88 Energy Ltd (LON:88E, ASX:88E) is on schedule to start fracture stimulation at Project Icewine in Alaska on June 17, with production testing due either late in the month or early July.
On Tuesday this week, the company said that the sundry application for execution of the main stimulation work at Icewine-2 has been approved by the Alaska Oil and Gas Conservation Commission (AOGCC).
It was one of a number of released from the small cap energy sector. Here are some highlights
Sound Energy PLC (LON:SOU) shares were lifted midweek after the firm announced it had unearthed evidence of gas in the Badile exploration well in Milan.
The firm said drilling at the Badile onshore well near Milan, Italy, had uncovered “significant gas shows”.
However it also ‘sounded’ a cautionary note, telling investors the early results shouldn’t be considered conclusive. Drilling and logging must to be completed to establish the full picture.
It is plainly good news, but, it is still a little early for investors to get too carried away, according to WH Ireland analyst Brendan Long.
Elsewhere, Diversified Gas & Oil plc (LON:DGOC) chief executive Rusty Hutson welcomed on Friday “strong demand” for the group’s shares as it advances its proposed acquisition of producing assets in the United States.
The company confirmed it has secured US$35mln in a heavily oversubscribed share placing, which alongside a US$110mln loan facility will support the proposed acquisition.
It is agreed that DGOC will acquire producing gas and oil wells from Titan Energy for around US$84mln.
The acquired assets will dramatically increase group production to 18,300 boepd gross. It increases proved developed producing reserves to 59.4mln barrels oil equivalent.
The company noted that the new wells will be immediately accretive to earnings.
Meanwhile, PowerHouse Energy Group PLC revealed it was on the cusp of redefining the waste-to-energy industry with its breakthrough Distributed Modular Gasification (DMG) technology.
Its ultra-high temperature system transforms rubbish into electricity with no toxic by-products and effectively zero greenhouse gases.
In April its G3-UHt reactor arrived at the Thornton Science Park, in Chester, from Australia.
The Cheshire research and innovation hub will be the new base for technical operations and process demonstration as PowerHouse enters the commercial phase, it said.
The company in its annual results statement said it believes it “hold one of the keys to unlocking the hydrogen economy”.
Mongolia- focused oiler Petro Matad Limited (LON:MATD) this week confirmed that the authorities have formally approved the proposed extension of the company’s exploration projects
It told investors that the exploration period for blocks IV and V production sharing contracts have been extended for two years until July 2019.
Europa Oil & Gas (Holdings) PLC (LON:EOG) confirmed that it has raised £1.3mln through the issue of new shares via a fund-raising.
The latest open offer, following a separate £2.1mln share placing last month, gave the group’s shareholders the opportunity to pick up a total of 24.48mln new shares priced at 6p each. Some 21.5mln shares were picked up, equating to 87.8% of the offer.
Oil sector commentator, Malcolm Graham-Wood said: "Shareholders are wise to do such a thing as one way or another things are beginning to take shape primarily in offshore Ireland but also with some excitement upcoming onshore UK."
Egdon Resources Plc and IGas Plc (LON:IGAS) are adding to their positions in England’s east Midlands area, it emerged this week.
The companies are each picking up 50% of PEDL 278 which includes the Kirk Smeaton tight gas discovery, as well as other conventional and unconventional prospectivity.
Egdon told investors that the deal sees the partners taking the assets from Celtique Energie and Investcan Ltd for a nominal cash consideration. The deal has already been approved by regulator, the Oil & Gas Authority.