Proactive weekly oil & gas highlights: Angus Energy, Providence Resources, United Oil & Gas…

A look back at some of the top news from London’s oilers over the past week…

onshore oil field
There was a lot going on in the oil and gas sector…

United Oil & Gas PLC (LON:UOG) signed a heads of terms to sell two blocks in the North Sea to Anasuria Hibiscus UK Limited for up to US$5mln.

The group holds a 95% stake in blocks 15/18d and 15/19b, which include the Crown Discovery that was initially discovered by energy giant ConocoPhilips in 1998.

On completion of the sale, UOG will receive US$950,000 for the blocks while US$50,000 will be paid to minority shareholder and partner, Swift Exploration Ltd.

An additional amount of up to US$3mln will be paid before the end of 2020, depending on certain milestones being achieved.

Cadogan Petroleum PLC (LON:CAD) chief executive Guido Michelotti is to resign after four years in the top job.

The oil and gas company said Michelotti is stepping down for “personal reasons” in September after the release of the first-half results.

He will remain an executive director until November to ensure an orderly transition with the next boss.

Anglo African Oil & Gas PLC (LON:AAOG) has agreed a fundraising of up to £8.25mln, split into an agreed institutional placing and a complex ‘investor sharing agreement’.

The new cash is earmarked for the company to re-enter the TLP-103C well with a view to producing from a “potentially prolific” layer of the Djeno reservoir in its Tilapia project in the Republic of Congo.

For £2.56mln of the funds, existing shareholder Miton Asset Management has bought 49.3mln shares at a price of 5.2p per share, a premium of 27% to the closing share price on Tuesday.

An investor sharing agreement has also been agreed with Yorkville Advisors Global’s YA II fund and Riverfort Global Opportunities PCC, which together will buy £5.7mln of shares at the 5.2p price.

But AAOG said the structure of this agreement meant there was “no guarantee” that it will receive all of the remaining proceeds, in which case it may not be able to execute all of its drilling plans.

Anglo was also informed by international counsel that its claim against Société de Maintenance Pétrolière (SMP), the rig contractor for the TLP-103 and TLP-103C wells, has merit.

Junior UK onshore oiler Angus Energy PLC (LON: ANGS) appointed a new operations director and confirmed the receipt of a payment tied to its Saltfleetby venture.

Mike Wells has been hired as director of UK operations, though it is not a board appointment, and he brings past experience with prior wells at the Brockham field along with history working the Saltfleetby gas field.

“We are very lucky to have his immense experience in UK onshore to help us as we address reconnection of the field and recommencement of operations,” Angus said in a statement.

Block Energy PLC (LON:BLOE) has raised its stake in the West Rustavi field in Georgia to 100% from 71.5%.

The Aim-listed company paid Georgia Oil and Gas US$750,000 in cash and shares for the additional interest in a deal that was flagged in February.

West Rustavi has an estimated 900,000 barrels of 2P oil reserves and 38mln barrels of resources (2C).

Providence Resources PLC (LON:PVR) has confirmed a further extension of its farm-out backstop date, to allow for payment processing.

The Irish oil firm, in a statement, told investors that it has received a letter from the legal representatives of the funder of proposed partner, APEC.

The legal representatives advised that on July 9, APEC's funder arranged the remittance of US$10mln from HSBC to Providence’s account.

Mosman Oil And Gas Ltd (LON:MSMN) told investors that the Stanley-2 well, in Texas, is now on production.

The well was drilled in March and was initially completed for gas flows, but, was subsequently recompleted in an oil reservoir.

It is now flowing oil and Mosman highlighted that more than 535 barrels of crude have so far been sold. Average production over the past seven days was measured at 63.5 barrels of oil per day. Production rates are yet to fully settle, Mosman noted.

Eland Oil & Gas PLC (LON:ELA) received approval for a field development plan (FDP) for the Gbetiokun field in the Niger Delta.

The AIM-listed firm said the FDP would cater for the drilling of five additional oil production wells in the first phase as well as six production wells and a single workover well in phase 2.

The group also announced that following upgrade works on its swamp drilling unit it had spudded the Gbetiokun-4 well on 12 July, which would then be completed as a dual string producer on the E3000 and E5000 reservoirs with an estimated initial production rate of between 3,000 and 5,000 barrels of oil per day.

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