LOGP – Loan Agreement

Lansdowne Oil & Gas plc (“Lansdowne” or “the Company”) is pleased to confirm that on 25 June 2019 the Company entered into a Loan Agreement for GBP 300,000 (the “Loan”) with Lampe Conway & Co LLC and Brandon Hill Capital Limited (collectively the “Major Shareholders”).

Under the Agreement, which is split equally between the Major Shareholders, Lansdowne is able to draw down funds at its discretion in part or in full. A coupon of 12% per annum will be applied only to those funds drawn by the Company. There are no options, warrants or convertible aspect to the Loan and no fee owed to the Major Shareholders for providing the funds. The Loan is unsecured and repayable on 25 July 2020.

Lampe Conway & Co LLP and Brandon Hill Capital Limited are Significant Shareholders in Lansdowne and therefore the Loan is considered a related party transaction for the purposes of Rule 13 of the AIM Rules.  The Directors of Lansdowne consider, having consulted with the Company’s nominated adviser, that the terms of the Loan are fair and reasonable insofar as the Company’s shareholders are concerned.

Steve Boldy, CEO commented:

“Given the significant softening in our share price over the last few months, in part as a result of delays with respect to the award of a new Site Survey Permit over the Barryroe Licence and the delay in delivery of funds due under the farm-out to APEC, the Board concluded a new equity fundraising at this time would not be in the interest of all shareholders.  Accordingly, we would like to thank our Major Shareholders for their continued support and believe the terms of the Loan are attractive when compared to a number of other debt financings announced by quoted peers in the junior AIM resource sectors.

“With the statutory public consultation period relating to the Site Survey Period having recently concluded, the Board remains optimistic that upon receipt of regulatory consents and financing, the Well Site Survey Operations will take place in Q3 2019, ahead of the previously outlined drilling campaign.”

MATD – Operational update

Petro Matad Limited (“Petro Matad” or “the Company”), the AIM quoted Mongolian oil explorer, provides an operational update on progress towards its planned drilling programme in 2019, and its application for PSC extensions for Blocks IV and V.

Operational Highlights

·    Drill sites for the three Block XX wells, Heron 1, Red Deer 1 and Gazelle 1, have been completed and water supply wells are ready

·    Rig mobilization notices have been issued to both drilling contractors and customs clearance for their equipment and supplies has been obtained

·    The Company is on track to spud the Heron 1 during July 2019, using DQE’s rig 40105. The Gazelle 1 well will follow immediately after Heron 1 operations, allowing for a short rig move

·    Red Deer 1 is expected to spud before the end of July 2019, using Daton’s rig DXZ1

·    Applications for extensions to the Blocks IV and V Production Sharing Contracts (PSC), submitted in mid-April 2019 have received support from the working group at the Mineral Resources and Petroleum Authority of Mongolia (MRPAM)

·    The Velociraptor Prospect has been chosen as the next drilling target in Block V and permitting is progressing

Block XX Exploration Drilling Programme

The three well drilling campaign in Block XX will begin in the north with the Heron 1 well to be be drilled with DQE’s rig 40105. Heron is an estimated 25 MMbo prospect (Mean Prospective Recoverable Resource) and the well is on target to spud during July 2019. The latest mapping shows that the well is an appraisal of the T19-46 oil field immediately to the north in Block XIX. Mapping is based on the interpretation of high-quality 3D seismic data covering southern Block XIX and northern Block XX recently provided to the Company by Petro China. Heron 1 will be drilled to a planned total depth (TD) of 3,050 metres and will take approximately 40 days to drill and log.

The Gazelle 1 well will follow Heron 1 after a six kilometre rig move and will take approximately 35 days to drill and log. The planned TD is 2,500 metres and the Gazelle Prospect has an estimated Mean Prospective Recoverable Resource of 13 MMbo. Gazelle 1 is located updip of Petro China’s T19-46-1 oil well on the western flank of the Tamsag Basin which is the primary source kitchen for the fields in Block XIX.

The Red Deer 1 well in the south of Block XX is to be drilled by Daton’s rig DXZ1, with spud targeted before the end of July 2019. The Red Deer 1 well will be drilled to a planned TD of 2,100 metres and is forecast to take 35 days to drill and log.  The Mean Prospective Recoverable Resource assessment for the Red Deer prospect is 48 MMbo.

Site construction for all three drilling locations has been completed and water supply wells are ready. Rig mobilization notices have been issued to the drilling contractors, customs clearance for the equipment and supplies being imported into Mongolia by both drilling contractors has been obtained and visa approvals have been secured for the Chinese rig crews, who are now mobilizing to Mongolia.

In accordance with PSC provisions, the Company has commenced discussions with MRPAM and the Ministry of Mining and Heavy Industry to secure an Exploitation License under the Block XX PSC for any discoveries made in the 2019 drilling campaign. Appraisal activities will be prioritised by the Company in the event of success.

Blocks IV and V

The Company is pleased to announce that its applications for two-year extensions, running until July 2021, for Blocks IV and V are supported by the working group within MRPAM. Formal notification of the extensions is expected shortly.

In the event that the Company needs to focus its efforts on the rapid appraisal of any discoveries made in Block XX in the 2019 drilling season, these extensions provide the flexibility and time to drill the Blocks IV and V prospects during the 2020 drilling season.

Technical work on Blocks IV and V has continued following the 2018 drilling campaign with a number of new prospects and leads identified. Following the Snow Leopard-1 well proving a working petroleum system in the Taats Basin, the Velociraptor Prospect has been chosen as the next target for drilling in Block V. Velociraptor is a large, shallow, inversion anticline in the Taats Basin with Mean Prospective Recoverable Resource potential of 201 MMbo. Work is progressing to secure the environmental permits for the drill site and for potential follow up locations along the Raptor trend.

Mike Buck, the CEO of Petro Matad said:

“We are looking forward to starting our 2019 drilling operations after considerable effort to secure all the necessary permits and to complete preparations. The real work starts now and the next few months will certainly be a very exciting time for the Company.”

BOIL – AGM Statement

Baron Oil (AIM: BOIL), the oil and gas company with a strategy of exploring near-term drilling opportunities in established producing areas, will provide the following update at its AGM at 11:00 a.m. today, which is to be held at the offices of Kerman & Co, 200 Strand, London WC2R 1DJ.

On 10 June 2019, Baron announced that it had raised an additional £440,000 (gross) through a Placing and Subscription at 0.08p per New Ordinary Share to enable the Company to continue to build and evaluate its existing portfolio of oil and gas assets in the UK, progress the potential for further drilling activity this calendar year by bringing in a partner to Peru Block XXI and to help deliver the existing SE Asia application in place with SundaGas Pte. Ltd.  At close of business on 24 June 2019, the Company held a cash balance of £609,000.

COLTER and PEDL330/PEDL345 (8%)

The Corallian Energy Limited (“Corallian”) operated group is in the process of undertaking a major review of the seismic data and mapping of the area after the well results to determine the size and path to commercialisation of the Colter Area Prospects.

The Colter South discovery has been assessed by Corallian to contain gross unrisked Pmean recoverable Prospective Resources of 15 mmbo (1.2 mmbo net to Baron) as well as upgrading the adjacent onshore licences PEDL330 and PEDL345 (which include the Purbeck Prospect with gross unrisked Pmean recoverable Prospective Resources of 36 BCF).

UK 31st OFFSHORE ROUND AWARDS (8%-15%)

The Board was delighted with the outcome of the 31st Round applications, which not only lock in the eastern extension of Colter South and the Ballard Point gas accumulation acreage surrounding Baron’s existing prospects and discoveries but also bring in an exciting and potentially significant new exploration area in Inner Moray Firth South. The Board expects the UK Oil & Gas Authority awards to be confirmed in H2 2019 and Corallian will be the operator.

The Inner Moray Firth South Blocks (Baron interest 15%), 12/27c, 17/5, 18/1 and 18/2, contain a new low risk exploration play up-dip from the earlier 12/27-1 discovery. This lies in shallow water with shallow targets near proven reservoirs. Dunrobin is the primary prospect, structurally located to receive oil spilled up-dip from the 12/27-1 gas discovery. The Golspie follow-on prospect is in a separate fault block also up-dip from 12/27-1. Within the four year Phase A of the Innovate licence, the joint venture has a modest work commitment which can be funded out of existing resources, before making a decision to drill or drop the licence before the end of Phase A.

Corallian estimates gross unrisked Pmean recoverable Prospective Resources of 187 mmboe for the Dunrobin Prospect and 21.5 mmboe for the Golspie Prospect. The primary reservoir intervals for both prospects are sandstones of the Beatrice Formation and Dunrobin Bay Group.

PERU (100%)

In Peru, the Company continues to drive forward its plans for Block XXI which could see drilling activity occur in H2 2019. The well location and an environmental impact assessment (EIA) have been approved and a provisional authorisation for expenditure (AFE) has been prepared. An experienced local operator with onshore drilling capacity is available and Baron has negotiated a three year licence extension to be approved by PeruPetro once an exploration well has been drilled.  The Board continues to seek third party partner(s) to join with Baron and the planned well operator to achieve the required funding level. The Company is also entitled to the return of its US$160,000 government performance bond following drilling of the well.

The most likely unrisked recoverable Prospective Resources lie in low risk Mancora Sands (6.4 BCF of gas) and higher risk Fractured Basement sands (7 mmbo oil or 17 BCF of gas).  The Board believes the Basement structure, over which Baron acquired 2D seismic in 2015, may extend beyond the limits of the existing seismic data and be larger than currently mapped.

TRP – Cameroon Financing Update, Proposed Subscription

Tower Resources plc (the “Company” or “Tower” (TRP.L, TRP LN)), the AIM listed oil and gas company with its focus on Africa, announces an update with respect to the financing of  its Cameroon operation and an intention to raise gross proceeds of approximately £150,000 through a subscription of approximately 15million new ordinary shares of 1 pence each (the “Subscription Shares”) at a subscription price of 1.00 pence per Subscription Share (the “Subscription Price”).

Admission of the Subscription Shares to trading on AIM is expected to take place at 08:00 on or around 26 June 2019.

Cameroon Financing Update

Tower’s near-term focus remains the financing and drilling of the NJOM-3 well on its Thali license, offshore Cameroon, which is planned to spud in Q3 2019. The Company is in negotiations with several parties to finance some or all of the NJOM-3 well, which it hopes will be concluded soon. The Company is also continuing to explore longer-term options for debt, equity or pre-financing of the remainder of the first phase development of the Njonji structure, which might or might not be linked to the financing of the current well. The Company’s preferred route of financing is to conclude a transaction with an industry partner on terms that are favourable to shareholders, and that may obviate or minimise the need for further equity financing. However, depending on the terms of the asset-level deal achieved, it may also be necessary or in shareholders’ interests to raise a portion of the additional finance via the issue of further corporate equity.   

Background to the Subscription

Whilst financing negotiations continue regarding the Thali license, the Company is proposing to raise approximately £150,000 for working capital purposes via a subscription for shares.

A further announcement is expected to be made shortly in connection with the proposed subscription.

The Board can confirm that the proposed subscription will not affect the repayment terms of the bridging loan of $750,000 (the “Bridging Loan”), announced on 16 April 2019. The Bridging Loan will remain due for repayment on or before 30 June 2019 subject to a grace period of 21 business days which would extend to 29 July 2019

The Board looks forward to providing further updates in due course.

ECHO – Completion of Tapi Aike Seismic Acquisition

Echo Energy plc, the Latin American focused upstream oil and gas company, is pleased to announce the safe and efficient completion of the 3D seismic survey across the western cube on its Tapi Aike licence in Argentina and that processing of the western cube data acquired has now commenced. Equipment is currently being demobilised out of the area by the seismic acquisition contractor UGA Seismic S.A.

The timely completion of seismic acquisition at Tapi Aike prior to the end of H1 2019 is a key operational milestone for the Company and one which ensures that the pathway to drilling Tapi Aike remains on track – with spud currently anticipated to take place in Q4 2019. The Company is working closely with its Argentinian partner, and operator of the Tapi Aike licence, Compañía General de Combustibles S.A. (“CGC”),  to drill early in that window now that the seismic acquisition phase has completed.

Sesimic data acquired is now being processed by respected independent processing houses in Buenos Aires, with the processing of the eastern cube (Chiripa Oeste, 414 sq km) data  by Wellfield Services LTDA nearing completion and the processing of western cube (Travesia de Arriba, 790 sq km) data being undertaken by Seismic Prospect S.R.L.

The acquisition and processing of 3D seismic at Tapi Aike builds on the previous interpretation of the large amount of historical 2D data that exists on the block (3,400 line km 2D with average line spacing of 4 km), which is guiding the processing priorities of the new 3D data.

Echo looks forward to updating shareholders in due course, and as appropriate, as it continues to progress towards drilling.

CHAR – Feasibility Study and Gas Market Assessment

Chariot Oil & Gas Limited (AIM: CHAR), the Atlantic margins focused oil and gas company, is pleased to provide an update on the Lixus Offshore Licence (“Lixus”), with the completion of the Development Feasibility Study for the Anchois Gas Field and the Morocco Gas Market and Anchois Field Monetisation Assessment. Highlights of the studies are:

·    The development of the Anchois Field is technically feasible, with the potential for either a single phase or a staged development to commercially optimise access to different parts of the gas market

·    Development options include a “subsea-to-shore” concept, employing proven industry standard technical solutions and equipment. This concept consists of subsea production wells tied to a subsea manifold, from which a subsea flowline and umbilical connect the field to an onshore Central Processing Facility (“CPF”), where gas is processed and then delivered into the Maghreb-Europe Gas pipeline (“GME”) via an onshore gas flowline

·    Potential to re-enter the suspended Anchois-1 gas discovery well, which may be completed as a producer well

·    Morocco has a growing energy market with attractive gas prices that underpins a commercially attractive project

·    Chariot has initiated an Environmental Impact Assessment to facilitate appraisal operations in 2020

Larry Bottomley, CEO commented:

“The results of these studies demonstrate the technical feasibility and commercial attractiveness of developing the Anchois gas discovery with the potential to offer a strategically important indigenous source of gas into Morocco’s developing energy market.

We believe the combination of a de-risked resource base in a fast-growing energy market, with high gas prices and a need for increased supply remains highly attractive to a wide range of potential strategic partners throughout the energy value chain. As part of the partnering process and to facilitate appraisal operations in 2020, the Company has initiated a Drilling Environmental Impact Assessment”.

MATD – Final Results

Petro Matad Limited (“Petro Matad” or “the Company”), the AIM quoted Mongolian oil explorer, announces its audited final results for the year ended 31 December 2018. All dollar values are expressed in United States dollars unless otherwise stated.

Operational Highlights

·    Drilled two frontier exploration wells, Snow Leopard 1 and Wild Horse 1, in the previously undrilled Valley of the Lakes in central western Mongolia. Operations were completed within the 2018 drilling season and within budget

·    Snow Leopard 1 in Block V proved up a working petroleum system in the Taats Basin, high grading nearby prospects as potential follow-up targets for future drilling

·    Secured access to 3D seismic data in northern Block XX, completed 2D seismic reprocessing and remapped the prospects close to producing fields in neighbouring Block XIX

·    Selected Block XX targets for the 2019 drilling campaign including the Heron 1 well which will appraise a structure already proven to be oil bearing on Block XIX immediately to the north

Post period end

·    Contracted two rigs to execute the 2019 drilling campaign. Contracts allow the rigs to be retained for immediate appraisal of any discoveries made

·    Three wells will be drilled in Block XX in 2019: Heron 1 and Red Deer 1 are expected to spud in July. Gazelle 1 will follow the drilling of Heron 1. Site construction is now complete at Heron and Gazelle, and is underway at Red Deer

·    A fourth well is planned to be drilled in Block V or Block XX, depending on well results

·    Applications submitted for two-year PSC extensions (until July 2021) on Block IV and Block V

Financial Highlights

·    Two successful equity placings announced in January 2018 and June 2018, raising gross proceeds of $35.1 million to execute the Company’s multi-well drilling programme in 2018 and 2019

·    The Group’s net loss after tax for the twelve months ended 31 December 2018 was $18.4 million (31 December 2017: loss $9.9 million)

·    As at 31 December 2018, the Group’s cash position was $21.3 million, including Term Deposits (Financial Assets) (31 December 2017: $8.1 million)

·    Since the year end, preparations for the 2019 drilling programme have been underway. As at 14 June 2019, the Group’s cash position was $16.6 million, including Terms Deposits (Financial Assets)

No dividends have been paid or are proposed in respect of the year ended 31 December 2018 (2017: Nil).

About Petro Matad

Petro Matad is the parent company of a group focussed on oil exploration, as well as future development and production in Mongolia. At the current time, Petro Matad holds 100% working interest and the operatorship of three Production Sharing Contracts with the Government of Mongolia. Block XX has an area of 10,367 square kilometres in the far eastern part of the country, and Blocks IV and V have an area of 29,062 square kilometres and 21,143 square kilometres, respectively, in the central western part of the country.

Petro Matad Limited is incorporated in the Isle of Man under company number 1483V. Its registered office is at Victory House, Prospect Hill, Douglas, Isle of Man, IM1 1EQ.

PVR LOGP SLE – Update on Barryroe Farm-out Transaction

Dublin and London – June 17, 2019 – Providence Resources P.l.c. (PVR LN, PRP ID), the Irish based Energy Company (“Providence” or the “Company”), today provides a commercial and operational update in relation to Standard Exploration Licence (“SEL”) 1/11 which contains the Barryroe oil accumulation (the “Barryroe Project”).  SEL 1/11 is operated by EXOLA DAC (“EXOLA” or the “Operator”, 40%), a wholly-owned Providence subsidiary, on behalf of its partners, APEC Energy Enterprises Limited (“APEC”) and Lansdowne Celtic Sea Limited (“Lansdowne“, 10%).  The area lies in c. 100 metre water depth in the North Celtic Sea Basin and is located c. 50 km off the south coast of Ireland.

Background
On June 5, 2019, the Company announced that it had agreed certain amendments to the Farm-Out Agreement (the “Updated FOA“) for the Barryroe Project with APEC Energy Enterprises Limited (“APEC“) and, together with EXOLA and Lansdowne, the “Barryroe Partners“, including a revised backstop date with APEC for receipt of the US$ 9 million loan advance to June 14, 2019.  Pursuant to the terms of the Updated FOA, this US$ 9 million loan is to cover the costs associated with front-end well-site survey operations and pre-drill well consenting.

Further Extension Agreed up to July 5, 2019

Due to delays associated with internal transaction processing with their investors, APEC have formally requested a further extension of time for the payment of the initial US$ 9 million loan.  EXOLA and Lansdowne have agreed to this further extension of the backstop date to no later than July 5, 2019.

Well Site Survey Operations

Subject to receipt of all regulatory consents and required financing, the well-site survey operations are expected to commence Q3 2019.  The Company will issue a further update in due course.