Proactive weekly oil & gas highlights: Union Jack, Zephyr Energy, ADM Energy, IGas, TomCo, COPL, Del
David Bramhill, Union Jack’s executive chairman, said he was delighted with the outcome, which he said laid a platform for further development of the AIM-listed group.
On Thursday, Zephyr Energy PLC (LON:ZPHR) told investors it expects to see exciting developments for its Paradox basin project over the coming months.
At the end of June, the company had US$400,000 of cash and equivalents. It noted that cash conservation remains a key priority of the board. The company highlighted a strategy to grow the business through acquisition. It sees that strong financial returns can be generated from the highly fragmented smaller end of the US oil exploration and production sector.
ADM Energy PLC (LON:ADM) formally submitted a bid to the Nigerian Department of Petroleum Resources as part of the 2020 Marginal Field Bid Round. The licensing process has made up to 57 marginal field assets available for oil and gas companies to bid for.
It includes projects that are onshore, swamp and shallow offshore. ADM is participating in the process alongside partner OilBank International, with the partners previously pre-qualifying for the bid round.
The deal comprises an initial payment of GBP500,000, in IGas shares, and the value of transaction can rise tied to future milestone events up to a maximum of GBP12mln – and share-based payments will be capped so that GT’s sellers won’t take more than a 29.9% stake in IGAS.
The acquisition is part of a strategy to diversify IGas into the wider energy market whilst leveraging the core competencies it holds as an onshore oil and gas operator.
The report, authored by Valkor subsidiary Crosstrails Engineering, set out to confirm the technical feasibility of a 10,000 barrel of oil per day (bopd) operation, and make first estimates of capital and operating costs. According to TomCo, the report provides a high level of confidence in the project.
A financial results statement from Canadian Overseas Petroleum Limited (LON:COPL) (CSE:XOP) noted that its short-term operations are focused on funding, progressing existing interests in Nigeria and Mozambique, and the evaluation of new opportunities available in Africa.
The company said it is continuing its strategy to grow the business offshore, aimed at farm-ins or acquisition into exploration, undeveloped or producing assets.
On Tuesday, Deltic Energy PLC (LON:DELT) said its recent portfolio expansion, via the UK’s offshore licensing round, was “another major milestone” for the exploration company. The license awards, earlier this month, almost doubled Deltic’s footprint with the addition of six licences. Most of the new acreage is in the south North Sea region, where Deltic added four licences to now hold a total of ten licences.
This core area for Deltic now comprises over 2,733 square kilometres of contiguous licences, spanning from the exploration close to the Breagh gas field out to the Cupertino area near the Cygnus gas field.
Genel Energy PLC (LON:GENL) published its inaugural comprehensive sustainability report. It comes after the oil company, with operations in the Kurdistan region of northern Iraq, last week launched an effort to raise up to US$300mln in debt financing.
The bond launch aims to replace an existing bond that’s set to mature in December 2022. Genel is looking to issue a new five-year bond and it engaged Pareto Securities to organise a roadshow with international credit investors.
The company released its first comprehensive sustainability report alongside which it is also set to incorporate key environmental, social and governance (ESG) metrics into its key corporate performance indicators and remuneration evaluations.
And Mosman Oil and Gas Ltd (LON:MSMN) revealed its Stanley-4 well, in East Texas was drilled successfully. The group said the well, which was drilled down to a target depth of 5,000 feet, showed several zones of interest during drilling and subsequent logging identified several potential pay zones in the Yegua formation, at depths between 4,600 and 4,900 feet.
Stanley-4 will now undergo testing, and the company noted that flow rates will be reported when data is available.