking about.  I actually do “know the game” (unlike some others who like to use the phrase) so I can tell very easily what’s coming, good and bad.  It’s become second nature now to spot the moves in advance, both up and down.

If you want to “know the game” too, I’d suggest the special trading course which explains it all in 10 parts, one a week, at £19.50 each.  You can try out the first part for just £1 to see whether you like it and I’m sure you will.  It’s a very small price compared to the value of the information.  Details are at https://www.oilnewslondon.com/course 

Positive news from Predator Oil & Gas (PRD), which updated on its forthcoming drill in Morocco.  The state of emergency there in response to the COVID pandemic is being extended to 10 July, but the rig remains securely stacked in the country ready for mobilisation when circumstances permit.  They’ve also identified a new additional target for the first exploration well.

Tower Resources’ (TRP) drill also has been delayed by COVID.  They have the added complication of also requiring finance.  The first payment from one potential partner has been delayed (again they use Coronavirus as the excuse), but even if received, more will be required.  It doesn’t look great, but let’s see.

Baron Oil (BOIL) issued its AGM statement.  Again, and as with many others currently, the theme is delay.  There is no obligation to drill before 2022 in Timor-Leste and there are no plans to drill in the UK in the foreseeable future.  In Peru, where they have been attempting to facilitate the drilling of the El Barco-3X well, it is now becoming clear that the impact of COVID will push any proposed drilling into 2021.  In the meantime of course, the bloated overheads that these small public companies like to carry consume all the cash.

Solo Oil (SOLO) announced a $5 million investment facility, but it’s death spiral finance.  They do have a plan, but so far that’s all it is and it’s difficult to say that Monday’s strategy, corporate and operations update inspires confidence.  The main focus appears to be compensating management.  

Delays at SOLO’s partner Aminex (AEX) too.  They’ve agreed to extend the long stop date for satisfaction of the conditions to the farm-out from 30 June to 14 July, but in this case, such a short extension may be a positive sign.

Canadian Overseas Petroleum (COPL) is another one which I said was going to be doing a placing and it’s now done two in the past two weeks.  The settlement with Essar Mauritius is potentially transformational, but if COPL want to increase their effective 5% stake in OPL 226, substantial further funding will be required.

Reabold Resources (RBD) provided an update on Romania well flow test operations.  Unsurprisingly, it’s disappointing.  I really don’t think this team has the ability to deliver operational results (or successful investments as they might prefer to call it), which is what they’ve foolishly set themselves up to do, and as regular followers know, this is a view I’ve held for quite some time now.

Providence Resources (PVR) is sharpening itself up, appointing Davy as NOMAD and sole broker, plus appointing existing 1.66% shareholder, Andrew Mackay, as an independent non-executive director.  All here now depends on whether SpotOn Energy can pull together the necessary operational and financial elements for a Barryroe farm-out.  There’s a good chance it can.

Finally, a quick reminder that my actual trading ideas are in the private blog each week.  My personal trading philosophy is based upon only going for those which I’m sure are certainties and I’m invariably right.  A month’s trial subscription costs just £23.75 and includes much more.  Details are at https://www.oilnewslondon.com/subscribe 

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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.

Weekly oil news round up by Oilman Jim – I3E TOM PQE PQEFF MYN AOGL COPL UKOG PRD ANGS PPC UOG SAVE IGAS DELT CLNR ZEN CASP GKP AST LOGP PVR 88E XCD BPC EDR UJO SOLO MSMN SLE

Another interesting week.  I3 Energy (I3E) announced news which appears to have confused many.  Key point is that the warrant and management option strike prices are being reset to the nominal value of I3’s shares (£0.0001/share), which means that the I3 equity is being deemed worthless.  The Canadian acquisition and any future North Sea activity therefore is of academic interest only now to existing shareholders.  You can perhaps see why a well-known group was pumping I3E so hard before the suspension, trying to get the stock away.

As expected the TomCo (TOM) “short squeeze” ran out of steam and the price has retreated significantly.  Next up here will be a new placing.  Let’s be clear, associated company Petroteq ($PQE $PQEFF) is a promotion.  No one is expecting it to achieve commercial success.  The purpose of its announcements is to sell shares.  Any company doing “business” with it is the same.  Mayan Energy (MYN) (now Attis Oil & Gas (AOGL)) is one example.  There can be occasional trades in such shares, but they’re not investments, since holding long term would only result in losses.  Same applies to TOM and all other companies involved.

I said on Monday that a placing was certain at Canadian Overseas Petroleum (COPL) and, lo and behold, one was announced on Tuesday morning.  It’s had a good run since it terminated the equity sharing agreement and we’ve seen the same in recent days with UK Oil & Gas (UKOG), which also now is free to move with the convertible loan notes being redeemed.  If you learn anything, it should be to avoid like the plague any companies with death spiral type financing.  The only time to get into these is when the death spiral is ended.  Another recent example is Predator Oil & Gas (PRD), which rose from 1.3p to over 4p once its convertible loan notes were cancelled.  I explain everything about this, exactly how it works and how you can make money out of it in my new book, details of which are below. 

Back to the news, Angus Energy (ANGS) are trying to get rid of their death spiral too and made a partial payment to Riverfort last week.  They also announced their half year report and say they are confident that their efforts for the rest of 2020 will have a transformational effect.  Let’s see.

President Energy (PPC) announced its audited Results for the year ended 31 December 2019 and say they look forward to rising to the challenges ahead.  The shares closed on Friday at 1.5p, down nearly 20% from the recent 1.85p placing price, and down 40% from the 2.5p level, where it was being pumped by professional touts pre-placing.  Note the names of those involved and be careful in future.  Again, this is something I explain fully in the new book.

United Oil & Gas (UOG) announced a reserves upgrade, but it didn’t help the share price much.  It’s important to understand that generating and buying production is easy, the hard part is getting profits down to the bottom line.  Despite all the supposed good news from United, it is still trading under its last 3p placing price at which the Egypt production acquisition was financed.

Savannah Energy (SAVE), which announced a trading update, is another one like this.  Once a promising exploration company trading over 40p, its drilling plans were cancelled by the CEO to make a Nigeria production acquisition.  Some investors thought they were going to get rich, but after a financing at 35p, it now trades under 7p.  Don’t fall for such propositions.  These types of deals rarely work on the AIM and small cap markets.

I know a lot of people don’t like to hear any of this, but it’s the unfortunate reality of these markets.  Generally, you’ll lose money investing in these companies, they’re for trading only – but some can be very good for that.

If you don’t believe me, take a look at the five year charts for a selection of these types of companies.  The only times you want to be in them are for the short periods of time when they have the occasional large upward moves.  Over time, you can only lose.  But read the book, there’s actually some very good money to be made in these markets.

Back to the company news, IGas Energy (IGAS) announced an operations and cost saving update.  In light of the recent oil price improvement, IGAS has decided to return nine fields to production and effect a reduction in the numbers of employees on furlough.  Deltic Energy (DELT) (the old Cluff Natural Resources (CLNR)) announced its change of name.  It is intended to symbolise the transition in the company’s main investments into a more operational phase following their farm-outs and ongoing partnership with Shell.  Any impact from that of course is years away.

Zenith Energy (ZEN) announced it has ceased all oil production operations in Azerbaijan.  After its failure there, field production personnel have been transferred to a division of SOCAR.  It doesn’t appear that ZEN has any oil and gas assets now.  In Kazakhstan, Caspian Sunrise (CASP) announced its annual report and financial statements.  In the short term, they are focused on surviving the impact of the Covid-19 virus and until its full impact becomes clearer, they will continue to conserve cash.  Meanwhile, in Kurdistan, Gulf Keystone Petroleum (GKP) announced that Jón Ferrier, its Chief Executive Officer, has decided to leave the company.

Ascent Resources (AST) announced its final results for the year ended 31 December 2019.  They’re very proud of themselves, although they haven’t actually achieved anything yet and, based upon the individuals’ track records at other companies, are highly unlikely to do so.  Lansdowne Oil & Gas (LOGP) also announced results for the year ended 31 December 2019.  Unsurprisingly, they remain steadfast in their belief of the significant potential of Barryroe and are focused on unlocking its inherent value.  Where this goes from here, though, depends entirely on the outcome of Providence Resources’ (PVR) farm out negotiations through SpotOn Energy.

88 Energy (88E) announced it now has a relevant interest in 79.84% of XCD Energy’s (XCD) shares and 79.22% of XCD Energy’s listed options.  It’s extending the offer period until 13 July.  Bahamas Petroleum Company (BPC) announced the completion of administrative formalities regarding its BPC Investment Fund.  This will enable local people in the Bahamas to participate in the outcome of the project, and of course raise some money for the company.

Egdon Resources (EDR) has reached a settlement with Humber Oil & Gas regarding Biscathorpe.  As a result, Egdon will hold a 35.8% operated interest in the PEDL253 licence.  Union Jack Oil (UJO) also picked up an additional 3% and now has a 30% interest in the licence.

Solo Oil (SOLO) delayed filing its financial statements.  Importantly, though, it confirmed it has sufficient cash to support its operations in its current state to the end of Q1 2021 and remains funded for its share of the firm budget for its Tanzanian operations, capital programme and strategy.  In contrast, Mosman Oil & Gas (MSMN) announced a corporate and operations update.  It encapsulates pretty much everything that’s wrong with the worst of the AIM companies.  Basically it’s just nailed on, guaranteed losses for anyone who holds long term.

San Leon Energy (SLE) issued final results.  They had a cash position of $36.5 million as at 19 June 2020, with an expected $10 million to come in Q4, and a further $103.9 million expected in interest and loan note repayments by end 2021.  Market capitalisation is £102 million and they have an interest of 10.58% in OML 18, which can produce around 40,000 to 50,000 barrels of oil per day.  It doesn’t look expensive.

As mentioned above, my new book explains exactly how it all works and how you can actually make money out of these markets, using a method where risk doesn’t actually matter in the end from a trading perspective.  The book is exceptionally frank and I think virtually all will find it extremely useful.  Details of how you can obtain a copy are at https://www.oilnewslondon.com/oilman-jim 

Contact me on Twitter @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.

Weekly oil news round up by Oilman Jim – PET PTAL 88E PPC PRD UJO RBD TOM QFI ZEN BLOE AOGL ADME NTOG MATD CHAR CERP BPC TXP TRIN TLOU COPL

Quite a busy week for news.  Petrel Resources (PET) announced preliminary results for the year ended 31 December 2019.  The Chairman’s statement is a grand read and John Teeling just tells it all frankly as it is.  This was a blog favourite last year around 1p and is now nearly 4p, having been many times higher.  It could move strongly upwards again with positive Iraq news.

PetroTal (PTAL) announced 2019 year-end financial and operating results, reporting a “difficult trading environment” plus a placing to raise £14 million, which will allow them to continue the development of the Bretana oil field, but at a slower pace.  I’ve been warning about this one in the blog all the way down from the 30s.  It’s now just over 10p.

88 Energy (88E) declared its XCD Energy takeover offer to be unconditional.  This was another blog favourite last year around 0.7p, which ran up over 100% before the drill.  But, unless you’re into gambling, remember never to hold for the results of these.

President Energy (PPC) announced a drilling and work over plan update.  This is one that was pumped by paid commentators up to 2.5p, before it announced the inevitable placing.  It’s now 1.75p.  Another one that I warned about in the blog – several times.

Predator Oil & Gas (PRD) updated regarding its new Irish venture.  “Estimated project revenues are consistent with those quoted for the Barrow-in-Furness FSRU Project of £80 to £100 million” it says.  PRD is moving up strongly now in anticipation of its forthcoming Morocco drill.

Union Jack Oil (UJO) and Reabold Resources (RBD) were trying to make the case that oil and gas production at West Newton will be “green.”  I’m not sure how many people will be convinced of this.  More important for investors I think will be the announcement of dates for the drill.  RBD also announced the commencement of well test operations in Romania.  Whether this gas will ever actually will go into commercial production is another matter entirely though.

As I mentioned on Wednesday, I’ve written a new book “UNDERSTANDING THE LONDON SPECULATIVE MARKETS and THE SECRETS OF HOW TO PROFIT FROM THEM” which explains exactly how it all works in all its gory detail and how you can make money out of it.  The book is exceptionally frank and I’m not aware of anything else like it.  I am certain virtually all will find it useful.  For a limited time, I’m offering a complimentary, pre-publication copy in electronic format to all new private blog subscribers.  If you read the book, you’ll understand my approach to the market and see how I apply the principles in the private blog.  A first month trial subscription (including the book) costs just £23.75 and if it’s not for you, you can cancel anytime you wish.  The link is https://www.oilnewslondon.com/subscribe  

Back to the week’s news, there were certainly some grim goings on at the bottom end of the market.  TomCo (TOM) announced a placing and a commercial agreement.  Those in the placing started forward selling, then another company involved, Quadrise Fuels International (QFI), denied the accuracy of TomCo’s RNS and trading in TOM shares was suspended.  It was reinstated two days later with the placing terminated, leaving the forward sellers short and the share price jumped over 250%.  The forward sellers thought they were part of the inner circle; in fact, they were just the marks and John Geoffrey Bolitho sold his entire 5.58% stake to them, plus no doubt others buying in on a ramp based purely upon other people being short.  I guess they also want to try to clear the warrants too.

You can perhaps see why I think these companies and markets have got zero to do with investing.

In the same peer group, Zenith Energy (ZEN), Block Energy (BLOE) Attis Oil & Gas (AOGL), ADM Energy (ADME) and Nostra Terra Oil & Gas (NTOG) all issued announcements hypothesising about future events, but none of them have any real record of actually delivering.  Matt Lofgran, CEO of NTOG, complained about my statements in the blog regarding Nostra Terra last weekend, but there’s no apology, because to say they raised millions from investors with no return to shareholders other than an ever declining share price is absolutely correct.  Just take a look at the RNS announcements and the chart.  Instead of a few barrels of oil every so often here and there, Mr. Lofgran needs an exciting new deal with big numbers to promote if he ever wants to achieve anything.

On to slightly better companies, Petro Matad (MATD) announced final results.  I’ll say it now, a placing is absolutely inevitable here.  Chariot Oil & Gas (CHAR) announced final results and was quite frank: exploration in frontier regions has fallen out of favour and there is a need for nearby / adjacent discoveries to unlock basin potential.  Focus now is going onto its gas development project in Morocco and at a £7 million market cap (with more than that in cash at the year end) it doesn’t look too bad a bet.

Columbus Energy Resources (CERP) announced the issuance of their so called “Lind Facility” shares.  Like Bahamas Petroleum Company (BPC), with whom they are merging, CERP also is dependent on convertible loan note financing.  It does not augur well.  Meanwhile, Touchstone Exploration (TXP) announced final production test results from the Cascadura-1ST1.  They say it is ”reasonable to design for an initial gross production rate of between 7,750 and 9,700 boe/d.”  Trinity Exploration & Production (TRIN) announced its AGM statement.  Production levels are at a five year high, with a year to date average of 3,269 bopd, and peak production from the new Echo platform is expected to be in the order of 3,250 to 3,900 bopd net to Trinity’s interest.

Tlou Energy (TLOU) announced an entitlement offer to raise up to £1.65 million and further announced the receipt of an Electricity Generation License  from the Botswana Energy Regulatory Authority.  Canadian Overseas Petroleum (COPL) announced a loan agreement for £600,000 and termination of the equity sharing agreement.  I said on Monday it was a step in the right direction, which looks like the case since the share price more than doubled on the week.

My new book “UNDERSTANDING THE LONDON SPECULATIVE MARKETS and THE SECRETS OF HOW TO PROFIT FROM THEM” explains it all.  I hope you take the opportunity to read it.

Contact me on Twitter @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.

Weekly oil news round up by Oilman Jim – UJO ANGS EDR EOG BPC CERP HUR PTAL TRP RBD ECHO NTOG AAOG

Stock market and oil prices gave back some of their recent gains last week, with plenty of uncertainty still remaining on the international macroeconomic front due to virus related demand concerns.  Domestically, the main issues now are Coronavirus and its economic impact, Brexit and the “no deal” possibility which will soon come into focus, plus whatever the BLM protests and counter protests might turn into over a long, hot summer.  It all makes for interesting (and potentially dangerous) times.

Moving on, there were a couple of grumbles last weekend regarding negative coverage of companies.  Just to clarify, these blogs and associated podcasts cover the news being issued by the more speculative oil and gas companies each week.  Some issue good news, some issue mediocre news, some issue bad news, and some pretend that their bad news is good.  It’s different to the other blogs and podcasts, because I don’t accept compensation from the companies, so I can say it as it is and I don’t pretend news is exciting or positive when it isn’t.  I’m genuinely independent and simply state the truth as I see it.  I’m rarely wrong.

I’m sorry if anyone doesn’t like my commentary, but it’s the reality of the news which the companies issue.  If you’re looking for solace, there are plenty of other commentators retained by these companies to soothe your financial pain.  But you’ll only ever succeed in the markets if you can handle the type of uncomfortable truths that I provide and adjust your approach accordingly.

I know about this stuff, because I’ve been deeply involved in the small cap speculative markets since the early 1980s, both in the UK and the US.  I understand exactly what everyone is doing and precisely what their agendas are.  My particular focus is on the oil and gas industry, where I have significant experience, but I also understand fully how the game is played in all the other sectors, whether it’s mining, pharmaceuticals, technology, or any other area.  The modus operandi with all of them is just the same.

On to the company news, Union Jack Oil (UJO) announced the acquisition of an additional interest in the Wressle project.  It’s buying a further 12.5% for £500,000.  Most importantly, because it’s only maintaining this current market capitalisation due to the upcoming West Newton drill, Union Jack says it “remains in a strong financial position with current cash reserves in excess of £5.5m and fully funded for its existing drilling, testing and development commitments on all of its projects during 2020.”  Among other small cap companies with UK interests, Angus Energy (ANGS) announced that prior approval has been obtained for the installation of processing facilities at the Saltfleetby ‘B’ site, Egdon Resources (EDR) announced approval by the Oil & Gas Authority of their farm out to Shell and Europa Oil & Gas (EOG) announced the acquisition of a further offshore Ireland licence.

A busy week for Bahamas Petroleum Company (BPC), which announced both the award of a petroleum licence offshore Uruguay and the acquisition of Columbus Energy Resources (CERP) in an all share merger.  The latter was not received well by the market and the share prices of both fell sharply.  It’s looking more and more like the Bahamas drill may be purely promotional.  Regarding Columbus, it’s fascinating that VSA Capital was saying to retail clients that it was worth over 20p, yet when it came to the crunch, they were happy to advise the CERP directors that tuppence a share was fair and reasonable.  You see why I sometimes can be cynical.

Hurricane Energy (HUR) announced the departure of founder, Dr. Robert Trice.  It’s a sorry saga for those investors who believed, but you see this so often, with the share price ending up lower than it was before the initial drilling “success.”  It’s one reason I believe these types of shares really are only for buying and selling over a timeframe of a few months and not for holding longer-term.

As I said it would, PetroTal (PTAL) announced a placing.  It’s raising £14.1 million at 10p, with warrants attached.  It’s far from out of the woods yet though.  The contingent liability to Petroperu was approximately $43 million at end May and the production facilities at Bretana are having to be pledged to Petroperu in respect of that, plus there are further obligations to suppliers of approximately $49 million, excluding the contingent liability.  It does still have its fans, the very ones who were vehemently denying the existence of the supplier liabilities until last week.  Next foul up by management, I guess Petroperu just takes the the field from them under the pledge.

Full year results were announced by Tower Resources (TRP) (loss of $2.7 million), Reabold Resources (RBD) (loss of £4.3 million) and Echo Energy (ECHO) (loss of $13.5 million) with nothing exciting in them.  Managements of this trio have all lost their shareholders substantial amounts in recent years.  These, however, are relatively serious companies compared to Nostra Terra Oil & Gas (NTOG), which announced an operational and corporate update.  After years of supposed effort and millions upon millions raised to finance the oil and gas equivalent of a corner shop, which every other operator in the area can somehow make a good living out of, NTOG still can’t even pay its overheads.  Same as others, it’s just an endless share price decline, with financings at ever lower levels.  To cap it all though, Anglo African Oil & Gas (AAOG) entered into another death spiral financing to pay their directors’ salaries.  It doesn’t even have a business to provide hope to its shareholders.  Are these the sort of companies you want to invest in?

There are always a few good ones, but most are not and, even with the good ones, there’s only a relatively short window of opportunity in which gains can be made.  Understanding this is what it’s all about.  It’s no good being stuck in losers and supporting them tribally, watching your money drain away.  You need to get out of them, get into those with actual immediate potential and make sure to turn your paper profits into cash while they’re still there.  I’ve written a 10 part trading course, which explains everything for those who want to understand how these companies and markets actually work and how to make money out of them.  Details are at https://www.oilnewslondon.com/course  I also write a private blog each week covering my actual trading ideas and other matters.  Details of that are at https://www.oilnewslondon.com/subscribe  

Contact me on Twitter @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.

Weekly oil news round up by Oilman Jim – BPC UKOG ANGS IGAS IOG PVR LOGP CERP PRD PPC CLNR EME UOG COPL AST PET

Both the markets and oil prices continued to firm up last week and, on the company front, it was an interesting week for news.

Bahamas Petroleum Company (BPC) announced its final results.  Nothing remarkable in them, but rather disconcerting that they’re converting over £1.5 million of the notes at 1.27p per share, when the market price was standing at nearly 3p.  The company will proceed to issue a further 120 million new shares and continue on its path of dilution for the reward of certain undisclosed “investors.”  People appear to have been misled into thinking Bahamas Petroleum is now fully financed for the drill and have been buying these new 1.27p shares at up to nearly three times that price.  Unfortunately, it’s not and it’s come back quite a bit since I pointed this out on Twitter.  You really have to read the RNS announcements carefully.  The financing talked about is “conditional.”  There likely will be money to be made, though, and possibly big money at that, but you need to be alert and aware and, of course, enter at the right price, which I suspect will be quite a bit lower than where it is now.  The special trading course explains all about how to do this.

UK Oil & Gas (UKOG) announced a placing to raise £4.2 million at 0.2p per share.  It’s not clear yet if they’re paying off the CLN with cash, or with shares as per the mechanism they refer to in their RNS.  One way or another, though, the convertible should be gone and once all the new shares have churned, there’s at least potential for the share price to move higher.  Meanwhile, also onshore UK, Angus Energy (ANGS) has submitted its application to Lincolnshire County Council relating to the extension of the Saltfleetby pipeline to the National Grid Terminal and IGas Energy (IGAS) announced they are seeking to develop new assets as they position themselves to play what they say will be an important role in the UK’s energy transition.

Independent Oil & Gas (IOG) announced the award of the Phase 1 Well Management Contract.  They’ve appointed Petrofac, who look like a good choice.  Phase 1 comprises the development and production of the Southwark, Blythe and Elgood fields in the UK Southern North Sea through a total of five wells, with gas transported onshore via the Thames Pipeline.

Providence Resources (PVR) issued their 2019 annual results.  Providence has entered a period of exclusive negotiation with SpotOn Energy in relation to the Barryroe farm-out following SpotOn Energy’s recent £500,000 investment in Providence, but it looks like there’s plenty still up in the air here.  Lansdowne Oil & Gas (LOGP) also have a 20% stake in Barryroe, so their fortunes remain very much tied.

Columbus Energy (CERP) and Predator Oil & Gas (PRD) announced the start of Phase 2 of their CO₂ Pilot Project in Trinidad.  The aim is to increase oil production and they will be building up to continuous injection in the coming weeks.  The results are awaited with interest.

President Energy (PPC) announced a deeply discounted placing last week at 1.85p.  I expected this, in fact I was certain it would happen, and I warned about it a number of times over the past couple of weeks or so.  Remember, when you see paid commentators recommending a stock and even interviewing each other about it, it’s not for your benefit, rather for those who employ them.  Avoiding holding shares over a placing is one of the most important keys to success on AIM.  I explain exactly how to spot these upcoming placings in the special trading course.  It’s easy when you know how to do it.

Cluff Natural Resources (CLNR) issued an operational and corporate update.  Shell and Cluff are fully committed to drilling the Pensacola and Selene prospects, they say, with drilling anticipated to commence in the second half of next year.  Those who choose to read this lengthy RNS further will also see that while both Shell and Cluff remain committed to drilling the Selene prospect, in light of the current investment environment it is anticipated the Selene well will now be drilled in 2022.  So there’s nothing exciting happening here for quite a long time.  Best avoided now perhaps, but it could be a good one for a later date at possibly a much lower entry price. 

Empyrean Energy (EME) announced that an extension has been agreed with the China National Offshore Oil Corporation for the first phase at Block 29/11, offshore China.  The company now has until 12 June 2022 to drill its first well.  They hope to do that sooner, though, as soon as it is practicable and safe to do so.  It should be an interesting one if and when it happens.

United Oil & Gas (UOG) announced its latest Egypt well results.  Flow rates of around 8,700 barrels of oil equivalent per day were achieved during testing and United’s net production from the Abu Sennan asset as a whole is likely to rise to over 2,500 barrels of oil equivalent per day in the coming weeks.  What matters now is whether in a company like this, any of that can actually flow down to the bottom line.

Canadian Overseas Petroleum (COPL) issued what appears to be a rare piece of good news.  They’ve reached an agreement in principal to resolve the dispute with Essar Mauritius and will retain an effective interest of 5% carried through the drilling of the first appraisal well.  It’s not going to amount to riches, but at least it’s something.  They also have the option to increase their effective interest to 15%, by paying 10% of historic expenditures of Essar Nigeria at cost through the drilling of the first appraisal well, although that option could require a relatively substantial fundraising.

Ascent Resources (AST) announced the Administrative Court of the Republic of Slovenia has ruled that an EIA is required for their planned work.  No surprises there.  The Slovenian environmental agency has been saying that all along.  It would not be unreasonable to think that it has been the company itself delaying operations, rather than spending the funds raised for their actual intended purpose.  As I’ve said before, it’s just a lifestyle company for the Board, so the “news” doesn’t really matter anyway, since nothing of value will ever be achieved for the shareholders, as at the other companies of which they have previously been or still remain directors.

For balance, I should say that these types of shares can occasionally perform, but only on organised ramps where you risk getting spiked.  These ramps also generally presage a heavily discounted placing.  Overall, if you hold, you will inevitably lose money.  Just take a look at some historic charts and you’ll see what I’m talking about.

Meanwhile, some chancers were tipping Petrel Resources (PET) around the 6p level last week on its Iraq oil potential.  I highlighted this company several times last year at a penny and a number of regular readers made significant money.  It actually got as high as 26.5p at one point.  Note, though, that despite what some of these accounts are saying, I’m not endorsing it at 6p.  It was a favourite of mine last year at one penny.  At that price it was a certainty, at several times that price it’s not.  What some fail to understand is that opinions change in relation to the share price level.

For those interested, my personal trading focus is on the elimination of all potentially loss making trades and only going for those which I view as certainties.  That is the secret to actually making large profits.  I set out my trading ideas in the private blog each week and I’ve also written a 10 part trading course for those who want to understand these small cap markets fully and make money out of them.  Details of the course are at https://www.oilnewslondon.com/course and details of the private blog are at https://www.oilnewslondon.com/subscribe  There are trial offers for both.

Contact me on Twitter @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.

Weekly oil news round up by Oilman Jim – PVR LOGP PET CLON PRD RBD UJO UKOG RPT ENW CORO EME AST BPC 88E PTAL ECHO HUR

A short week, but no shortage of news:

Providence Resources (PVR) announced receipt of the outstanding £200,000 from SpotOn Energy and progress with the farm-out of Barryroe is back on.  It’s not clear why PVR needs SpotOn as an intermediary, but the important point is can a deal with a well financed, larger oil company be done.  If so, it will be good news for 20% partners, Lansdowne Oil & Gas (LOGP) too.

In other Dublin oil and gas small cap news, Petrel Resources (PET) announced that it is raising £250,000 at 3.25p per share, with the main purpose of advancing its interests in Iraq, where it maintains strong relationships with government officials.  I highlighted PET as a favourite several times last year around 1p and it’s now over 4.5p, having been as high as 26.5p. 

Sister company, Clontarf Energy (CLON), announced preliminary results for the year ended 31 December 2019.  Clontarf’s reports are usually worth reading, if only for Dr. John Teeling’s comments and opinions.  Their main interest is a a 60% stake in the Tano 2A concession offshore Ghana, in which Petrel owns a 30% interest too.

Quite a lot of Irish news last week.  Predator Oil & Gas (PRD) announced its intention to proceed to apply for a liquefied natural gas import licence for Ireland following the execution of confidentiality agreements with a global supplier of LNG and an owner of LNG re-gasification vessels.  It’s an interesting idea, since Ireland risks running short of gas in the not too distant future.

Back in the UK, Reabold Resources (RBD) announced the conditional acquisition of a further 16.665 per cent. interest in West Newton, plus a £5 million “Discretionary Cash Facility” with “death spiral” potential.  It’s good news for Union Jack Oil (UJO), less so for RBD shareholders.

UK Oil & Gas (UKOG) gave notice of its Annual General Meeting.  Due to Covid-19 health and safety advice, it will be held via an electronic platform.  It could be lively with online attendance.  Let’s see how many questions they allow, and from whom.  There’s a considerable amount of dissatisfaction, since the outstanding loan notes are being converted at ever lower prices.  Last tranche announced on Thursday was at 0.1796p and there’s still a further £1.85 million outstanding.  With 8.686 billion shares now in issue, all investors are seeing is endless dilution.

The old Regal Petroleum (RPT) is giving itself a makeover.  It now has a new, more contemporary name, Enwell Energy plc (ENW) and has launched a new website.  It’s probably a good move and indicates that they’re looking to increase investor appeal.

Coro Energy (CORO) and Empyrean Energy (EME) announced their much expected Mako resource upgrade.  No surprises there and no positive impact on their share prices either.  Question now is can they develop and commercialise it, because that’s the hard part.

Coro connected company, Ascent Resources (AST), announced a “Slovenian Strategy Update.”  It was a neat way of disguising a 200,000 Euro default.  It’s just a lifestyle operation for the Board, so none of the “news” really matters anyway.

Bahamas Petroleum Company (BPC) announced signature of the drill rig contract.  The window for commencement of drilling is between 15 December 2020 and 1 February 2021. It’s a big drill with significant speculative potential, but it all now comes down to whether and how they can finance it.

88 Energy (88E) announced the despatch of its bidder’s statement, which contains its offers to acquire all of the ordinary shares and listed options in XCD Energy Limited.  I mentioned 88E as a favourite several times last year and it rose over 100% in the run up to the drill.  It’s a regular money maker if you know how to get the timing right and the next drill is awaited with interest.

PetroTal (PTAL) announced that publication of its two outstanding sets of accounts are further delayed.  Meanwhile it “continues to assess a variety of financial arrangements to ensure it has the necessary funding.”  I said a number of times before that it would require funding, regardless of all the self-financing hubris and, as regular readers and listeners will know. I’ve been negative about this one all the way down from the 30s.

As an aside, I write critically about many companies.  Most comments receive little challenge and, if there is one, it’s usually a polite communication explaining what the writer thinks I’ve got wrong.  I always know the ones whose share prices will completely collapse though.  It’s indicated by the receipt of a barrage of abuse and sometimes threats.  AAOG, BLOE, RBD and PTAL are some recent examples.

Back to the news, Echo Energy (ECHO) announced that while it was being ramped the previous week, Lombard Odier sold more than half its stake.  Always remember that when you see paid commentators promoting a stock, it’s to enable someone to sell it.  ECHO is another one I’ve been warning about, all the way down from 17p.

Hurricane Energy (HUR) issued disappointing news the previous week and fell into the 6p range, but Hannam & Partners have issued a new report with a target of 45p.  It’s a very rare event indeed that a share price reaches a broker’s target, but it does indicate some potential.  The link to their full report is in my Tuesday Twitter post on the subject.  The Oil and Gas Authority has been understanding of the situation and it was announced last week that they have extended the deadline for the commitment well on Lincoln to 30 June 2022 and extended the deadline for plugging and abandoning Lincoln Crestal to 30 June 2021.

For those interested, my personal investing and trading focus is on the elimination of losses and only going for those trades which I view as certainties.  That’s the secret to large profits.  I set out my trading ideas in the private blog each week and I’ve also written a 10 part trading course for those who want to understand these small cap markets in detail and make money out of them.  Details of the course are at https://www.oilnewslondon.com/course and details of the private blog are at https://www.oilnewslondon.com/subscribe  Subscription to the private blog also gains you full access to the subscribers section of the Oil News London site, including key information such as the full schedule of upcoming drills.  There are trial offers for both.

Contact me on Twitter @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.