88 Energy Ltd, Touchstone Exploration Inc, ADM Energy PLC, Bahamas Petroleum Company PLC, Chariot Oil & Gas Limited, Union Jack Oil PLC
It was another eventful week in the small-cap oil and gas sector.
Monday’s update provided a drilling update and the news that a contractor on the well programme had taken up shares in the company.
It said that the Merlin well is now being drilled down towards its primary Nanushuk targets.
Managing director Dave Wall, meanwhile, hinted at a potentially short remaining timeline for the well. “We wish all our shareholders good fortune over the coming days,” he said.
These days later investors will spend the weekend looking forward to a result.
On Friday, Touchstone Exploration Inc’s (LON:TXP, TSE:TXP) financial results highlighted a “year of significant progress” in which the company enhanced its financial position significantly.
During the year, it unearthed new discoveries and inked a long-term natural gas sales agreement with Trinidad’s National Gas Company – following the successful results on the Ortoire block.
ADM Energy PLC (LON:ADME) on Wednesday confirmed it had closed its oversubscribed fundraising to support its new venture in Nigeria, an interest in the development of the Barracuda field. The placing and subscription offer raised £1.22mln through the sale of 28.71mln new shares priced at 4.25p.
“We are delighted to successfully conclude this oversubscribed fundraise which demonstrates the strength of investor interest and confidence in ADM,” said Osamede Okhomina, ADM chief executive.
A day earlier, ADM announced it conditionally agreed to invest in the development of the Barracuda oil field. ADM will provide technical and financial support to the investors in NHNL, while the RSA consortium will provide funding for all upcoming capital expenditure and a Competent Person’s Report (CPR).
Bahamas Petroleum Company PLC (LON:BPC) reaffirmed its commitment to high impact offshore exploration in the Caribbean, saying it intends to extend its licences and seek partners ahead of new well drilling. The company told investors it plans to renew the four southern licences in The Bahamas into a third, three-year ‘drill-or-drop’ exploration period, according to a statement.
Chariot Oil & Gas Limited (LON:CHAR) agreed to acquire a renewable and hybrid power developer in a deal worth up to US$2mln, paid mostly in shares. Africa Energy Management Platform (AEMP) has an existing partnership in solar and wind power with Total Eren, which is 30% owned by French energy major Total. AEMP and Total Eren are working to provide clean, sustainable, and more competitively priced energy to mining operations in Africa.
It is an opportunity that’s described as “a giant, largely untapped market”. Moreover, Chariot highlighted that it is a business area where its management brings numerous high-level contacts.
Union Jack Oil PLC (LON:UJO) said the operator of the West Newton project, Rathlin Energy, has launched an online consultation event. It is part of a public planning consultation process for the proposed development of the West Newton A site.
The company owns a 16.665% interest in the project which comprises the successful WN-A1 discovery well, WN-A2 appraisal well and the recently drilled B-1Z discovery.