Proactive Oil & Gas weekly round-up: Challenger Energy, United Oil & Gas, Mosman, Jersey, i3 Energy,
The well has so far been completed to a depth of 1,593 feet, on time and on budget, and has encountered the Upper Cruse and upper parts of the Middle Cruse formations. Logs for the sections are ‘as prognosed’ and consistent with comparable logs from Saffron-1, the company noted.
Drilling will now progress deeper to evaluate the deeper Middle Cruse, and then the Lower Cruse.
Earlier in the week, Challenger confirmed the appointment of Eytan Uliel as its new chief executive.
United Oil & Gas PLC’s (LON:UOG) Egyptian venture has been granted approval for a development lease to cover the ASD-1X discovery, part of the Abu Sennan Licence, which allows production operations to get underway.
Production starts from the ASD-1X well at an initial gross rate of 1,295 bopd, which is 285 bopd net to United. Meanwhile, a separate programme to workover the ASH-1ST2 well has also boosted production numbers, adding just over 1,000 bopd gross or 220 net to United.
Cenkos again nudged up its valuation for United Oil & Gas PLC (LON:UOG) as it marked an increase in production at the 22% owned Abu Sennan licence in Egypt, with analyst James Mccormack describing the update as “the latest in a continual flow of success” for the company.
Mosman Oil and Gas Ltd (LON:MSMN) has awarded a contract for an airborne gravity and gradiometry survey over the EP 145 area, in Australia’s Amadeus Basin. Data acquisition is planned for mid-June – subject to NT government approval, which was applied for in May – and it is seen as a significant step in the exploration programme.
The company noted that it will be the first time that data acquisition will be undertaken across the whole permit, and, it will be used to identify focus areas for future programmes including seismic and potentially drilling.
Jersey Oil and Gas PLC (LON:JOG) said it submitted a concept selection report to the UK Oil and Gas Authority, marking a significant milestone in delivering maximum value from the Greater Buchan Area (GBA) development project in the North Sea.
GBA is planned as a ‘net-zero’ solution – with emissions estimated to be less than 1kg of CO2 per barrel of oil equivalent of production, which is substantially below the North Sea average of 22kg per barrel. The submission of the concept selection report represents a “significant milestone for JOG in our journey to deliver maximum value from the Greater Buchan Area,” said Andrew Benitz.
WH Ireland sees huge upside to the Jersey share price as the stockbroker looks to a possible farm-out deal that will propel forward the Greater Buchan Area (GBA) oil field project in the North Sea. In a note WH Ireland, which acts as broker to Jersey, said it believes the company is progressing the GBA project apace towards first oil by late 2025.
i3 Energy PLC (LON:I3E, TSX:ITE) agreed to acquire a further 49.5% interest in the South Simonette oil property in Canada, doubling its stake to 99%. It is acquiring the stake from Anegada Oil Corp through a right of first refusal, and it will pay US$4.2mln along with US$580,000 to cover the costs of reactivating two suspended wells, with work slated for July.
The deal is expected to add 720 barrels of oil equivalent per day (boepd) of production, adding US$5.2mln of cashflow, following the July programme. It doubles the company’s working interest in more than 70 potential development well locations across the South Simonette property.
Net production at South Simonette currently measures around 825 boepd, i3 noted, meanwhile, to the north the company has modelled a possible 38-well development which could yield 10,000 boepd.
TomCo Energy PLC’s (LON:TOM) Greenfield Energy joint venture has now received a draft front-end engineering and design (FEED) study for its oil sands project in Utah. The study included test data for a number of items of additional equipment that could be utilised in a potential future commercial scale plant, plus other points of potential optimisation. It is expected that the FEED study will be finalised after a review, including, third-party verification, which anticipated by early July 2021.
TomCo also highlighted that following the recent resumption of operations at the POSP (Petroteq Energy’s oil sands plant) it is expected that the target production rate, 250 barrels per day, will be reached shortly.