As crude oil prices continue to soar, hitting US$90 earlier this week, there’s a chance that investing oil company shares may prove popular again.
Fast shifting public opinion put oil and other carbon-based energy investments on the naughty step through 2021, and, whilst the era of ESG is certainly still very much upon us, the value proposition is becoming harder to ignore.
ADM Energy PLC (AIM:ADME, ETR:P4JC) said it raised £561,000 via a subscription from Optima Resources Holding Ltd to fund business development, possible acquisitions, and investment opportunities.
The AIM-listed natural resources investing company offered 51mln new ordinary shares in the subscription to Optima at 1.11p each.
88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) shares began trading on the OTCQB market in the United States, ahead of the expected spud of the explorer’s Alaskan well next month.
In a stock market statement, 88 Energy said the shares debuted on the OTCQB market on January 19, under the ticker code EEENF.
The Wressle oil field in Lincolnshire, part-owned by AIM-quoted Europa Oil & Gas and Union Jack Oil PLC (AIM:UJO), could see greater returns if facilities constraints on gas production can be alleviated.
That’s the key finding in a report authored by consultant ERCE which carried out an analysis of down-hole pressure data in December.
Advance Energy PLC (AIM:ADV)’s Buffalo-10 well intersected its primary target, the Elang reservoir, with early data indicating hydrocarbons are present.
The top Elang reservoir was intersected at a depth of 3,338 metres – which project operator Carnarvon Petroleum described as “approximately 80 metres low to prognosis and outside the pre-drill range of expectations.”
Eco (Atlantic) Oil & Gas Ltd (AIM:ECO, TSX-V:EOG) increased its interest in JHI Associates Inc, a junior explorer offshore Guyana, which is partnered with Exxon in the Canje Block.
AIM-quoted Eco bought 800,000 shares, worth around £312,000, in JHI by exchanging 1.2mln new Eco shares. It takes Eco’s shareholding in JHI to 5.8mln shares, representing a 7.35% stake in the explorer.
Red Rock Resources PLC (AIM:RRR) was awarded more compensation for its VUP project in the Democratic Republic of Congo.
On 14 January 2022, the Commercial Court of Lubumbashi issued an executory judgment ordering VUP SA, the company's partner in the joint venture, to pay US$2mln in damages and costs.
Sound Energy PLC (AIM:SOU) has made a move to buy Angus Energy in an attempt to expand and diversify its portfolio.
It comes after Angus earlier this month launched a strategic review to consider putting the company up for sale.
Genel Energy PLC (LSE:GENL, OTC:GEGYY) told investors that production for 2022 is expected to be around the same level as 2021, but, higher oil prices will boost financials.
It expects to generate some US$200mln of free cash flow in 2022, based on US$75 per barrel oil, and noted that for every US$10 movement in the crude price will see a corresponding US$50mln impact to cashflow.
Chariot Ltd (AIM:CHAR, OTC:OIGLF) said it completed drilling operations at the Anchois field offshore Morocco after making a significant new discovery – with over 100 metres of net pay suspended in the Anchois-2 well for future production.
The company also coupled the rig to the Anchois-1 well – drilled originally in 2009 – to confirm its viability as a future producer, a statement said.
Stock pickers could be richly rewarded in the oil and gas sector – that’s the view of analysts at Berenberg.
Exploration and production shares, on average, are set for some 10% upside to their current levels, the investment bank said, whilst certain opportunities are seen to have much more potential.
WTI $83.82 +$1.70, Brent $$86.06 +$1.59, Diff -$2.24 -11c, NG $4.26 -1c, UKNG 210.0p -18.12p
Oil price
BP and Shell picked up two of the largest licences awarded by the Crown Estate in its auction of Scottish offshore wind farm sites.
The two oil and gas giants, which are both undertaking rapid green energy expansion programmes, bid around £86mln each for the sites they were awarded.
Union Jack Oil PLC (AIM:UJO) told investors that the West Newton well could, according to a model, flow at an initial rate of 5,900 barrels of oil equivalent per day from a horizontal well.
The assertion is based on results of a modelled flow rate analysis which was fed with data from the well test programme that was carried out in the second half of last year, where it is drilled into a gas zone.
ADM Energy PLC (AIM:ADME, ETR:P4JC) updated investors on the legal proceedings in Nigeria, with the company being advised that the court has adjourned on the matter until March 1 and an interim injunction continues to stand in the meantime.
The company and its partner K.O.N.H instigated proceedings in December in relation to a dispute over KONH's ownership of its stake in Noble Hill-Network Limited (NHNL) which holds the risk sharing contract for the NW OML 141 assets.
88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) said it is on track for a February spud at the Merlin-2 well on Alaska’s Nort Slope.
Commissioning of the Arctic Fox drill rig is underway prior to mobilisaton and construction works for the ice road have begun.