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Proactive Weekly Oil & Gas highlights: Hurricane Energy, Echo, Providence Resources, EnQuest, Genel, VAALCO Energy, TomCo, Zenith

There was plenty of activity in the oil and gas sector this week.

Hurricane Energy PLC -

Hurricane Energy Plc (LON:HUR) has revealed results from the Warwick West well which confirmed a discovery and measured oil flows.

The success rounds off a three well drill programme and marks a more positive result, after it kicked off with the Warwick Deep well which, in July, encountered a ‘poorly connected’ section of reservoir and failed to flow hydrocarbons at commercially viable rates.

In an 85 hour well test, the Warwick West reservoir flowed at a maximum rate of 1,300 barrels of oil per day. Hurricane noted that it was not able to reliably measure a stable flow rate using an electric submersible pump as the well was still in the process of cleaning-up.

Echo Energy PLC (LON:ECHO)

Echo revealed plans to start drilling activities on its Santa Cruz Sur assets, following on immediately after the present programme at the Tapi Aike project.

The AIM-quoted explorer is moving quickly with Santa Cruz Sur, having acquired the asset only last month.

In a statement, Echo today noted that the integration effort was “progressing positively” and that in recent discussions with the operator the focus was on a near-term work programme and plans for 2020.

Providence Resources PLC (LON:PVR)

The Irish oiler announced that Tony O’Reilly has resigned from his position as chief executive with immediate effect. Chairman Pat Plunkett will cover the executive function on a temporary basis whilst the company recruits a long-term replacement.

EnQuest Plc (LON:ENQ)

It picked up an operated 85% stake in new exploration project offshore Malaysia. The company and partner PETRONAS has been issued the Block PM409 Production Sharing Contract covering some 1,700 square kilometres in a proven hydrocarbon area, which features several undeveloped discoveries. It begins with an initial four-year exploration term the partners are committed to drilling one well.

Genel Energy PLC (LON:GENL)

The company revealed that chairman Steve Whyte has resigned from the company with immediate effect. Earlier this year, in May, Whyte decided he would not stand for re-election at the 2020 annual general meeting.

Whyte is being replaced by George Rose who is stepping up from his position as senior independent non-executive director to be Genel’s interim chairman whilst a permanent replacement is selected.

VAALCO Energy Inc (NYSE:EGY; LON:EGY)

The recent addition to the London market announced another success, with the new Etame 9H development well offshore Gabon.

The horizontal Etame 9H well opened up some 1,000 feet of the Gamba reservoir and it came online with a stabilised flow rate of 5,500 barrels of oil per day (bopd), gross, which gives VAALCO around 1,500 bopd net.

This rate significantly exceeds pre-drill estimates for 2,500 to 3,500 bopd. The outperformance was the result of better than expected reservoir quality, VAALCO noted.

TomCo Energy plc (LON:TOM)

Tomco raised £925,000 through a share placing to support the company’s plans to advance oil and/or tar sands opportunities, along with the ongoing development and revision to its TurboShale system.

The company is issuing 142.3mln new shares priced at 0.65p each. The placing was arranged by broker Turner Pope Investments. The placing shares come with warrants, one issued for every two shares, with an exercise price set at 1.5p.

The placing comes as TomCo gains access to the Valkor oil sands opportunity through a joint venture in the Uintah basin, Utah, with engineering firm Valkor LLC.

Zenith Energy Ltd (LON:ZEN, CVE:ZEE)

The company agreed to acquire all of the Italian assets of Coro Energy PLC (LON:CORO) in a deal starting at £402,000.

The initial deal consideration will be paid on completion, in Zenith shares, priced at 6p each, with a further contingent of up £3.5mln payable dependent upon the performance of the acquired assets. To trigger the extra payment the acquired assets need to yield production of 100,000 cubic feet per day or 590 barrels oil equivalent per day over four successive months.

Zenith anticipates that it can achieve 113,000 cubic feet per day from the assets once it completes a series of well interventions planned for the first six to nine months of ownership. It noted that regulatory approvals are already in place for such work.

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