Echo has released the results of the EMS-1001 well stimulation programme at Fraccion C this morning. The well was mechanically stimulated in the Tobifera formation but after clean-up operations the well only produced stimulation fluid and formation water, no hydrocarbons were removed from the well.
It is disappointing that the well is not commercial but the stimulation was the correct thing to do under difficult circumstances such as the volcaniclastic play they were working in. There will be no such plays in the east where the company has a work programme in the Springhill or to the west of the basin where the Tapi Aike lies. Here the company has a heavy work programme starting with seismic currently ongoing followed by an exciting drilling campaign in what is clearly the jewel in the company’s crown.
The flow of news from Genel continues apace, today it is a Taq Taq reserves update where good field performance has led to an upwards technical revision of reserves resulting in a 62% reserves replacement at the 1P level. Also this being an end 2018 number it does not take into account the positive results from the att-20z well currently adding some 3,000 b/d to production. With an exciting drilling programme scheduled for this year the company is looking to increase production this year if these Wells match good recent performance.
An update from RRE this morning with the production life at Ross & Blake fields being extended from 2024 to at least 2029 the star, adding incremental net 2P reserves of more than 4.2MMboe. 2P reserves in aggregate at 1 January are 35.9MMboe an increase of 9.4MMboe implying a 2P reserves replacement ratio of 235% as contingent resources are moved into reserves on sanction.
Adding an estimated 15MMboe of 2C resources gives the company a total of ‘at least 50.9MMboe of 2P reserves plus 2C resources. This is most impressive and with so much else adding to the portfolio in upcoming production and appraisal drilling there is little to indicate any clouds on the horizon. With the cash flow that this will all bring to the company all is very well placed at RockRose.
SP Angel morning look at commodities and miners, featuring: Anglo Asian Mining (AAZ LN) BUY – 96p (from 108p) – Earnings update Glencore (GLEN LN) – Glencore claim record EBITDA on strong copper mine performance Landore Resources (LND LN) – BAM Gold Preliminary Economic Assessment Pan African Resources (PAF LN) – Earnings climb as operations refocus on profitable ounces Transense Technologies plc (TRT LN) – 2nd mining contract announced this week for mining heavy truck tracking & tyre pressure monitoring
In a conference call to investors and analysts, Motif Bio confirmed that the FDA had no questions over the clinical efficacy of Iclaprim. However the FDA stated it needs additional data to further evaluate the risk for liver toxicity before the NDA approval.
Five financial stories, trending today in a 70 second podcast, including: The number of people in work in the UK has continued to climb, with a record 32.6 million employed between October and December The jobless rate, remaining at 4%, is at its lowest since early 1975.