WTI (Feb) $76.93 -$3.33, Brent (Feb) $82.10 -$3.81, Diff -$5.17 -48c.
USNG (Feb) $3.98 -0.05c, UKNG (Feb) 165.93p -21.07p, TTF (Feb) €68.81 – €6.19.
The oil price fell, some commentators think that post Covid lock downs their economy will fall further as the pandemic takes its grip.
Union Jack Oil
Union Jack has announced that material landmark net revenues of US$12,000,000 have been achieved from the Wressle hydrocarbon development, located within licences PEDL180 and PEDL182 in North Lincolnshire on the western margin of the Humber Basin.
Union Jack holds a 40% economic interest in this development.
· Landmark US$12,000,000 revenues generated to Union Jack since re-commencement of production at Wressle on 19 August 2021
· Well continues to produce under natural flow with zero water cut
· Site upgrades ongoing
· Utilisation plan for the associated gas from the Ashover grit reservoir is currently underway
· Union Jack continues to be cash flow positive covering all G&A, OPEX and contracted or planned CAPEX costs, including any drilling activities for at least the next 12 months
· As of 2 January 2023, cash balances, short- term receivables and liquid investments stood at over £9,910,598 following a total Maiden Special dividend payment of in-excess of £900,000 during December 2022 and recent Wressle site upgrades of £250,000 net
· Unaudited revenues from 1 January 2022 to 30 December 2022 are in-excess of £8,400,000 (Audited 2021: £1,894,875)
· Debt free
Executive Chairman of Union Jack, David Bramhill, commented:
“The revenues of in-excess of US$12,000,000 from the Wressle development continue to bolster the Company’s Balance Sheet.
“Since the last production update, another impressive production performance from the Wressle-1 well has been recorded and the trend as seen throughout 2022 and the start of 2023 remains positive.
“Cash balances are expanding significantly on a monthly basis, and we are funded for G&A, OPEX and contracted or planned CAPEX costs, including any drilling activities for at least the next 12 months.”
Wressle continues to be the gift that keeps on giving, as the $12m of revenue in some 16 months shows and has to a great extent led to the distribution to shareholders via dividend or buy back, not to mention the operational funding of capex in the UJO portfolio.
These investments will lead to the company growing its substantial portfolio in coming years and makes UJO poised to grow revenue substantially in coming years and at 26p the shares are at a massive discount to the l’actualité.
United Oil & Gas
United Oil & Gas has announced the completion of drilling operations on the ASW-1X exploration well in the Abu Sennan licence, onshore Egypt. United holds a 22% non-operating interest in the Abu Sennan licence, which is operated by Kuwait Energy Egypt.
The ASW-1X well was drilled to a Total Depth of 3,640 metres, 10 days ahead of schedule and under budget. Although the well encountered net reservoir in the Abu Roash, Bahariya, and Alam El Bueib targets, the logs did not indicate the presence of hydrocarbons. The results from the ASW-1X will be integrated into our subsurface understanding of the Abu Sennan licence, and the additional data used to help prioritise future drilling locations.
The well will now be plugged and abandoned and the Sino Tharwa-1 rig will be mobilised to drill the first well of the 2023 drilling campaign. This will be the ASH-8 development well, targeting an undrilled area of the ASH field.
Details of the 2023 drilling programme will be given within our trading statement due to be issued in late January.
United Chief Executive Officer, Brian Larkin commented:
“Although the results of the ASW-1X well are disappointing, the JV partners are positive about the remaining prospectivity on the licence and will continue to deliver the maximum value from it. We are looking forward to the 2023 drilling campaign, which will initially focus on further development of the asset by the drilling of ASH-8 followed by the ASD-3 well. These development wells are targeting the most prolific areas of the Abu Sennan licence, to maximise production before the drilling of at least one further exploration well in Abu Sennan later in the year. We look forward to updating the market with further details of planned activity across our portfolio later in January.”
Not much to add here I’m afraid as with a decent programme of drilling at Abu Sennan there was always a statistical chance of some failures. The market will want to know about further drilling at Abu Sennan as well as what’s happening at Maria and in Jamaica.
The full update expected at the end of the month but I would say that the fall today has probably been overdone solely on what is at Abu Sennan let alone the rest of the portfolio.
IGas is pleased to announce that Doug Fleming has accepted an invitation to join the Board of IGas as an Independent Non-executive Director with immediate effect. Doug will be a member of the audit committee.
Doug was most recently Chief Financial Officer at private equity backed Siccar Point Energy, an E&P company with assets in the UK sector of the North Sea. Doug was part of the team that founded the business in 2014. Siccar Point Energy went from start-up in 2014 to production of c.9,000 boepd (2021) before being sold to Ithaca Energy in 2022 for a consideration of up to $1.46bn.
Prior to Siccar Point Energy, Doug held senior roles at Centrica Energy E&P and Venture Production plc.
Commenting Chris Hopkinson, Interim Executive Chairman said:
“I am delighted we have brought in someone of Doug’s calibre and experience to the Board. Doug brings senior expertise drawing on 27 years’ working in E&P, corporate banking and venture capital.”
Doug Fleming added:
“I am very pleased to be joining IGas and bringing my experience to the team. It is an exciting time for the company – the company’s cash generative oil and gas production gives it an excellent platform from which to drive its growing geothermal business.”
I don’t normally write up NED announcements, even when they are as good as this one but it is interesting that the board are continuing to fill the part-time jobs before getting to the meat and drink of a new CEO strikes me as something to investigate.
There is no indication yet as to whether IGas will have an executive Chairman or a CEO whether it be interim or long term, full time or part time at present. The statement on 15th September when the current interim Chairman was appointed said that ‘It is the Company’s intention to commence a search for a Chief Executive Officer in due course’. Since then the shares have fallen some 80% and still no CEO…
PetroTal Corp will host an investor event at 6pm UK time on Thursday 19 January 2023. All current and potential shareholders in the Company are welcome. The event will include a presentation, hosted by management, which will be followed by a Q&A session with drinks and refreshments after.
The event will take place on Thursday 19 January 2023 at Sofitel London St James, 6 Waterloo Place, London, SW1Y 4AN. Attendees are asked to promptly arrive at 5.30pm UK, so the event can commence at 6pm. Attendees are required to register for the event beforehand at the following email address: PetroTal@celicourt.uk
This will be a perfect opportunity for shareholders to meet and quiz a management that they havent had much of a chance to do recently and I will certainly be in attendance to catch up with what is the best management in the business.
Last night in the Prem the Gooners drew 0-0 with the Magpies, the Toffees lost 1-4 to the Seagulls, the Foxes also lost at home, 0-1 to the Cottagers and the Red Devils saw off the Cherries 3-0 which took them to 4th in the table.
Tonight the Saints host Forest, the Hammers are at Leeds and mourning David Gold who died last night, Villa host Wolves and the Eagles welcome the Spurs.
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