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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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Energy

Proactive oil and gas weekly highlights: 88 Energy, Challenger Energy, i3 Energy...

Netflix's latest update overnight will make the headlines early tomorrow ... read the preview

In the UK, Friday is quiet, but hedge fund manager Man Group PLC (LSE:EMG)'s trading update should highlight the risk appetite of institutions at present.

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Harbour Energy PLC (LSE:HBR) will be Europe’s largest independent exploration and production company when it completes the Wintershall Dea Portfolio acquisition, notes Jefferies.

Assuming it completes in the fourth quarter of 2024 as planned, it triples Harbour's current production taking the pro forma company to 480,000boe/d in 2025, the first full year of trading.

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BP PLC (LSE:BP.) has announced its board of directors will be cut from 11 positions to 10 as part of a wider management reshuffle to simplify the business.

“We need to deliver as a simpler, more focused and higher value company,” chief executive Murray Auchincloss commented.

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88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF)'s managing director, Ashley Gilbert, said the discovery group is now 'looking to formalise a farm-out process' to attract strategic partners to develop Project Phoenix on Alaska's North Slope following the success of the Hickory-1 well.

During the first quarter, it demonstrated notable success with the Upper Slope Fan System (USFS) reaching a peak flow rate of over 70 barrels of oil per day. The Shelf Margin Deltaic (SMD) reservoir also showed promising results with a flow rate of approximately 50 barrels per day.

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Challenger Energy Group PLC (AIM:CEG, OTC:BSHPF), the exploration group focused on the Atlantic margin, said a £1.5 million strategic investment from Charlestown Energy Partners allows the company to kick off technical work on licence AREA OFF-3 offshore Uruguay at the 'earliest opportunity'.

This investment, initially structured as a loan, includes terms to convert into shares at a fixed price of 0.168 pence per share on the successful closure of the AREA OFF-1 farm-out agreement with Chevron.

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i3 Energy said it will clear all its bank debt from the sale of a partial stake in its royalty assets in Canada.

Total gross cash consideration from the sale is US$ 24.8 million, with the assets sold producing 388 barrels of oil equivalent a day.

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Shares in Helix Exploration PLC look cheap, based on analysis undertaken by two research groups that have begun following US-focused helium exploration (and soon-to-be production) group following its AIM float.

Helix successfully listed at 10p a share and moved to a strong first-day premium; however, the stock is now trading in a narrow corridor just above the IPO price.

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Conflict in the Middle East could send oil prices soaring, the International Monetary Fund (IMF) warned on Tuesday evening, fuelling inflation globally.

“The increased inflation that would come from higher energy prices would trigger a response from central banks that would tighten interest rates in order to secure inflation coming back to target” IMF economic counsellor Pierre-Olivier Gourinchas said.

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Europa Oil & Gas (Holdings) PLC (AIM:EOG) reported on “an exciting first half to the financial year”, with the small-cap firm highlighting what it described as a ground-breaking deal in Equatorial Guinea in West Africa (announced in late December).

The acquisition – picking up a 42.9% stake in a ‘drill-ready’ joint venture with the state oil company - gives the company material exposure to highly prospective exploration acreage in a genuinely exciting geography- that’s according to chief executive Will Holland.

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Deltic Energy PLC (AIM:DELT) described a “transformational year” as it published its financial results statement for 2023, which saw the breakthrough Pensacola discovery in the Southern North Sea in February.

“As one of the area's biggest discoveries in the past ten years, this was a fantastic result for the company and is testament to the hard work carried out in the years leading up to this point,” chief executive Graham Swindells said in the statement.

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Union Jack Oil PLC (AIM:UJO, OTCQB:UJOGF) executive chair David Bramhill told investors the Wressle field continues to deliver robust revenues, bolstering the AIM-quoted producer’s strong balance sheet.

The company, in a statement, reported that the 40% owned UK onshore oilfield has now generated more than $19 million net since August 2021 (when it came back online).

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Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF) begun drilling operations at the State 36-2 LNW-CC-R well, part of the Paradox Basin project in Utah.

The new well aims to ‘twin’ the company's original well, targeting the same Cane Creek reservoir and the previously encountered over-pressured, gas-bearing natural fracture system.

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Baron Oil PLC (AIM:BOIL) told investors it has successfully completed a site survey at its Chuditch-2 appraisal well location, in the Democratic Republic of Timor-Leste.

The survey concluded under the approved budget, the company added.

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Helix Exploration PLC has announced a strategic partnership with Petroleum Consultants (PC) as part of its phase-one work programme - a crucial step towards initiating a drilling campaign scheduled for the third quarter of this year.

Known for its expertise in hydrocarbon exploration and development across the United States, especially in the Rocky Mountains region, the contractor brings a management team that includes three professionally licensed petroleum engineers with over 40 years of combined experience.

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88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) has announced a second light oil discovery at the Hickory-1 well, part of Project Phoenix, on Alaska’s North Slope.

The well flowed at a peak flow rate of approximately 50 barrels per day from a vertical section of the SMD-B reservoir, with the oil quality measuring 39 degrees API.

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