logo-loader
viewNu-Oil and Gas PLC

NUOG awaits regulatory approval in Canada

Work is expected to start promptly once approval has been granted, NUOG said.

Onshore oil well drilling
NUOG shares dropped 30% in early deals

NU-Oil and Gas Plc (LON:NUOG) told investors that a new Canadian work programme is waiting on regulatory approval.

In a statement, NUOG said all the major equipment had been mobilised to the Garden Hill project site, in Newfoundland, and the proposed programme is under review at the Department of Natural Resources.

Work is expected to start promptly once approval has been granted, it added.

"The company is delighted that preparations for the workover programme at PL2002-01(A) are progressing well and to schedule,” said Nigel Burton, NUOG chief executive.

“This new activity at the Garden Hill Field brings new investment and is anticipated to achieve production and therefore revenue for NU-Oil."

The programme is being paid for by PVF Energy Services which will be earning a 50% revenue share.

It is planned that PVF’s programme will initially involve wireline clean-up of the AP#1-ST#3 well, and the clearing of physical obstruction that is believed to be restricting flow from the well. A subsequent period of testing, between 15 and 30 days, will provide more reliable analysis of the well’s production capability.

A second phase of work would then see re-completion of the well and the installation of artificial lift equipment. Arrangements in the production sharing agreements also give the right to drill new wells, and NUOG said it expects to conclude a deal to cover that scenario in the near future.

 

*Updated 11:01 Thursday June 22

Quick facts: Nu-Oil and Gas PLC

Price: 0.0575 GBX

AIM:NUOG
Market: AIM
Market Cap: £1.48 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Nu-Oil and Gas PLC named herein, including the promotion by the Company of Nu-Oil and Gas PLC in any Content on the Site, the Company receives...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Solo Oil: Analyst Malcolm Graham-Wood expects 'significant valuation uplift'...

Analyst and commentator Malcolm Graham-Wood says this week's acquisition by Solo Oil (LON:SOLO) of producing natural gas fields in the Dutch section of the North Sea 'ticks all the boxes'. ''I was really impressed by this to be honest''. ''This deal they've done really does hit every nail...

on 11/10/19

2 min read