Zephyr Energy PLC (LON:ZPHR) updated investors on its analysis of the State 16-2 well results which include positive indications of stacked, continuous oil and gas plays. The well, drilled in the Paradox Basin, Utah, USA, penetrated a total of 21 clastic reservoirs within the Paradox formation, and hydrocarbon saturation is indicated across most of them, Zephyr noted.
It added that substantial drilling gas shows were observed across five of the reservoirs including the primary target, Cane Creek. Robust drilling gas shows were observed across a further ten of the reservoirs.
88 Energy Ltd (LON:88E) shares were boosted as field operations for the Merlin exploration well are expected to get underway in Alaska in the next few days. It followed regulatory uncertainty amidst changes to the permitting for oil and gas projects in the United States, following the inauguration of Joe Biden as America’s new president.
Nonetheless, the company in a statement last night said that the Alaska branch of the Bureau of Land Management (BLM) is currently reviewing the company’s permit to drill and the authority has indicated that it is now very close to being complete with only minor outstanding items
The company’s chairman made the comments as the group relayed details from a new technical presentation about the results of the West Newton B-1 and B-1Z appraisal wells. It noted that the presentation gave new significant technical data that is material to the ongoing commercial evaluation of the West Newton project.
It told investors that the partners in the Tawke fields have received US$43.1mln gross, with Genel’s net share amounting to US$10.5mln. For the Sarta field the gross payment was US$2,9mln, Genel’s share is US$1.4mln.
The company said it plans to reduce gross general and administrative costs by 30% this year plus by a further 25%-30% next year. It aims to lower these costs to below GBP1mln per year, which would equate to a 75% reduction since 2018.
The company noted that its ‘Smarter Asset Management’ programme continued to offset natural declines within the portfolio. It also pointed out that operating expenses were marked at US$5.58 per barrel, whilst total cash costs equated to US$6.93 per barrel. A robust hedging portfolio, meanwhile, provides the company with cash flow and dividend stability, the group added.
Looking ahead, DGOC highlighted an improved pricing outlook which it says is a constructive backdrop.
Mosman Oil and Gas Ltd (LON:MSMN) is a ‘buy’ and could more than double in value, that’s according to an initiation note by stockbroker SP Angel. The small-cap oiler bucked the trend of its peers in 2020 with a year of operational development, highlighted analyst Sam Wahab.
“Against a challenging market backdrop, the company successfully transitioned into a low cost, high margin producer, exiting the year with a transformed production profile,” Wahab said in a note.
Eco Atlantic Oil and Gas Ltd (LON:ECO) said it has launched plans that will see it become a “diversified, growth-oriented energy company”. The firm has set up a new company, Eco Atlantic Renewables, which will seek to source, acquire, and develop exclusive renewable solar energy projects.
The new company is a joint venture with Nepcoe Capital Partners, a UK based renewables investment firm, which is providing exclusive access to a pipeline of opportunities with potential for up to 2 gigawatts of solar generation capacity.
The venture’s first acquisition is the Kozani project in Greece which is fully licensed, permitted and ready-to-build. The 10.57 megawatt project was acquired on Monday, with EUR1.1mln paid by Eco Atlantic Renewables.
Eco Atlantic Renewables is initially funded by a US$6mln loan from Eco Atlantic Oil and Gas Ltd, which will retain 70% ownership of the new company
Tuesday saw Jersey Oil and Gas PLC (LON:JOG) released new and upgraded contingent resource estimates for the Buchan oil project in the North Sea. Following dynamic reservoir work conduced by Schlumberger the company has set P50 contingent technically recoverable resources of 126mln barrels of oil for the Buchan oil field, which will be the central part of the Greater Buchan Area (GBA) hub project.
It marks an improvement from a prior estimate of around 82mln barrels, and lifts the whole GBA inventory to 162mln barrels.
SDX Energy PLC (LON:SDX) set its 2021 production guidance at 5,620 to 5,920 barrels oil equivalent and said it plans to spend some US$25mln to US$26.5mln of capex. The Egpyt and Morocco focused firm noted that the production guidance range is slightly lower than the like-for-like run-rate last year.
The company noted that the Honourable Justice Petra Hanna-Adderley had exercised discretion to add BPC as a respondent to the application which is seeking a judicial review of various decisions taken by the Government in relation to Bahamas Petroleum’s licences and the drilling of the Perseverance #1 well.
As a result, Bahamas Petroleum will be entitled to request that the applicants provide security for costs, for which purpose a hearing has been scheduled for February 17, 2021.