Diversified Gas & Oil plc (LON:DGOC) shares soared 30% higher on Friday as trading in the stock resumed after news it has raised US$250mln via an oversubscribed placing priced at 97p per share to part fund the recently announced US$575mln acquisition of additional assets in the Appalachian Basin.
The AUS-based gas and oil producer, which had its shares suspended at 96p when the massive deal was first unveiled on 14 June, saw its stock surge to 125p on Friday.
That is in addition to the 5.5 trillion cubic feet (Tcf) of gas Sound has already identified.
The explorer is acquiring and processing further 2D seismic data over the area, which is now being evaluated as a candidate for the planned third exploration well (TE-11).
88 Energy Limited (LON:88E) shares leapt after the explorer struck a deal that gives it access to one of the “most prospective oil plays” in the world.
88, along with its partners, Otto Energy and Red Emperor Limited (LON:RMP), has acquired the majority of Great Bear Petroleum Ventures’ working interest in four leases on the North Slope of Alaska which make up the Western Blocks.
The leases are immediately adjacent to the Horseshoe #1/1A well, which discovered oil last year.
Preparations for drilling the Eblana-3 well at US Oil and Gas PLC’s (LON:USOP) Hot Creek Valley project in Nevada are “well underway”.
Recent log analysis showed potential hydrocarbon pay in multiple intervals of which USOIL had planned to perforate and flow test a selected number, but mechanical problems with the rig have slowed progress, so the company has had to rejig its timetable.
The plan now is to use the remaining scheduled days to complete the planned perforation programme while the rig and its operators are still onsite, although constraints on the availability of the personnel and on the rig itself mean there won’t be enough time for the production test swabbing to be completed.
The AIM-listed firm said the operating loss for the six-month period to 31 March 2018 was £4.38mln compared to £1.07mln for the same period last year.
The oil and gas producer said flow tests had indicated initial nitrogen purity levels of more than 99.59%, above purity levels for nitrogen used as a preserving agent by food and beverage companies and could, therefore, be used by this industry immediately.
Hull, who will officially take up his post on August 1, joins from Rothschild & Sons where he was managing director in the global energy team focusing on Latin America and Africa.