Block Energy Plc (LON:BLOE) inked a new agreement for gas sales at the West Rustavi project in Georgia.
A memorandum of understanding with Bago Ltd, one of the largest private gas firms in Georgia, sets out the proposed terms for the sale of at least 1,000 cubic metres of gas per day. Bago is also considering a proposal to either finance or part finance the necessary gas infrastructure for the project.
The final gas sales deal will be subject to final price negotiation, as well as successful gas appraisal work on existing discoveries located within West Rustavi.
Aminex plc (LON:AEX) and Solo Oil PLC (LON:SOLO)
Aminex and Solo Oil revealed that its stake in the Kiliwani North and Nyuni assets, in Tanzania, are to increase as a result of a partner’s payment defaults to the joint venture.
The company, in a statement, said: “as a result of payment defaults by Bounty Oil & Gas NL under the joint operating agreements relating to the Kiliwani North Development Licence and the Nyuni Area PSA, that Bounty is now deemed to have transferred its interests in such assets to the company's wholly-owned subsidiary, Ndovu Resources Limited, and the other non-defaulting parties.”
Aminex noted that Bounty remains liable for its share of any outstanding work commitments and abandonment costs.
It means the company’s interest will increase by 6.383% and 6.6667% respectively, to 63.8304% for Kiliwani North and 100% for Nyuni. It also sees Solo Oil’s interest in Kiliwani North increase, by 0.8418% to 8.3918%.
Union Jack Oil PLC (LON:UJO)
Union Jack Oil has agreed to acquire a 16.667% stake in the West Newton gas discovery, in Yorkshire, and, to support the transaction, it is raising £2.25mln of new capital.
AIM-quoted UJO has agreed a transaction with Rathlin Energy, a subsidiary of Canadian firm Connaught Oil & Gas, via a farm-out that commits UJO to cover 25% of the cost of an appraisal well in the first quarter of 2019.
The transaction does not include any upfront fees, though UJO said it expects its share of the appraisal well will cost around £4.6mln. It is a conventional operation, and, the company highlighted that it will not involve fracking either now or in the future.
UJO’s commercial partner Humber Oil & Gas will, at the same time, similarly acquire a 16.667% interest in the project.
To raise the funds, UJO is issuing 2.64bn new shares each priced at 0.085p. The placing is being arranged by SP Angel as sole broker.
Humber is to participate in the funding by acquiring 513mln shares, taking its shareholding to 1.26bn shares or 15% of the company. Directors Joseph O'Farrell and Raymond Godson also intend to purchase shares via the placing - subscribing for £30,000 and £10,000 of shares respectively.
G3 Exploration PLC (LON:G3E)
Coalbed methane group G3 received final approval from China’s National Development and Reform Commission (NDRC) to develop the Chengzhuang Block (GCZ).
The overall development plan approval covers 33 sq km of the 67sq km licence, which is situated in Shanxi Jincheng Qinshui county. G3 has a 47% participating interest alongside state-controlled China National Petroleum Corporation (CNPC), which holds the remaining 53%. The field is managed by a joint team from the two partners and has been profitable since gas production started in 2015. So far,114 wells have been drilled on the acreage, of which 85 wells are selling gas.
88 Energy Ltd (LON:88E, ASX:88E)
88 Energy is launching a rights issue to raise £7.96mln (A$14.33mln) in order to fund new exploration well operations slated to start in the first quarter of 2019.
It intends to use the proceeds to fund the Winx-1 exploration well including any potential production testing and possible cost overruns. The company also expects to spend capital on ongoing geological and geophysical work, as well as its usual working capital requirements and general admin. For Winx, located in the group’s ‘Western Blocks’ on Alaska’s North Slope, the company recently signed a rig contract ahead of a targeted spud date in the first quarter of next year.
Winx will target the Nanushuk play fairway where 3D seismic studies defined an oil prospect which has a prospective resource of 400mln barrels of oil (MMbbls). The geological chance of success has been estimated to be in the range of 25-30%. The company is earning a 36% working interest in the Western Blocks by funding 40% of the drilling costs for Winx.
Earlier this week, 88 Energy expanded its footprint on Alaska’s North Slope, securing additional areas of interest for the group’s planned conventional exploration campaign. In total it has added 45,239 net acres, increasing the explorer’s overall position to 371,478 acres.
The increase comes via two separate agreements. First, the Arctic Slope Regional Corporation (ASRC) releasing rights to 28,453 acres, contiguous with the company’s Western Fairway area of the current Project Icewine acreage.
Angus Energy Plc (LON:ANGS)
Angus Energy shares advanced in Tuesday’s early deals after revealing oil test results from a new test of a horizontal well at the Balcombe project, in southern England. Having started as much as 10% higher, Angus shares were up 0.48p or 5.88%, changing hands at 8.6p each.
The AIM-quoted firm has a 25% stake the project, near the village of Balcome south of Crawley, where environmental protests made headlines in 2013, alongside operator Cuadrilla which is best known as a UK shale gas company - but, Balcombe is not a shale project nor does it involve fracking.
The Balcombe-2z well is, in fact, part of the increasingly high-profile Kimmeridge hydrocarbon play which also includes the Horse Hill oil discovery near London Gatwick airport along with other exploration and appraisal projects in the region.
Angus revealed that the Balcombe well flowed naturally at a rate equivalent to 853 barrels of oil per day plus 22.5% water.
Significantly, perhaps, Angus said the water flows were unexpected but it believes they are the result of the well intersecting a small high-pressure water zone in the horizontal section and that would need to be isolated in the future.
It added that the technical team doesn’t believe that the water production comes from the main Kimmeridge reservoir. Unfortunately, an attempt to qualify this view with additional well logging was unsuccessful due to what Angus described as a third-party equipment failure.