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Oilman Jim's Private Blog



Predator Oil & Gas (PRD) issued a statement in response to its recent downward share price movement, noting recent speculation on two investment bulletin boards suggesting there would be an imminent fundraising by way of an equity placing. PRD has denied this and reconfirmed it is fully-funded for its drilling operations in Morocco and ongoing operations in Trinidad. The company is ready to drill in Morocco as soon as it is safe to move personnel in and out of the country.

Egdon Resources (EDR) announced a Shell farm-in update. The OGA has approved the transfer of a 70% interest plus operatorship in both licences and the farm-in has completed. The farm-out terms for EDR are rather poor, but on the bright side, the licences remain alive and Shell’s involvement lends credibility.

Lekoil (LEK) announced final results. The loss for 2019 was $12.0 million and the cash balance at 31 July 2020 was $0.6 million. Money is needed and LEK says that plans are underway, subject to the securing of funding, for a five to seven well drilling programme at Otakikpo. There are plans for the Ogo appraisal drilling programme too, with well locations selected and funding discussions currently are underway with industry partners.

Pharos Energy (PHAR) announced interim results for the half-year to 30 June 2020. The net loss was $268.3 million, including a non-cash impairment of $265.5 million, which was primarily oil price related. The loss per share was 70.9 cents. With the decks cleared, it’s perhaps now one to look at for those who believe in fundamental orientated investment.

PetroTal (PTAL) was the subject of an interesting article in Argus. They are not really in a position to restart production until the government pays off the protestors via their social investment plan, which has not happened and, even if it does, will still not be enough to satisfy them. Indigenous leaders say tempers could flare up again if nothing is done (the last protest resulted in three dead plus 17 injured) and the field remains shut in. Such are the perils of ill-informed investment in the developing world.

Independent Oil & Gas (IOG) announced interim results. They’re certainly well financed for their development and production project, with a cash balance at period end of £104.1 million, a further £36.7 million of uncalled development carry available from partner CalEnergy Resources (UK) Ltd. and £10.4 million drawn down from the senior secured bond escrow account for development expenditure, leaving £60.2 million remaining to be drawn at three further operational milestones. First gas is expected next year.

That’s the material news this week. Expected, starting next week, is a return to normal news flow. There are an exciting few months coming up, which undoubtedly will be dominated by Coronavirus/Economy, US Presidential Election and, in the UK, EU Trade Agreement news. Trading opportunities, long and short, will abound. Many talk about the importance of having an “edge” in trading. Some have that via access to inside information, but most who have it in the London small-cap markets do so simply by having a better understanding than others of human nature. Subscribe to the Private Blog or the Special Trading Course to learn more.

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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.

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