WTI (Oct) $94.89 +$1.15, Brent (Oct) $101.22 +$1.00, Diff -$6.33 -15c.

USNG (Sept) $9.33 +2c, UKNG (Oct) 649.0p +89p, TTF €316.995 +€46.29.

Oil price

Oil rose yesterday ahead of today’s Fed symposium at Jackson Hole Wyoming, tomorrow we will hear the rate decision. The EIA inventory stats showed a big crude draw of 3.3m with a fairly quiet product market.

BP have reported a fire at their Whiting refinery, so far no signs of a shortage of products from there.

PetroTal Corp

PetroTal has announced its financial and operating results for the three months ended June 30, 2022.

PetroTal delivered solid Q2 2022 financial and operational performance highlighted by record production rates, record cash flow, and a robust balance sheet profile with a substantial net cash position.

Q2 2022 Highlights

·    Achieved record quarterly production of 14,467 barrels of oil per day and quarterly sales of 14,616 bopd, up 25% and down 5%, respectively, from Q1 2022, representing the Company’s seventh straight quarter of production growth, with unencumbered sales for the majority of the quarter;

·    Completed well 11H on June 30, 2022, which produced over 300,000 barrels of oil over its first 30 full days on production, has paid out its capital investment, and averaged over 9,000 bopd from August 1 to 22, 2022;

·    Achieved a new daily Company production record of 25,218 bopd on July 1, 2022 with production briefly reaching 26,000 bopd, representing the maximum capacity at the newly expanded Central Processing Facility (“CPF-2”);

·    Sold approximately 86% of sales through the Brazilian route with the remaining 14% sold to the Iquitos Refinery while the Northern Peruvian Oil Pipeline (“ONP”) was offline, successfully redirecting 456,000 barrels from the ONP to the Brazilian market;

·     Significantly reduced transportation costs through significantly reduced diluent blending requirements to Brazil, contributing to record low transportation costs of $3.4 million ($2.54/bbl);

·    Generated record net operating income and EBITDA(a) of $98.6 million and $93.4 million, respectively, both up three and a half fold from Q2 2021 levels and almost double from Q1 2022;

·    Generated record free cash flow(a) of $69.4 million before changes in non-cash working capital and debt service, accumulating over $100 million, for the six months ended June 30, 2022;

·    Invested approximately $24.0 million in capital expenditures (“Capex”), lower than revised guidance by $5 million, due to drilling delays from the March 2022 social protests.  Approximately two thirds of Capex spent was for drilling and completion related investments with the remainder divided amongst smaller production operation projects;

·    On April 1, 2022, the Company paid $20 million of principal to bondholders through the 101% call option mechanism set out in the bond agreement.  As of June 30, 2022 and August 25, 2022, the Company is in compliance with all covenants; with $80 million of bond principal remaining; and,

·    Exited the quarter with $77 million of total cash, including $13.5 million of restricted cash, and approximately ($79) million in net debt/(surplus)(1), a record level for the Company allowing for a future return of capital program in Q4 2022 or Q1 2023, with an extremely solid balance sheet profile.

(1)   Net debt/(surplus) defined as cash and restricted cash + VAT receivable (short and long term) + trade receivables + short term and long term derivative assets – AP – short and long term leases – short and long term debt – derivative obligation.

Operational and Financial Highlights Subsequent to June 30, 2022

Bayovar Export Realized.  As announced on June 16, 2022 and July 5, 2022, Petroperu delivered approximately 550,000 barrels through the ONP to Bayovar and exported nearly 720,000 barrels to an international refiner.  The Company expects to receive $53.9 million from Petroperu, net of usual ONP fees and adjustments.  Post this Bayovar export, the amount of oil remaining in the ONP dropped from 3.1 million barrels to approximately 2.4 million barrels.

Navigating barging challenges.   During July, the Company encountered barging delays that were compounded by the closure of the ONP, resulting in production constraints that lowered the average production to 5,700 bopd from July 7 until July 25.  The Company has secured approximately 420,000 barrels of export barging capacity for August 2022 plus 60,000 barrels for the Iquitos Refinery which has allowed production to increase to 19,000 bopd since August 22, 2022.  PetroTal continues to explore long term solutions to ensure appropriate barging capacity is available to accommodate higher oil production rates and to optimize logistics and barging fleet size for our Brazilian route.

Drilling schedule adjustments.  Due to well servicing and a conductor pipe placement for a future well, the Company’s revised drilling plan now schedules drilling the 13H well to be followed by the 12H well. The 13H was spud on August 24, 2022 and is estimated to be on production by late October.  

Current liquidity update.  Current total cash as at August 15, 2022 is approximately $115 million including $15 million in restricted cash and up to date payments from our Brazilian route shipping counterparty, but not including outstanding amounts owing from Petroperu.

Corporate Hedging Update.  PetroTal recently sold a swap at $62.05/bbl and bought a call at $70.00/bbl on approximately 750,000 barrels of H2 2022 production.  PetroTal will receive cash when the Brent oil price is above $70/bbl, and will have a floor price of $62.05/bbl.  After this hedge, the Company is approximately 25% hedged on corporate production volumes in Q3 and Q4 2022.  As 2022 progresses, the Company will look to layer in additional hedges for H1 2023 on up to 25% of total corporate production.

Ten million barrels produced.  On August 22, 2022, the Company formally surpassed the ten million barrels of produced oil milestone in only four years.

Reiterating 2022 Guidance

The Company is reiterating guidance provided in May 2022 as navigated a number of logistical issues caused by the ONP shut down and barging fleet delays.  The Company estimated 2022 average production to be between 15,000 bopd and 16,000 bopd and the latest production forecast confirms the lower end of this range.  Thanks to higher oil prices and lower diluent costs, the Company maintains EBITDA to be approximately $340 million and associated free cash flow before working capital and debt service to be approximately $230 million.  The reiterated guidance is highly dependent on certain sales route availability assumptions, ONP maintenance completion schedules, and Petroperu’s unencumbered access to credit, which if different from current estimates could materially alter the reiterated guidance.

As a result of the revised drilling schedule, the Company is guiding 15,000 bopd, and has adjusted Q3 and Q4 2022 production profiles to the following levels as dictated by available sales scheduling:

Adjusted Guidance

Q1 (actual)

Q2 (actual)




Oil wells completed

1 (10H)

1 (11H)




Average Production (bopd)






CAPEX (millions)







 USD millions


Contracted Brent (USD/bbl)


Average Production (bopd)

15,000 – 16,000 (25% downtime)

Net operating income




Net derivative settlements(1)


Adjusted EBITDA1




Free cash flow


(1)   Approximately $33 million in anticipated 2022 true-up revenue has now been deferred into 2023 as a result of the ONP maintenance.

Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented

“We would like to thank our entire team for another record quarter on many fronts.  Though we have experienced recent production constraints from short term sales bottlenecks, unconstrained production run rates are over 20,000 bopd which we successfully tested in our facilities.  The outlook for PetroTal’s low sulfur oil remains incredibly robust with recent strong export demand realized.  We continue to meet commercial challenges head on and are excited about potential short- and long-term solutions for PetroTal’s river transportation options.  From a social perspective, the 2.5% social fund working table sessions have been extremely productive, transparent, and aligned, creating the necessary stability our field has strived for over the years.  Many milestones have yet to be achieved, however, the initiatives remain on track and functioning as planned with more formal updates on this to come in H2 2022.  Finally, I would like to congratulate the entire PetroTal team on our recent milestone of ten million barrels produced in only four short years since first production.” 

PetroTal has had another excellent quarter, with production of 14,467 it has ticked a number of other boxes as well such as cash flow, leading to a ‘robust’ balance sheet and a substantial cash position. Despite the recent barging issues which have subsequently been addressed, guidance is likely to remain on track. 

New wells remain extremely profitable, the most recent, 11H, has already paid back its capital  and although there is a short hiatus they will resume in Q4. Also worth mentioning is that whilst the ONP was offline 456/- barrels were placed through the Brazilian route which also happened to reduce costs.

The company are clearly in very good shape, long term it looks like wells will continue to build the stock and repay very quickly, with the occasional dispute and barging issues they have optionality via Brazil but the upside is still huge. At 48.5p the shares are still below the recent peak but still offer significant value. Back in July I increased my TP to 125p, I have no reason to change that number at the moment. 


IOG has announced its unaudited results for the six months ended 30 June 2022.

1H 2022 Highlights

·      Blythe and Elgood successfully brought onstream in mid-March 2022

 Gross aggregate production of 34.0 mmscf/d from First Gas to 30 June 2022, at 59% uptime  

·      Strengthening gas market conditions during the period and particularly since period end

 Volume weighted average gas price of 149 p/therm in 1H 2022

 Rising to 254 p/therm over 2H 2022 to date⁴

 UK NBP gas Winter-22 contract currently >600 p/therm and Summer-23 >500 p/therm

·      Generating cash flow and profit from production operations

 Total revenue of £30.2 million (30 June 2021: £nil), split 94% gas and 6% condensate

 Opex of 13.7 p/therm for the period (1H 2021: N/A)

 EBITDAX of £25.9 million for the period (1H 2021: £0.1 million)

 Post-tax profit of £11.4 million (30 June 2021: £0.2 million)

 Unrestricted cash balance at period end of £12.3 million (31 December 2021: £31.3 million)  

·      New long-term gas sales agreement (GSA) executed with BP Gas Marketing Ltd (BPGM)

 Covering Blythe, Elgood, Southwark, Nailsworth and Elland fields up to at least September 2023

·      Further progress towards first gas at Southwark, the third Phase 1 field, targeted for Q4 2022

 Southwark A2 (East) well drilled by Noble Hans Deul rig in Q2 2022

 Successful installation in Q2 2022 of 6km extension of 24″ Saturn Banks Pipeline System to Southwark field location by Seven Borealis S-lay vessel

·      €100 million senior secured bond maturing September 2024 (“Bond”) remains in place, with closing market price of 100.5 (0.5% premium to par) as at 30 June 2022

·      Total Reportable Incident Rate (TRIR) of 4.8 per 200,000 manhours for 1H 2022

Post-Period End and Outlook

·    One week planned shutdown completed in July 2022 for Blythe platform chemical injection modifications    

·    Gross average production of 34.4 mmscf/d for 2H 2022 to date, with 76% uptime and VWAP of 254 p/therm

·    High salinity fluids (MEG/water) being received onshore – Blythe and Elgood wells are being produced individually for periods to establish the source

·      2.7 mmscf/d fixed for August 2022 at 310 p/therm and September 2022 at 444 p/therm via BPGM

·    Gross 2H 2022 gas production guidance adjusted to 30-50 mmscf/d range (from 45-60 mmscf/d)   

·      2022 capex guidance reiterated at £70-85 million net to IOG

·      Opex guidance revised from 10-15 p/therm to 10-20 p/therm (~$8-15/boe) to account for additional costs of onshore fluids management and the revised production guidance 

·    Southwark A1 (West) production well drilling resumed in early Q3 2022; significant delays experienced to date due to drilling fluid losses, primarily in the Bunter Sandstone Formation

·    Southwark subsea, hook-up and commissioning works ongoing in parallel targeting first gas in Q4 2022

·      Goddard and Kelham North/Central appraisal wells to be drilled in direct continuation after Southwark 

·      Continued Phase 2 planning and engineering, and engagement with partner and regulators 

·      Panther/Grafton area seismic re-evaluation expected to be completed by year end

·      New licence applications planned for the next (33rd) UK Offshore Licensing Round 

·    2022 Scope 1&2 emissions intensity projected to be among the lowest in the UK North Sea  

 Andrew Hockey, CEO of IOG, said:

“In March, IOG became the UK’s newest gas producer when we brought Saturn Banks Phase 1 onstream – a major milestone that is testament to many years of hard work across the whole team and our robust partnership with CalEnergy Resources. Generating our first revenues and profit in this period is an important step forward for the business.

The current energy crisis amply demonstrates the importance of low carbon intensity domestic gas production in delivering secure, affordable and sustainable energy supply. Our high-margin Phase 1 gas production can help to meet this challenge and enable further investment in our next phases of growth.

With high salinity fluids currently being received onshore, we are temporarily producing the Blythe and Elgood wells independently to establish the source of these fluids and optimise the operating plans. In view of this, we have revised our 2H 2022 guidance to a more conservative 30-50 mmscf/d.

Our two other key priorities this year are delivering Southwark first gas and progressing our Phase 2 plans. We also aim to open up further synergistic gas hubs with the two exciting appraisal wells at Goddard and Kelham. We look forward to the rest of 2022 and beyond with a firm focus on maximising shareholder value.”

Whilst the market has been pretty unforgiving with regard to the operational issues in this quarter I think that under the circumstances this maiden revenue and profit in such a short time since original inauguration of the project deserves a good deal of credit. 

It is easy to point to gas prices without taking into account that inevitable operational problems always occur when fields are bedding down. I think that it is to management’s credit to trim guidance and in the analyst call they were open and honest about the water issue.

The shares as one might expect have been on a roller coaster this year and before today’s fall have pretty much doubled, given that it appears to be sorting out the wrinkles at the moment I would expect the upward movement to resume. 

Zephyr Energy

Zephyr has announced an increase in its operated land position through the acquisition of an additional 1,920 acres in the Paradox Basin, Utah, U.S. and to provide an update on its State 16-2LN-CC operations and upcoming Paradox drilling programme.

Acquisition of prime Paradox Basin acreage

Zephyr has increased its land position adjacent to its operated White Sands Unit (the “WSU”) through the targeted acquisition of 1,920 leased acres deemed by the Company to have immediate development potential.

Acquisition highlights:

  • Optimal Location. The new acreage is directly contiguous to the Zephyr-operated WSU, with the potential to be added to the Unit acreage subject to approval from the U.S. Bureau of Land Management (the “BLM”).
    • The acquired acreage is largely covered by Zephyr’s existing 3D seismic, and directly borders the Zephyr lease on which the planned State 36-2 LNW-CC and 36-3 LN-C9 well pad is located.
    • The new acreage is close to pre-existing surface infrastructure in the form of a six-inch gas pipeline which traverses the leasehold.
  • Immediate drilling benefits.  By adding the new acreage, the lateral for the proposed State 36-2 LNW-CC can be fully completed across a 10,000-foot lateral length, subject to final regulatory approval. This is expected to further enhance the well’s forecast economics and estimated ultimate recovery.
    • In conjunction with the acquisition, Zephyr recently amended its BLM application for a permit to drill (an “APD”) for the State 36-2 LNW-CC well to reflect the enhanced completion design.  BLM approval is expected shortly.
  • Increased overall resources and drilling locations. Based on modelling results of the recently drilled State 16-2LN-CC, modelling for the upcoming State 36-2 LNW-CC, and production data from the nearby vertical Federal 28-11 well, Zephyr’s technical team estimates that the acquisition adds over 4 million barrels of oil equivalent of additional 2C net Contingent Resources to Zephyr’s Paradox Basin position with the following additional benefits:
    • The acquisition substantively increases the Company’s Working Interest in an estimated 4 Cane Creek reservoir well locations, adding an estimated 2.4 net wells assuming 2-mile lateral well lengths.
    • It adds unrisked net present value at a ten per cent. discount rate (“NPV-10)”, net to Zephyr, of approximately US$40 million from the Cane Creek reservoir, based on estimated economics for 2-mile laterals. This estimate assumes success case outcomes from State 16-2 LN-CC flow testing and State 36-2 LNW-CC drilling and testing.
    • It delivers access to acreage that may host liquid yields similar to that observed at the nearby vertical Federal 28-11 well and higher than those at the recently tested State 16-2 LNW-CC well.
    • It provides additional potential in the overlying shallow clastic zones.

The acquisition is part of the Company’s ongoing portfolio management of its Paradox Basin position.  This active land management strategy has resulted in a defensible and growing portfolio of development opportunities which Zephyr’s Board believes is increasingly difficult to replicate in today’s regulatory and political environment.

While the terms of the acquisition are not publicly disclosed, the immediate consideration for the new acreage has been satisfied by a payment from Zephyr’s existing cash resources. The majority of consideration to the seller is expected to come in the form of royalty payments which are only payable in the event of drilling success.  The Company has also agreed to use reasonable commercial efforts to drill at least one well across the new acreage prior to December 2023, a requirement which the Board believes will be satisfied by the upcoming drilling of the State 36-2 LNW-CC well.

Inclusive of the new acreage, the Company will operate a total of 39,473 gross acres in the Paradox Basin, the majority in which the Company holds a 75% working interest.

State 16-2LN-CC and Paradox drilling programme update

The Company continues to prepare for extended production testing of its successfully drilled and completed State 16-2 LN-CC well.  All relevant applications have been filed and orders for long lead time items have been made in anticipation of recommencement of production operations this autumn, subject to final permit approval.  The production test is designed to further investigate the flow potential of the State 16-2 LN-CC well, to add production data for use in surface infrastructure development decisions, and to test and develop flow assurance processes for the well.

In conjunction with the production test, and as announced on 7 June 2022, Zephyr planned to sell a small portion of gas produced from the State 16-2 LN-CC to a crypto-mining facility to be co-located on the well pad.  Due to continued volatility in the crypto-currency markets, Zephyr’s Board has elected to further monitor pricing of crypto-mining equipment and facilities prior to proceeding with a co-located facility and prior to committing to any related investment.  To date, no Zephyr funds have been expended on crypto-mining equipment or facilities.  In parallel, Zephyr continues to focus on commercial efforts regarding the acceleration of gas sales into nearby existing gas infrastructure.

The Company also continues with extensive preparatory work related to its upcoming high impact drilling programme.  The State 36-2 LNW-CC well, with a 10,000-foot lateral well targeting the Cane Creek reservoir, has been designated as the first of the three wells planned to be drilled.  As previously noted, the Company updated its APD with the BLM to reflect the extended lateral.  Zephyr will proceed with drilling operations upon receiving Federal approval and securing a rig contract.  All state level approvals related to the State 36-2 LNW-CC well have now been received.

Colin Harrington, Zephyr’s Chief Executive, said: “Our team has been working flat out to deliver substantive value from our Paradox project during a globally challenging period of supply chain conditions.  We’ve often compared this type of development process to a jigsaw puzzle, and another important piece has been connected through the acquisition of the new acreage.  This prime acreage, already located under Zephyr’s 3D seismic, adds valuable locations and resources, and just as importantly, it secures an immediate win by providing the opportunity to drill and complete a longer and more effective delineation/development well.  We expect a corresponding beneficial impact on the well’s production potential and its estimated ultimate recovery.

“With the new acreage secured, we plan to spud the State 36-2 LNW-CC as soon as final permits are received and a rig contract is secured.  We will be providing a full update on the proposed drilling programme once the final permits have been issued.

“In the meantime, we are focused on recommencing production testing at the State 16-2 LN-CC, for which operational preparations are largely complete and long lead time items are in process.  The test will allow for the sale of liquid volumes and, most critically, allow for data generation which will help as we evaluate the most effective options for infrastructure development.

“Overall, I am thrilled to bolster the scale of our Paradox project at this point in time.  Our team is developing a unique understanding and data set across the Paradox Basin – and we’re excited about this timely opportunity to further expand our operated asset base. Furthermore, we are always mindful of our core mission to be responsible stewards of the environment in which we operate, and we have taken great care to acquire acreage which we believe can be developed with a maximum of potential and a minimum of surface and environmental disruption.

“It’s an exciting time for the Company, filled with short-term operational activity and long-term strategic potential.  Today’s news is strong progress on both fronts, all in the pursuit of delivering significant value creation from the Paradox project for many years to come.”

This is very good news from Zephyr on a number of fronts yet has not been recognised by the market with the rise that the shares deserve. The acquisition of this package of acreage at the Paradox Basin crucially fits into the existing federal lease and makes possible drilling the 10,000 foot lateral section of the 36-2LNW-CC well. 

It will mean that it will allow Zephyr to complete the well in the manner that they think is most effective, crucially it was the last core piece of acreage under their seismic which they didn’t own and adds resources in an area they think will be more liquids rich.

I hear that they have been trying to pry this acreage off the seller for a while and the other piece of good news is that the cash consideration is relatively small, under the royalty it is payable in a success case and that indicates to me that the seller wants in on any discovery. Finally, the new acreage is close to pre-existing surface infrastructure in the form of a six-inch gas pipeline which traverses the leasehold adding another box tick for me. 

One other thing pleases me here and that is the concern from some investors about the company’s alleged exposure to crypto-currency. Whilst the company had, I understand, been considering investing in facilities they have been adamant here that this is not on the cards at present. 

Zephyr is on the verge of a big drilling programme on one of the most exciting prospects in the USA  and will start with the testing at the State 16-2 LN-CC well, after that the well now enabled by this deal and others should follow. I expect massive value to be achieved and the smart management has of course got the non-operated Williston portfolio to provide cash, a rare achievement in the industry. Smart investors should take note, this stock is massively undervalued and at the moment a pearl amongst swine…

Angus Energy

Angus has announced that the Company’s site operations team, with supporting specialists, has now introduced and processed well head gas throughout the combined extraction and condensate processing facility.

Well B2 has alone been delivering at an equivalent rate of 5 million standard cubic feet per day, surpassing the Company’s internal expectations, although we expect deliverability to normalise with time.  The Company will introduce the stream from the A4 well shortly.

The stream has been passed through the whole process plant including condensate stabilisation and storage tanks as well as gas analysis.  Specification gas has been achieved in short tests to date as has an export pressure of approximately 60 barg sufficient for entry into the national transmission system, or “grid”

The Company will make nominations for gas sales when it is satisfied of stable flow, uninterrupted by electronic trips, for an extended period of time being not less than 8 hours continuous flow which we strongly believe will occur before the end of August thereby meeting the current deadline under the Company’s revised hedge arrangements as notified on 29 July 2022.

Although the last few weeks have been somehow jittery for shareholders it seems that Angus are now very close to first gas, if indeed that has not already happened. Management deserve credit for sticking with it and Angus now have a fantastic UK onshore gas field with all the kudos that brings, not to mention a market place gagging for its product. 


Hunting has provided an update to trading, alongside its 2022 Half Year Results which have been issued today.

The Group is pleased to announce that strong progress continues to be made in building its forward sales order book, which provides further visibility on revenue and earnings for the balance of 2022 and into 2023.

In August 2022, Hunting’s Asia Pacific operating segment won an Oil Country Tubular Goods  contract that management estimates to be worth up to $86 million with CNOOC for an offshore project in China. The order will be completed between August 2022 and June 2023 and will utilise Hunting’s proprietary SEAL-LOCK XDTM premium connection. Purchase orders have been received in August 2022, with the Group needing to purchase OCTG raw material in H2 2022 which will increase working capital by c.$30 million. This order is the largest single order for Hunting’s OCTG and premium connections in the Group’s recent history, and underpins the positive market sentiment globally. Further, the revenue from this order will be recognised in 2023, as shipments commence.

In August 2022, the Group’s Subsea Spring business, which forms part of the North America operating segment, also secured further orders for its titanium stress joints for Beacon Offshore Energy’s Shenandoah development in the Gulf of Mexico. This order extends the business’ good run of wins for global offshore developments since Hunting acquired the business in 2019.

The Board notes that Hunting’s sales order book now exceeds c.$400 million which represents a near doubling since 31 December 2021, demonstrating that the global energy industry continues to strengthen following the COVID-19 pandemic.

Commenting on trading, Jim Johnson, Chief Executive, said:

“The CNOOC order is a fantastic result for our Asia Pacific segment and demonstrates the commitment of our business teams in Singapore and Wuxi, China, to capture new opportunities as the global energy industry continues its recovery. The new business wins at our Subsea Spring business also shows that Hunting’s portfolio of products are in strong demand.”

It is good to see the Hunting share price moving deservedly upwards after the mix-up with analysts forecasts at the last report. This sparkling set of figures, which achieves a significant double whammy in which the company are making progress in a market which is also in growth territory, has started the process of the shares enjoying a rerating. 

Good margins, albeit in some areas that have yet to get back to pre-Covid levels, and the EBITDA box well and truly ticked show that Hunting are well placed in a global bull market for oilfield service companies.

The company are seeing this and stated in the analysts call that ‘historic reduction E&P capex and increased global hydrocarbon demand has set the stage for a long-term upcycle for the oil and gas industry’. The fact that a company that has its ears so closely to the ground can see underlying markets continuing to strengthen means a great deal to me. 

Hunting shares should continue to move upwards and by plenty, I agree with their view of the market and they are market leaders in many areas of it, the CNOOC win is icing on what is a very tasty cake indeed…

Eco (Atlantic) Oil & Gas

Eco has announced its results for the three months ended 30 June 2022. In addition, the Company is notifying the market of an investor event to be held on 19 September 2022, details of which can be seen below.  Today’s announcement follows the recently published Full Year Results and Operational Update announced on 1 August 2022.

Q1 Highlights:

Financials (as at 30 June 2022)

·    The Company had cash and cash equivalents of US$38,753,695, and no debt.

·    The Company had total assets of US$79.8 million, total liabilities of US$5.9 million and total equity of US$73.9 million.


·    Two successful equity fundraises raising combined gross proceeds of US$37.8 million to fund its ongoing workstreams, including the upcoming drilling of the Gazania-1 well on Block 2B, offshore South Africa, and further G&G work across the entire portfolio.

·    Completion of acquisition of 100% of Azinam Group, including Azinam’s entire offshore asset portfolio in Orange Basin South Africa and Namibia, in return for a 16.5% equity stake in the enlarged Group.

·    Acquisition, subject to completion, of an additional 6.25% Participating Interest in Block 3B/4B, Orange Basin offshore South Africa, for a consideration of US$10 million.


South Africa

·    Post period end, the Island Innovator rig, owned by Island Drilling Company AS, was mobilised ahead of the spud of the Gazania-1 well on Block 2B, in Orange Basin South Africa.

·    The rig is currently offshore Spain heading to Las Palmas for refuelling and expected to arrive at the drilling location by the end of September 2022, subject to weather conditions.  The Gazania-1 prospect is targeting a 300 million barrels light oil resource


·    Following recent significant hydrocarbon discoveries offshore Namibia, Eco continues to assess options for progressing exploration and commercial activity on its acreage.

·    Post period end, Eco announced Joint Operating Agreements with NAMCOR, the National Petroleum Corporation of Namibia, regarding to the Company’s four operated offshore Petroleum Licence (“PEL”) interests in Namibia, being PEL 97 (Cooper), PEL 98 (Sharon), PEL 99 (Guy), and PEL 100 (Tamar)


·    Eco and its JV partners remain committed to further drilling on the Orinduik Block and continue assessing opportunities to drill at least two exploration wells into the light oil cretaceous targets as soon as practical.

Gil Holzman, President and Chief Executive Officer of Eco Atlantic, commented: 

“Today’s update follows the detailed corporate and operations update provided earlier this month.  However, our Q1 results serve as an important opportunity to remind investors of the significant near-term catalysts that we see across our entire Atlantic Margin portfolio, with near-term high impact drilling offshore South Africa, significant interest in our Namibian portfolio and plans taking shape with regards to our strategy for value accretion offshore Guyana, the outlook has never been more positive. 

“We are very pleased to invite current and potential investors to meet with our Board and management team at a shareholder event on 19 September 2022 in London and for those not able to attend in person we hope you can make the live webinar on 20 September 2022.  We look forward to updating investors on our plans and answering any questions.  We would encourage those who are able to do so to attend and learn more about our highly strategic acreage across the world’s most attractive exploration hot spots.”

As CEO Gil Holzman says, these figures add little to our knowledge but serve only to remind investors just how exciting the Eco portfolio is. With South Africa and Namibia taking over from Guyana as the poster boys in the portfolio I think the upside from one or possibly all three areas will make bundles for those who have taken advantage of the shares at around these levels, don’t come crying to me if any of them come in…

And finally…

Last night Rangers pulled off quite a stroke in Europe, needing to beat PSV away from home they won 0-1 and are in the draw this evening along with four English clubs and Celtic.

The second test match started today at Old Trafford and South Africa won the toss and elected to bat. England wanted just that and bowled them out for 151. As I write England ate 30-1 in reply.