Touchstone Exploration Inc’s (LON:TXP) this week had its Cascadura project confirmed as a significant discovery in a new independent reserves report. Consultant GLJ Ltd has estimated Cascadura hosts between 241.2 and 571.5 billion cubic feet of discovered natural gas in place, with the ‘best’ estimate pitched at 398.5bn.
“We are delighted to report that the independent reserves report verifies the material size of the reserves yet to be produced in the Cascadura structure and provides the groundwork for a multi-year future onshore development program in Trinidad,” Paul Baay, Touchstone chief executive said in a statement
GLJ gives the project some 73,19mln barrels of oil equivalent (boe) reserves in the 3P (proved, probable, possible) category, with 2P (proved and probable) reserves set at 45.03mln boe and there’s 23.62 boe of proved reserves. The reserves are valued by GLJ in a range between US$802.9mln and US$287.7mln, with 2P reserves valued at US$519.2mln.
Moreover, the consultant estimates net peak production of 22,600 boe per day in the upside, 3P, case with the volume estimated at 15,108 boepd based on the 2P number.
UK Oil & Gas PLC (LON:UKOG) shares advanced in Thursday’s deals after the company inked a deal to partner in a Turkish project. An agreement with Aladdin Middle East sees UKOG take a 50% non-operated interest in the Resan Licence where a 5 well programme is planned.
UKOG said it is set to play an active technical role in the programme which is expected to start this year depending upon weather and impacts of the pandemic. The project is host to the undeveloped Basur oil discovery and the Resan “missed” oil pay opportunity.
In June 2020, a report by consultant Xodus Group estimated that the project contained 253mln barrel oil in place, and a ‘high case’ view estimates up to 495mln barrels. Moreover, UKOG said its own internal evaluation sees upside resource potential than is currently identified by Xodus.
Chariot Oil & Gas Limited (LON:CHAR) chief executive Larry Bottomley stepped down from his position and will leave the company with immediate effect.
Adonis Pouroulis, a non-executive director and a founder of the business, will become acting chief executive and the management team will be strengthened with chief financial officer Julian Maurice-Williams and exploration director Duncan Wallace joining the board with immediate effect.
The company noted that it has a strong cash position, with around US$9.6mln in the bank and no asset commitments, and, given the current lack of market appetite for exploration activity, it plans to evaluate other opportunities.
Meanwhile, Chariot said it remains committed to maximising the value of the Anchois discovery – a ‘low risk’ field development in the Lixus licence offshore Morocco – and it remains in active farm-out processes for its assets.
Onshore Lincolnshire, the 30%-owned Wressle project is due to begin production during the second half of this year and it will deliver some 500 barrels oil equivalent per day (boepd) of gross production. It will mean that Europa’s net UK onshore production will double to over 200 boepd.
Significantly, Europa highlighted that with a US$17 per barrel breakeven Wressle promises to be very profitable at current oil prices of over US$40 per barrel.
88 Energy Ltd’s (LON:88E) quarterly activities report, released on Tuesday, highlighted the group’s takeover of XCD Energy PLC (LON:XCD). In the report, which is regulatory in nature, the Alaska explorer detailed the soon-to-complete takeover among the features of the period ended June 30, 2020, along with April’s end to the Charlie exploration well – which was plugged and abandoned.
88 Energy is combining with Alaska exploration peer XCD to expand its footprint and prospect inventory. In early July the transaction was set to go to compulsory acquisition as a key shareholder acceptance threshold was passed.
Mosman Oil And Gas Ltd (LON:MSMN) has told investors that net production for the six months ended June 30, 2020, amounted to 9,890 barrels of oil equivalent (boe). It marked a reduction from 13,253 boe in the preceding six month period as the 2020 performance was impacted by the coronavirus (COVID-19) pandemic.
“The current pandemic and the oil price fluctuations have all resulted in Mosman and the operator of projects focusing their attention and operations on cashflow and costs rather than maximizing production,” John Barr, Mosman chairman said in the production summary.
JKX Oil & Gas PLC (LON:JKX) was granted a new special permit for the Zaplavska field, extending the licence for 20 years. Prior to extension the permit, which spans 173 square kilometres, was valid until 2019. JKX in a statement noted that it has completed 2D and 3D seismic surveys and drilled five exploration wells within the licence to date.
On Monday, Canadian Overseas Petroleum Limited (LON:COP) (CSE:XOP) said it has raised £1.3mln in a share placing and has also reached a ‘debt exchange’ agreement with creditors. The placing investors comprise two institutions and two high net worth investors. Some 621mln new shares will be issued, at a price of 0.3p each.
In the proposed ‘debt exchange’ transaction, the company will issue around 411mln new shares as settlement of debts to unsecured creditors, along with accrued payments due to employees and management.
It is expected that the moves will improve the company’s working capital position as it works to conclude definitive agreements for the OPL 226 project in Nigeria.