Jersey Oil & Gas, Range Resources, Hurricane Energy
Today is the results day from hell and I am on the move a good deal, I am mentioning some but will cover anything I miss in tomorrow’s blog. These should include an interesting acquisition from Soco and I have a call in, figures from RockRose, I chat to Andrew Austin, Providence Resources, Petromatad and a successful test for Reabold in California which looks very good indeed. Not much then……..
Jersey Oil & Gas
Although the results are as ever fairly meaningless it is worth thinking about JOG as we come into the fourth quarter. The company goes into the period fully funded for the Verbier work programme with cash of £22.1m at the period end.
The Verbier appraisal well is currently expected to be drilled late in Q4 by operator Equinor and JOG’s costs are expected to be in the upper end of th e £9-11m range although only £7-8m is expected to be incurred in 2018. The delivery of the fast track processed 3D seismic dataset volume is expected for delivery in December 2018.
Whilst the well itself is clearly important I am equally as excited about the potential in the whole of P2170 which is manifested by Equinor’s desire to go the extra mile in the area, it should be an exciting few months for the company and its patient shareholders but I am convinced that it will be worth the wait.
Range has announced an update on its waterflood programme in which it details expansion of the existing project by adding more wells into the scheme in the hope of increasing production next year.
Range is also continuing with the infrastructure upgrade at Beach Marcelle to accommodate both this and the already announced two new wells planned for later this year. Waterflood projects are key for Range developing their reserve base in Trinidad as c. 11 mmbbls of their 16 mmbbls are in waterflood and the company is currently working on updating waterflooding schemes for other areas of their fields with a view to unlocking further potential in the longer term.
Almost everything that can be said about Hurricane recently has been said and the results are meaningless as we move into the real meat of the Lancaster programme. The subsea work is complete and the Aoka Mizu is about to commence sea trials before sailing from Dubai shortly after that. The farm-out to Spirit Energy announced recently is enormous consequence, if Lancaster flows and delivers cash flow it can be used to drill there whilst the Greater Warwick area will be brought into play much sooner than previously expected. I remain excited about the prospects for Hurricane as we enter a crucial few months for the company and my targets are still significantly above the current share price.