Shares in Angus Energy Plc (LON:ANGS) rose 10% on Thursday after the company provided a positive update on its Brockham re-entry oil well, just down the road from Horse Hill, home of the Gatwick gusher.
The company said the Kimmeridge and other formations appear to be the same in structure to the oil-bearing Kimmeridge sections of the Horse Hill-1 well.
Notably, the Corallian formation, which lies immediately below the Kimmeridge, had both oil and gas shows, Angus added.
In drilling the side-track at Brockham, Angus first went into the Portland sandstone, host to a known oil play that is already generating 35 barrels a day.
It then pushed on into the Kimmeridge, before perforating the Corallian.
It was the Kimmeridge that set the well at Gatwick gushing at 1,688 barrels a day.
One of Angus’ field partners, a firm called Doriemus, commissioned the consultant Nutech to make a comparative analysis of the Horse Hill-1 well and Brockham-1, sunk by BP in 1987.
It is too early to definitively assert this, but Angus believes the maturity and fracture analysis of the two have striking similarities.
Thursday’s update adds to the weight of evidence. However we won’t know definitively just what’s actually under Brockham until it is flow tested.
SDX Energy PLC (LON:SDX, CVE:SDX) shares ought to more than double in value as it advances its production growing strategy, according to City broker Cantor Fitzgerald this week.
On Wednesday, the firm confirmed that it has closed its US$40mln fundraising which will support its new acquisition of Circle Oil’s assets in Egypt and Morocco.
The transformative US$30mln deal will see SDX increase net production by almost 250% to 4,705 barrels oil equivalent per day. Reserves, meanwhile, rise by 64% to 12.03mln barrels oil equivalent
“This is a significant deal in our view, serving to consolidate the company’s position in Egypt whilst diversifying its geographical footprint by adding a new region to its business,” Cantor analyst Sam Wahab said.
The broker repeated a 'buy' recommendation and the target rises to 78p from 71p, which at the new level represents some 125% upside to the current SDX share price of 34.25p.
Meanwhile, Nostra Terra Oil and Gas Company plc (LON:NTOG) acquired more of the Pine Mills oil field, in Texas, and it could potentially take full ownership in the coming weeks.
The company has bought an additional 7.5% working interest (WI) from GFP Texas Inc, paying US$200,000 in cash. It takes Nostra Terra’s position in the field to 87.5%, with the other 12.5% owned by Hammerhead Management Partners.
Elsewhere, 88Energy Ltd (LON:88A, ASX:88E) told investors that it remained on track to spud the hotly anticipated Icewine-2 well in the coming months.
The well, designed to test the production potential of the HRZ shale discovery, is due to be spudded late in the first quarter once customary permits have been received from the Alaskan authorities. No permitting issues are anticipated, the company said.
Genel Energy PLC (LON:GENL) shares shed around 11% on Tuesday after it issued guidance flagging a possible 34% drop in production in 2017.
The Kurdistan based oil firm today reported net production averaged 53,300 barrels of oil per day over 2016, with 26,500 barrels net coming from the Taq Taq field and 26,800 bopd from Tawke.
Genel forecasts production in the range of 35,000 to 43,000 bopd for 2017, based on expectations that a programme to stem decline in the Taq Taq is completed.