Oilman Jim1 Oct 2023 12:28
Just reading through his weekly free email and quite a few sounds are due in the first half of the year.
These are;
Union Jack Oil (UJO) announced an update. The Environment Agency has issued the variation of the permit for the West Newton B wellsite, which allows for the use of oil-based fluids within the Permian formation, which will be a key factor in enhancing flow rates. Plans for the proposed horizontal well from the West Newton B site are underway and commencement of operations is targeted for the first half of next year. The Competent Person's Report on West Newton, in which UJO holds a 16.665% economic interest, indicated gross 2C unrisked technically recoverable resources of 197.6 billion cubic feet of sales gas, with an estimated 85.5% geological chance of success. Union Jack is fully funded for its share of the drilling and testing of the horizontal well.
Reabold Resources (RBD), which also holds a 16.665% interest in the West Newton licence, says its balance sheet has sufficient funding for its direct share of the planned drilling on the licence and that the company will also support the operator, Rathlin, in exploring funding options for its 66.67% interest to enable the drilling of this well. Reabold says it may be in a position to provide additional funding to Rathlin following receipt of the second tranche payment from Shell relating to the sale of the Victory asset. RBD holds a 59% shareholding in Rathlin, giving it an effective c.56% economic interest in West Newton. Current market capitalisations are £23 million for UJO and £9 million for RBD; both have other assets.
Baron Oil (BOIL) announced its interim report. The priority is to prepare for the drilling and testing of an appraisal well on the Chuditch-1 gas discovery (75% BOIL interest), where success would prove up the commerciality of the 1,165 billion cubic feet of gross Pmean contingent gas resources in the field and de-risk an additional 1,651 billion cubic feet of gross Pmean prospective gas resources. The company says that ongoing discussions with potential funding partners provide additional affirmation that the technical case is robust. In anticipation of the proposed drilling of an appraisal well, Baron is in discussions with various contractors and is assessing the availability of suitable rigs, equipment and personnel. Additionally, BOIL has a 32% interest in Dunrobin (RBD above owns 36% and Upland Resources (UPL) 32%), which has a drillable prospect where it is claimed a relatively low-cost exploration well can target more than 100 million barrels of gross Pmean prospective oil resources with modest geological risk. A new seismic programme is planned during the first half of next year aimed primarily at further reducing pre-drill risks and on completion of this work, the partners intend to re-engage with potentially interested third parties in respect of the drilling of an exploration well. Current market capitalisation of BOIL is £17 million.
T
Sign In
Follow the stocks
