WTI (Feb) $73.81 +$1.62, Brent (Mar) $78.76 +$1.17, Diff -$4.95 -45c
USNG (Feb) $2.89 +7c, UKNG (Feb) 85.6p +2.1p, TTF (Feb) €32.525 -€0.6

Oil price

Oil which had been firm last week advancing by a couple of dollars gave it all back today as rumours went round the oil market suggesting a deal had been done calling off the rebels. The Danish publication Shipping Watch carried the story saying that Maersk, Hapag-Lloyd, Kuehne & Nagel andFrontline were involved.

San Leon Energy

San Leon has announced that, further to its update announcement on the investment from Tri Ri Asset Management Corp on 27 November 2023, San Leon has continued its dialogue with TRAM to understand the reasons for the delay, by TRAM, in delivering funds pursuant to the terms of its contractual arrangements with San Leon. To date, no funds have been received by the Company. Although San Leon considers that its contract with TRAM remains valid and in full force and effect, the Board has nevertheless determined that it is prudent to seek an alternative solution should the TRAM investment delays continue.  Over the past weeks the Company has identified and has been in discussions with a new potential financing partner in relation to a potential funding solution that is similar to the investment from TRAM.  

The Company’s ordinary shares of €0.01 each in the Company remain suspended from trading on AIM, pending San Leon publishing: i) its audited accounts for the year ended 31 December 2022, as required by Rule 19 of the AIM Rules for Companies; ii) its unaudited interim results for the six months ended 30 June 2023, as stipulated by Rule 18 of the AIM Rules for Companies; and iii) an AIM admission document in relation to the New ELI Investments, details of which were announced by San Leon on 10 October 2023, which are one of the proposed uses of the proceeds from the investment from TRAM (or, alternatively, the new potential financing partner).  The Company intends to pursue all of these requirements following the conclusion of its refinancing.

Whilst the contract remains ‘valid’ SLE are continuing the TRAM route and hoping that the money will arrive but for safety’s sake are also seeking an alternative solution with a new potential financing partner.

San Leon shares remain suspended but the deal is still on and options remain open to the board to seek to close this deal or something similar.

Angus Energy

Angus has announced a fourth Quarter 2023 Production and Operations Update

• Production for the Quarter was 7.35 mm therms
• Estimated revenues of £7.2m for the Quarter

Gas volumes produced and sold from the Saltfleetby Field equalled 7.35 mm therms in aggregate for the months of October, November and December 2023 combined, compared to 7.9 mm therms produced and sold in the third quarter. Fourth quarter production equates to an average of 2.45 mm therms per month (2.6 mm therms per month in the third quarter), as against hedged volumes of 1.5 mm therms per month for the third and fourth quarter. Operational efficiency was 87% for the fourth quarter (90% operational efficiency for the third quarter). Gas condensate (liquid) production averaged 130 bbl/day.

The quarter included a planned shutdown for 6 days during October for maintenance and remedial work on one of the two compressor engines on the Saltfleetby site. The compressor was returned to service on the 21st of October, allowing dual compressor operations to recommence.

The construction of the B07T permanent flowline was completed during the quarter with commissioning of the new flowline completing on the 3rd of November. B07T production losses were minimized to one day for completion of the tie-in work and for flowline commissioning activities.

A further planned intervention on one of the two compressor engines took place during November with the work successfully completed on the 22nd of November, allowing dual compressor operations to recommence.

Equipment hardware upgrades were implemented on one of the two compressor engines during December with the aim of improving engine reliability performance. Work was carried out across a small number of planned interventions prior to the festive period.

Well performance and well optimization trials were carried out during the quarter further to commissioning of the B07T permanent flowline and this work remains an ongoing focus for the sub-surface and operations team.

With the fourth quarter slightly down at Saltfleetby due to expected maintenance and remedial work on a compressor the company and its shareholders should be very pleased with this update and with the field upgrades coming thick and fast the I’m confident that all is very good for Angus.

Ithaca Energy

Ithaca announced on Friday that Alan Bruce, Chief Executive Officer, having led the Company through a successful IPO and first year as a listed company, has agreed with the Board that he will step down from his role as Chief Executive Officer to pursue new opportunities. 

The Board will progress with a formal search process to appoint a new Chief Executive Officer as soon as possible and will update the market in due course. Until a new Chief Executive Officer is appointed, Iain Lewis will fulfil a dual role of Interim Chief Executive Officer with immediate effect, as well as continuing as Chief Financial Officer, working alongside Gilad Myerson, Executive Chairman and the Company’s experienced Leadership Team. 

Gilad Myerson said: “The Ithaca Energy Board thank Alan for his hard work and strategic insight over the last two and a half years and wish him well for the future. The search for a new Chief Executive Officer will start as soon as possible. In the meantime, our strong Leadership Team will continue to manage the business, led by Iain as Interim CEO, working in collaboration with myself and with the support of the Board.”

Alan Bruce said: “I am extremely proud of what Ithaca Energy has accomplished over the past several years, with the Company now established as one of the largest independent operators in the UK.  Having led the business through its successful IPO, I am leaving with the Company in a strong financial and strategic position. I would like to thank all of the Ithaca Energy employees who have been instrumental in the Company’s success to date and wish them well in the future.”

I hadn’t expected this myself and I really need to fix up a meeting with Ithaca as Alan was my last contact apart from IR people. But the company will be in good hands whatever and the quality of assets and the 15% + yield it throws off will be highly rewarding for shareholders. 

KeyFacts Energy Industry Directory: Malcy's Blog