Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
North Kelsey Further Acquisition and Alignment of Interests in PEDL241
Union Jack Oil plc (AIM: UJO), a UK focused onshore hydrocarbon production, development and exploration company is pleased to announce a further 30% acquisition of PEDL241, containing the conventional, drill-ready, North Kelsey Prospect, the alignment of our equity interests in that licence with Egdon Resources U.K Limited (the "Operator") and to jointly pursue a farmout for the drilling of the North Kelsey-1 exploration well.
North Kelsey is a conventional oil prospect along trend from and analogous to the Wressle oil development, which lies approximately 15 kilometres to the northwest. The prospect has been mapped from 3-Dimensional seismic data and has the potential for oil in up to four stacked conventional Carboniferous reservoir targets. The Operator estimates that the Prospective Resources range from 4.66 million barrels up to 8.47 million barrels of oil, with a Mean Resource volume of 6.47 million barrels.
In September 2020, the existing planning consent for drilling North Kelsey-1 was extended to 31 December 2021 by the Lincoln County Council. Requisite permits for drilling have also been received from the Environment Agency.
Under the terms of the agreement Union Jack will acquire an additional 30% interest in the licence for a cash consideration of £100,000. Previous financial farm-in obligations in respect of the 20% interest in PEDL241 already held by Union Jack will lapse. Further financial obligations will be equally carried on a 50/50 basis by Union Jack and the Operator. The transaction is subject to Oil and Gas Authority consent.
Upon completion of the acquisition the interests held in PEDL241 will be as follows:
Company Previous Interest New Interest
Union Jack Oil plc 20% 50%
Egdon Resources U.K. Limited (Operator) 80% 50%
David Bramhill, Executive Chairman of Union Jack Oil plc commented: "North Kelsey is a low cost, drill-ready onshore acquisition for Union Jack in our focus area, consistent with our strategy.
"The increase in our interest to 50% increases our exposure to this potentially value adding project and expands our balanced drilling and development portfolio.
"North Kelsey sits within our focus areas of the East Midlands, Humber Basin and East Yorkshire and is on trend with our Wressle oil development project which is on-track to produce first oil later this quarter.
"The acquisition of this additional 30% interest has been executed on attractive terms without any promote and will also deliver additional savings by removing our previous farm-in carry obligations.
"Subject to a successful farm-out
Loxley gas project: Xodus volumetric study confirms significant gas resource
UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that a report from Xodus Group details that the area of the Loxley Portland gas discovery lying within its 100% owned and operated PEDL234 licence, is interpreted to contain a significant mean case gross gas initially in place ("GIIP" i.e. gas in the ground before any future production) of 49 billion cubic feet ("bcf"). The portion of GIIP estimated to be recoverable to surface via any future production, the mean gross recoverable resource, is cited as 34 bcf, representing an estimated recovery factor of approximately 70%.
Reported high case net PEDL234 GIIP and estimated high case recoverable resources are 76 bcf and 54 bcf, respectively.
As shown in Tables 1 and 2 below, approximately 78% of the overall Loxley gas accumulation's gross mean GIIP and recoverable gas resource of 63 bcf and 44 bcf respectively, are interpreted to lie within the Company's PEDL234 acreage.
In terms of recoverable gas resources, the calculated figures places Loxley as one of the largest gas accumulations discovered and flow tested in the UK onshore. If proven by future production, the calculated gross mean recoverable resources would place Loxley second after the Saltfleetby gas field, the UK onshore's largest gas field to date, which produced approximately 73 bcf.
These results further underline the Company's view that the 48 km² Loxley geological structure contains materially significant gas volumes, which in a success case of around 4-5 bcf/year, on an energy equivalent basis, could have the capacity to power around 200,000 homes per year.
In the event that planning consent for the Company's appraisal and long-term testing programme is granted (see planning consent status below), and Covid-19 permitting, the Company seeks to drill the Loxley-1 well in the second half of 2021.
Q and A platform now open to take your questions to the Sound team : yoursoundenergy.com/app/panel/qa Any issues registering or logging in please e-mail: questions@soundenergyplc.com or s.dees@soundenergyplc.com. Questions will close on 25 September #LNG
The Company confirms that GSA negotiations continue and announces that it is in the process of agreeing a further amendment to the MOU with ONEE in order to extend the period for negotiations of the final GSA to 30 June 2020 (the "Amendment").
Whilst the Amendment has been agreed in principle, COVID-19 related travel restrictions have meant that it has not yet been possible for the parties to enter into the Amendment and, as a result, the parties intend to enter into the Amendment as soon as is practicable.
LNG Heads of Terms with Leading Moroccan Energy Group
Sound Energy, the Moroccan focused upstream gas company, is pleased to provide the following update in relation to the Company's micro liquified natural gas ("mLNG") phase 1 development plan for the TE-5 Horst development (the "Phase 1 Development") at the Tendrara Production Concession (the "Concession"). This is being pursued alongside the phase 2 full field development plan centred around the development of a 120 km pipeline and central processing facility (the "Phase 2 Development").
Signature of Heads of Terms and Grant of Exclusivity
The Company is pleased to announce that, on 26 June 2020, heads of terms (the "HOT") were entered into with a Moroccan conglomerate (the "Partner") with significant liquified petroleum gas, butane and propane distribution and marketing operations in Morocco, pursuant to which the Company has now entered into exclusive discussions with the Partner ("Exclusivity") in order to enter into agreements for both the purchase of LNG to be produced from the TE-5 Horst development, as well as the partial financing of the Phase 1 Development by the Partner (the "Proposed Transaction").
Exclusivity has been granted to the Partner in relation to the Proposed Transaction until 31 December 2020 (the "Term"). In this context, the Company and its Partner have agreed to use their reasonable endeavours to conclude the Proposed Transaction on the basis of key commercial terms set out in the HOT.
HOT - LNG Gas Sales Agreement
Under the HOT, the parties have agreed to use their reasonable endeavours to negotiate and enter into a gas sales agreement (the "Proposed GSA") pursuant to which Sound Energy Morocco East Limited, on behalf of the Concession joint venture partners, will commit, over a period of 10 years from first gas from the Concession, to produce, process, liquefy and sell to the Partner an annual contractual quantity of 100 million standard cubic metres of gas (approximately 4 billion standard cubic feet of gas per year) from the Phase 1 Development, and the Partner will commit to an annual minimum "Take or Pay" quantity of 90 million standard cubic meters of gas, priced within a range of $7 to $9 per mmBTU with an indexed formula using a combination of the European Title Transfer Facility and United States Henry Hub benchmark indexes.
Proposed Partner Project Funding
In order to accelerate the delivery of first gas under the Phase 1 Development Plan, the Partner has also agreed under the HOT to use reasonable endeavours to conclude definitive agreements in respect of a proposed partial financing for the development ("Proposed Partner Financing") through:
· a £2 million subscription by the Partner for 159,731,651 new Sound Energy ordinary shares at a price of 1.2521 pence per new ordinary share, and
· a secured commercial loan of $13.5 million provided by the Partner to the Company in respect of the Phase 1 Development
June 2020
Sound Energy plc
("Sound Energy" or the "Company")
LNG Heads of Terms with Leading Moroccan Energy Group
Sound Energy, the Moroccan focused upstream gas company, is pleased to provide the following update in relation to the Company's micro liquified natural gas ("mLNG") phase 1 development plan for the TE-5 Horst development (the "Phase 1 Development") at the Tendrara Production Concession (the "Concession"). This is being pursued alongside the phase 2 full field development plan centred around the development of a 120 km pipeline and central processing facility (the "Phase 2 Development").
Signature of Heads of Terms and Grant of Exclusivity
The Company announced on 30 October 2019 that it had, in relation to ongoing negotiations in respect of a Gas Sales Agreement for the sale of natural gas production in the Tendrara concession in Eastern Morocco (the "GSA"), entered into a binding memorandum of understanding (the "MOU") with Morocco's Office National de l'Electricité et de l'Eau Potable ("ONEE"), the state power company of Morocco, on behalf of its partners, including Morocco's L'office National des Hydrocarbures et des Mines.
Under the MOU, as amended in January 2020, the parties have agreed to use their reasonable endeavours to continue negotiations with a view to entering into a binding GSA, incorporating the key terms of the MOU announced on 30 October 2019 and construed under Moroccan law, prior to the 31 March 2020.
The Company confirms that GSA negotiations continue and announces that it is in the process of agreeing a further amendment to the MOU with ONEE in order to extend the period for negotiations of the final GSA to 30 June 2020 (the "Amendment").
Whilst the Amendment has been agreed in principle, COVID-19 related travel restrictions have meant that it has not yet been possible for the parties to enter into the Amendment and, as a result, the parties intend to enter into the Amendment as soon as is practicable.
Further announcements will be made, as appropriate, in due course.
Given the sensitivities around the marketing process, we have tweaked our FSC process. The platform is now open for questions and will remain open until midday tomorrow (Tuesday 11th June). The team will commence responding from midday Tuesday onwards and answers will be posted during the course of the afternoon.
Europa Oil & Gas (Holdings) plc, the UK and Ireland focused oil and gas exploration, development and production company, announces that it has been notified by the Head of Estates at the Forestry Commission that the Minister for the Environment, Food and Rural Affairs, has decided not to renew the lease at Bury Hill Wood, Coldharbour Lane, Surrey. Bury Hill Wood is the proposed site for a temporary exploration well to test the conventional Holmwood prospect on licence PEDL 143 in the Weald Basin, Surrey. The lease expires 12th September 2018.
Following the Minister's decision, the Company, on behalf of its partners, will be withdrawing its planning application to drill the Holmwood prospect from the Bury Hill Wood site.
The PEDL 143 licence remains valid and the Company, with its partners, intends to undertake a full evaluation of alternative sites from which to target the Holmwood prospect, and other plays in the basin. Europa Oil & Gas Limited is operator of PEDL 143 with a 20% interest..."
David Bramhill, Executive Chairman of Union Jack, commented:
"The potential consequences of the Minister's decision are minimal for Union Jack as it holds a balanced portfolio of ten attractive onshore licence interests in the UK, including producing assets at Keddington and Fiskerton, a development project at Wressle and a planned well at Biscathorpe to be drilled during October/November 2018."