It was a quieter week for exploration and production stocks, though, naturally the blue-chip earnings were the main story for investors.
On Thursday, Royal Dutch Shell Plc (LON:RDSB) shares traded positively on Thursday after the oil supermajor’s first half financials showed momentum has returned to its business.
Better oil prices and the impact of the BG acquisition helping the supermajor to a 206% improvement in income (attributable to shareholders).
The income figure improved to US$5.08bn for the first half of 2017, up from US$1.6bn in the comparable period of 2016. CCS earnings, the key financial metric followed by the market, meanwhile, rose 403% to US$5.3bn for the six months compared to just over US$1bn a year ago.
Cash flow also improved dramatically, up more than 600% with Shell banking US$20.7bn from operations in the first half.
Tullow Oil
Earlier in the week, on Wednesday, New Tullow Oil Plc (LON:TLW) chief executive Paul McDade lauded a strong performance despite challenging markets as the producer released results for the first half of the year.
Specifically, McDade emphasised the group’s revenue performance with Tullow generating some US$788mln versus US$541mln in the corresponding six months last year. It came as production volumes averaged 81,400 barrels of oil per day in the first six months of 2017, and the company is still maintaining its current guidance range of 78,000 to 85,000 bopd for the full year.
Dramatically improved free-cashflow was also highlighted by McDade, as the company brining in US$205mln this year, after a US$697mln outflow in the corresponding period of 2016.
Eco Atlantic
As Exxon Mobil talked up its business - and the world-class Liza development offshore Guyana – closer to home AIM quoted Eco Atlantic Oil and Gas Ltd (LON:ECO, CVE:EOG) was communicating its progress for its own, nearby exploration acreage where alongside partner Tullow it is now shooting new seismic.
In a statement on Thursday, chief executive Gil Holzman is looking forward to a ‘high impact’ 2018 as the company’s recent progress sets the explorer up for drill campaigns in both Namibia and Guyana next year.
The company, which raised £5mln in a February AIM listing, on Thursday reported on what Holzman described as “another successful and extremely busy” period.
Eland Oil & Gas
On Tuesday, Eland Oil & Gas PLC (LON:ELA) is looking forward to a 50% increase in production in the current quarter thanks to the drill-bit.
In an update ahead of half-year results, the company said production from the Opuama field in Nigeria in the first six months of 2017 amounted to 954,728 barrels of crude, which breaks down to 429,627 barrels net to Eland.
That represents an average rate of 5,275 barrels of oil per day, or 2,375 bopd net to Eland – albeit, there were 56 production days in the period, and the rate based on production days only amounted to 9,454 bopd, or 4,254 bopd net.
Eland restarted production at Opuama earlier this year, using a shipping route to export crude via a floating storage vessel as an alternative to the land-based route which has been susceptible to disruption and lost crude.
Faroe Petroleum
Faroe Petroleum plc (LON:FPM) on Friday agreed a deal to increase its stake in the Blane field, in the UK North Sea, acquiring just under 14% of the project for US$5.25mln.
The company is buying the stake from JX Nippon Exploration and Production, and deal value equates to US$5 per barrel.
In a statement, Faroe highlighted that Blane is a low operating cost field and last year the company’s earnings (attributable to its stake) was US$5.4mln.
Blane produces around 2,900 barrels oil equivalent per day, and Faroe noted that it has potential for reserves growth to extend field life and reduce unit operating expenses.
Echo Energy
Echo Energy Plc (LON:ECHO) has inked an agreement for the Rio Salado block, onshore Bolivia, in an area that surrounds the Huyaco block. The company told investors that it had identified a structure that extends into the block and it now plans to expand a previously proposed seismic programme to cover both the Rio Salado and Huyaco blocks.
“This agreement enables the company to evaluate the highly prospective and potentially multi-TCF exploration area which extends around the Huayco block,” said Fiona MacAulay, chief executive officer.
“This is the second of many pre-identified strategic transactions in Bolivia demonstrating Echo's ability to move quickly and deliver on its stated strategy.