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OGV Energy week 37 review

OGV Energy week 37 review

 

Hurricane Energy PLC halved in value during Friday’s early deals after it reported a US$307.7mln loss for the first half of 2020, including a US$238.9mln impairment against the Lancaster oil field.

Production from the Lancaster early production system (EPS) averaged 14,600 barrels of oil per day (bopd) leading to US$81.9mln of revenue and operating cash flow of US$21.9mln.

It comes after Hurricane last month warned it will be forced to take a material downgrade to its oil resources across its West of Shetland projects, following a worse than expected performance at the Lancaster EPS.

88 Energy Limited shares jumped higher on Friday as the firm reported the findings of final petrophysical analysis of the Charlie-1 well exploration, revealing greater hydrocarbon pay than previously estimated.

According to 88 Energy, the well’s net pay is significantly increased by the additional work and the largest additional contribution was in the Lima discoveries which are in the Seabee formation. The new analysis follows Premier Oil’s exit from the venture.

The Upper Lima section is now estimated to have some 250 feet of net pay, versus initial estimates of just 8 feet, whilst the Lower Lima section is now seen to span 111 feet of net pay compared to the earlier estimate of 64 feet.

Union Jack Oil PLC on Thursday responded to market to market speculation that it is considering raising funds.

In a statement, Union Jack said it is funded for drilling at West Newton and for the associated extended well test activity, and to first oil production at the Wressle development expected in final quarter of 2020. “It is intended that the proceeds of any such fundraising will principally be used to continue to fund the company's flagship and other projects, and additional opportunities.”

Cadogan Petroleum PLC’s interim results confirmed a solid balance sheet and robust, cash-generative operations in Ukraine, despite a number of shut-ins and suspensions, in its interim results. The group ended June, 2020, with US$11.6mln of cash, which it confirmed is sufficient to continue operations for the foreseeable future.

Production for the six month period averaged 230 barrels of oil per day (bopd), down from 297 bopd in the comparative period last year due to the Blazhiv-3 and Blazhiv-Monastyrets-3 wells being offline for over five months.

Mosman Oil and Gas Limited confirmed that the Stanley-4 drill programme is underway. The well was spudded on September 4 and the last reported depth was 2,980 feet, towards a target depth of 5,100 feet.

At the Stanley-1 well, meanwhile, a new workover rig will be deployed after the first rig and crew did not meet the operator's stipulated criteria. The drilling rig is due to arrive at the Falcon-1 well site in the next few days, drilling is slated to start next week and complete later this month.

On Wednesday, I3 Energy PLC chief executive Majid Shafiq described 2020 as a transformational year for the company.

“We are now a substantial production company with a full cycle E&P portfolio containing multiple options to create and return value to our shareholders,” Shafiq said in the firm's interim results statement. “We will continue our efforts in the remainder of 2020 and beyond to grow our production business and build the scale required to efficiently and effectively maximise and sustain value creation."

Chariot Oil & Gas Limited has announced a significant increase in resources at the Anchois gas project, offshore Morocco. Total remaining recoverable gas resources now exceed 1 trillion cubic feet, after increasing 148%.

The new resource, estimated by consultant Netherland Sewell & Associates, comprises 361bn cubic feet of contingent resources for development and a further 690bn cubic feet of prospective resources.

Moreover, the company highlighted three low-risk prospective targets - C, M and O sands - that can be drilled at low cost. The resource upgrade comes following the receipt of reprocessed 3D seismic data across the Lixus Offshore Licence, which is host to the Anchois project.

Read the latest issue of the OGV Energy magazine HERE.

Published: 12-09-2020

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