Investors reacted positively to United Oil & Gas PLC’s (LON:UOG) news that the Colter well had made a ‘bonus’ oil discovery, with the shares moving higher. The well, off England’s south coast, found oil in a separate reservoir from the well’s target which was not encountered because the well unexpectedly remained on the southern side of a bounding fault.
Drilling will now continue, with a side-track aimed at the primary target expected to take around two weeks to complete.
United revealed that the Colter well encountered oil and gas shows over a 9.4-metre interval at the top of the Sherwood Sandstone reservoir, and, 3 metres of net pay was measured.
I3 Energy PLC (LON:I3E)
I3 agreed on terms over a £24mln junior loan package to fund a three-well campaign on its Liberator field in the North Sea. One of the conditions is that I3 provides £16mln through either a joint venture partner farm-in or a share issue.
A European investment manager has agreed to subscribe for £12mln of the junior loan notes. In addition to the junior facility, I3 intends to raise a further £100mln in senior loans. I3 added it has extended the joint venture bid date beyond February to accommodate additional parties that have requested data room access.
This year’s appraisal and development drilling programme are expected to cost £32mln and will also include the nearby Serenity prospect.
88 Energy Ltd (LON:88E)
The Winx-1 exploration well-observed oil shows but preliminary analysis indicates that they were “at the lower end of the range required for commerciality.”
The shows were observed in the Nanushuk formation which was the well’s primary target, meanwhile, no oil shows were present in a shallower secondary target. 88 Energy described the Nanushuk shows as ‘weak to moderate’, with initial petrophysical analysis indicating potentially high water saturation.
Drilling continues to test deeper objectives, 88 Energy said.
Diversified Gas & Oil PLC (LON:DGOC)
DGOC generated some US$289.8mln of revenue during 2018 as it continued to expand its business through acquisition. It completed four deals during the year, with US$938mln of transaction value.
Proved reserves totalled 474mln barrels oil equivalent at the end of the year, with a value of US$1.6bn.
Production averaged 41,000 barrels of oil equivalent per day, compared to 6,600 boepd in 2017, and, it measured an exit rate 70,000 boepd as of December 31. Earnings (adjusted EBITDA) was reported at US$161.9mln, up 910% from the US$16mln reported for last year.
DGOC began its quarterly dividend payments, with the third quarter payment (3.30 US cents per share) due on 29 March and the fourth quarter payment (3.40 cents per share) will be due on 28 June. It will pay a total of 11.225 cents per share for the whole year.
Europa Oil & Gas Holdings plc (LON:EOG)
The explorer highlighted a new prospect inventory for its priority area in the Slyne Basin, off Ireland’s west coast.
The Inishkea gas targets remain the company’s primary focus, and the new inventory confirms some 1.5 trillion cubic feet in prospective resources. It also detailed that the prospects have a 1-in-3 chance of success. A site survey is planned for this year which makes 2020 drilling possible, subject to funding and regulatory approval.
Inishkea is one of three exploration projects that are currently the subject of farm-out processes, to bring in new partners. Talks are ongoing with a major oil and gas company, Europa said.
“Since opening the farmout dataroom in December 2018 we have had several large oil companies review the prospect and we are updating them with this new information,” said Hugh Mackay, Europa chief executive.
Eco Atlantic Oil & Gas Ltd (LON:ECO, CVE:EOG)
Eco boss Gil Holzman has told investors the company is very excited by the opportunity to hopefully discover very significant oil resources in the coming months.
As it looks forward to the upcoming high-impact Jethro-Lobe exploration well, in the second quarter, the company today released its financial results statement for the three months ended 31 December.
It comes after Eco last week announced the signing of a rig contract for Jethro-Lobe, and potentially a second optional follow-up well.
Highlands Natural Resources PLC (LON:HNR)
HNR told investors that initial production rates from the East Denver project have measured 4,600 barrels oil equivalent per day, and they are expected to rise further.
The production pad – to which the Buckskin, Citadel, Grizzly, Hagar, Ouray, Thunder, Wildhorse and Powell wells are attached – is flowing oil at a combined rate of around 4,053 Bopd while combined gas rates were 3.28mln cubic feet per day.
Highlands, which owns 7.5% of the project, highlighted that the project operator is advancing a conservative flowback plan which sees the wells being opened up slowly.
Echo Energy Plc (LON:ECHO)
It told investors that a 3D seismic survey has been completed for the eastern portion of the Tapi Aike project onshore Argentina.
Equipment is now being mobilised to the western portion, in order to complete the programme.
The eastern programme covers some 414 square kilometres while the western portion will cover some 790 square kilometres. Date from the whole Tapi Aike survey programme will support plans for future drilling.
Block Energy Plc (LON:BLOE)
The company struck a deal that sees it take full ownership of the West Rustavi licence in Georgia.
The company already owns 25% of West Rustavi and the new agreement with Georgian Oil and Gas Limited (GOG) will increase the stake up to 100%. It replaces an ‘earn-in’ agreement entered into back in 2017. The previous arrangement would’ve seen Block increase its stake to 75% with the completion of ongoing West Rustavi workover and sidetracking programme.
The new staged agreement will see Block’s stake rise to 71.5% with a US$250,000 cash payment, and, a further US$500,000 will be paid to GOG, which in turn will subscribe for Block shares at a minimum price of 4p.
In stage-2, its working interest rises to 90% with a US$250,000 in cash payment, upon the start of additional new operations at West Rustavi or 31 August 2019 – whichever comes sooner. Stage-3 would allow Block to increase its stake to 100% with a subsequent US$500,000 cash payment.
G3 Exploration Ltd (LON:G3E)
It updated its estimate of reserves for its coal bed methane assets in China. Total net proved or 1P reserves rose 37% over the year to 135Bcf of gas, worth US$682mln at an average price of US$8.98 per Mcf.
Production arm Green Dragon Gas accounts for 96% of the reserves through it interest in the GSS and GCZ blocks.