Proactive weekly Oil & Gas highlights: SDX, Bahamas Petroleum, i3, 88 Energy, Columbus, Tower Resour
SDX Energy Plc (LON:SDX) has kicked off the drilling of the Salah (SD-6X) well at the South Disouq project in Egypt. The well will be drilled down to a depth of 9,000 feet and it is expected to complete in late March or early April.
The well is targeting an estimated 71bn cubic feet of gas. Its primary targets are in the Kafr el Sheikh and Abu Madi formations, which are already producing in other areas of South Disouq. Salah will be followed by the Sobhi (SD-12X) well, targeting 33bn cubic feet in the Kafr el Sheikh formation.
“Salah and Sohbi are very exciting wells for the company with the potential to more than double the reserves to be processed through the South Disouq gas processing facilities,” said Mark Reid, SDX chief executive.
“We now have three rigs drilling simultaneously in Egypt and Morocco and I look forward to providing further updates on these campaigns in due course.”
Explorer Bahamas Petroleum Company PLC (LON:BPC) confirmed it has now closed the initial subscriptions into its new Bahamian mutual fund, receiving around US$914,000 (circa £700,000). The fund was set up exclusively to enable investors in the Bahamas to invest in the company’s exploration campaign in the islands.
i3 Energy Plc (LON:i3E) shares pushed higher on Thursday after the explorer issued a corporate update confirming “good progress” with its North Sea farm-out efforts and also its intention to establish a secondary stock market listing.
“The company is making good progress in its farm-out process to fund a 2020 appraisal drilling program on its assets in Blocks 13/23c in the UK North Sea,” i3E said in the statement. “The data room is now open and companies are actively evaluating the opportunity. i3 will update the market as discussions progress,” it added.
The group also said it is “planning to list its shares on a secondary exchange”.
Alaska focussed firm 88 Energy Limited (LON:88E) told investors it expects that the Charlie-1 well will spud in late February. A permit to drill was awarded yesterday for the well and now all necessary permits are in hand.
Preparations for the well programme continue on Alaska’s North Slope with the ice road now more than 80% complete and rig mobilisation anticipated in around 10 days. “Excellent progress has been made on the ice road construction, despite extremely cold temperatures,” said Dave Wall, 88 Energy managing director.
In Trinidad, Columbus Energy Resources PLC (LON:CERP) has told investors it will update on the Saffron well’s results “as testing progresses”. Well testing began in early February, assessing the Lower Cruse reservoir, and previous logging confirmed the Middle Cruse reservoir as a valid secondary target for testing.
Responding to investor queries, Columbus today published a corporate update via a stock market statement. “Given the time it has taken to drill and test the Saffron well, a number of investors have asked for a corporate update,” said Leo Koot, Columbus executive chairman.
Tower Resources PLC’s (LON:TRP) well site survey is now complete at the Thali licence, offshore Cameroon. The Geoquip Marine survey vessel MV Investigator completed the survey of the NJOM-3 well site and, whilst analysis is underway, initial findings have led the company to state that the data is “consistent and in line with pre-survey expectations.”
Tower is expecting to finalise its drill schedule later this month for the NJOM-3 well.
Providence Resources PLC (LON:PVR) confirmed it is unwinding the Chinese partnership at the Barryroe field and it is undertaking a new farm-out process. The main focus is to advance the appraisal of the Barryroe field, to answer key uncertainties about the reservoir and bring the project closer to development.
Presently, Providence has sufficient working capital to last until late March or early April, and, new funding options are now being explored.
“With the farm-out process continuing the company confirms that additional funds will be required to provide sufficient working capital to support the business in the near term and the board is currently considering its funding options,” Providence said in a stock market statement.
On Thursday, Curzon Energy PLC (LON:CZN) has told investors that YA Global has sold debt in the company to a third party, C4 Energy, meanwhile, its management continues efforts for a refinancing and is potentially seeking interests outside of the energy sector.
The company noted that balance of the loan sold by YA is US$200,000 with around US$32,000 of accrued interest. Separately, the company said it is in talks with holders of £200,000 of secured loan notes and expects to reach a refinancing agreement in due course.
Looking at the “focus of the company”, Curzon has decided to expand its scope. The directors have identified a number of attractive opportunities available for Curzon to potentially participate in,” the company said.
Mosman Oil and Gas Limited (LON:MSMN) said it has decided to narrow its focus and prioritise the Stanley project and similar assets in Texas.
The AIM-quoted oil junior also announced plans to raise £300,000 of new funds through a share placing to support this revised strategy. The placing price wlll be at 0.15p per share, with investors also receiving one warrant to subscribe for further new ordinary shares at an exercise price of 0.23p with a term of 12 months.
The group also revealed that, in due course, it will seek to exit and sell its interests in the Welch and Arkoma projects. At Stanley, Mosman said it is anticipated that periodic well workovers and recompletions can increase production and cash-flow from existing wells.
New drilling is expected to start in February, with the Stanley-4 well, followed by the Stanley-5 well in the second quarter. Meanwhile, preparations are also being made for drilling at the Falcon and Galaxie projects, which are slated for the second half of 2020.
Cadogan Petroleum Plc (LON:CAD) reported that net production grew by 15% in 2019, even after a 30-day shut down for certain operations during the fourth quarter. Net production came in at 288 boepd for the year, representing a 15% increase from 2018 and an 89% rise on 2017.
The Blazhiv oil field (previously referred to as the Monastyrestka license) was down for 30 days across November and December – and the Blazhiv-3 and Blazhiv-Monastyrets-3 wells are shutdown due to the expiry of leases.
Lease extensions are presently being negotiated, the company noted.