The ambitious North Sea oiler also told investors that it has received proposals regarding offtake terms for Liberator’s future production, and, provided an update about its ongoing project financing work.
It said that it is presently negotiating terms for US$100-130mln of debt to fund appraisal drilling and the Phase 1 Liberator development capital expenditure. An agreement is expected in the near-term, the company said.
I3 also highlighted that it had seen a “strong response” in its joint venture farm-out process. Several companies are conducting due-diligence and a bid date is likely to be set in February, it added.
On Friday, Wentworth Resources PLC (LON:WRL) highlighted the boost seen at its Mnazi Bay during the fourth quarter of 2018 thanks to rising demand in Tanzania.
The gas producer, in a trading update, noted the growing demand for its gas coming from power stations and burgeoning demand from industrial customers such as Dangote Cement and Goodwill Ceramics.
It saw Wentworth achieving an average production rate of 87.3mln cubic feet of gas per day over the quarter, with the figure for December alone measuring 92.5mln cubic feet per day.
For whole of 2018, the production rate averaged 83.2mln cubic feet per day which was comfortably above the guidance range of 65-75mln cubic feet per day and was also above the company’s committed quotient (set at 80mln) under its gas sales agreement with state firms TPDC and TANESCO.
Eland Oil & Gas PLC (LON:ELA) shares gained on Thursday after the Nigerria-focused explorer told investors that the Gbetiokun-3 well has encountered oil-bearing reservoirs across multiple horizons and it will be completed as a producer.
In a statement, Eland O&G confirmed the completion of the drilling of the appraisal and development well. It said it expects production testing will take place during the first quarter for the Gbetiokun-1 and Gbetiokun-3 wells into an early production system, which will have combined production at around 15,000 barrels of oil per day.
88 Energy Ltd (LON:88E) told investors thos week that it is scheduled to spud the Winx-1 conventional exploration well in Alaska in mid-February. The explorer said that the construction work is presently underway for the 11-mile ice road to access the Winx-1 site. It will take around three weeks to complete and the well pad will be completed thereafter.
Winx-1 aims to extend the Nanushuk oil play fairway, as it is located around four miles from the Repsol drilled Horseshoe discovery well. It has a 400mln barrel target, 144mln net to 88 Energy, across multiple stacked objectives.
Investors in Red Emperor Resources (LON:RMP) evidently felt upbeat about the firm’s exploration partnership at the Winx well with 88 Energy Ltd (LON:88E). Red Emperor on Tuesday announced it had raised £2.8mln of new funds through an oversubscribed share placing.
The company said, in a statement, that the well was spudded today at 12:30pm. It highlighted that the company’s economic modelling of Biscathorpe shows a £24mln pre-drill valuation net to Union Jack in the success case.
On Friday, Rose Petroleum PLC (LON:ROSE) revealed that it had expanded its footprint In the Paradox basin, in Utah, acquiring around 1,920 acres through the December 2018 Bureau of Land Management Utah lease sale. Rose will own 75% alongside partner Rockies Standard Oil Company (RSOC).
"Following on from the very encouraging independent technical studies completed by both GCA and Schlumberger, this acquisition stands to add further high-quality acreage at an exceptionally low entry cost,” said Matthew Idiens, Rose chief executive.
Earlier in the week, Columbus Energy Resources PLC (LON:CERP) confirmed that it achieved the targeted end-of-year peak production rate of 1,000 barrels of oil per day, with the help of asset acquisition. The Trinidad-focused company, in a statement, said that output hit 1,021 bopd in late December while the average rate for the fourth quarter amounted to 670 bopd.
It noted that the average rate was held back by the impact of extreme weather conditions - record rainfall and extensive flooding – during the period, which it said “severely hampered” operations and well programmes.
Nonetheless, it still achieved certain project milestones during the quarter – with the successful Snowcap-1 & Snowcap-2 appraisal wells on the Cory Moruga block, which subsequently added 70 bopd of production.
The company this morning announced it had completed the drilling of the TE-10 well which identified gas bearing sands. Back in Monday morning’s deals, Sound rose 4.5p or 21.4% to change hands at 25.5p.