UBS analysts have been digesting Shell’s trading update today which it described as mixed against its expectations.
On the positive side, Shell flagged that Integrated Gas trading is expected to be significantly higher quarter on quarter with the comments suggesting the performance could have been better than UBS expected in the fourth quarter.
Mosman Oil and Gas Ltd (AIM:MSMN) has described its initial production rates from the Cinnabar-1 well as “very positive”, today highlighting that more than 1,000 barrels of crude have been produced since it was completed in late December.
The small-cap oil company, in a statement, said that the Cinnabar well was completed – perforating the targeted Upper Wilcox sands – and subsequent tests on 3 and 4 January yielded average production rates of 150 barrels oil equivalent per day (120 barrels of oil and 180,000 cubic feet of gas).
Rolls-Royce Holdings PLC (LSE:RR.), easyJet PLC (LSE:EZJ) and International Consolidated Airlines Group SA (LSE:IAG) were the top London-listed shares held by UK-based eToro users at the end of 2022.
The top six stocks for the UK investors on the online platform, where the average age of its clients is 34, were all US-listed tech or ‘meme’ stocks.
A cross-party group of MPs have urged the government to stop licencing new North Sea oil and gas projects “well before 2050” in a new report, as well as banning the 'flaring' of excess gas and publishing a league table of the worst emitters.
Suggesting the UK should follow the likes of France, Denmark and Ireland in introducing measures, the Environmental Audit Committee urged the government to set out a plan.
Capricorn Energy PLC (LSE:CNE, OTC:CRNZF) has released an open letter to shareholders as it seeks to promote its proposal to pay out a special dividend and merge the remainder of its business with NewMed Energy.
It comes as the board is being challenged by activist shareholder Palliser Capital, which has called for the replacement of Capricorn’s management team and is expected to oppose the proposed combination with Israeli-based NewMed.
Two of the North Sea’s largest independent oil producers, Harbour Energy PLC (LSE:HBR) and Ithaca Energy, could more than double their valuations in the most optimistic scenarios detailed in a note by American investment bank Jefferies.
Harbour produces some 200,000 barrels of oil per day (bopd) (90% of which is in British waters) whilst Ithaca is working to grow its production base to 100,000 bopd.
Oil and coal prices should continue to climb in 2023, given recovering demand in China and emerging markets across the globe, according to UBS.
With front-month Brent crude futures currently around US$80 a barrel, the price is forecast by the Swiss investment bank to rise above US$100 in coming months and stand around US$110 at mid-year and year end.
Enwell Energy PLC slumped 26% to 12p following a change in legislation in Ukraine which “may adversely affect the company’s hydrocarbon extraction licenses”.
The AIM-listed oil and gas exploration and production company said the new law will come into force on 28 March this year and is designed to improve the regulatory process relating to the exploration and development of natural resources in Ukraine.
United Oil & Gas PLC (AIM:UOG) shares fell 16% in Wednesday’s early deals after the company revealed disappointing results from its latest exploration well in Egypt, ASW-1X, which failed to find hydrocarbons.
The company, in a statement, said the well, which was drilled down to 3,640 metres, encountered its targets but log data did not indicate the presence of hydrocarbons in this location. It noted that the drilling was completed 10 days ahead of schedule and was under budget.
Union Jack Oil PLC (AIM:UJO) highlighted its latest revenue milestone, as the proceeds from the Wressle field have now passed US$12mln since its restart in mid-August 2021.
The company, in a statement, noted that the single-well field continues to produce under natural flow with zero water cut, meanwhile, site upgrade works are ongoing and plans are underway for the associated gas from the Ashover grit reservoir.
Liberum Capital expects a new drill rig to be found ‘fairly swiftly’ by Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF), which earlier Tuesday revealed it had unexpectedly lost access to the kit it hoped to deploy.
“While today’s announcement is likely to result in a delay to the original 1Q23 [first-quarter] spud date, an updated timeline will be provided once a new rig has been found, Helium One remains committed to delivering a successful campaign as early as possible in 2023,” said Liberum analysts in a note to clients.
Pantheon Resources PLC (AIM:PANR, OTC:PTHRF) shares rallied as investors returned to their desks for the new year and as the explorer provided additional commentary around its Alkaid-2 well results, that had spooked the market when released on 30 December.
The explorer told investors then that the Alkaid-2 well appears to be performing well whilst still undergoing constraints of its ‘clean up’ phase, which encountered a blockage in one section of the well.
Challenger Energy Group PLC (AIM:CEG, OTC:BSHPF) highlighted that almost all exploration acreage offshore Uruguay has now been sewn up, mostly by majors, which is a boon to its early mover advantage in the emerging exploration frontier.
The company, in a statement, noted that Uruguay’s national energy company ANCAP announced the award of two acreage packages to a Shell-led consortium and Argentina’s YPF respectively, following competitive bidding.
Beacon Energy PLC (AIM:BCE) has said its takeover of Rhein Petroleum GmbH from Tulip Oil Holding BV and Deutsche Rohstoff AG (DRAG) is progressing as planned as it revealed the proposed appointment of Stewart MacDonald as an executive director and chief financial officer of the company following completion of the transaction.
It noted that MacDonald has over 20 years of energy industry and investment banking experience, including as eight years as CFO of Rockhopper Exploration PLC.
Canadian Overseas Petroleum Limited (LSE:COPL, CSE:XOP) (COPL) said it has signed a 'Tap' Purchase Agreement for the issue of further 2025 convertible bonds with an aggregate principal amount of US$4mln which is fully anchored by the lead investor for its July 2022 convertible offering.
Following its hedge restructuring, the company said the offering proceeds will be used for recompletions at Cole Creek Frontier Sands, capex and miscible injections at the Barron Flats Shannon flood and for upfront deposits and fees for debt refinancing term sheets for COPL America.
Pantheon Resources PLC (AIM:PANR, OTC:PTHRF) has provided investors with further insights into last week’s Alkaid-2 well results from Alaska by publishing an ‘Investor Q&A’, via a statement on the stock exchange.
The full Q&A is shown below.
Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) said it is reviewing a number of alternative rig options for its Rukwa operation in Tanzania after it unexpectedly lost access to the Exalo drill rig that was supposed to be on-site early this year.
Chief executive David Minchin described the decision by the current operator to pay rig retention costs rather than release the unit as “disappointing and frustrating”.