There was plenty going on this week for the small cap oilers focussing on onshore UK.
Some 100mln new shares are being issued at a price of 2p each, a 5% discount to Tuesday’s closing price in London. It follows the recent £10.5mln raise - £5.5mln on June 15 and £5mln on July 2 - which were intended to deliver sufficient working capital for its core projects over the next 18 months.
“This placing is intended for opportunistic investment to help deliver the company's stated goal of consolidating and expanding its asset base in the Weald Basin,” the company said in a statement.
The company, in a stock market statement, said that it has performed a Geochemical Analysis of oil produced from the Kimmeridge layers in the previously drilled Lidsey-X1 well. “The Kimmeridge formation immediately produced light oil, samples which were sent for third-party analysis,” it said.
Angus Energy later, on Friday, revealed that Jonathan Tidswell-Pretorius has stepped down from his position as chairman with immediate effect in the wake of what’s described as a “potential violation” of market regulations and the group’s share dealing code.
Egdon Resources Plc (LON:EDR), the operator of the Wressle project in which Union Jack Oil PLC (LON:UJO) and Europa Oil & Gas PLC (LON:EOG) have stakes, has submitted a new planning application for the development of the Lincolnshire oil field.
AIM-quoted Egdon said the new application “comprehensively addresses” the reasons for the refusal of the original planning applications and subsequent appeals over the past year.
The three main areas of concern for the authorities had been the absence of a ground conditions survey report; the absence of sufficient evidence on the adequacy of the Geosynthetic Clay Liner (GCL) covering; and uncertainty with regards to the near surface geology and specifically the presence of capping layers to the underlying aquifers.
AIM-quoted Rockhopper, in a stock market statement, told investors that Standard Chartered Bank has been appointed as the ’pathfinder’ bank for a proposed senior debt project financing for the Phase 1 development of the Sea Lion field.
"We are delighted to announce the appointment of Standard Chartered as pathfinder bank,” said Sam Moody, Rockhopper chief executive. “This appointment marks another step for the Sea Lion project as we work towards securing the necessary funding to allow project sanction.
First, the rig is being moved to the ELM-1004 well (drilled and suspended in May) where it will spend between two and three weeks of testing. It will subsequently move on test the other three new wells drilled during the 2018 campaign.
The company noted that the Opuama-9 well, which was completed on June 21, continues to be optimised but highlighted that production has been measured at an overall rate of 7,000 barrels of oil per day – which is above the upper end of previous guidance, pitched at 4,000 to 6,000 bopd.
SDX Energy Inc (LON:SDX, CVE:SDX) has now spudded the SD-3X well at the South Disouq project in Egypt. It is the second of two planned appraisal wells for South Disouq, both of which are precursors to production.
The company expects it will take 30 days to drill the well. If successful, the well will be flow tested and connected to infrastructure that’s being developed in the vicinity of the SD-1X discovery site.
SDX also noted that it is expecting to start the testing of the recently drilled SD-4X well in the next ten days, before it is connected to the infrastructure.
Hurricane Energy Plc (LON:HUR) updated investors on the development of Lancaster’s early production system, where well completion operations have now concluded. It said that both previously drilled production wells for the EPS are now ready to be tied-in to the subsea infrastructure.
"I'm pleased to report that we have concluded well completion operations safely, bringing us another step closer to first oil,” said Dr Robert Trice, Hurricane chief executive.
88 Energy Ltd (LON:88E ASX:88E) has suspended production testing at the Icewine#2 well in Alaska. The junior explorer has been struggling to recover stimulation fluids from the well as quick as it would like. Demobilisation of the equipment was completed over the weekend.
Along with its partners, 88 said it believes the results so far still support the potential economic viability of the HRZ shale play and attract a farm-in partner despite the issues.
In explaining its decision, the company said it reckons a “more significant program” is needed to de-risk the HRZ play, while the well also achieved most of the objectives: namely acquisition of a more sophisticated logging suite to complement the core from Icewine#1 and to determine whether a large slickwater stimulation could be executed successfully in the HRZ.
88 added that a multi-stage stimulation in a horizontal well is required to achieve connectivity to the reservoir and, something it thinks the data collected so far will help it to “confidently design”.