OGV Energy Week 24 Oil, Gas, Energy review
Bahamas Petroleum Plc took significant steps forward this week with a bold growth strategy, transforming the company over just a few days.
A deal announced on Thursday marks the biggest change by adding production, appraisal/development, and exploration assets across Trinidad and Suriname.
Earlier in the week, BPC expanded its exploration footprint as Uruguay awarded the OFF-1 licence covering a high-potential but early-stage area off the Atlantic coast.
In Uruguay it landed the OFF-1 licence which has been estimated internally to host 1bn barrels of oil equivalent resource potential. Specifically, the company noted the presence of multiple exploration plays in relatively shallow waters across the new licence, which spans some 15,000 square kilometres.
It highlighted that the play system in the licence is believed to be “directly analogous” to the prolific Cretaceous turbidite discoveries that are currently being evaluated and developed offshore Guyana and Suriname.
Thursday’s acquisition, meanwhile, is a paper deal that sees Columbus shareholders receive 0.803 new BPC shares for each share they own. It is pitched at 2.57p per share which is a 11% premium to the share’s closing price on Wednesday. It puts the Columbus value at £25.1mln, and, its shareholders will together account for nearly 24% of the new company.
On Wednesday Tower Resources PLC told investors that its projects in Cameroon, South Africa and Namibia remain attractive even amidst crude oil market volatility.
Posting its 2019 full-year results, the company noted that Brent crude is now trading at around US$40 per barrel, longer-term pricing (the December 2025 future) is pitched above US$52 per barrel, and there is potential for a tightening of supply in the coming years due to industry-wide cuts in capital investment.
The results statement from Echo Energy PLC has confirmed an average production of 2,394 barrels oil equivalent (boe) per day in the first quarter of 2020 whilst detailing an opportunity for low-cost development work. In an update on resources and reserves in Argentina, the company told investors that it has identified an initial portfolio of sixteen low-cost workover and intervention operations within the Santa Cruz Sur asset package.
These operations will be focused on taking additional volumes into production which will, in turn, migrate associated volumes into proven developed producing (PDP) reserves.
Also on Monday, Union Jack Oil PLC is expanding its ownership of the Wressle oil field development project, with a deal to acquire an additional 12.5% interest from Humber Oil & Gas Limited for an initial upfront payment of £500,000.
It sees the AIM-quoted firm’s stake in the Lincolnshire onshore oil project increase to 40%.
Wressle is slated to achieve ‘first oil’ and begin production later this year, and when that project milestone is reached it will be transformational for Union Jack’s production and revenue profile.
Read the latest issue of the OGV Energy magazine HERE.
Published: 13-06-2020
