Proactive weekly oil & gas highlights: Bahamas Petroleum, Tower Resources, United Oil & Gas, Zephyr Energy ...

It was an active week in the junior oil and gas sector

Bahamas Petroleum Company PLC - Bahamas Petroleum, Tower Resources, United Oil & Gas, Zephyr, Mosman, 88 Energy, Union Jack Oil, Block

Bahamas Petroleum Company PLC (LON:BPC) this week exercised a put option to raise a further £3.75mln, as a result of shares being issued, to support the ongoing Perseverance well programme.

A total of 187.5mln new shares were issued at a price of 2p each. It means that, if remaining available funding sources are drawn in full, the company will complete its funding strategy with an aggregate of US$72mln raised for Perseverance – a 770mln barrel exploration target.

Bahamas Petroleum highlighted that it represents adequate funding for the well plus an extensive 2021 work programme across the company’s suite of production, appraisal and development assets.

Tower Resources PLC (LON:TRP) raised £1.25mln via a share placing as it seeks to restructure its financing arrangements. The company is issuing 384.6mln new shares priced at 0.325p each in the placing, organised by ETX Capital.

Proceeds will be used to terminate and repay a US$500,000 loan facility with Shard Capital, which falls due at the end of February. The company said it will repay the facility without triggering conversion options.

The remainder of the proceeds will provide working capital and support the company as seismic data from the Algoa-Gamtoos license in South Africa is reprocessed and interpreted.

United Oil & Gas PLC (LON:UOG) highlighted a continued strong production performance from its 22%-owned Abu Sennan project in Egypt.

The company, in a quarterly production update, told investors that net production from Abu Sennan averaged 2,340 barrels of oil equivalent per day (boepd) over the second half of 2020, versus guidance of 2,300 boepd. In the fourth quarter specifically, net production averaged 2,243 boepd, comprising 1,960 barrels of oil and 283 boe of gas.

Zephyr Energy PLC (LON:ZPHR) completed the State 16-2 well ahead of schedule, and the initial results are positive. The company confirmed that the Utah well was drilled to a depth of 9,745 feet and indications from drilling data suggest the presence of hydrocarbons across multiple reservoir intervals.

It has taken 113 feet of core across the historically productive Cane Creek reservoir interval, plus core from seven shallower exploration targets. Additionally, Zephyr noted that it captured new petrophysical information from the well.

Mosman Oil and Gas Limited (LON:MSMN) said its Falcon-1 well in Texas is now producing at a rate of 180 barrels of oil equivalent per day (boepd). The AIM-listed group's share of production is 90 boepd for its 50% working interest, which nets to 68 boepd after royalties.

Mosman noted that Falcon-1 is its highest gross production well and also the one where it has the highest working interest. The net effect is that daily production is running at double the average daily rate for the six months ended December 31, 2020.

Over that period, net production attributable to Mosman was 8,650 barrels of oil equivalent.

88 Energy Ltd (LON:88E) (ASX:88E) struck a deal to acquire the Umiat oil field, which is located on Alaska’s North Slope. Umiat is located immediately adjacent to the southern boundary of the company’s Project Peregrine acreage. It is a historic oil discovery, dating back to 1945, in shallow Brookian (Nanushuk) sandstones.

A well, Umiat-23H, was tested by a prior operator back in 2014. It achieved a sustained rate of 200 barrels per day with a maximum rate of 800 barrels measured. The asset had 123.7mln barrels of gross proved and probable (2P) reserves, according to a 2015 assessment.

Union Jack Oil PLC (LON:UJO) updated on the Wressle oil field development project, in Lincolnshire, where a rig arrived last week and operations are now underway. Following the arrival of the rig and equipment on-site work to recomplete and reperforate began, with the aim of flowing the Ashover Grit reservoir before the end of January.

Block Energy PLC (LON:BLOE) is now awaiting third-party progress necessary for ‘first gas’ at the West Rustavi field, in Georgia. The company said that it has completed all steps under its control including the construction and commissioning of the Early Production Facility and gas gathering line.

Presently, the remaining key steps leading up to inaugural gas sales are all under the control of Bago LLC.  Bago needs to complete construction for the compressor station and the hook up to the main gas lines.

‘First gas’ is now expected in either late January or early February, the company added.

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