12 February 2019
Summary
In Brief
Cabot Energy*** (LON:CAB) – 0.23p – UNDER REVIEW
Proposed Subscription and Open Offer
Echo Energy (LON:ECHO) – 4.90p
Macaulay Blues
Nu-Oil and Gas (LON:NUOG) – 0.65p
Are We There Yet?
Tlou Energy (LON:TLOU) – 6p
Development Pod Completion Starts Appraisal Programme
News In Brief
Cabot Energy***
(LON:CAB) – 0.23p
UNDER REVIEW
Proposed Subscription and Open Offer
The Company has posted its circular in reference to its $3.7mm open offer.
More details can be seen on the Company's website. Click here.
Echo Energy
(LON:ECHO) – 4.90p
Macaulay Blues
It must infuriate management that after a long and successful run under the auspices of Macaulay, that the first news post her departure is decidedly lacklustre.
There is always a risk with tight sands that at a specific location the reservoir's heterogeneity will throw up some frustrating results, that while doesn't kill off the wider commerciality, negates its viability in specific locales.
While we have no doubt that this would have happened regardless, and the laws of averages dictates that you must encounter a poor well at some point, it is still must be somewhat frustrating.
Nu-Oil and Gas
(LON:NUOG) – 0.65p
Are We There Yet?
As the Company makes a further announcement of another partner, there comes a point at which you have sufficient technical expertise onboard to only make incremental differences, and there is a need to deliver.
Such is the point at which we are at currently.
There comes a point where it starts to dawn that the reason good idea lack traction is down to management. This is harsh on current management as they have not been in place that long, but something must happen, and soon, or the good idea will be consigned to the waste bin as undeliverable.
We have a suspicion as to what the missing piece is, and it isn't technical, and once it is in place, we believe that this idea will fly.
Tlou Energy
(LON:TLOU) – 6p
Development Pod Completion Starts Appraisal Programme
The news completion of the first pod is a milestone as it confirms that the that the Company able, on a piecemeal basis at least, to be able to effectively complete the subsurface infrastructure.
Once it has been completed, we believe that the testing will be key, as it is the deliverability of these wells that will be key to determining the extent of the commerciality of the project.
It is important to note that while commerciality has already been demonstrated the outcome of this programme will be the key for investors and essential for assessing the development scenario.
We may provide a further update on one, or all, of the stories above later today. However, if there is anything that you would like to discuss, please feel free to contact us.