A busy week for the oil sector not least as big hitters Shell (LON:RDSB) and BP (LON:BP.) reported on the same day.
Also, Sound Energy PLC (LON:SOU) had long-awaited news as it revealed the flow rate from its second well on the Tendrara licence area in Morocco, was “significantly better than estimates”.
A total of 8.8mln standard cubic feet a day was produced from just 28% of the gross reservoir interval without the need for stimulation.
The plan now is to complete the planned mechanical stimulation and well test of the entire horizontal section.
Flow rates from this process are expected in the middle of the month.
“Thereafter the company will initiate the planned extended well test to confirm production sustainability and to aid comprehensive field development planning,” Sound told investors.
Also, Victoria Oil and Gas PLC (LON:VOG) has spudded two development wells at its Logbaba gas field in Cameroon.
The wells, to be drilled by Savannah Oil Services, are designed to move 2P (Proven plus Probable) reserves into the more certain 1P (Proven) reserve category.
One will retrace a historic well dating back to the fifties with the other a step-out ( or new area) hole. The target is sands and shales found at depths between 1,700m and 3,200m.
One of the wells, La-107, will also have an exploration tail to test potential for gas down to 4,200m.
Elsewhere, Windar Photonics PLC (LON:WPHO) secured a repeat order for its WindEye LiDAR wind sensors from a large wind farm owner and operator in the US after the technology impressed first time around.
The five new units are expected to be installed on Suzlon S88 2.1 MW wind turbines and will be integrated into the turbines’ control systems to help increase efficiencies.
“We are looking forward to continuing our collaboration with this major US utility, and we are pleased that the previously ordered LiDAR units performed according to expectations,” said chief executive Jørgen Korsgaard.
Meanwhile, tropical Storm Matthew disrupted LGO Energy’s (LON:LGO) production in Trinidad in the past quarter, but facilities are now back on line again, said chief executive Neil Ritson.
The storm caused widespread electrical failures across the island but allowing for this underlying production was flat, he said, as workovers at the Goudron field compensated for natural declines.
Production has risen since October, Ritson added.
It is worth noting the week also saw a double-header of results on Tuesday from big hitters Shell (LON:RDSB) and BP (LON:BP.)
And Shell edged it over BP (LON:BP.) for investors, reckons broker heavyweight Goldman Sachs.
Both oilers beat the US broker’s expectations.
Shell’s performance though will reassure investors that the plan from the capital markets day in June remains on track, with cash flow picking up and further cost synergies and reductions to be realised.
Weakness at the operating level for BP was driven by rig cancellation costs and exploration charges, but a tax credit in the quarter left the company delivering a beat at the adjusted net level.
Back to the small caps and Nigeria-focused Eland Oil & Gas PLC (LON:ELA) has almost tripled its expectations for how much oil could be beneath the surface of two of the wells at its Opuama field in OML 40, it emerged this week.
Management now estimates that gross reserves from the Opuama-1 and Opuama-3 wells stand at 29 million barrels of oil, compared to the 10 million previously forecast.
The reserves recoverable on the Opuama field currently remain unchanged, however.
The company also confirmed that gross production from these wells should exceed 9,000 barrels of oil per day (bopd).
Given the success of the workover programme at Opuama-1 and -3, Eland has indicated that it might re-jig its work programme slightly by choosing to workover Opuama-7 well sooner rather than later.
Finally, Singapore-listed oil group KrisEnergy (SGX:SK3) is to focus on the Gulf of Thailand in future as it battles the tough conditions facing oil companies at present.
Jeffrey MacDonald, interim chief executive, said it saw a slight improvement in the market in the third quarter compared to the first half of 2016, but the oil and gas environment remained challenging.
“We have cut capital expenditure to the bare minimum save for our commitments.
“We are implementing major changes to our existing operational strategy and our financial structure to ensure the viability of the group.
“The primary operational change will be an increased focus on development and production in the Gulf of Thailand in both Thailand and Cambodia.”