An update from Savannah this morning in which the company announces that it is extremely close to obtaining Ministerial Consent in relation to the approval of the Seven Energy transaction.
The company has submitted the the revised terms as announced on 20th September to the DPR and has been informed that the ministry has completed its due diligence in relation to, and is fully satisfied with the transaction. Indeed, the application is being processed and will imminently be with the Minister for final approval.
There are no added comments from the company, as one might expect, as whilst the deal is not yet rubber stamped it would be premature to celebrate early but they are surely nearly over the line. This has taken a lot of hard graft and more time than the market and investors had expected but it will undoubtedly bear significant fruit over pretty much any timescale. On a day when markets around the world are falling rapidly and the oil price has had a bad couple of days I am not surprised at the muted response but expect a significant rise before long.
Chariot has announced that the Prospect S well offshore Namibia did not encounter hydrocarbons and whilst the well penetrated the anticipated turbidite sands the reservoirs were water bearing. This is a major disappointment even though drilling in frontier acreage carries with it more than the usual risk.
For Chariot this is probably time to retrench and whilst there are still other opportunities in the portfolio and it is ‘fully funded’ to progress assets in Morocco and Brazil I don’t expect much imminent activity.
For all those others who have recently taken positions offshore Namibia there will be a lot of analysis of data but I don’t expect this to write off the basin, indeed others may consider their acreage to have been enhanced in a tangential way.
DGO has announced yet another acquisition, this time paying $183m for Core Appalachia Holding Co with assets in Kentucky, West Virginia and Virginia. With production of ~11,200 boe/d from ~5000 wells and upside possibilities from theNGL’s cash margins are high and the deal is immediately accretive to cash flow and earnings. In addition the assets are apparently highly complementary to those of EQ! Acquired in July and value will be added by consolidating to a single operator.
The company has added midstream assets as part of the deal including moving third party volumes that enhance the economics. DGO has found a niche that investors like and seems to be a gift that keeps on giving, what’s not to like?
SP Angel daily look at commodities and miners, featuring: Galantas Gold (GAL LN) – Building up production at the Omagh mine SolGold* (SOLG LN) – Project and corporate update
Five financial stories, trending today in a 70 second podcast, including: MPs have voted to take control of Commons business for a day, in an unprecedented move to try to find a majority for any Brexit option. It means MPs will get a series of votes tomorrow to find out what kind of Brexit they will support, even though Theresa May has said there is no guarantee, she will abide by their decision.
On today's podcast: Live Company Group discuss progress including their new BRICKLIVE Show in Geneva. Bigblu Broadband cover the highlights from their final results released today. Rockfire Resources talks about the high grade copper from their Copper Dome Project in Central Queensland. Botswana Diamonds discuss their interim highlights.
Louis Coetzee, Chief Executive Officer of Kibo Energy (KIBO), addressed shareholders in a letter detailing progress the AIM listed energy company has been making in Sub-Saharan Africa and the UK. “Africa represents a rapidly growing market economy with an acute power deficit”
SP Angel daily look at commodities and miners, featuring: Bushveld Minerals (BMN LN) – Drill results at Brits vanadium project Chaarat Gold* (CGH LN) – Kapan site visit notes: focus on productivity to deliver sustainable cash generation MOD Resources (MOD LN) - Infill drilling at T3 project delivers increased reserves
Oil and gas investment company, Reabold Resources (RBD) shared with investors today that Rathlin Energy, operator of the PEDL 183 license onshore UK, has signed a rig contract for the drilling of the West Newton appraisal well. The well is expected to spud in April 2019.