A trio of project updates moved the needle for Echo Energy Plc (LON:ECHO) this past week.
On Monday, it revealed details of what it described as “very positive” well testing results following the successful work-over of the CSo-85 well at the Fracción D asset, in Argentina.
A maximum flow rate of 2.5mln cubic feet of gas per day was measured in the well during a sixteen day period of stabilised gas production.
It was followed by the news that drilling has now begun for the EMS-1001 well, at the Fracción C licence, which is the third of four planned wells in the current programme.
That drill programme was then switched up on Friday as, in the wake of the CSo-85 result, it decided to substitute the final Fracción C well slot with a new well at Fracción D.
Echo will next drill at the CSo 111-I well where a success would support an early decision for gas development at Fracción D.
UKOG: Funding and regulatory green light
UK Oil & Gas Investments PLC (LON:UKOG) has raised £5.5mln through a share placing, with the injection of funds earmarked to pay for upcoming operations at the Horse Hill discovery.
Just a day earlier, the UKOG share price shot up after it confirmed that a planned long term production test at Horse Hill had received regulatory approval – it was a significant boon to UKOG, which with a 32% interest is the largest London listed investor in the project.
At Horse Hill, the partners are now clear to carry out the 150-day test, which is designed to clarify the commercial merits of the project’s conventional Portland reservoir and two zones in the unconventional Kimmeridge play.
The new funding provides financial cover for UKOG’s share of future costs, including the proposed Horse Hill 2 appraisal well, which is contingent upon the upcoming well test results.
DGOC: A major deal to deliver further transformation
Acquisitive US oil firm Diversified Gas & Oil plc (LON:DGOC) has agreed a deal to pick up more assets, paying US$575mln for additional assets in the Appalachian Basin. The next package of assets comprise some 11,350 wells yielding 32,100 barrels oil equivalent per day.
It will increase the group’s total outcome by 114%, compared to the daily rate measured at the end of March. Moreover, it is forecast to increase earnings (EBITDA) by 289%.
In terms of physical assets, the net acreage under lease expands to 4mln acres to 6.5mln acres, and, the reserves jump 142% to 393mln barrels oil equivalent, from 163mln barrels. Additionally, it adds more infrastructure such as pipelines and compression stations.
The deal will be funded by a new debt facility, of up to US$1bn, which begins with a borrowing base of US$600mln – some US$376mln will be drawn from the facility for the transaction.
88 Energy restarts Alaska well testing
88 Energy Ltd (LON:88E, ASX:88E) confirmed that the Icewine-2 well testing programme resumed as scheduled at 22:30 on June 11 and the well is now continuing to flow back fluids. The well is flowing back fracking fluid that was previously injected into the well to stimulate the HRZ shale formation.
Initially, after the well was reopened, the well flowed at a rate of 253 barrels per day and as of 12:30 on Tuesday (Alaska time) the rate was measured at 160 barrels per day. “Based on the pressures and flow rates, there is no indication of any impediment to flow through the perforations at this stage,” the company said in a statement.
88 Energy added: “At this early stage of flowback, the fluid has not been run through the separator, so the hydrocarbon rate has not been measured. Flowback through the separator and gas chromatograph is expected to commence today.”
It noted that a production log has been run and it plans to disclose the findings to investors once the report has been finalised.
Sound Energy zeros in on TE-9
Sound Energy PLC (LON:SOU) told investors that it has identified and finalised the location for its proposed TE-9 exploration well.
TE-9 will test the A1 exploration prospect in the Tendrara-Lakbir permit, Eastern Morocco.
“The company believes that the additional geophysical and geological analysis undertaken utilising data acquired from the most recent seismic acquisition and processing has sufficiently de-risked the prospect to allow the company to proceed with drilling,” Sound said in a statement.
Magnolia Petroleum sells wells to help repay debt
Magnolia Petroleum PLC (LON:MAGP) shares rebounded on Thursday after it revealed it has agreed to sell all its stakes in North Dakota wells for a total of US$1.5mln. In total, the group has a stake in 31 wells in North Dakota, and, it has also agreed to sell the Roger Swartz #1 well in Oklahoma for US$30,000.
Cash proceeds will be earmarked to “substantially clear” a large portion of its US$2mln reserves-based lending facility. It is part of the debt reduction programme, announced last week, which came after the group’s lender decided not to extend the facility - prompting a repayment deadline of July 9 2018.
Eland Oil & Gas sees Opuama-9 production at top end of expectations
Eland Oil & Gas PLC (LON:ELA) told investors that it has successfully drilled and completed the Opuama-9 well, which is due to handed over to the field’s production team in the coming week.
The Nigeria-focused oil company, in a statement, said a production tree is currently being installed to the well.
SDX Energy spuds appraisal well at South Ramadan project
SDX Energy Inc (LON:SDX, CVE:SDX) has announced the spudding of the SRM-3 appraisal well onshore Egypt. The well is following up previous exploration success at the 12.75% owned South Ramadan project.
It will seal the group’s participation in the asset, as it is the final commitment well for the South Ramadan concession. Drilling and completion operations are expected to run for around 90 days.
Serinus Energy update reveals progress commercially
New London listing Serinus Energy PLC (LON:SNX) said its Romanian gas well has been drilled on time and 20% below budget with the testing and completion phases expected to take a further two weeks.
Moftinu-1007 was sunk to a total planned depth of 1,463 metres hitting as planned three sand formations – A1, A2 and A3. The company, which also owns assets in Tunisia, also gave an update on its progress in piping gas into the Romanian network.
Plant construction is "proceeding", said Serinus, with pre-commissioning and commissioning expected to take place late this month transporting gas from the Moftinu-1000 well; Moftinu-1007 will be added next month.
Touchstone Exploration confirms continued production growth
Trinidad-based oil firm Touchstone Exploration Inc (LON:TXP) told investors that it produced 1,728 barrels of oil per day in the month of May. Presently, it said the current production rate is estimated at around 1,821 bopd.
The company highlighted that additional crude volumes are now being realised from three of five new wells drilled this year - the other two new wells are expected to come online within the next 30 days.
"The drilling campaign continues to provide significant organic growth for the company,” said Paul Baay, Touchstone chief executive. “With current field estimated production of 1,821 bbls/d Touchstone has grown production by 42% compared to the first quarter of 2017.”