logo-loader

Oil price, IOG, Eco Atlantic, Egdon/Europa/Union Jack And finally…

no_picture_pai.jpg

Oil price

More grief in the oil markets yesterday as the concerns about the G20 meeting and next week’s Opec+ meeting worry the market. Will Putin turn into a low oil price market share bully and will Trump exert so much pressure on MbS that the mighty Kingdom bows to Washington? Uncertainty is the market’s worst enemy and we may have another week of concern about the destiny of the oil price…

Independent Oil & Gas - LON:IOG

IOG has announced this morning that the core project for the two phase development at the Blythe and Vulcan hubs is now technically ready to enter the execution phase. However, due to current oil price volatility and capital market conditions, which are ‘not conducive’ to delivering financing before the year end there is to be a further delay. Accordingly the company has received the OK from patient lenders LOG to use part of the Harvey loan for ‘corporate and development purposes’ and will refinance the loan when Harvey comes to be drilled.

The company say that this delay will not be long and that the financing, both equity and senior debt, should go ahead early in the new year. The good news is that this project is without doubt full of merits on both an operational and strategic level and should be able to achieve funding from appropriate markets when the time comes, the bad news is that having telegraphed this the company may have built in a discount all of its own making. Given that the project does have considerable appeal and that after today’s price reaction its market cap is only just north of £30m, the company itself must have attractions as a target for a corporate keen to pick up an oven ready SNS gas project with all the benefits that brings. Shareholders in IOG have been patient and rightly so, the management is doing a good job with the project and should be rewarded one way or another…

Eco Atlantic -LON:ECO

Results for Eco Atlantic are even more meaningless than usual but the statement does bring further exciting news on the Guyana front where activity is planned for next year. With the Tullow Capital Markets Day undoubtedly likely to blow more smoke up Orinduik, this project will inevitably be one of the most exciting in the sector next year. With cash at the year end of CAD$11.3m having grown to CAD$27.3m following the Total injection Eco is well placed to deliver significant value increases as the year progresses.

Egdon -LON:EDR /Europa LON:EOG/ Union Jack LON:UJO

My cynicism of the local Council process the last time I wrote about Wressle was I’m afraid fully justified as yesterday the consortium announced that the North Lincs Council planning committee had overruled the professional planning officer and refused planning again. If ever there was an example of why these buffoons should not be put in charge of much more than road-sweeping this is surely it. Egdon and partners will surely get their permission but probably when the national authorities are put in charge but it is a shame that it should reach this state of affairs…

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Union Jack Oil PLC named herein, including the promotion by the Company of Union Jack Oil PLC in any Content on the Site, the Company receives...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Iofina PLC's Tom Becker updates on Organic Vines investment and IO#8...

Iofina PLC's (LON:IOF) Tom Becker speaks to Proactive London's Andrew Scott soon after announcing their investment in Organic Vines - a hemp seed production and genetics firm. Becker says they're anticipating to turn a profit of US$1.8mln by mid-2020. He also updates on the construction of...

16 hours, 37 minutes ago

3 min read