NU-Oil and Gas Plc (LON:NUOG) this week raised £2.05mln through a share placing to support its stranded and marginal field strategy.
The placing was oversubscribed and it sees the company issuing 400mln new shares at a price of 0.5p each. A separate £50,000 was raised, issuing 10mln shares to what’s described as a “long term supportive shareholder”.
The company told investors that the size of projects that are currently targeted by the stranded and marginal field strategy necessitates significant due diligence and engineering work, and it needs to be “sufficiently financially robust”.
It was among the reports from several junior oilers this week.
AIM- quoted junior Nostra Terra Oil and Gas Company plc (LON:NTOG) beefed up its management team as it increases its number of projects outside the US and where it is the operator.
John Stafford, who has 35 years' experience in the oil and gas industry and a Middle East specialist, is joining as a non–executive.
His current job is with Gulf Keystone (LON:GKP) in Kurdistan, but he has worked previously with ECL, Schlumberger and PGS in integrated field management and reserves certification and reporting.
Talking of the latter, it confirmed on Thursday that it has received a gross payment of US$15mln from the Kurdistan Regional Government (KRG) for crude oil export sales in November 2016 from the Shaikan oil field.
GKP added that it is continuing to work with the KRG's Ministry of Natural Resources towards agreeing the final form of the invoices for May to November 2016.
In a note to clients , broker Cantor Fitzgerald pointed out that the oil company’s “core focus remains on its flagship Shaikan field where payments for its output have been reintroduced in recent months”.
Analysts at the broker said: “Following a turbulent period of corporate activity last year, GKP has effectively transformed its balance sheet, shedding debt, diluting equity, and divesting assets.
“We note that GKP is now a well-capitalised entity, with sufficient financial resources to grow its production base for sale to the export market.”
But, they added: “The key issue in our view, remains whether a consistent payment mechanism can be established.
Also in analysis, Canadian Overseas Petroleum Limited's (LON:COPL) management will now put all its attention on its exciting interests in Nigeria, according to Shard Capital.
Analyst Barney Gray, in a note, says the failed exploration well offshore Liberia - for which all costs were covered by US oil major Exxon – was a disappointing setback for the company but also “very much part and parcel of high risk / high impact oil and gas exploration”.
As Gray highlights, the company still has exposure to an 80% interest in the OPL 226, host to the offshore Noa discovery, via the ShoeCan joint venture.
He says that this project offers exciting exposure to Noa’s near-term cash generation potential, which can be unlocked by drilling an early appraisal/production well.
“ShoreCan’s technical team has identified several locations to test both the Noa-1 discovery with a low-risk appraisal well, potentially near the end of 2017,” the analyst said.
Thsi week, AIM welcomed the listing of Eco (Atlantic) Oil & Gas Ltd - the Canadian-based natural resources exploration firm.
The company, which raised £5.08 million on admission and now has a market cap of £18.9 million, is focused on developing petroleum opportunities in politically stable jurisdictions around the world, especially in Africa.
Meanwhile, LGO Energy (LON:LGO) said this week it intends to re-apply for the production licence at the Ayoluengo Field in northern Spain.
The field was operated by its subsidiary Compañía Petrolífera de Sedano (CPS) until the termination of La Lora Concession on 31 January.
European Union and Spanish legislation requires a process of public tender for a new concession, though the previous holder has preferential treatment.
LGO added it may apply on its own or in a partnership for a new 30-year permit.
Elsewhere, Europa Oil & Gas Holdings Plc (LON:EOG) told investors that the partners in the Wressle project, in Lincolnshire, will launch an appeal to the decision that blocked the oil field development.
The North Lincolnshire Council last month refused to grant planning consent for Wressle.
Now, the Wressle partners intend to file a new application including more detailed information to address the specific concerns outlined in the negative planning decision.
The appeal and new application will be lodged at the earliest opportunity, Europa said.
“Wressle is located in the heart of the East Midlands petroleum province and at an anticipated gross rate of 500 bopd would almost double our existing production based on a 20% interest,” said Hugh Mackay, Europa chief executive.