Oil price, Bahamas, PetroTal, Predator, Aminex, Echo
WTI $39.29 -$1.31, Brent $41.03 -$1.40, Diff -$1.74 -9c, NG $2.56 -23c
Oil price
Same old, same old as the oil price goes up or down with the same factors. Yesterday the price was down as another field in Libya, the Sarir, came back on tap with a potential 300/- b/d hitting Brent specifically. Also Covid gets worse and Governments seem to have no idea about what to do about it..
After hours the API stats were mixed, mainly good with a crude draw and with gasoline building and distillates drawing sharply products were mixed. And of course in Cleveland, Ohio the Presidential debate more resembled a playground spat.
Busy times at BPC as they release the third RNS within a week, talking to the company this morning there is no doubt that much is going on. The actual rig announcement has mean that many other things fell into line. So the insurance policies have been placed, logistics planning and contracts progressed for a range of necessary services and supplies, including entry into a Master Service Agreement with Halliburton for provision of integrated well services for the drilling of Perseverance #1.
With the Halliburton deal under way the drilling team and facilities set up in Houston have been expanded in preparation for December.
Updated conceptual development study and associated update of potential full-field economics ‘reaffirms the economic robustness of the project. In a successful development scenario of the estimated Perseverance #1 P50 resource, at US$40/bbl oil price, the project would deliver an NPV10 exceeding $2.5bn, and revenues of over US$5 billion to the Government of The Bahamas’.
Simon Potter, Chief Executive Officer of BPC, said:
“Last week, we advised of an important milestone – the nomination of the Stena IceMAX as our drillship facility for Perseverance #1, and the anticipated spud date of that well, being prior to Christmas 2020.
With the certainty around our forward schedule, we are now able to push on with a wide range of important planning and logistics tasks, such as completing our insurance placement and progressing a range of necessary contracts for services and supplies. This includes entering into a Master Service Agreement with Halliburton, another important step as we progress towards drilling. The MSA with Halliburton provides access to services on an integrated basis from one of the world’s pre-eminent oilfield services companies, befitting of the flagship nature of this project.
Alongside this our drilling team has recommenced activity, and whilst presently working remotely, office accommodation in Texas is back up and running for when actual drilling operations are underway, at which time the team can be physically co-located. I look forward to updating shareholders on additional milestones in the coming months.”
Good news today from PTAL as the company recommences oil production at the Bretana Field, all seven wells continue to be gradually brought into full operation, current production is c.11,000 bopd approaching the pre-shutdown level of 11,500 bopd.
Production will initially be through deliveries to the Iquitos refinery, then it will be through the Northern Oil Pipeline to the Saramuro Pump Station will be ready to receive deliveries of Bretana oil when the barges arrive.
This is all due to a long term resolution between the local communities and the regional and central Government of Peru that will see enhanced funding available for these regions to aid community projects. As at September 29th the company had cash of $12m and accounts payable and accrued liabilities of approximately US $36 million, a reduction of US $14 million from the end of Q2 2020. Ongoing payments will be managed from expected oil field revenues and internal cash resources. Pursuant to contractual terms with their suppliers, approximately 30% of the amount is not due until into 2021.
Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented:
“PetroTal commends the efforts of all parties in reaching a negotiated settlement that will ultimately benefit the indigenous communities, the Peruvian government, and all operating companies, including PetroTal. On behalf of PetroTal, I would like to sincerely thank the PetroTal team for their continued dedication during this period and for their contribution towards this long-term community funding solution. Our corporate commitment is to ensure all stakeholders benefit from the Bretana project, including the local communities that support our Company.”
This is indeed good news for PTAL and at 11p and with a very modest market cap, looks exceptional long term value especially after getting production back so quickly.
A detailed interim report from Predator this morning, I am being brief today as I have an upcoming Core Finance interview with CEO Paul Griffiths and will write more after I have had his input.
In the report the company has a cash balance of £2.098m as well as restricted cash held for investment in the Pilot CO2 EOR project. This means that the programme is fully funded in Trinidad as well as in Morocco where much activity is going on behind the scenes. The company raised £4.008m through two oversubscribed placings in the period which had warrants attached and paid in full the outstanding balance of the £746,00 Arato Convertible loan.
The operational highlights were as follows, Phases 1 and 2 of Pilot CO2 EOR Project successfully executed and the company exercised a rig option with Star Valley drilling without entering into any financial liabilities. Also, bids were received for MOU-1 well services and logistical support and an additional high-impact MOU-4 Prospect was identified with over 1 TCF of additional potential prospective gas resources (management estimates). Finally, Predator LNG Ireland was formed, and LNG Business Plan initiated.
Paul Griffiths, CEO commented,
‘During the period, and in the post period, despite the COVID-19 restrictions, we have successfully achieved key milestones in Trinidad through delivering enhanced oil recovery in our Pilot CO2 EOR Project. We will continue to accumulate enhanced oil production from certain CO2 EOR monitoring wells in the AT-4 Block whilst we await approvals to restore AT-5X to production.
In Morocco we have successfully maintained a drill-ready status for the MOU-1 Prospect at Guercif and can re-instate the operational planning and execution once COVID-19 restrictions are lifted. An additional high-impact prospect, MOU-4, has been added to the portfolio, which increases the potential for a transaction to drill follow-up wells to MOU-1 whilst a rig and well services are mobilised at the MOU-1 drilling location. This in turn increases the potential for an M & A transaction in the event of a successful and material gas discovery. In June 2020 ConocoPhillips acquired a licence adjoining the Guercif Licence.
We have rapidly advanced the offshore LNG import project for Ireland from a conceptual idea to a stage where we are engaged with regulators and significant global players in the LNG industry to provide an FSRU solution to address Ireland’s security of energy supply’.
Aminex has announced that the longstop date in Tanzania has been put back to 15th October from 30th September, this is the 9th extension and according to the company is the last as a bullet is finally being put to the head.
Revenues of $5.6m ($2.7m) H1 production aggregated 390,844 boe, the company has cash of $1.2m and they have restructured the debt and reduced costs in the business.
Yesterday they announced that the Monte Aymond Gas Project initial assessment was complete and the company is assessing its development Monte Aymond via both the aggregation of the volumes of Campo Limite, and via a hub development approach to potentially lower development costs and increase the returns from both projects and also a standalone development.
Martin Hull, CEO of Echo Energy, commented:
“The Monte Aymond project on the Palermo Aike licence, located close to Campo Limite and the Chilean border, is of great interest given its promising historical data and potential micro-LNG development plan which would involve minimum capital investment. It has limited technical risk, having already been tested and can potentially be exploited with an innovative, and low capital, route to market.
In addition to Monte Aymond, we look forward to the approaching well test at Campo Limite and to advancing the previously announced initial portfolio of workover operations at Santa Cruz Sur. Success at Campo Limite has the potential to materially de-risk other projects in the Campo Limite area. This may include follow-on exploration wells on other structures, appraisal and development wells, or bringing existing discoveries on stream as part of a larger gas commercialisation strategy for the Palermo Aike licence.
Echo Energy is once again entering a phase of enhanced activity as we progress various workstreams to deliver maximum value from our existing portfolio with a balanced risk-reward ethos, ensuring prudent financial management while also keeping our options open to further opportunities in the region.”
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