Proactive weekly Oil & Gas highlights: Touchstone Exploration, United, Deltic, Union Jack, Europa, H


Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF, FRA:PNW1) said drill results from the Royston-1 exploration well on the Ortoire block onshore Trinidad significantly exceeded expectations.

The team discovered 393 gross feet of hydrocarbon pay in the Herrera formation – almost double pre-drill estimates. Mud and wireline logs pointed to accumulations in the Lower Cruse and Karamat sections too. The well is currently being cased and prepared for production testing of the Herrera.

Chief operating officer James Shipka said he believed the discovery was natural gas rather than oil, but, added: “We will wait for testing results to confirm [this].”

In Egypt, United Oil & Gas PLC (AIM:UOG, FRA:1UO) told investors that its 22% owned ASX-1X exploration well in the Abu Sennan licence had encountered at least 10 metres of net oil pay across multiple oil-bearing reservoirs.

The well will now be completed and tested, and subject to a successful test, will subsequently be brought online for production.

Deltic Energy PLC (AIM:DELT, FRA:7RC) told investors that its partner, Royal Dutch Shell PLC (LSE:RDSB), has completed a geophysical site survey over the planned Pensacola exploration well location in the Southern North Sea.

The survey was completed on time and without incident, it noted. The programme’s findings will be interpreted and, if needed, a second geotechnical phase will take place before the end of the year, including the collection of samples from the seabed.

Union Jack Oil PLC (AIM:UJO) raised GBP3mln in a share placing as it moves to seize growth opportunities as the Wressle field in Lincolnshire continues to exceeded expectations earlier in the week.

The company, which owns a 40% interest in Wressle, said it will upgrade and expand production facilities which are currently handling around 884 barrels of oil per day ‘on a significantly restricted choke setting, with high wellhead flowing pressure and with zero water cut’.

Europa Oil & Gas Holdings Plc, another stakeholder in Wressle, on Tuesday declared itself delighted with the production performance.

Elsewhere, Harbour Energy (LSE:HBR) PLC is walking away from Rockhopper Exploration PLC (AIM:RKH)’s Sea Lion oil project in the Falklands.

Harbour, formed in April with the merger of Premier Oil and Chrysaor Holdings, decided Sea Lion is ‘not a strategic fit’ for the new company.

It is now exploring options to exit the Sea Lion oil field development project as well as its other license interests in the Falkland Islands. AIM-quoted Rockhopper says it is still committed to the project.

Chariot Ltd (AIM:CHAR, OTC:OIGLF, FRA:C62) signed a binding letter of intent with Halliburton which will provide project management, drilling and other well services for the planned appraisal programme at the Anchois gas project offshore Morocco. It comes as the company counts down to the start of operations at Anchois where it is targeting a December start to drilling.

TomCo Energy PLC (AIM:TOM, FRA:NI41) said it is delighted with the outcome of testing carried out by Quadrise Fuels International PLC (AIM:QFI, FRA:8QF) at its research facility in Essex.

Quadrise conducted a programme of tests on samples supplied by TomCo’s subsidiary Greenfield Energy, taken from its oil sands project in Utah, and, it has confirmed that its technology is able to produce commercial MSAR and bioMSAR fuels. Additionally, Quadrise simulated storage and handling of both fuels.

The tests confirmed the suitability of the heavy sweet oil for commercial production for potential power and marine end-user applications, domestically and internationally. It concludes the proof-of-concept work agreed in August 2020 between Greenfield and Quadrise.

Advance Energy PLC (AIM:ADV, FRA:BZPA) told investors the Buffalo-10 well, offshore Timor-Leste, is on schedule to spud in early November. The well is earmarked as the first production well in the project’s development and it will be retained as such. It is targeting 34mln barrels of resources within the Buffalo field. It is located in a water depth of just 30 metres, and the reservoir is anticipated at 3,200 to 3,3000 metres depth.

Equipment for the programme is being mobilised and the precise timing of the well will depend on the release of the rig from its preceding contract, around 300 kilometres away from Buffalo.

Aminex PLC (LSE:AEX) and Scirocco Energy PLC (AIM:SCIR) told their respective investors that a seismic acquisition contract has been awarded for the Ruvuma project, onshore Tanzania. ARA Petroleum, the operator of the venture, made the award to Africa Geophysical Services (AGS) following an extensive tendering exercise for the 3D seismic programme, which will span some 338 square kilometres.

The venture was able to take advantage of favourable market conditions securing a lump sum contract secured at a price that was considerably below their prior in-house budget for the programme, Aminex highlighted.

Tower Resources PLC (AIM:TRP) said it had finalised the documentation relating to its farm-out to Beluga Energy Limited of a 49% non-operating working interest in the Thali Production Sharing Contract. The package of documents is being submitted to the Minister of Mines, Industry and Technological Development (MINMIDT) today as per the Cameroon Petroleum Code.

Jersey Oil and Gas PLC (AIM:JOG, FRA:TPC1) chief executive Andrew Benitz described the first half of 2021 as “busy” as the UK exploration and production company continued to advance the Greater Buchan Area project in the North Sea.

During the period, there was a material increase in resource estimates for the project rising to 126mln barrels of technically recoverable resources for the Buchan field specifically, and, 172mln barrels for the greater area.

A concept selection report was completed and submitted to the UK authorities and Jersey raised GBP16.6mln in an oversubscribed share placing. Also in the period, the company launched a farm-out process to secure an industry partner and project funding.

Looking ahead, Jersey highlighted that the process is ongoing and it is engaged in ongoing talks with interested parties.


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