AXL LN/CN, LBE LN, PTAL LN/TAL CN, SOUC LN/SOU CN, VLE CN, ANGS LN, AST LN, BP LN, CEG LN, COP US, EME LN, EQNR NO, GTE LN/CN/US, ITH LN, KIST LN, TCF CN, TRIN LN, TTE FP, UOG LN

AUCTUS PUBLICATIONS
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Arrow Exploration (AXL LN/CN)C; target price of £0.50 per share: Zone at Carrizales Norte with no booked reserves has flowed >1 mbbl/d – The Ubaque horizon at the Carrizales Norte-1 (CN-1) exploration well was put on three tests, the last of which tested at 1,134 bbl/d of 13.5 API oil on pump. The flow rate was stabilized with a 28.3% water cut (completion fluid). The water cut has been decreasing throughout testing. This is a very good result, given that no reserves are booked in the Ubaque. There is an opportunity to mix the heavy oil from the Ubaque with the C7 light to maximize pricing. Arrow plans to complete the test of additional pay zones in the Gacheta and C7 reservoirs over the coming weeks and then decide which zone to bring on production. The CN-2 well will be drilled once CN-1 is on stream. We continue to anticipate YE23 production of ~5 mboe/d including the all the CN wells. Excluding additional CN wells, YE23 production would be 3.5-4.0 mboe/d.
See website for full report

Longboat Energy (LBE LN)C; target price of £0.90 per share: Rig assigned to high impact well in Norway – A rig has been assigned for the drilling of the Lotus (Kjøttkake) exploration well (Company 30%) in Norway. The prospect is expected to be drilled in 3Q24. It is an analog to Kveikje. Our unrisked NAV for the well is £0.24 per share (post closing of the transaction with JAPEX). The chance of success has been estimated at 56%.

PetroTal (PTAL LN/TAL CN)C; target price of £1.50 per share: Positive steps to incorporate the social fund into the Block 95 licence contract – The technical working table committee for the 2.5% Block 95 community social trust fund has approved bylaws governing and regulating the social trust. This was a required follow up step from the Supreme Decree authorizing Petroperu to execute the amendment incorporating the 2.5% social trust to the Block 95 license contract. The Peruvian Economic Commission of Congress has also approved the redistribution of the Canon for the Loreto region. These measures are important to maintain the support of local communities in the region.

Southern Energy (SOUC LN/SOU CN)C; target price of £1.60 per share: Drilling cost down. Four wells to be completed on gas prices >US$3/mcf – 1Q23 production stood at 2,607 boe/d, which is in line with our forecasts. Net debt at the end of March stood at ~US$19 mm including working capital. The company held ~US$12 mm in cash, which is line with previous indications. Southern has achieved drilling cost efficiencies and the cost of drilling and completing new wells is expected to be around US$5.7 mm. The completion costs of the four drilled but uncompleted wells is ~US$3.4 mm per well. These are expected to be completed at gas prices >US$3/mcf. We are now assuming that this will take place in 4Q23. The acquisition of the Gwinville assets from PetroTx has provided Southern with additional access to the Florida Gas Transmission System that provides access to a market with much higher gas price premium than achieved by Southern in the past.
See website for full report

Valeura Energy (VLE CN)C; target price of C$6.00 per share: Contracts extensions – Valeura’s charter of Jasmine’s FPSO and the contract for the provision of operating and maintenance services for the vessel have both been extended by five years until the end of 2028. The extension of these contracts is important as the company looks to pursue further field extensions and infill drilling to extend the economic life of the asset.

IN OTHER NEWS
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AMERICAS

Ascent Resources (AST LN): Acquiring mining business – Ascent is planning to make a bid for Amur Minerals. Ascent submitted a non-binding indicative proposal to the Board of Amur in November to acquire the company in a share-for-share exchange on a ratio of approximately 1 new Ascent share for every 21 Amur shares. The indicative proposal is equivalent to a gross equity valuation of 6.1 pence per new Ascent share. Ascent indicated that it has not received a written response to the offer. The implied offer price would represent premium of 7.3% to Amur share closing share price on the day prior to the announcement.

Challenger Energy (CEG LN): Resources update in Uruguay – Challenger’s three primary prospects in AREA OFF 1 have been estimated to hold 1.9 bnboe prospective resources (Pmean).

ConocoPhillips (COP US): Exercising pre-emption rights to acquire Canada assets– ConocoPhillips is exercising its preemption right to purchase the 50% interest in the Surmont asset held by TotalEnergies for U$4.03 bn. TotalEnergies had previously announced that Suncor was the buyer, subject to the waiver of ConocoPhillips pre-emptive right.

Enauta: Discovery in Brazil – Enauta has discovered up to 230 mmbbl in place at Atlanta NE.

Gran Tierra Energy (GTE LN/US/CN): Operating update in Colombia – Current production stands at 36.8 mbbl/d. During 2Q23 to date, average production was 33.6 mbbl/d.

Trinity E&P (TRIN LN): FY22 results – 1Q23 production in Trinidad was 2,899 bbl/d. The company held US$11.4 mm in cash at the end of March.

ASIA AND AUSTRALASIA

Empyrean Energy (EME LN): Raising new equity for Indonesia and China – Empyrean is raising £1.52 mm of new equity at a price of 0.8p per share. The proceeds of the raise will fund the completion of the joint regional oil migration studies with CNOOC at Topaz, the 3D seismic study also at Topaz and FEED studies at Mako. The £5.28 mm convertible has also been restructured with a face value reduced to £4.6 mm, interests until YE23 now accruing and the conversion price reduced from 8p per share to 2.5p per share.

EUROPE

Angus Energy (ANGS LN): Operating update in the UK – The Saltfleetby Field has reached a steady operating state from the 3 producing wells in the field with combined average daily rate of 9.5 mmcf/d, reaching peak flows of over 10 mmcf/d. The new B7T well continues to clean-up and Angus anticipates exceeding a combined average daily rate of 10 mmcf/d, on a sustainable basis.

Bp (BP LN): Dry hole in the UK – The Ben Lawers wildcat in the West of Shetlands was dry.

Equinor (EQNR NO): Dry hole in Norway – Wildcat well 31/2-23 S on licence PL 923 was dry.

Ithaca Energy (ITH LN): 1Q23 results – 1Q23 production was 75.3 mboe/d, ahead of guidance of 70-72 mboe/d. Net debt at the end of the quarter was US$900 mm. The FY23 production guidance of 68-74 mboe/d has been re iterated.

Kistos (KIST LN): FY22 results – FY22 pro forma production was 10.6 mboe/d. YE22 2P reserves in the Netherlands, Norway and UK were estimated at 36.3 mmboe. YE22 net cash was EUR130 mm.

Trillion Energy (TCF CN): Operating update in Turkey – 1Q23 gross production was 12.6 mmcf/d. The company held US$2.4 mm in cash at the end of March. The Bayhanli-2 well has been tested at 11.9 mmcf/d from the E,D, C, A and AA gas sand reservoirs. The well is expected to be produced to pipeline with initial flow rates of 8-9 mmcf/d.

MIDDLE EAST AND NORTH AFRICA

United Oil & Gas (UOG LN): Well test results in Egypt – The well flowed 730 bbl/d from the AR-E reservoir and 684 bbl/d from the AR-C. United believes that the result has positive implications for the in-place volumes and future potential of the ASD Field.