WTI (Oct) $91.64 -$5.37, Brent (Oct) $ 99.31 -$5. 78, Diff -$7.67 -41c.
USNG (Sept) $9.04 -31c, UKNG (Oct) 535.0p -65p, TTF€275.8 +15.8*. *Expiry
Oil fell, Iraq said that whatever the domestic circumstances they would still pump 4m b/d and Iran said that they were ready if called upon if a deal could be arranged in the nuclear talks, still a step away.
Worse news was from economies, in China yet more lockdowns didn’t help and German data was also somewhat disappointing.
Union Jack Oil
Union Jack announced yesterday that the Capital Reduction exercise that is being pursued following the passing of a special resolution of the Company at its Annual General Meeting on 23 June 2022, has been approved.
This follows the confirmation of the Capital Reduction by the High Court of Justice, on 30 August 2022. The Capital Reduction will become effective once the Court order has been registered with the Registrar of Companies, which is expected to happen on 31 August 2022.
Subject to the filing of the Court order with the Registrar of Companies, the Capital Reduction creates additional reserves to the value of £21,553,557. This provides the Company with further flexibility to deliver shareholder returns in the form of dividends and/or share buybacks.
From yesterday and the shares reacted very positively in the knowledge that as from now share returns are very much on the agenda, the shares are still very attractively priced on any total return basis.
Angus has announced that the Company has made its first nominations for gas export and sale to Shell via National Grid beginning with the Gas Day of Tuesday 30 August 2022 and will continue to make nominations this week. The Company will give further advice on volumes achieved when flow rates have stabilised.
Further good news and despite the adverse share price reaction Angus looks fantastic on the grounds of being a classic domestic gas producer and thus enormously valuable.
Scirocco has provided the following update on the disposal of its 25% interest in the Ruvuma asset in Tanzania:
As communicated in the RNS of 19 August 2022, the Company received written confirmation from the Tanzania Petroleum Development Corporation that it will not exercise its statutory right of first refusal with respect to the Company’s divestment of its 25% interest in the Ruvuma asset.
ARA Petroleum Tanzania, the current 50% interest holder and operator of Ruvuma, has maintained its intention to exercise its pre-emption rights and Scirocco has now entered into binding agreements with APT which, inter-alia, provides access to cash call cover through the previously announced loan facility and 1st drawdown notice for $1.614 million which is expected to be paid by or on 5 September 2022. Other than for adjustments with respect to conditions precedent now fulfilled, including TPDC waiving its right of first refusal and Scirocco shareholder approval for the disposal having now been obtained, APT has agreed to enter into all of the same agreements (and on the same terms) as Wentworth Resources plc.
Accordingly, as previously communicated in the RNS of 12 July 2022 (announcing the potential exercise of pre-emption rights and right of first refusal) the commercial terms outlined in the disposal announcement of 13 June 2022, and subsequently approved by Scirocco’s shareholders, remain unchanged.
The Company will work with APT to complete the disposal by 31 December 2022, being the same intended completion date as with Wentworth Resources plc. Further updates will be provided as and when appropriate.
Commenting on the update Tom Reynolds, Scirocco’s CEO said:
“We are very pleased to have successfully concluded discussions in relation to pre-emption rights and right of first refusal with APT and TPDC respectively, to the satisfaction of all parties.
“APT represents a robust counterparty with deep experience of the asset and the jurisdiction, and a strong working relationship with TPDC built during the course of the Ruvuma JV to date, which bodes well for Scirocco’s exposure to the ongoing success of the project inherent in the SPA through the contingent elements of the agreed consideration.
“We now expect a swift completion of the deal, providing Scirocco with clarity on its ability to move forward as a well-funded, strategically focused company with a clear vision to deliver sustainable long-term value for the Company’s shareholders through investments in sustainable energy and the circular economy.”
More good news for Scirocco and now upwards and onwards for the next stage in the sustainable and circular future.
Coro has announced the successful completion of installation of the Vietnam rooftop solar pilot project and the commencement of commissioning.
The 3-megawatt pilot project, consisting of over 4,500 solar panels and other ancillary components, has been installed across four factory roofs in Vietnam and covers a total area of 16,120 square metres. The pilot project has been delivered on budget and on schedule and is now five days into a 20-day commissioning phase.
The pilot project will, on commissioning, provide proof of concept for Coro’s portfolio of rooftop Solar opportunities and represents the Company’s first installed and operated renewable energy project. On commissioning, the pilot project will generate revenues for the Group under a 25-year power purchase agreement.
Further announcements, including in relation to the completion of the pilot project commissioning phase, will be made as appropriate in due course.
Michael Carrington, Managing Director of Coro Renewables, commented:
“Having installed the Vietnamese pilot project and the commissioning phase underway, Coro now has a platform from which to prove proof of concept for the existing 150-megawatt rooftop Solar project portfolio. The supply chain partners supporting the pilot project have performed beyond expectation and a reliable process in project delivery has been proven.
Phong Phu Corporation, the client and off-taker of power, are delighted with the installation which will reduce their carbon footprint and provide electricity to their operations at beneficial rates. Coro Energy PLC looks forward to evaluating possible further opportunities at Phong Phu Corporation’s other factory locations in Vietnam.”
This is a good start for Coro as they move into the commissioning of the Vietnam project. The shares have fallen sharply since the April peak but this should reassure investors.
Echo has announced that AIM Regulation has granted the Company an additional period of one month to publish its annual audited accounts for the year ended 31 December 2021. The Company must therefore publish its annual audited accounts for the year ended 31 December 2021 by 30 September 2022.
With the audit of the local Argentinian JV entity (in which Echo holds a 70% non-operated interest) completed in August 2022, the Company’s UK auditor is now working to finalise its own audit of the Company and the Company will endeavour to publish the 2021 Annual Report as soon as possible, and significantly ahead of 30 September 2022.
I missed promoting the Prem last night, it turned out to be full of twists and turns as the Eagles and the Bees drew, the Cottagers beat the in form Seagulls 2-1, the Saints beat Chelsea 2-1 and Leeds and the Toffees drew 1-1.
Tonight the Gooners host Villa, the Cherries host Wolves, Forest are at the Emptihad, Spurs go to the Hammers and Liverpool host the Magpies.
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