It seems barely a week goes by without another twist or turn in the onshore UK oil play.
On Friday, Angus Energy Plc (LON:ANGS) shares dropped more than 35% after the company’s well at the Lidsey well came online for production, but, fell short of expectations (yielding only 40 barrels of oil per day).
“This project was delivered on time and on budget,” said Paul Vonk, Angus Energy managing director.
“Even with these initial flow rates, Lidsey-X2 provides commercial production and cash flow. We will continue to optimise production from the Great Oolite reservoir at Lidsey as we work to increase flow rates and we look forward to developing its additional reservoirs to enhance long run value for our shareholders."
Angus will also file an addendum to its field development plan to the Oil and Gas Authority to start production appraisal of the Kimmeridge and Oxford layers at the Lidsey field.
On Wednesday, UK Oil & Gas Investments PLC (LON:UKOG) told investors it has raised £10mln of new capital as it confirmed the start of a hotly anticipated new testing programme at the Broadford Bridge well. The programme will see UKOG test up to nine zones in the Broadford Bridge well’s Kimmeridge Limestone formations.
It got off on the wrong foot, however, with the company determining that the first zone would not be capable of commercial flow without further stimulation, beyond the scope of its present regulatory approvals.
The £10mln convertible debt is expected to fund UKOG’s work for the next twelve months.
Solo Oil PLC (LON:AIM) on Tuesday unveiled a new US$5mln convertible debt funding deal with institutional investor Riverfort Global Capital. Riverfort is providing an initial US$1.5mln and the timings of further draw-downs at the company’s sole election.
The initial injection is expected to fund the company’s share of remaining expenses in the Ntorya-2 well, as well as further initiatives in Tanzania – including engineering studies, a new competent persons report, and additional studies for the Kiliwani North gas field.
Perhaps the week’s most impressive fund raise came from Eco Atlantic Oil & Gas Ltd (LON:ECO) which banked £8.46mln and added a new major partner – with Africa Oil Corp taking nearly 20% of the company.
It is envisaged that Eco and AOC will potential work together on new exploration project.
Elsewhere, in the blue-chip end of the market, Royal Dutch Shell PLC (LON:RDSB) disposed of its entire stake in Woodside Petroleum after being swamped by demand for the shares by institutional shareholders.
Originally, Shell it agreed to retain a 4.8% stake but such was the demand it decided to sell the whole lot to raise US$2.7bn (A$3.5bn). The sale is part of a US$30bn non-core disposal programme currently being undertaken by the Anglo-Dutch oil giant to shore up its cash position.
A total of 111.8 mln shares were agreed to be sold, representing 13.28% of the issued share capital of Woodside.