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Oilman Jim's Private Blog



Union Jack Oil (UJO) announced a West Newton technical update. They’re now talking about a B-2 well, which is provisionally planned to be drilled in H2 2021. No word yet on Wressle, in respect of which it was previously stated that the Ashover Grit reservoir was to be flowed prior to the end of January 2021. Perhaps we’ll see something on that tomorrow.

Reabold Resources (RBD), the effective majority owner of West Newton, took advantage of the “provisionally planned” B-2 well to raise a further £7.5 million via a placing at 0.55p. What’s important here is the outcome of the flow testing of the B-1Z well, which now is going to be tested ahead of the A-2 well (that’s the second time now that the A-2 testing has been delayed), commencing in Q1 2021.

Bahamas Petroleum Company (BPC) announced that Lombard Odier’s holding has fallen below the lowest applicable notification threshold. It appears they wanted to take no risk on the outcome of the drill, which is expected imminently. BPC now is a pure gamble on the success or otherwise of the Perseverance #1 well.

88 Energy (88E) announced an operations update in relation to its permit to drill for the upcoming Merlin-1 well. They say they have received confirmation from the Alaska branch of the Bureau of Land Management that the Assistant Secretary for Land and Minerals intends to sign the permit, subject to satisfactory completion of the standard review process. Field operations will now recommence. Whether they’ll be able to drill Harrier-1 now remains an open question.

Canadian Overseas Petroleum (COPL) issued its comments regarding the new US Federal oil and gas lease policy, which it believes will have a largely positive effect on COPL’s Atomic acquisition. Most normal companies operating in a commercial manner would be using such a development to negotiate the acquisition price downwards; unfortunately, small AIM companies are more or less entirely focussed on their fundraising.

Bowleven (BLVN) announced that the operator of the Etinde licence has received formal approval to apply for a new Etinde Exploitation Agreement, replacing the existing agreement which came into force by Presidential decree in January 2015. The joint venture partners can now progress towards achieving a final investment decision on the licence this year. Perhaps, at last, there’s some upside for shareholders.

Aminex (AEX) announced a strategic and corporate update. It’s cutting the fat and intends to reduce gross general and administrative costs by 30% this year from 2020 levels, with an additional 25-30% reduction in 2022. The Board is being reduced from five directors to three and from some of the negative commentary, the "cost reduction process” appears to include some of their paid PR. Objectives now are to capitalise on Ruvuma, maintain discipline on expenditures and pursue strategic initiatives. It’s starting to look like a decent bet.

In other news, Eco (Atlantic) Oil & Gas announced the launch of Eco Atlantic Renewables. This “exciting opportunity” has “crystalised” due to a “lack of oil and gas acquisition opportunities.” ADM Energy (ADME) announced it has extended its agreement with Trafigura for conditional financing of up to $120 million. Critical question here is can they actually find an acquisition that Trafigura will approve? Jersey Oil & Gas (JOG) announced a significant uplift in Buchan contingent resources. Whether they actually can attract industry partnership with this is another matter entirely.

Europa Oil & Gas (EOG) released its Annual General Meeting statement. It now has an “industry-leading position in the proven gas play of the Slyne Basin offshore Ireland and the Inezgane permit offshore Morocco which, in terms of size, is the equivalent of 50 blocks in the UK North Sea.” Advance Energy (ADV) announced interim results. The admission document relating to its proposed acquisition of an interest in the Buffalo Oil Field in Timor-Leste is awaited. Angus Energy (ANGS) announced an equity placing. It’s raising £1.5 million at 1p with warrants on a one-for-one basis.

Red Emperor Resources (RMP) announced its quarterly activities and cashflow report. A number of potential projects were considered during the quarter in the wider natural resources sector outside of oil and gas. Savannah Energy Plc (SAVE) announced guidance for full year 2021. It’s anticipating total revenues of greater than $205 million, administrative and operating costs of $55 million to $65 million, depreciation, depletion and amortisation of $19 million plus $2.60/boe, and capital expenditure of up to $65 million. Finally, Global Petroleum (GBP) announced an updated prospective resources estimate for PEL0094. Total unrisked net prospective resources (best estimate) attributable to GBP now total over 2.2 billion barrels.

More in the private blog, including my actual trading ideas. Further on that at Remember with your subscription, you’ll also receive a copy in electronic format of Understanding the London Speculative Markets & the Secrets of How to Profit From Them. I received an email from a new subscriber yesterday regarding it and to quote: “Jim! That read was the best thing I’ve ever read on small companies and oil companies. Thank you so much for sharing your wisdom and experience…” Subscribe to the private blog and you’ll receive your copy by return.

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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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