The saga continues at Anglo African Oil & Gas. CEO, James Berwick, resigned on Monday and the share price now is down to 0.5p. They must know it's finished now, since they say they're only going to "commence a search for a new CEO at the appropriate time." This is a big result for those who paid attention to what I've being saying about AAOG over the past year and shorted it.
Another winner for shorts over the last six months is Block Energy, which ramped up its share price in anticipation of a placing on the basis that it was producing 1,100 barrels of oil per day and no funding was needed. In fact, as I warned numerous times, the production was mainly water and the price collapsed once the truth was admitted by the company.
Block announced an operations update yesterday in relation to its latest well, but I would guess that having been spoken to very firmly by the regulators, it's taking no chances now, disclosing only that the well is "flowing" and not even mentioning the word oil this time.
A further shocker is Sound Energy, which I've been calling down from the mid 40s. It's announced yet another "keep the lights on" placing, this time at 2p, but it's still capitalised at around £20 million, so has plenty of room to fall further, which it may well do since the sale of its assets now sounds very far from certain. It's another huge winner for those who shorted it though.
Better news from Touchstone Exploration which announced an actual oil discovery in Trinidad and Tobago. In the new year, they're going to comprehensively test the well and, if the findings are positive, it will set up a development drilling program.
Prospex Oil & Gas announced the possible acquisition of a minority stake in a Spanish gas power project. They say they believe their current market cap represents a fraction of Prospex's underlying value, unfortunately, the market does not believe that and the financing for all this is likely to be at an even lower price next time.
There's not much particularly interesting news from the first couple of days of the week, but the rest of the week is looking better. I'll be back again at the weekend with a full blog and podcast covering all the week's news and if you'd like to know more about what I think of all the various companies and where I see some good trading opportunities, then subscribe to the private blog at https://www.oilnewslondon.com/oilman-jim