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Rockhopper Exploration (RKH) announced its interim report. The reworked base case for the Falkland’s Sea Lion development now shows a gross joint venture NPV10 of over US$4 billion at US$77 Brent. JV partner, Navitas, is targeting Sea Lion FID during 2024 and RKH holds 35%. Current market capitalisation is £77 million. On to Italy, the stay on enforcement of the c.€190 million plus interest award against the State has been lifted and Rockhopper is in a position to commence legal proceedings for non-payment. Italy, however, is seeking to have the award annulled and a hearing is set for January next year. Cash and term deposit balances at 30 June 2023 were US$6.7 million and as of 30 June 2023 RKH had 53.9 million unexercised 9p warrants in issue, with an expiry date of 31 December this year (the current share price is 13.1p).
Pantheon Resources (PANR) announced the re-entry of Alkaid-2. The company says there are three primary objectives: to gather the best possible reservoir fluid samples for pressure-volume temperature analysis, to determine the initial reservoir pressure, and to test the improvements in the frac design. Unfortunately, we’re not going to get any proof at this stage of the commerciality of their Alaska project (currently capitalised in the market at £311 million), since the objective of the operations at Alkaid-2 is not to target maximum flow rates; indeed, Pantheon says it will deliberately restrict the flow rates to minimise gas production into the well bore and allow optimum data collection. Make of that what you will.
Union Jack Oil (UJO) announced an update. The Environment Agency has issued the variation of the permit for the West Newton B wellsite, which allows for the use of oil-based fluids within the Permian formation, which will be a key factor in enhancing flow rates. Plans for the proposed horizontal well from the West Newton B site are underway and commencement of operations is targeted for the first half of next year. The Competent Person's Report on West Newton, in which UJO holds a 16.665% economic interest, indicated gross 2C unrisked technically recoverable resources of 197.6 billion cubic feet of sales gas, with an estimated 85.5% geological chance of success. Union Jack is fully funded for its share of the drilling and testing of the horizontal well.
Reabold Resources (RBD), which also holds a 16.665% interest in the West Newton licence, says its balance sheet has sufficient funding for its direct share of the planned drilling on the licence and that the company will also support the operator, Rathlin, in exploring funding options for its 66.67% interest to enable the drilling of this well. Reabold says it may be in a position to provide additional funding to Rathlin following receipt of the second tranche payment from Shell relating to the sale of the Victory asset. RBD holds a 59% shareholding in Rathlin, giving it an effective c.56% economic interest in West Newton. Current market capitalisations are £23 million for UJO and £9 million for RBD; both have other assets.
Baron Oil (BOIL) announced its interim report. The priority is to prepare for the drilling and testing of an appraisal well on the Chuditch-1 gas discovery (75% BOIL interest), where success would prove up the commerciality of the 1,165 billion cubic feet of gross Pmean contingent gas resources in the field and de-risk an additional 1,651 billion cubic feet of gross Pmean prospective gas resources. The company says that ongoing discussions with potential funding partners provide additional affirmation that the technical case is robust. In anticipation of the proposed drilling of an appraisal well, Baron is in discussions with various contractors and is assessing the availability of suitable rigs, equipment and personnel. Additionally, BOIL has a 32% interest in Dunrobin (RBD above owns 36% and Upland Resources (UPL) 32%), which has a drillable prospect where it is claimed a relatively low-cost exploration well can target more than 100 million barrels of gross Pmean prospective oil resources with modest geological risk. A new seismic programme is planned during the first half of next year aimed primarily at further reducing pre-drill risks and on completion of this work, the partners intend to re-engage with potentially interested third parties in respect of the drilling of an exploration well. Current market capitalisation of BOIL is £17 million.
Aminex (AEX) announced its interim report. The new Competent Person's Report is awaited and all activities on Ruvuma continue to progress. The Ntorya-2 well test is expected soon, along with a rig contract for the drilling of the Chikumbi-1 well and the workover of Ntorya-1. Aminex, with a 25% non-operated interest, is carried throughout the ongoing work programme to a maximum gross capital expenditure of US$140 million (US$35 million net to AEX), which is expected to see the company through to the commencement of commercial gas production from the Ntorya gas field at zero cost to Aminex. Current market capitalisation is £43 million.
IOG (IOG) announced notice of intention to appoint administrators and suspension of trading in the company's shares. Discussions have been held with a representative group of senior secured bondholders and their advisors regarding a potential additional capital injection and associated restructuring. Affiliated newsletter Trading Keys flagged this up on 19 September, nine days before the announcement.
Petro Matad (MATD) announced its interim report. The company continues to push the government to complete the regulatory formalities to allow completion operations at Heron 1 to commence, but the provincial government has been very slow to respond which is putting the plan to complete the well before winter at risk. The local district authorities have, however, indicated that they are open to MATD operating in parallel with the slow-moving bureaucracy if central government supports the company in doing so. This option is now being pursued as a priority and all efforts are being directed at getting Heron 1 on stream before the oilfield contractors shut down for the winter. Current market capitalisation is £32 million
Tower Resources (TRP) announced its interim report. The rig contract in respect of the drilling of NJOM-3 in Cameroon is said to be the critical next step in finalising timing and the company is hoping to be able to spud the well in the first half of 2024. Key of course is the US$13.4 million funding requirement and Tower says it has been discussing this with multiple parties. One discussion is claimed to be at a very advanced stage, but only once binding agreements are executed will the company update. Current market capitalisation is £3 million.
Now, on to the news from the immediately exciting companies in which I’m investing.