Weekly oil news round up by Oilman Jim – UJO DELT IOG RBD IGAS CASP ADME RMP ENW GBP PMO COPL RKH PPC CLON

Union Jack Oil (UJO) announced a placing and subscription to raise £7 million at 0.16p.  At half the share price a few weeks ago, it would have been hugely profitable for all those connected to the company who knew about it and were able to short in advance.  For private investors, the issue now is how much was sold short by insiders and covered in the placing and how much was actually taken by new money  If  mainly the former, the price should start moving back up; if mainly the latter, then there’s a lot to shares to churn first.  If this placing took you by surprise or shocked you, I’d suggest the Special Trading Course, which shows you how to spot all this beforehand.  The link for that is https://www.oilnewslondon.com/course

Deltic Energy (DELT), which Independent Oil & Gas (IOG) is interested in acquiring, announced further details of its new North Sea licences.  These, they say, “are a key part of the Company’s exploration focussed strategy which is based upon a steady ‘conveyor belt’ of licences which can be matured  and feed a long-term programme of exploration wells with any discoveries supporting the longevity of existing infrastructure and the development of new gas production hubs.”  Essentially they are turning into an ongoing exploration (and hopefully development) business, thus making a case for an increase in DELT’s value.  IOG’s approach has a much greater chance of success that that of Reabold Resources (RBD), though, who were firmly shown the door by DELT and its major shareholders.  Unlike RBD, whose CEO couple perhaps still don’t understand the difference between geological chance of success and commercial chance of success, Independent Oil & Gas is a professionally run company undertaking a major offshore development project with substantial financial backing.  Certainly DELT are not criticising it as they did the previous suitor.

IGas (IGAS) announced the acquisition of a geothermal energy business with a district heating project in Stoke-on-Trent.  There is big money now in the renewable energy sector, not so much from the commercial aspect, but rather the huge government subsidies.  IGAS sees this transaction as an entry point to a fast emerging sector that through the energy transition could result in it seeing significant growth.  Given its other assets, it doesn’t look expensive at a £16 million market cap.

In terms of significant announcements that’s it for the week.  In other news, Caspian Sunrise (CASP) announced interim results (there’s still significant doubt about its ability to continue as a going concern), ADM Energy (ADME) announced the submission of a bid in the Nigeria marginal field round (as a partner of a Nigerian oil and gas service management company), Red Emperor Resources (RMP) announced final results (they remain committed to identifying suitable assets for listing purposes), Enwell Energy (ENW) announced interim results (average daily production from the MEX-GOL, SV and VAS fields is up 8%), Global Petroleum (GBP) announced a placing and subscription to raise £1.4 million (at 0.75p), Premier Oil (PMO) announced a statement regarding press speculation (confirming it has been in discussions with a number of third parties regarding alternative forms of transactions to secure the long term refinancing of debt facilities), Trinity Exploration (TRIN) announced its half-year report (says it’s “positioned” to grow production, revenues and profitability), Canadian Overseas Petroleum (COPL) announced second quarter results (nothing new in them), Rockhopper Exploration (RKH) announced its half-year report (completion of the Navitas farm-in is targeted late this year), President Energy (PPC) announced an operational update (drilling operations are expected to commence before the end of the month) and Clontarf Energy (CLON) announced its interim statement (as always, ongoing discussions with the Ghanaian authorities to finalise ratification of the signed petroleum agreement on the Tano 2A Block).

I’ll be back next week with more.

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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 IOG DELT RBD TMK UJO BOIL CHAR SOU TLW HUR I3E EME PTAL PHAR PANR SQZ CAD PMG

Starting with the positive news, 88 Energy (88E) announced the final petrophysical interpretation for Charlie-1, which it says substantially upgrades net hydrocarbon pay in the well.  A data room for the next Project Icewine farm-out is to be opened in the near term and the company also is looking to agree farm-outs on both the Peregrine and Yukon acreage with a view to drilling next year.  88E returned a nice, easy 100% profit on the run up to its last drill (an opportunity which I flagged up several times in the blog) and once farm-outs and financing are done, it has the potential to be another good one.

Independent Oil & Gas (IOG) announced a possible all-share offer for Deltic Energy (DELT).  They look like a potential good fit and an offer from IOG certainly has a much greater chance of success than the one from Reabold Resources (RBD), who was firmly shown the door.  Unsurprisingly so, given the overall poor quality of its assets, which again was demonstrated last week when it was announced that Tamaska Oil & Gas (TMK – Australia) has decided not to proceed with the farm-in transaction relating to the EX-10 Parta licence.

I mentioned three weeks ago in the blog the future funding needs of Reabold Resources and Union Jack Oil (UJO) and received quite a bit of abuse, particularly regarding the latter.  Since then the UJO share price has declined from 0.2680p to 0.1775p and it admitted last week that there is to be a fundraising.  There’s a sense of deja vu here now.

Baron Oil (BOIL) issued interim results.  Work in Timor-Leste has stalled in the absence of the original seismic data, however, once COVID issues have been resolved, it believes drilling of the El Barco-3X well in Peru should be able to move forward.  In reality, there’s probably not much going to happen here until next year.

Chariot Oil & Gas (CHAR) released what it said was a significant resource upgrade on Anchois, Morocco  The audited total remaining recoverable resource has increased by 148% to in excess of 1 Tcf for Anchois, comprising 361 Bcf 2C contingent resources and 690 2U prospective resources.  The more important point is can they find a farm-out partner and drill it.

Sound Energy (SOU), now around 1.5p, is one I’ve been warning about since it was in the 40s.  It’s nearly at the end now and the half-year report issued last week stated “material uncertainty which may cast significant doubt about the Company’s ability to continue as a going concern.”  Failure is the usual outcome for most of these companies, even those which appear to achieve success for a time: Tullow Oil (TLW) announced half-year results last week and also emphasised material uncertainties on going concern, having recorded a loss after tax of $1.3 billion, impairments totalling $1.4 billion pre-tax and net liabilities of over $138 million.  It’s so important to understand and accept reality here.  These types of shares are for short/medium term trading only.  Longer term investment will invariably result in substantial losses.

I’ve also been warning about Hurricane Energy (HUR) since the end of last year and received plenty of abuse for doing so, particularly from the promoter types who have been swarming around it of late.  Reality is it was quite easy these last few weeks and months to see what was going to happen.  Latest news is that the company’s unaudited estimate of 2C contingent resources in the Lancaster field has been reduced to 58 MMbbls remaining from 486 MMbbls in the 2017 CPR.  The share price is now down from the 30s to under 3p.

I3 Energy (I3E) issued its interim report.  Notwithstanding praise from paid sources, its shares are already trading well under the 5p price of the last financing and the only ones in profit now are those with the repriced 0.01p warrants, including the management.  Information provided by the company last time regarding its North Sea project turned out to be, shall we say, less than accurate.  I see no reason why the current information released regarding the Canadian acquisition should be any different.

In other news, Empyrean Energy (EME) announced a £640,500 placing plus the first £200,000 under the £10 million equity placement facility (this type of financing rarely turns out well), PetroTal (PTAL) announced it is ready to reopen the Bretana oil field as soon as the ongoing discussions between the communities and the Government of Peru have been ratified (unlikely to fully resolve the local issues which have been troubling them), Pharos Energy (PHAR) announced the TGT full field development plan approval (enables it to put plans in place to commence the drilling of the six new producer wells on TGT starting in Q4 2021), Pantheon Resources (PANR) announced a Talitha production unit and operational update (still hoping to conclude a farmout by the end of autumn and drill the first Talitha well this winter), Serica Energy (SQZ) announced interim results (it’s still making money and paying a dividend), Cadogan Petroleum (CAD) announced its half-year report (uninspiring) and Parkmead Group (PMG) announced its new UK offshore blocks award (it picked up interests in another four).

If you’re interested in more, in particular my actual trading ideas, try out the private blog 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 – ADV DELT IOG JOG PMO RBD SQZ UOG TRP SOLO PANR 88E PPC LEK I3E SOU

A number of companies announced provisional awards (in some cases to subsidiaries) in the UK’s 32nd Offshore Licensing Round: Advance Energy (ADV) was awarded interests in five blocks, Deltic Energy (DELT) was awarded interests in 12 blocks, Independent Oil & Gas (IOG) was awarded interests in four blocks, Jersey Oil & Gas (JOG) was awarded an interest in one block, Premier Oil (PMO) was awarded interests in six blocks, Reabold Resources (RBD) was awarded interests in four blocks, Serica Energy (SQZ) was awarded interests in four blocks and United Oil & Gas (UOG) was awarded interests in two blocks.

While some are good and have a value due to the applicants’ infrastructure (current or planned) in these areas, remember with the licences containing discoveries that other companies surrendered them since they believed the resources to be non-commercial.  They can of course be spun and promoted, but there’s something called geology too.  All blocks are not equal.

Last week was a short week with many not yet back at their desks (office or home), but there still was some other news too.  It should get busier this coming week.

Tower Resources (TRP) announced a financing update.  It’s conducted a $200,000 placing and entered into $500,000 loan facility, convertible into equity in the event of default.  These additional funds are purely for working capital, drilling of the NJOM3 well on the Thali licence still needs to be financed.  It all really hinges on that.

Solo Oil (SOLO) announced 2019 full-year results.  It says there is a formal process ongoing to explore value realisation for Solo’s assets in Tanzania with an encouraging level of interest and a new company strategy to identify assets within the European energy market for long-term sustainable growth in line with which it continues to screen business development opportunities.  Let’s see.

Pantheon Resources (PANR) announced an Alkaid production unit and operational update.  The application to form the unit of 22,804 acres is complete and eligible for approval, and the Alaska Department of Natural Resources has opened a 30-day public comment period on the application and must make a decision on the application within 60-days.  Drilling this coming winter is Pantheon’s objective, but that requires them to conclude a farm-out by the end of autumn.  Again, let’s see.

88 Energy (88E) announced its interim report.  Permitting of the Yukon acreage now is underway ahead of potential drilling in 2021, subject of course to a farm-out.  President Energy (PPC) issued an operational update.  It says it’s made “an encouraging preliminary start.”  Lekoil (LEK) issued a TR-1.  Metallon Corporation has increased its stake to 15.1%.  There are some interesting developments coming up here.

I3 Energy (I3E) reported completion of the Gain acquisition/Harvard sale and announced that certain of its loan noteholders have exercised warrants over 6,788,945 shares.  They’re shy about mentioning the price, though, and no wonder: it was £0.0001 per share, raising £678 for the company and generating a profit of c. £370,000 for the noteholder.  Management also recently repriced their own warrants to the same £0.0001 level (private investors have paid up to 12,800 times more for their shares) to guarantee substantial profits for themselves regardless of commercial success.  The issue with I3E always has been its management.  Any return to shareholders is entirely discretionary and private investors particularly appear to be seen only as a resource.

Sound Energy (SOU) announced a notification from the Moroccan tax authorities, who have assessed additional corporate and value-added tax liabilities totalling approximately $14 million.  Obviously Sound dispute it publicly, but it’s good news in a way for the board, since it would enable them to put the Morocco subsidiary company down, while blaming “corrupt North African bureaucracy.”  Directors’ lifestyles could still be funded through the parent quoted company.

If you find this blog helpful, try my fact based trading course, which really will open your eyes.  It vastly expands on some of the principles I outline 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.  

It’s not theory in this course, rather how it all actually works in the real world, keeping it practical and realistic, so that everyone can use the information for their own advantage regardless of the level of their trading or investment.

Small cap speculative companies exist to enrich their insiders, not their investors, and everything those involved do is for their benefit, not yours.  The vast majority lose with these companies, but for the whole scheme to work, some investors have to profit, and you can be one of those too.  The link is https://www.oilnewslondon.com/course 

Contact me on Twitter @Oilman_Jim 

Click “SUBSCRIBE” to receive these blog posts by email 

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 – PRD EDR LEK PHAR PTAL IOG

Predator Oil & Gas (PRD) issued a statement in response to its recent downward share price movement, noting recent speculation on two investment bulletin boards suggesting there would be an imminent fundraising by way of an equity placing.  PRD has denied this and reconfirmed it is fully-funded for its drilling operations in Morocco and ongoing operations in Trinidad.  The company is ready to drill in Morocco as soon as it is safe to move personnel in and out of the country.

Egdon Resources (EDR) announced a Shell farm-in update.  The OGA has approved the transfer of a 70% interest plus operatorship in both licences and the farm-in has completed.  The farm-out terms for EDR are rather poor, but on the bright side, the licences remain alive and Shell’s involvement lends credibility.

Lekoil (LEK) announced final results.  The loss for 2019 was $12.0 million and the cash balance at 31 July 2020 was $0.6 million.  Money is needed and LEK says that plans are underway, subject to the securing of funding, for a five to seven well drilling programme at Otakikpo.  There are plans for the Ogo appraisal drilling programme too, with well locations selected and funding discussions currently are underway with industry partners.

Pharos Energy (PHAR) announced interim results for the half-year to 30 June 2020.  The net loss was  $268.3 million, including a non-cash impairment of $265.5 million, which was primarily oil price related.  The loss per share was 70.9 cents.  With the decks cleared, it’s perhaps now one to look at for those who believe in fundamental orientated investment.

PetroTal (PTAL) was the subject of an interesting article in Argus.  They are not really in a position to restart production until the government pays off the protestors via their social investment plan, which has not happened and, even if it does, will still not be enough to satisfy them.  Indigenous leaders say tempers could flare up again if nothing is done (the last protest resulted in three dead plus 17 injured) and the field remains shut in.  Such are the perils of ill-informed investment in the developing world.

Independent Oil & Gas (IOG) announced interim results.  They’re certainly well financed for their development and production project, with a  cash balance at period end of £104.1 million, a further £36.7 million of uncalled development carry available from partner CalEnergy Resources (UK) Ltd. and £10.4 million drawn down from the senior secured bond escrow account for development expenditure, leaving £60.2 million remaining to be drawn at three further operational milestones.  First gas is expected next year.

That’s the material news this week.  Expected, starting next week, is a return to normal news flow.  There are an exciting few months coming up, which undoubtedly will be dominated by Coronavirus/Economy, US Presidential Election and, in the UK, EU Trade Agreement news.  Trading opportunities, long and short, will abound.  Many talk about the importance of having an “edge” in trading.  Some have that via access to inside information, but most who have it in the London small-cap markets do so simply by having a better understanding than others of human nature.  Subscribe to the Private Blog or the Special Trading Course to learn more.

Contact me on Twitter @Oilman_Jim 

Click “SUBSCRIBE” to receive these blog posts by email 

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 – MATD 88E UJO RBD PTAL FOG EME HUR

Petro Matad (MATD) announced interim results.  It’s still waiting for the Block XX exploitation licence to be approved and it doesn’t sound like that’s going to happen anytime soon.  In the meantime, it reported a loss of $2.35 million for the six-month period ended 30 June 2020 and a cash balance at that date of $2.08 million.  The company says it is pursuing a number of options to fund the next stage of its activities, but I think a placing is inevitable.

88 Energy (88E) announced it has completed the acquisition of all the outstanding ordinary shares and listed options in XCD Energy in accordance with the compulsory acquisition process and now owns 100 per cent.  Coming up is the drilling of two wells on the new acreage next year.  This one is a regular money maker if you know how to play it.

Union Jack Oil (UJO) and Reabold Resources (RBD) issued West Newton operations updates.  Union Jack published the full operator’s notice, stating “drilling operations will commence.”  Reabold edited out that part and stated “drilling operations…have commenced.”  Shows how you need to be careful with this particular company’s RNSs.  They both also announced a screening request for additional West Newton sites to determine whether planning application submissions for West Newton C and West Newton D will require environmental impact assessments.  In light of other commitments, it’s perhaps time to think about the future funding needs of these two.

PetroTal (PTAL) announced second quarter 2020 financial & operating results.  PTAL’s troubles are well known, but with production halted it now appears insolvent.  “At August 17, 2020,” it says, “PetroTal has cash resources of $13.5 million, with accounts payable and accrued liabilities of approximately $37 million.”  Can they actually establish continuous production generating sufficient free cash flow to fund further development is the question.

Falcon Oil & Gas (FOG) announced a Beetaloo operational update.  Subject to COVID-19 related conditions, fracture stimulation of Kyalla 117 is expected to commence before year end, with extended production testing of the well to follow.  Final well results are expected by the end of the first quarter next year.  It’s an odd one, being incorporated in British Columbia, Canada, headquartered in Dublin, Ireland, with a technical team based in Budapest, Hungary, and operating in the Northern Territory, Australia.  Its activities generate little, if no, discussion at all on social media.

Empyrean Energy (EME) announced final results.  Everything is on hold due to COVID-19, but of concern is the £10 million equity placement facility entered into with Long State Investment Limited.  This in my view makes it a no go from an investment perspective.

Hurricane Energy (HUR) announced the appointment of CEO Designate, Antony Maris, the former Chief Operating Officer of Pharos Energy.  He is expected to formally assume the role in mid-September and, as the company says, his technical experience and knowledge of the behaviour of fractured basement reservoirs makes him the ideal candidate to lead Hurricane.  Let’s see if he can sort things out.

Another fairly short blog this week, due to the August news hiatus.  The markets carry on regardless though, fuelled by new speculative money, although I detect a sense of weakening in London now.  America could continue powering ahead until the November elections and it’s virtually just as easy to trade shares there as it is in the UK if you’re interested.  An additional advantage for traders who prefer small caps is that British style placings, which can suddenly hammer a share price, are not allowed in the US.

Now, if you find this blog helpful, try my fact based trading course, which really will open your eyes.  It vastly expands on some of the principles I outline 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.  

It’s not theory in this course, rather how it all actually works in the real world, keeping it practical and realistic, so that everyone can use the information for their own advantage regardless of the level of their trading or investment.

Small cap speculative companies exist to enrich their insiders, not their investors, and everything those involved do is for their benefit, not yours.  The vast majority lose with these companies, but for the whole scheme to work, some investors have to profit, and you can be one of those too.  The link is https://www.oilnewslondon.com/course 

Contact me on Twitter @Oilman_Jim 

Click “SUBSCRIBE” to receive these blog posts by email 

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 – PTAL RBD DELT I3E BPC CERP TRP TXP

PetroTal (PTAL) started the week off, announcing the closure of the Bretana oil field due to “social disruption.”  Sadly, this was not the variety of protest that UK oil companies are used to, rather a firefight that left a dozen people injured and three dead.  A criminal investigation is underway and the “crime scene” is locked down.  Whatever next?

Reabold Resources (RBD) issued a statement regarding Deltic Energy (DELT).  It has  withdrawn its takeover offer, which was simply not being taken seriously by Deltic’s major shareholders.  Better things perhaps are to come for DELT, who announced a material increase in the estimated volume of gas compared to previous estimates as well as a significant increase in the chance of success in relation to the Selene prospect.  All here comes down to Shell’s willingness to take the prospects forward to the drill stage.

I3 Energy (I3E) announced a £30 million placing and a return to trading.  It’s now a Canadian oil and gas producer.  Whether management will be any more successful with this than with prior ventures in which they were involved remains to be seen.  Their North Sea development project, in respect of which investors purchased many tens of millions of pounds worth of I3E shares at vastly higher prices, now appears to have been completely forgotten.  And if investors were misled regarding the North Sea project, why should anyone believe what they say about Canada?  I suspect it could become one of the numerous small cap oil shares where investors focus on supposed “fundamentals” blind to the deeper problems and end up losing large amounts of money.  As regular readers know, I have warned in the past about many such companies. 

Bahamas Petroleum Company (BPC) completed its merger with Columbus Energy Resources (CERP).  The speculative focus here though and indeed its market capitalisation depend on the upcoming Bahamas drill, which in turn depends upon financing.  Sadly, last week’s operational and corporate update did not address that critical point.  

Tower Resources (TRP) previously announced that the Company had an agreement with OilLR to farm in to the PSC to provide up to $7.5 million for the NJOM-3 well.  Unfortunately, they had to announce on Friday that OilLR has not yet made the payment into escrow contemplated by that agreement.  Tower are now talking about discussions for a loan, but whether that might be possible is highly uncertain.

Finally, Touchstone Exploration (TXP) announced second quarter 2020 results and an operational update.  The most interesting point was that they spudded the Chinook-1 exploration well on Thursday, which marks the next phase of their Ortoire block exploration program.

A fairly short blog this week, since there rarely is that much meaningful news mid-August and what good news there is tends to be held back to September after the holidays are over.  The market carries on regardless this year though, now fuelled by the cash and credit of newcomers buying whatever is being ramped on social media.

Personally, I look for what I would call certainties.  Those shares where I think a profit is as good as guaranteed.  My trade ideas are in the private blog each week and the link for that is https://www.oilnewslondon.com/oilman-jim 

If you’re not yet familiar with me, I’ve been involved in the markets for quite 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, which enables me to see very quickly whether or not these companies are telling the truth.

Contact me on Twitter @Oilman_Jim 

Click “SUBSCRIBE” to receive these blog posts by email 

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 RBD EDR EOG HUR BPC CERP PRD UOG I3E RMP COPL

Union Jack Oil (UJO) and Reabold Resources (RBD) announced a positive update on operations and progress in respect of the planned near term drilling of the West Newton B-1 well, its subsequent testing and the completion of the extended well test at the A-2 well.  Initial drilling operations at B-1 are expected to commence in the next few weeks and the combined testing programme at both the B-1 and A-2 wells will follow the B-1 drilling.  Union Jack (along with Egdon Resources (EDR) and Europa Oil & Gas (EOG)) issued other news regarding Wressle and Reabold issued a further announcement regarding Romania, but from a share price perspective, it’s the forthcoming events at West Newton that matter.

Hurricane Energy (HUR) delivered further bad news.  Their technical committee has concluded there is a reasonable probability that the oil water contact in the Lancaster field is shallower than the range of oil water contacts envisaged in the 2017 Competent Person’s Report.  Consequently, Hurricane believes there is a risk of a material downgrade to estimated reserves attributable to the Lancaster Early Production System, and that there will also be a material downgrade to estimated contingent resources across the West of Shetland portfolio.  I did warn readers.

Bahamas Petroleum Company (BPC) and Columbus Energy Resources (CERP) announced the completion of their merger.  The big event coming up is the drilling of their Bahamas licence, subject of course to finance.  Let’s see if they can do it without convertible loan notes.  The merger also is of interest to Predator Oil & Gas (PRD), who are hoping to get hold of their Trinidad assets on the cheap.

United Oil & Gas (UOG) announced it has been assigned Tullow’s 80% equity in the Walton Morant licence for a nominal fee, leaving United as operator and 100% equity holder.  The initial exploration period has been extended for 18 months by the Government of Jamaica and a work programme is underway.  The hope is to find a farm-out partner prior to 31 January 2022, when the final drill-or-drop decision is required, something which to date has eluded both United and Tullow.

Red Emperor Resources (RMP) announced its AIM Rule 15 cash shell status.  For those unsure what that means, it is required to make an acquisition which constitutes a reverse takeover within six months from 21 July 2020.  Alternatively, it can seek to become an investing company, which requires among other things the raising of at least £6 million.  If neither of those happens, the company’s shares will be suspended from trading.  If a re-admission transaction has not been completed within a further six month period, admission to trading on AIM of the company’s shares will be cancelled.  It might sound boring and technical, but it’s important to know this stuff to avoid ending up with suspended or delisted shares that are effectively worthless, which often can happen to the unwary who are ramped in prior to the suspension.  Fortunately, Red Emperor is in a good position, with cash at bank of approximately A$4.6m at the end of June and its next announcement is awaited with interest.

I3 Energy (I3E) announced a proposed £30 million fundraise to finance its acquisition of Canadian production.  The offer is at 5p per share, but the millions upon millions of repriced warrants issued to note holders and management and now exercisable at 0.01p per share remain in place.  It’s a massive avoid in my opinion.

Canadian Overseas Petroleum (COPL) announced that ShoreCan and Essar Mauritius have signed definitive agreements resolving their dispute.  This is an important announcement for Canadian Overseas since they end up with an effective 5% carried interest on all costs relating to the drilling of the first well on OPL 226.  They also have the option to increase their interest to 15% by paying their additional pro-rata share of the costs, which is exercisable within 90 days from the completion of the first well.  It’s now down to valuation. 

If you find this blog helpful, try my fact based trading course, which really will open your eyes.  It vastly expands on some of the principles I outline 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.  

It’s not theory in this course, rather how it all actually works in the real world, keeping it practical and realistic, so that everyone can use the information for their own advantage regardless of the level of their trading or investment.

Small cap speculative companies exist to enrich their insiders, not their investors, and everything those involved do is for their benefit, not yours.  The vast majority lose with these companies, but for the whole scheme to work, some investors have to profit, and you can be one of those too.  The link is https://www.oilnewslondon.com/course 

Contact me on Twitter @Oilman_Jim 

Click “SUBSCRIBE” to receive these blog posts by email 

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 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.

More about everything in the private blog and there’s a trial offer for that at https://www.oilnewslondon.com/oilman-jim 

Contact me on Twitter @Oilman_Jim 

Click “SUBSCRIBE” to receive these blog posts by email 

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.  

It’s not theory in this course, rather how it all actually works in the real world, keeping it practical and realistic, so that everyone can use the information for their own advantage regardless of the level of their trading or investment.

Small cap speculative companies exist to enrich their insiders, not their investors, and everything those involved do is for their benefit, not yours.  The vast majority lose with these companies, but for the whole scheme to work, some investors have to profit, and you can be one of those too.  The link is https://www.oilnewslondon.com/course 

Contact me on Twitter @Oilman_Jim 

Click “SUBSCRIBE” to receive these blog posts by email 

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 – 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 

Contact me on Twitter @Oilman_Jim 

Click “SUBSCRIBE” to receive these blog posts by email 

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.