Jersey Oil and Gas PLC, SDX Energy PLC, Black Bear Energy Resources Plc, Tower
It was an eventful week in the oil and gas sector.
Jersey Oil and Gas PLC (LON:JOG) on Wednesday reported key findings from a concept selection report for the proposed Greater Buchan Area project, in the North Sea, highlighting the potential for 172mln barrels of oil resources to be developed from a fully electrified platform.
It said the project could deliver low carbon intensity by using this type of platform, used presently in the Norwegian sector of the North Sea.
“The GBA has the scale to be extremely low carbon through platform electrification at the same time as offering highly favourable project economics,” said Andrew Benitz, Jersey chief executive.
JOG now intends to launch a farm-out process for the project.
SDX Energy PLC (LON:SDX) secured final approval from the Egyptian authorities to extend its production services agreements for the Meseda and Rabul oil fields, both part of the West Gharib concession. The agreements will now remain valid until at least November 2031. Touchstone Exploration Inc (LON:TXP, TSE:TXP) announced a jump crude oil and natural gas reserves at its Trinidad exploration properties.
Total proved, probable and possible (3P) net reserves, the widest measure, surged 236% to 100,150 thousand barrels of oil equivalent (Mboe) as of the end of 2020. The figure included total proved net reserves (1P) – those with the highest likelihood of being recovered – which grew 189% to 34,238 Mboe from the previous year.
Shares in Black Bear Energy Resources Plc (LON:BBER), an oil and gas company with onshore assets in the US, on Thursday started trading on the JP Jenkins share dealing platform.
Anthony Mason, founder and chief executive of the company, said: “This will give Black Bear Energy Resources tremendous visibility and a strong presence in the London market.”
Tower Resources PLC (LON:TRP) has extended its US$750,000 loan facility, provided by shareholder Pegasus Petroleum (beneficially owned by chairman Jeremy Asher). The loan facility, originally envisaged as a bridging facility in April 2019, has now been extended through to the end of November 2021.
In a statement, the company noted that the company’s independent directors believe it is in the company’s best interest not to repay nor to convert the facility now given the potential additional dilution it may create. Tower said it aims to repay the facility by mid-July.
Westmount Energy Ltd (LON:WTE, OTCCQ:WMELF) relayed the results of the Bulletwood exploration well, on the Canje block offshore Guyana, which encountered quality reservoirs but sub-commercial volumes of hydrocarbons.
The company received the results via a shareholder communication from JHI Associates which has a 17.5% stake in the Exxon operated project. Westmount holds a 7.7% shareholding in JHI, giving it an indirect interest. JHI, as a result of a 2018 farm-out deal with Total, was carried in the funding of the well, as will be for further wells planned on the Canje Block.
Mosman Oil and Gas Ltd (LON:MSMN) notified investors that the operator of the Falcon-1 well in East Texas has reported a recent increase in water production alongside a fall in pressure at the well.
To manage this, the wellhead choke size has now been reduced. This has resulted in significantly lower reported oil and gas production rates at Falcon-1, in which the AIM-listed company has a 50% working interest.
The well operator has indicated that it intends to run downhole logs to gather more information in order to recommend an appropriate course of action, Mosman said.
Read More: Jersey Oil and Gas PLC, SDX Energy PLC, Black Bear Energy Resources Plc, Tower