Proactive weekly Oil & Gas highlights: Diversified Energy Company, United Oil & Gas, Zephyr Energy,


Diversified Energy Company PLC (LSE:DEC, OTCQX:DECPF) and its investment partner Oaktree Capital Management agreed to divest their interests in predominantly undeveloped acreage in Texas.

The land package, referred to as the Haynesville acreage, is being sold for US$72.8mln which delivers around US$37.3mln net to DEC.

Earlier this week, DEC told investors it will deploy 500 additional methane emissions detection devices to its Appalachian upstream field operations team, supporting its ongoing commitment to environmental stewardship.

United Oil & Gas PLC (AIM:UOG) told investors the Al Jahraa-13 development well (AJ-13), at the Abu Sennan licence, onshore Egypt, has been spud.

The well programme is expected to take 65 days as it aims for stacked Upper and Lower Bahariya reservoir targets. The company said the well can rapidly be brought into production, generating revenue.

Zephyr Energy Plc announced the first flowing hydrocarbons from the state 16-2LN-CC well in Utah as production testing and well clean-up operations continue.

The production of hydrocarbons is a major milestone for the company, Zephyr said in a statement and marks the first horizontal well in the wider Paradox Basin to flow hydrocarbons using a modern hydraulically stimulated completion.

Empyrean Energy PLC (AIM:EME) inked an integrated drilling contract (IDC) for the planned exploration at the Jade prospect, offshore China, ahead of a ‘late December’ spud. The company has contracted China Oilfield Services Limited (COSL) for the drill programme and the contractor has now confirmed rig availability and all the technical, commercial and contractual terms are agreed.

Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF) said production volumes in the third quarter was 1,333 barrels per day, up 2% year-on-year. The Trinidad based small-cap oil producer reported some US$7.65mln of realised petroleum sales in the three months ended September 30, and noted an average crude price of $62.37 per barrel which set an operating netback of $27.77 per barrel (Touchstone’s highest since early 2019).

With the net back up some 97% versus the same quarter last year, the company said it generated US$1.07mln of ‘funds flow from operations’ compared to US$192,000 a year ago. Net losses narrowed to US$51,000 from US$703,000 in Q3 2020, amidst continuing investment in growth projects.

On Monday, Touchstone announced aa new light oil discovery in the Royston-1 exploration well, on the Ortoire block in Trinidad, where the first of three tests beat expectations.

Deltic Energy PLC (AIM:DELT) (Deltic Energy PLC (AIM:DELT)) has completed the farm-out of stakes in a group of five Southern North Sea licences to Cairn Energy PLC (LSE:CNE) (Cairn Energy PLC (LSE:CNE)). Cairn now formally acquired 60% interests in reach of the licences and becomes project operator.

The new partner is committed to cover 100% of the costs of agreed work programmes for each licence up until they are brought to a drill-or-drop decision, thereafter it is agreed that Cairn will fund 70% of the first well across the licences (up to a cap of US$25mln for gross well costs).


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