United Oil & Gas* (LON:UOG) – 4.85p – Following Through: The award of the Crown discovery to the Company as part of the UK’s 30th offshore round underlines not only the technical strength but also underlines management’s commitment to assembling a risk-balanced portfolio of opportunities. With the award of Crown (15/19b), the Company has replenished it appraisal asset base, vacated by the migration of Podere Gallina to early stage development following its successful appraisal. In so doing, management are undertaking to deliver exactly what they promised to do to shareholders.
Europa Oil & Gas (LON:EOG) – 4.25p – Update lifts the Veil: Today’s news that its portfolio of prospects is being matured through the cycle and high graded underlines the often “swan-like” progress that comes with exploration. However, the key takeaway for us isn’t the work being conducted behind the scenes, which is expected, it’s the affirmation that the Management never get religion over their assets. This means that they are objective and that management mitigates excessive risk, which is what you ask of any team operating at the riskier exploration end of the spectrum. While will inevitably come under pressure as the belief that a fundraising will be needed, we are hopeful that it will be conducted from a higher level as more is known and understood about the prospectivity.
Range Resources (LON:RRL) – 0.25p – Production Target Exceeded?: We are confused. We had always been told repatedly that the target of 2,500bpd would be achieved by the end 2017. Since then, there have been acquisitions, which naturally should lead the observer to believe that the target would rise by the amount that the acquisition would bring. If is therefore somewhat surprising that the target that the Company is making such fanfare of achieving today is 68% lower. The company need to get to grips with its portfolio and understand the technical and commercial aspects of their asset base, which to our mind they have failed to do. In a company of managers, there appears to be very little management.
RockRose Energy (LON:RRE) – 440p – Acquisition Eclipses iGas: With the acquisition of Dyas’ Dutch business, the Company has further confirmed, if any were needed, that RockRose has surpassed iGas approach and asset base, if it hadn't previously. While it can be said that Austin is applying the lessons learned from the mistakes at iGas, there is no doubt that they have been learned well and are being applied successfully. Investors should be well pleased with the way the Company is progressing, and the outlook for the future.
