SDX Energy Inc's (LON:SDX, CVE:SDX) financial results confirmed a substantial improvement in revenue as it continues to grow operations in Egypt and Morocco.
In the fourth quarter, revenue doubled to US$11mln, up from US$5.4mln in the comparative period of 2016. The realised average oil price averaged US$54.39, compared from US$36.60. It reported a loss of US$2.6mln for the quarter.
Chief executive Paul Welch described 2017 as an “exceptional year” for the company as it benefited from its acquisition of Circle Oil’s assets and had success with the drill-bit.
Production for the full year averaged 3,237 barrels oil equivalent per day – with 2,046 boepd coming from the North West Gemsa field in Egypt, 595 boepd from Meseda, and the Morocco assets yielded some 596 boepd.
For the year, the company generated US$39.2mln of revenue up from US$12.9mln in the preceding year, the net realised price increased to US$46.7 per barrel, from US$31.51, meanwhile, the achieved netback amounted to US$28.9 per barrel, up from US$7.6.
Aminex in farm-out talks
Aminex plc (LON:AEX) shares advanced around 14% on Wednesday afternoon after it revealed that it is in discussions with Eclipse Investments LLC regarding a possible farm-out of part of its interest in the Ntorya appraisal area in Tanzania.
In a statement, which the AIM-listed firm said was issued following recent inquiries, the group noted that Eclipse is a wholly-owned subsidiary of the Zubair Corporation and is the company's largest shareholder.
It added that the Zubair Corporation is one of Oman's leading business groups. Aminex said any farm-out deal would be subject to Tanzanian Government, shareholder and certain other approvals, with no guarantee that a transaction will be completed. It said shareholders will be updated when appropriate.
Aminex currently holds 75% of the gas project where it is working to accelerate development.
Hurricane Energy chalks off another milestone to Lancaster production
Hurricane Energy Plc (LON:HUR) revealed that it has received key long lead items for the Lancaster field’s early production system. TechnipFMC delivered two horizontal Xmas tree systems as well as the control system for the floating production storage and offloading (FPSO) vessel.
It is described by Hurricane as “an important step” in the project which maintains the schedule for the planned programme of well completion and installation, due in the second or third quarter of this year.
Dr Robert Trice, Hurricane chief executive, highlighted that the Lancaster EPS remains on track for ‘first oil’ during the first six months of 2019.
Analyst bullish on Range at end of busy week
A newly ‘unbound’ Range Resources Ltd (LON:RRL) offers investors upside in the order of 200%, that’s according to Cantor Fitzgerald analyst Ashley Kelty. “Range capped a busy week of news with the announcement of an aggressive 2018 work programme at Perlak in Indonesia,” the analyst said in a note.
“This followed on from the landmark RRDSL contract win with Shell and interim results.”
In the financial results, Range acquired a 23% indirect interest in an established oilfield in Northern Sumatra, Indonesia and took 100% control of Range Resources Drilling Services Limited. Revenues over the half-year rose by 39% to US$5.4mln (US$3.9mln) due largely to the higher production, while the interim pre-tax loss was US$8.5mln (US$37.8mln). Average oil prices received also rose by 13.7% to US$48.1 per barrel. No impairment charges were recognised for the first time since 2013, while Range ended the half year with cash of US$10.9mln.
Gulfsands Petroleum to delist
Gulfsands Petroleum plc (LON:GPX), the company that established an oil field in Syria before war broke out, has revealed plans for a £4mln extension to an existing funding facility and to delist from London’s AIM market.
The facility is with a group of investors - ME Investments, Waterford Finance & Investment Limited and Blake Holdings - and all three are backing the proposed delisting. Together they account for 83% of votes at an upcoming shareholder vote.
The company said it remains committed to Syria and continues to view its world class Block 26 asset as core to its strategy, and, it plans to work with the international community with a view to returning to Syria as soon as possible.
Eland drilling pauses
Eland Oil & Gas PLC (LON:ELA) has decided to pause drilling operations at the Opuama field, in Nigeria, as the programme continued to encounter intermittent power problems. It is arranging for new back-up power engines to be delivered to site, though they aren’t expected until April.
As a result, the company now expects to complete the Opuama-9 well programme in April, with the drilling of Opuama-10 due to follow immediately afterwards. Updating on production operations, Eland said the performance at Opuama remains strong with gross output (from four wells) hit a company record of 23,164 barrels of oil per day this month - the two new wells are expected to add between 4,000 to 6,000 each.
Eland has a 30,000 bopd gross production target for the first half of this year.
Rose Petroleum advances partnership efforts
Rose Petroleum PLC (LON:ROSE) updated investors on its operations in Utah’s Paradox basin where it is advancing a competitive partnering process.
Last month, the explorer revealed it had seen ‘strong interest’ and that a number of parties had since followed up in the process. Presently, Rose is working on a virtual data room to support the process and it expects this phase to be completed by the beginning of April. The company added that it is confident of a positive outcome.
Union Jack ups stake in Biscathorpe
Union Jack Oil PLC (LON:UJO) has confirmed the acquisition of a 10% stake in the Biscathorpe project in the South Humber basin, onshore UK. The deal, which remains subject to regulatory approval, sees Union Jack increase its stake in the project to 22%. At Biscathorpe, the ‘drill-ready’ Biscathorpe well is due to be tested by “around mid-2018”.
UJO described Biscathorpe as “a highly attractive, risk-adjusted investment opportunity”. The upcoming Biscathorpe-2 well will address a 14mln barrel prospect, with a 40% chance of geological success.