Predator Oil & Gas (PRD) issued an operational and corporate update. The main point in the announcement is that the Guercif MOU-1 well pad construction is programmed for April 2021. Good progress is being made onshore Trinidad too with its CO2 injection project and Predator also remains focussed on providing a niche solution to near-term security of energy supply for Ireland, during a transition to a dominantly renewable source of energy, utilising its floating storage and regasification unit concept. PRD has been a strong performer and reached 8.25p last week. I don’t mention many in the private blog (only the few I believe are certain to go up), but Predator is one of them and I’ve been covering it from as low as 1.3p.
Pantheon Resources (PANR) announced a Talitha-1 operations update. The current plan is to test the Shelf Margin Deltaic, Basin Floor Fan (two separate zones) and the Kuparuk zones. As the company emphasises, testing all zones is critical to determine ultimate commerciality. 88 Energy (88E) referred to PANR in its operations update, stating that the nearby Talitha-A well early results are encouraging, with the potential for extension into 88E’s leases. Meanwhile, rig commissioning is now complete and mobilisation has started for Merlin-1 drilling, which is scheduled to commence in the first week of March 2021. More on 88E in the private blog.
PetroTal (PTAL) announced completion of its $100 million bond issue and a 2021 capital budget of the same amount. The program is designed to enable PTAL to more than double production from Q1 2021 to Q4 2021 and complete phase two of the central processing facility in Q3 2021, completion of which will take overall fluid production capacity up to 124,000 barrels per day, sufficient to handle 24,000 barrels of oil per day. It’s targeting average 2021 oil production between 11,000 and 12,000 bopd with a target 2021 exit range of 18,000 to 19,000 bopd, generating cash flow of approximately $90 million, based on a forecast Brent oil price of $50 per barrel flat. I mentioned PTAL positively a number of weeks ago at 7.6p, after having been rather negative from the low 30s down. It’s now more than doubled to 18.12p.
Bahamas Petroleum Company (BPC) announced a corporate and strategic update. Operational activity is now focussing on the Company's 2021 work programme in Trinidad and Tobago and Suriname, targeting exit production of c.2,500 bopd. As readers know, I’ve been cautious about BPC for some time and it’s down from 2.6p pre-drill result in the Bahamas to 0.57p now. I did warn this could happen.
Another one I warned about many, many times, all the way down from 17.5p to its current 3.25p level, is Block Energy (BLOE). It announced last week first gas sales at the West Rustavi Field and says that production across all of its portfolio is currently approximately 940 boepd, the key word here being “currently.” Block is notorious for claiming 1,100 barrels a day of production from a certain well (which was spun by its PR as all oil) and it was a very long time before they eventually admitted that it was mainly water.
Scirocco Energy (SCIR) announced a strategy update and board changes. It has identified various near-term investment opportunities within the low-carbon space, including renewable energy, circular economy and energy storage and transfer. Regarding its non-operated stake in Ruvuma alongside its wider Tanzania portfolio, in respect of which a formal sales process commenced in Q1 2020, SCIR is now engaged in advanced dialogue with a number of interested parties, having received indicative proposals which it is considering. It’s troubling, therefore, why some paid PR has been saying recently that the best way to play Ruvuma (scheduled to be drilled in early 2022) is via Scirocco, rather than Aminex (AEX), which actually owns a 25% carried interest.
In other news, ADM Energy (ADME) issued a statement regarding its share price movement. ADME confirmed it was in discussions with its shareholders, funding partners and prospective and new investors in connection with a possible equity fundraising, including via a placing. Canadian Overseas Petroleum (COPL) issued an announcement in connection with its senior credit facility for up to $65 million. The facility has been approved by the investment committee of the lender, a US based global investment firm. Gulf Keystone Petroleum (GKP) announced an updated independent reserves and resources evaluation. It had gross 2P and 2C reserves and resources of around 800 MMbo at 31 December 2020, including over 500 MMbo of gross 2P reserves. Petroneft (PTR) announced a $2.9 million convertible loan facility. It says the funding will support its key operational priorities which are expected to deliver considerable news flow in the near to medium term.
Tlou Energy (TLOU) announced it is seeking carbon neutrality. It’s progressing towards having the first carbon neutral power project in Botswana, with plans to combine gas, solar and carbon sequestration. United Oil & Gas (UOG) announced an ASH-3 well update. A total of 27.5 meters net pay has been interpreted in the targeted reservoir and initial testing will be completed in the coming days before the well is then brought onstream through the existing ASH field facilities. Uplands Resources (UPL) issued a technical quantification. Its Pyrite prospect in Tunisia is interpreted to contain 1.1 TCF of recoverable gas (P50 prospective resources) with a chance of success estimated to be 22%. Finally, Wildcat Petroleum (WCAT) issued a statement regarding the appointment of Michael Edelson as senior business advisor. He is currently a non-executive director of Manchester United F.C., the Chairman of SysGroup plc and has helped to float over 20 companies during his career, one of which was ASOS.
More in the private blog, including my actual trading ideas. Further 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.