Proactive weekly oil & gas highlights: Zephyr, 88 Energy, San Leon, COPL, Mosman, Block, Westmount E

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Zephyr Energy Plc revealed positive results from testing at its State 16-2LN-CC well in Paradox Basin, Utah, U.S., which yielded “strong evidence” to support further development.

The Rocky Mountain oil and gas company said the wellbore diagnostic fracture injection test (DFIT) provided strong evidence of the potential to successfully develop the Cane Creek reservoir as a hydraulically stimulated resource play (HSRP). It described the well as a potential proof of concept.

88 Energy Ltd (AIM:88E, ASX:88E) confirmed the close of its equity placing which raised A$23.96mln, the maximum allowed without shareholder approval. The Alaska focused oil explorer launched the placing earlier this week as it prepares plans for its next steps for the Merlin project, along with its other prospects in the American state’s North Slope region. Specifically, proceeds will fund the planned Merlin-2 appraisal well, slated for Q1 2022.

A total of 855.8mln new shares are being sold to investors at a price equivalent of 1.49p (2.8 Australian cents) to raise the equivalent of GBP12.71mln.

“Completion of this placing positions 88 Energy strongly as planning and preparations continue for drilling of the Merlin-2 appraisal well,” said chief executive Ashley Gilbert.

San Leon Energy PLC (AIM:SLE, AQSE:SLE, FRA:SZX1, OTC:SLGYF) updated on its investment in the Oza field where a re-entry well has flowed 2,463 barrels of oil per day in testing. The testing operation is ongoing, with two further zones set to be tested, and it is expected that the well will subsequently be put on commercial production.

Canadian Overseas Petroleum Ltd (LSE:COPL, CSE:XOP, FRA:V9LA, OTC:VELXF) told investors its recently acquired assets in Wyoming continue to perform well beyond early expectations. Gross oil production at August 31 measured 2,720 barrels of oil per day, which equates to 1,604 barrels net to COPL and represents some 123% growth from the rates at the field in April. It is up some 24% from rates measured just two weeks ago, COPL noted.

The strengthened performance comes as a result of an ongoing enhanced gas injection programme, which started on April 1 (which was also the effective date of COPL’s deal to acquire the Wyoming assets).

Mosman Oil and Gas Ltd (AIM:MSMN) updated on the preparations for the Winters-2 well, in east Texas, where drilling is due to start soon.

The company, in a statement, said that drilling will commence as soon as its contracted rig is available. Mosman is the operator of the project, which is targeting the Wilcox formation, via its subsidiary Nadsoilco LLC (which is earning a 28.62% interest in the asset).

Block Energy PLC (AIM:BLOE, FRA:BE9) chair Philip Dimmock said the board is looking forward to getting back to focusing on operations as an activist revolt was voted down at a shareholder’s general meeting. The activist requisitioned GM called for an independent forensic investigation into the affairs of the company and 93.7% of the votes cast were against the resolution.

Westmount Energy Ltd (AIM:WTE) has noted the start of drilling for the Sapote-1 well, on the Canje Block, offshore Guyana. The Exxon operated programme is using the Stena DrillMAX drillship and is expected to take 60 days to complete, with results expected in late October.

Sapote-1 is described as an independent multi-layer prospect, evaluating several Upper Cretaceous targets. It is the largest prospect drilled on the Canje block to date.

Westmount has an indirect interest in the venture via a shareholding in JHI Associates Inc, which is a minority partner in the Exxon project.

Eco (Atlantic) Oil & Gas Ltd has a 10% interest in JH Associates, and its chief executive Gil Holzman said he is excited about the potential of Sapote-1.

Jersey Oil and Gas PLC (LSE:JOG, FRA:TPC1) told investors it aims to develop the Greater Buchan Area project in the North Sea as the region’s first new project to be fully powered by electricity.

The company, in a statement, said it has seen significant stakeholder interest in working collaboratively to enable the GBA Development to become an integral part of an area-wide electrification project. It is seen as an opportunity to improve the environmental credentials of the project, as well as being an opportunity to reduce both capex and opex. It comes as a farm-out partnering process is ongoing.

Union Jack Oil PLC (AIM:UJO) has updated on the West Newton project, near the river Humber, where testing has identified a significant hydrocarbon column. The company, in a statement, said that a column of some 118 metres was demonstrated on completion of drilling at the West Newton B site.

A 44-metre section of the Kirkham Abbey formation was perforated in the West Newton B-1z well and hydrocarbons were produced to surface – as described by the company, good quality gas was recovered along with liquid hydrocarbons.

Empyrean Energy PLC (AIM:EME, FRA:E1E) signed up a rig for the planned Jade exploration well in China, setting a December spud date.

The company awarded the contract to China Oilfield Services Limited (COSL) which proposed a significantly reduced drilling cost estimate of US$12.3mln, compared to a prior US$18.5mln estimate, with a US$7.4mln success-based bolt-on for testing. Planning and permitting operations are continuing. Empyrean noted that COSL has confirmed its availability along with all technical, commercial and contractual terms.


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