Another exciting week for Hurricane Energy (AIM HUR OTC HRCXF). On Monday, the High Court refused to sanction the restructuring plan (the key court documents, which contain some fascinating information, are in the private blog) and the defeated Hurricane board continued to witter on about liquidation and risk of no value being returned to shareholders, further threatening that if the non-executive directors were removed at the meeting on 5 July, it was likely the NOMAD would resign with immediate effect and trading in the shares would be suspended. By Wednesday, though, the HUR directors had started to accept the new reality and consented to board changes with immediate effect. The share price had a strong week, more than doubling to 3.52p. The restructuring plan valued the shares at less than 0.1p.
i3 Energy’s (AIM I3E TSX ITE) board had better luck last week in the High Court, which approved the cancellation of the company’s share premium account, allowing payment of a dividend to shareholders. The expected ex-dividend date will be during the week commencing 12 July. Meanwhile, i3’s operational update, also announced last week, disclosed current production averaging 9,353 barrels of oil equivalent per day, with further production expected soon from the Clearwater drilling programme and the Wapiti acquisition.
88 Energy (AIM & ASX 88E OTC EEENF) announced completion of the sale transaction for its Alaskan oil & gas tax credits. $16.1 million of the $18.7 million sale proceeds are being applied to full repayment of outstanding debt, leaving 88 Energy debt free with cash holdings of $11.1 million. With more and more UK listed companies obtaining US trading symbols, it’s becoming important now to follow the US market, which was primarily responsible for 88E’s strong upwards share price move last week. The OTC has become the main driver for the share prices of many of these companies and I’ve been including the US symbols in the blogs and posts for some time now. Much more about what is and has been going on at 88 Energy in the private blog.
Zephyr Energy (AIM ZPHR OTC VNHLF) announce the signing of a drilling contract with Cyclone Drilling for the State 16-2LN-CC appraisal well. Cyclone is the same company which drilled the State 16-2 stratigraphic test well earlier this year. Data for the latter well has been assessed and integrated and Zephyr is now postulating the potential for up to 200 well locations and a risked contingent resource potential, net to ZPHR, of up to an additional 125 million barrels of oil equivalent. Zephyr appears to have over egged the pudding with this claim and the share price ended down on the week.
Aminex (LSE AEX OTC AEXFF) announced 2020 final results and a Ruvuma operations update. Loss for the year was $6.14 million, however, the board has instituted cost cutting measures with the aim that by 2022, gross G&A expenditure will be reduced to less than £1 million per annum. Drilling of the Chikumbi-1 well, in which AEX has a 25% carried interest, now has been delayed until the third quarter of 2022, but funding has been agreed with ARA Petroleum for $1.7 million to assist with working capital requirements in the meantime. More on Aminex in the private blog.
Scirocco Energy (AIM SCIR) also holds a 25% interest in Ruvuma and issued an operational update too. Scirocco’s interest is not carried, so it’s looking at potentially a very substantial investment unless it can negotiate a farm-out. Ruvuma also no longer really fits with SCIR’s stated new strategy of focussing on the European energy market. Per its recent final results statement, Scirocco “continued with the formal process to explore value realisation for its assets in Tanzania with encouraging level of interest.” It will be interesting to see what happens.
Advance Energy (AIM ADV) announced a Buffalo-10 drilling update. A jack-up rig has been selected and the formal contract is being finalised. On the current schedule, drilling of the well is expected to commence in late October and the results can be expected to be available in late November / early December. This project is a big one with the potential to deliver a gross production rate of around 40,000 barrels per day (20,000 barrels per day net to ADV) by the end of 2023. Further on Advance in the private blog.
Finally, President Energy (AIM PPC OTC PPCGF) announced a corporate update in relation to Atome, its newly-established hydrogen and ammonia production subsidiary, which has entered into a co-operation agreement with the innovation arm of a government-owned green electricity generator, located in what President describes as “a democratic and economically open country in the Americas.” PPC aims to list Atome's shares on the London Stock Exchange later this year and has appointed Strand Hanson as financial advisor.
In the private blog this evening, ADV CHAR OIGLF LBE DELT IOG PRD 88E EEENF AEX AEXFF TRP RTWRF PVR PVDRF LOGP PPC PPCGF BOIL and HUR HRCXF (but please note that commentary on all of these is not necessarily positive). More on that at: https://www.oilnewslondon.com/oilman-jim
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The author may hold one or more investments in one or more of the companies mentioned so this post cannot be viewed as independent research. This post does not constitute investment advice or a recommendation to buy or sell and may be incorrect or outdated.