Challenges raising funds are now becoming apparent for lower calibre companies and managements. UK Oil & Gas (UKOG)’s recent open offer, aiming for £4.7 million, raised only £462,554, while Petro Matad (MATD) had to announce last week that it managed to raise only £76,000 of the $2 million hoped for. The $9.7 million previously raised by MATD through a 3.5p placing and subscription had already come at a terrible price to shareholders, with the shares apparently “pre-sold” by insiders all the way from 8.8p down. The price now is 2.9p.
The fun and games continue at Block Energy (BLOE), where a management previously unable to distinguish water from oil (that’s the innocent explanation) is trying to stop a shareholders’ resolution to commission an independent forensic investigation into the affairs of the company. Among other things, the shareholders are looking for failures to disclose information to the market in a timely manner and inappropriate trading of shares by directors during close periods or otherwise. The general meeting called to consider this resolution is scheduled for Wednesday and the outcome is awaited with some interest. BLOE is one which I’ve been warning about for some time (see previous Sunday blog issues back to 2019).
More positive news from 88 Energy (88E $EEENF), which announced it was strengthening its board and management with the appointments of Philip Byrne, Joanne Kendrick and Robert Benkovic, and updated on its 100% owned Umiat oil field. Further studies conducted in conjunction with the Merlin-1 post well testing and analysis have identified additional upside at Umiat and the BLM has approved deferring the Year 2 well commitment by 24 months to 31 August 2023, allowing for optimisation of the full field development plan, including evaluation of potential synergies with Project Peregrine. In the meantime, full results from the Merlin-1 post well testing programme are expected imminently. 88 Energy has been covered in the private blog from the 0.40s and reached a high of 4.7p in March. It’s now 2.4375p.
Caspian Sunrise (CASP) is starting to pull it all together and announced a strategic, financial and operational update on Friday. The past few years have been difficult, but it appears to the company that it has now turned the corner both operationally and financially. Production from the BNG contract area is currently running at the rate of 1,950 bopd, including a contribution from New Well 154 of approximately 700 bopd. Perhaps of most significance, the Oraziman family have agreed to convert their entire debt of approximately $6.2 million into CASP shares to be issued at a price of 3.2p per share.
IOG (IOG) announced the spudding of the Blythe development well. Following Elgood, this is the second development well in IOG's Phase 1 project and is expected to take less than three months to drill and complete, after which the rig will move on to Southwark. The aim is first gas in the fourth quarter. More on IOG in the private blog.
Orcadian Energy (ORCA) announced it has licensed a 3D seismic dataset, covering the Pilot and Blakeney discoveries plus the Bowhead prospect within block 21/27. The dataset was shot during 2011 and 2012 and was reprocessed to focus on the Tay discoveries and prospects during 2018 and 2019. Orcadian has courted controversy since its admission to trading on AIM a few weeks ago, taking the unusual step of publicly questioning the valuation of another quoted company, the much promoted - and much shorted - ReconAfrica ($RECO.V $RECAF), following which ORCA CEO Steve Brown found himself being “exposed” by Channel 4 News for saying the climate emergency is fake in now deleted tweets from his personal account. Meanwhile, the company’s own Twitter account carries on in its somewhat different style.
President Energy (PPC) announced an operations update. There’s plenty going on at the company now, with possibly the most interesting activities being the Paraguay farm-out and the Atome spin off / listing. Meanwhile, the drilling programme at Puesto Guardian is starting in October, targeting initial projected new production of around 750 bopd with, President claims, no material increases in infrastructure or operating costs, thus giving significant benefit to the bottom line. More on PPC in the private blog.
Finally, Europa Oil & Gas (EOG) announced the formal launch of the farm-out initiative of what it calls its high-impact exploration opportunity, the Inezgane permit, offshore Morocco, awarded to the Company in 2019. EOG holds a 75% interest in, and operatorship of, the 11,228 sq. km. licence, with Morocco's ONHYM holding the remaining 25%. Total mean resources are estimated by the company to be in excess of two billion barrels. Let’s see if anyone’s interested.
In the private blog this evening, CHAR ADV LBE DELT AEX IOG 88E EEENF PRD TRP PVR LOGP PPC BOIL and EME (but please note that commentary on all of these is not necessarily positive). More 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.