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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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Archive

Proactive oil and gas highlights: Ithaca, Mosman, Genel, and more

IOG PLC (AIM:IOG) is hitting the reset button after Wednesday’s disastrous North Sea project which halved the firm’s market value.

Sweeping management changes announced this morning include the departure of chief executive Andrew Hockey and chief operating officer David Gibson.

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The government won last night’s vote on fracking but the chaos in parliament and the large opposition to the vote suggested this corner of the sector could be out in the cold.

Amid reports of MPs being “manhandled” during a contentious vote on fracking, there were 315 'no' votes on whether to ban fracking for shale gas, versus 228 'ayes’ in favour of Labour’s proposal.

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The Labour party will table a binding motion today to ban fracking in the UK, another test of Liz Truss’s leadership and support from her own party.

Last month, the government announced it was lifting the moratorium on shale gas production in England to boost domestic energy sources, even though experts said it would make barely any difference to energy supplies.

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President Joe Biden is expected to announce on Wednesday the sale of an additional 15 million barrels from the US Strategic Petroleum Reserve (SPR) in December, according to a senior administration official, CNN has reported.

The move by the US administration seeks to counter market pressures created by the OPEC+ decision to cut oil production targets just three weeks from the US mid-term elections, the newsite noted.

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IOG PLC (AIM:IOG) shares slumped some 55% after the company downgraded production guidance and a well was suspended amidst "fluid loss" problems.

The North Sea firm, in a statement, told investors that the Southwark A1 well has been “securely suspended”.

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Europa Oil & Gas (Holdings) PLC (AIM:EOG) said it has repaid a £1mln loan from Union Jack Oil PLC (AIM:UJO), its partner at the Wressle field.

The company, in a statement, noted that the loan facility has been cancelled and the security held by Union Jack will now be released.

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Cloudbreak Discovery PLC (LSE:CDL) reported positive results from a reconnaissance surface programme at its Foggy Mountain copper-gold-silver project in British Columbia, Canada and said it will concentrate on finding a partner for the project.

The programme confirmed three of the four historic mineral occurrences (the fourth area was not included in the programme). Results from seven grab samples showed grades of more than 1% copper.

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The world of oil and gas drilling can be confusing at the best of times, with all the jargon making reports a difficult task to decipher for the untrained eye.

To make matters even more complicated, there are several different types of ‘wells’ that an oil and gas exploration company will refer to.

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Ithaca Energy is being brought back to London five years after its takeover by Israel’s Delek Group, but it will return as a much larger North Sea player.

A float is expected to raise fresh capital, issuing new shares to new investors, and it is also expected to see Delek sell some of its existing shares.

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Genel Energy PLC (LSE:GENL, OTC:GEGYY) told investors it has received US$59.2mln of payments from the Kurdistan Regional Government (KRG), covering oil sales in the month of June.

It included US$13.5mln of receivable recovery payments and, in a statement, Genel noted that it has now been paid US$117mln of the US$120mln receivables previously owed to the company.

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Exxon Mobil Corporation (NYSE:XOM) has left Russia completely after President Vladimir Putin expropriated its properties following seven months of discussions over an orderly transfer of its 30% stake in a major oil project, Reuters has reported in an exclusive.

The newswire noted that Exxon did not say if it received any compensation for the assets, which it had valued at more than $4 billion. An Exxon spokesperson declined to comment on whether it will proceed to contest the seizure through an international arbitration process, a possibility flagged in August, Reuters said.

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Mosman Oil and Gas Ltd (AIM:MSMN) told investors that it has seen steady increases in gross production in its first quarter, while net production amounted to 6,958 barrels oil equivalent per day for the month of September.

The company highlighted “strong production” at the Stanley and Winters wells, whilst noting the Falcon well remains ‘shut-in’ pending review resulting in lower volumes.

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It’s not often that a resources company comes to the market almost oven-ready.

But that’s what you have with Royal Helium Ltd (TSX-V:RHC, OTCQB:RHCCF), which has successfully discovered large accumulations of the inert gas, defined a production strategy and found a customer for its output.

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ADM Energy PLC (AIM:ADME, ETR:P4JC) said it has raised £725,000 through a share subscription and loan from Tennessee Black Gold LLC, with proceeds earmarked to reduce amounts owed to creditors and to boost working capital.

At the same time, the company said it has launched a strategic review and seeks to appoint a new chief executive.

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