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First Oil 11 October 2018 - SP Angel's Snapshot of Oil & Gas News

First Oil 11 October 2018 - SP Angel's Snapshot of Oil & Gas News

 

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11th October 2018

Headlines

  • In Brief:
    • Chariot Oil & Gas (LON:CHAR – 8p) - Prospect S a DH
    • Touchstone Exploration (LON:TXP – 20p) – More Positive than Not
    • Serica Energy (LON:SQZ – 109p) - Erskine Delay
  • 121 Oil & Gas Investment Conference 29-30 October 2018 – London: If you invest and are interested to attend, apply to register via this link today for a free investor pass.

In Brief

  • Chariot Oil & Gas (LON:CHAR – 8p) - Prospect S a DH: Today’s news will be a disappointment for the Company and shareholders alike, but these are the risks with exploration. The Company’s technical team will now reintegrate this data back into the regional model and refine their understanding. It must be borne in mind that even after accounting for geological chance of success that the technical to commercial chances of success also need to be accounted for, which is why, especially for offshore fields in new hydrocarbon provinces, the target sizes must be significantly larger than would otherwise be expected, which is why the prize for getting it right is significant. While we expect the share price to reflect this disappointment, we believe that the diversity of Chariot’s portfolio means that the Company is more than just a “one trick pony.”  
  • Serica Energy (LON:SQZ – 109p) - Erskine Delay: While today’s news detailing a further delay to the restart of Erskin may take some of the shine off of the recent share performance, we believe that this will be short lived and therefore poses an opportunity to buy. The only time hydrates are an issue is when you either don’t know they are there, and they build-up sufficiently to cause a blockage, or you don’t have the ability to treat them. The treatment of hydrates is relatively easy, as the line just needs to be injected with a “thermodynamic inhibitor” to break down the quasi-crystalline structure. The net effect is that the solution is tried and tested and now the Company is aware of the issue, that the regular treatment of the line will ensure that its impact is limited.
  • Touchstone Exploration (LON:TXP – 20p) – More Positive than Not: Today’s results are likely to find plenty for the bulls and the bears to focus on, with the bulls pleased with the management’s performance in raising production. The bears will focus on the failure of the Upper Cruse sands to be economic at the CO-370 well location, or more specifically, what this means for the prospectively of the wider block. While this is understandable, we do not think that the lack of commerciality at the CO-370 well location will impact the overall prospectivity due to heterogeneous nature of the Upper Cruse. Net, net, we believe that today’s update is positive and shareholders should be pleased with today’s announcement.

121 Oil & Gas Investment Conference 29-30 October 2018 – London

SP Angel is sponsoring the 121 Oil & Gas Investment Summit in London on Monday 29 and Tuesday 30 October, at 8 Fenchurch Place. Utilising the tried and tested 121 event format, 121 Oil & Gas Investment London provides the ideal forum for oil and gas company management teams to meet 1-2-1 with leading energy funds and oil & gas financiers.

If you invest and are interested to attend, apply to register via this link today for a free investor pass.

Management teams from the following E&P growth companies will be in attendance:

  • AJ Lucas
  • Alvopetro
  • Angus Energy
  • Australis Oil & Gas
  • Baron Oil
  • Berlanga Group
  • Cabot Energy
  • Calima Energy
  • Carnarvon Petroleum
  • Cuadrilla Resources
  • Desert Mountain Energy
  • Faroe Petroleum
  • i3 Energy
  • Jadestone Energy
  • JHI Associates
  • Melbana Energy
  • Midway Resources
  • Real Energy
  • Rockhopper Exploration
  • Savannah Petroleum
  • SDX Energy
  • Sound Energy
  • Touchstone
  • Trans Globe
  • Triangle Energy
  • Upstream Exploration

 

We here at SP Angel's Oil & Gas Team all look forward to welcoming you to the Oil & Gas Investment Conference.

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