Diversified Energy Company PLC, i3 Energy Plc, Challenger Energy Group PLC, Zephyr Energy PLC, Coro Energy PLC, Enteq Upstream PLC, San Leon Energy PLC
It was another active week in the small-cap oil and gas sector.
Diversified’s deal is with Tanos Energy Holdings III LLC and it is agreed at a gross consideration of US$154mln, US$118mln net, which will be covered with cash and existing credit capacities. It will give the London-listed firm a 51.25% working interest in the acquired assets.
i3 Energy Plc (LON:I3E, ) inked a C$65mln deal to expand its footprint in Central Alberta, acquiring assets producing around 8,400 barrels of oil equivalent per day from .
As well as strong free cash flow, the deal is expected to deliver extensive operational synergies, predictable low-decline production, and a large reserve base with multi-year development inventory.
It is raising £40mln to support the transaction, via a share placing and a retail offer via the platform. After an accelerated bookbuild process, the company confirmed that it will issue 363.7mln new shares at a price of 11p per share, marking just a 3% discount to the 15-day average closing price.
() said its Saffron-2 appraisal well in Trinidad has reached target depth and has been cased and cemented ahead of production testing, which is scheduled to start around 23 July.
Data recorded in the final sections of the well suggests similar sand intervals to hydrocarbon-bearing zones encountered in Saffron-1, said the statement, with a full suite of logging to be conducted over the coming week across each of the lower Middle Cruse and Lower Cruse reservoir sections of interest.
Zephyr Energy PLC () began mobilising the rig for the State 16-2LN-CC appraisal well, in Utah’s Paradox basin. The company signed a drill contract in June with Cyclone Drilling Inc to secure Cyclone Rig #34 for the programme and it today confirmed that mobilisation is underway.
Equipment and drill teams will be on-site in the coming days and Cyclone Rig #34 will be rigged up over a week, with the well on-track to spud before the end of July.
() said its investee company Ion Ventures, in which it has a 20.3% stake, is accelerating its energy storage plans with a landmark UK transaction.
Ion is teaming up with the GLIL Infrastructure Fund to create Flexion Energy Holdings, which will provide grid-scale storage. GLIL, which has £2.5bn-worth of assets under management, has committed £150mln to the partnership.
Ion, meanwhile, is transferring its portfolio of UK energy storage projects to Flexion, as well as future UK storage business. The plan is to have 300 megawatts (MW) of assets operational in two years extending to one gigawatt within five years.
() chief executive Andrew Law highlighted in the company’s full-year result continues to be well-positioned to support current and future activities.
The company’s results confirmed its robustness during a period described as “very challenging” and with a more positive outlook pointed to recent price stabilisation, rising US rig counts, international opportunities and new technology development. In particular, the firm’s ‘SABER’ product is a focus as the company continues to develop on the IP and technology licenced from Shell.
“Enteq will continue to invest in the potentially game-changing SABER rotary steerable technology, as well as the other technology-driven engineering projects,” Law said in the results statement.
() agreed with Midwestern Leon Petroleum Limited that a payment under a loan note agreement will be waived. Some US$32mln was due on July 5, as one of three instalments amounting to US$98mln due before the end of 2021.
Amid ongoing talks to merge and consolidate interests in the producing OML 18 asset, in Nigeria, the parties have agreed to a temporary waiver until the end of August (with interest accruing in the event that a transaction doesn’t proceed).
In June, it was announced that talks had begun with Midwestern Oil and Gas over a transaction that would represent a reverse takeover – with SLE taking the 60% of Midwestern that it doesn’t already own and the outstanding payments taken into account in the overall deal structure.