Exploration News - 8 January 2024

HE1 HLOGF UJO ANGS AXL AXL.V CRCL and more

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Catching up with recent interesting news, Helium One Global (HE1 HLOGF) announced the commencement of drilling at the Itumbula West-1 well, targeting two major fault zones and the Karoo group. Geolog is undertaking mudlogging while drilling to monitor helium gas shows, a portable mass spectrometer and field pressure-volume-temperature specialist is on site to measure and validate helium gas shows as well as downhole samples, downhole reservoir testing equipment has been mobilised to perform open hole well testing and fully evaluate the fault zones, and Baker Hughes continues to provide third party services for wireline, fluids and cementing. The whole process from spud to completion of logs and well testing is expected to take approximately four to five weeks.

Union Jack Oil (UJO) announced the competent person's report for the Wressle field and Broughton North prospect, showing a 263% increase in 2P reserves compared to the 2016 CPR. Highlights are the reclassification of 1.883 million barrels of oil in Penistone Flags contingent resources to 2P reserves, a 59% upgrade to the Ashover Grit and Wingfield Flags estimated ultimate recoverable numbers and a 23% upgrade to Broughton North prospective 2U resources.

Angus Energy (ANGS) announced a fourth quarter 2023 production and operations update. Production for the quarter was 7.35 million therms, with estimated revenues of £7.2 million. The company also announced a £20 million refinance with Trafigura, which is expected to close later this month. Funds will be used to repay existing senior and bridge debt and reduce the deferred consideration due to Forum Energy as well as to initiate expenditure on a fourth well at Saltfleetby to be completed by Q1 2025. 

Arrow Exploration (AXL; AXL.V) announced an operations update and 2024 guidance. The company exited 2023 with a production rate exceeding 3,200 barrels of oil equivalent per day net and the 2024 work program includes 15 wells and a US$45 million net capital budget, which will be financed by current cash reserves and operating cash flow. Average production rates more than doubled over the year and the company believes it is capable of similar production growth in 2024.

Corcel (CRCL) announced Tobias-14 drilling results. The well reached planned target depth of 781m and a full Binga reservoir section (~80m) was encountered in the well with identical zones as in the previous TO-13 well, with oil shows throughout. CRCL believes the results confirm the ability to reactivate production through an early production system and imply significant hydrocarbon potential remaining. Well clean-up and flow testing on TO-14 now begins.

On to the company of most interest.