As expected, UK Oil & Gas (UKOG) announced its placing. £2.2 million at 0.16p “funding initial Turkey operations.” How well this sits with its stated aim of “increased energy security for this country” is a matter for the company’s shareholders, most of whom bought in precisely because of that objective. It’s not really that clever a move. Of course, it might never happen and as they state further down the RNS, “in the unexpected event that the PA and JOA are not entered into, the company will deploy the proceeds of the placing for working capital” (i.e. directors' salaries).
Bahamas Petroleum Company (BPC) announced a £9.5 million placing at 2p. Unfortunately, the eight figure balance required to fund the Perseverance #1 drill will have to come from convertible loan note financing, which is usually the kiss of death for a company’s share price. Most likely there will be trading opportunities along the way, but holding for the well result would be risky, since this drill has quite a low chance of success.
As a side note, if either of these placings took you by surprise, I’d suggest the Special Trading Course, which explains exactly how these small cap markets really work and how you can spot what’s going on at these companies in advance. The link for that is https://www.oilnewslondon.com/course
Lansdowne Oil & Gas (LOGP) and Providence Resources (PVR) announced interim results, which also commented on their principal asset, Barryroe, which they say is is one of the largest undeveloped offshore oil and gas fields in Europe. They’re continuing to finalise the work programme and commercial agreements with a view to concluding a binding farm-out agreement during the period of exclusivity ending 31 October. The issue here, of course, is funding and how much they will be carried for. Discussions with the “consortium of world class services companies” concern deferring a portion of their normal fees into the production phase of the project.
In terms of significant announcements, that’s it for the week. In other news, Falcon Oil & Gas (FOG) announced a technical update of Kyalla 117 N2-1H ST2 (early stage gas flow rates are expected in the coming weeks), Zenith Energy (ZEN) announced preliminary unaudited annual financial results (loss of C$8,439,000), Aminex (AEX) announced its half-yearly report (loss of $1,151,000), Savannah Energy (SAVE) announced its half-year results (profit before tax of $1,224,000), Tower Resources (TRP) announced interim results (loss of $457,687), Mosman Oil & Gas (MSMN) announced an update on Falcon and Stanley Drilling (the production number perhaps should be taken with a pinch of salt), Block Energy (BLOE) announced interim results (loss of $2,668,000), PetroTal (PTAL) announced the recommencement of oil production at the Bretana field (how long now until the next problem?), Victoria Oil & Gas (VOG) announced audited final results (loss of $110,280,000), Solo Oil (SOLO) announced unaudited interim results (loss of £1,270,000), Predator Oil & Gas (PRD) announced interim results (loss of £784,156), ADM Energy (ADME) announced half-yearly results (loss of £975,000), Echo Energy (ECHO) announced its half-year report (loss of $5,747,099), Enwell Energy (ENW) announced a legal dispute update (its appeal in respect of the Arkona acquisition was successful), Zoltav Resources (ZOL) announced final results (loss of 3,124,063,000 Russian roubles), United Oil & Gas (UOG) announced its interim financial statement (loss of $339,765), Jersey Oil & Gas (JOG) announced interim results (loss of £1,168,529), Chariot Oil & Gas (CHAR) announced first-half results (loss of $68,840,000) and Lekoil (LEK) announced that it is in discussions with Optimum regarding a deferment of the payment due on 30 September of $2,000,000.
If you’re interested in more, in particular my actual trading ideas, try out the private blog at https://www.oilnewslondon.com/oilman-jim
Contact me on Twitter @Oilman_Jim
Click “SUBSCRIBE” to receive these blog posts by email
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.