Union Jack Oil (UJO) announced a placing and subscription to raise £7 million at 0.16p. At half the share price a few weeks ago, it would have been hugely profitable for all those connected to the company who knew about it and were able to short in advance. For private investors, the issue now is how much was sold short by insiders and covered in the placing and how much was actually taken by new money If mainly the former, the price should start moving back up; if mainly the latter, then there's a lot to shares to churn first. If this placing took you by surprise or shocked you, I’d suggest the Special Trading Course, which shows you how to spot all this beforehand. The link for that is https://www.oilnewslondon.com/course
Deltic Energy (DELT), which Independent Oil & Gas (IOG) is interested in acquiring, announced further details of its new North Sea licences. These, they say, “are a key part of the Company's exploration focussed strategy which is based upon a steady 'conveyor belt' of licences which can be matured and feed a long-term programme of exploration wells with any discoveries supporting the longevity of existing infrastructure and the development of new gas production hubs.” Essentially they are turning into an ongoing exploration (and hopefully development) business, thus making a case for an increase in DELT’s value. IOG’s approach has a much greater chance of success that that of Reabold Resources (RBD), though, who were firmly shown the door by DELT and its major shareholders. Unlike RBD, whose CEO couple perhaps still don’t understand the difference between geological chance of success and commercial chance of success, Independent Oil & Gas is a professionally run company undertaking a major offshore development project with substantial financial backing. Certainly DELT are not criticising it as they did the previous suitor.
IGas (IGAS) announced the acquisition of a geothermal energy business with a district heating project in Stoke-on-Trent. There is big money now in the renewable energy sector, not so much from the commercial aspect, but rather the huge government subsidies. IGAS sees this transaction as an entry point to a fast emerging sector that through the energy transition could result in it seeing significant growth. Given its other assets, it doesn’t look expensive at a £16 million market cap.
In terms of significant announcements that’s it for the week. In other news, Caspian Sunrise (CASP) announced interim results (there’s still significant doubt about its ability to continue as a going concern), ADM Energy (ADME) announced the submission of a bid in the Nigeria marginal field round (as a partner of a Nigerian oil and gas service management company), Red Emperor Resources (RMP) announced final results (they remain committed to identifying suitable assets for listing purposes), Enwell Energy (ENW) announced interim results (average daily production from the MEX-GOL, SV and VAS fields is up 8%), Global Petroleum (GBP) announced a placing and subscription to raise £1.4 million (at 0.75p), Premier Oil (PMO) announced a statement regarding press speculation (confirming it has been in discussions with a number of third parties regarding alternative forms of transactions to secure the long term refinancing of debt facilities), Trinity Exploration (TRIN) announced its half-year report (says it’s “positioned” to grow production, revenues and profitability), Canadian Overseas Petroleum (COPL) announced second quarter results (nothing new in them), Rockhopper Exploration (RKH) announced its half-year report (completion of the Navitas farm-in is targeted late this year), President Energy (PPC) announced an operational update (drilling operations are expected to commence before the end of the month) and Clontarf Energy (CLON) announced its interim statement (as always, ongoing discussions with the Ghanaian authorities to finalise ratification of the signed petroleum agreement on the Tano 2A Block).
I’ll be back next week with 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.