WTI (Sep) $73.20 +26c, Brent (Oct) $76.48 +18c, Diff -$3.28 =8c
USNG (Sep) $2.01 +6c, UKNG (Sep) 90.0p +1.45p, TTF (Sep) €36.085 -€0.1

Oil price

Oil, like most other asset classes, has rallied today with all my reasons from yesterday adding their bobs-worth. Today the add has been the API stats which whilst showing a rise in crude stocks it was only 180/- barrels against the market whisper of +850/-. Gasoline added which wasn’t brilliant but the EIA in its STEO predicted a price rise for crude in 2H 24. 

Challenger Energy Group

Challenger has announced that following shareholder approval at the Company’s AGM on 30 July 2024, dealings in the New Ordinary Shares following the Share Consolidation of 1 New Ordinary Share of 1 pence each for 50 Existing Ordinary Shares of 0.02 pence each, held at the Record Date, will commence as of 8.00 a.m. today.

The ISIN for the New Ordinary Shares is IM00BPLZ1D89 and the SEDOL is BPLZ1D8.

Total Voting Rights 

Following completion of the Share Consolidation, the Company’s issued share capital consists of 209,881,322 New Ordinary Shares, with each Ordinary Share carrying the right to one vote. The Company does not hold any Ordinary Shares in treasury. This figure of 209,881,322 New Ordinary Shares may therefore be used by shareholders in the Company, as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA’s Disclosure Guidance and Transparency Rules.

Prospex Energy

Prospex has announced that further to the announcement released at 17:25 on 5 August 2024, the Placing has now closed and the Bookbuild has been successfully concluded. Terms defined in the Launch Announcement have the same meanings in this announcement.

The gross proceeds from the Placing and Subscription increased to approximately £3.34 million. The Placing increased in size such that a total of 7,833,333 new Ordinary Shares at the Issue Price of 6 pence per new Ordinary Share were placed with investors to raise gross proceeds of approximately £470,000. The Subscription increased in size such that a total of 47,800,000 new Ordinary Shares at the Issue Price were subscribed for to raise gross proceeds of approximately £2.87million.

The proceeds from the Placing and Subscription will allow Prospex to acquire a minimum of 7% of HEI.  Additional proceeds from the Retail Offer will allow Prospex to increase its interest in HEI.

The Company is currently running the Retail Offer, which is open to existing shareholders via the Winterflood Retail Access Platform. The Retail Offer closes at 5pm on 7 August 2024 and further details of the Retail Offer can be found in the Retail Offer announcement released at 18:10 on 5 August 2024.

Director participation

Bill Smith (Non-Executive Chairman), Alasdair Buchanan (Non-Executive Director) and Andrew Hay (Non-Executive Director) have participated in the Placing for a total of 1,166,665 new Ordinary Shares at the Issue Price as set out below:

When I heard that Prospex was raising money on the day of the biggest fall in international markets for many years I feared the worst but the company has announced that the raise went pretty well under the circumstances and approximately £3.34m has been raised. The table above shows that directors were some £70/- of that but I don’t see the CEO’s name on the list and he only owns 0.79% of the shares according to the website, hardly skin in the game?

The raise will enable the company to add to its holding in HEI by some 7% and more depending on the retail offer and of course it is via a super-carry so actual ownership is yet to be ascertained. There are good opportunities for gas in Spain and this is another European Government that isn’t playing Russian roulette with its domestic energy business. 

Predator Energy

Predator has announced an operations update. 

• Rigless testing has commenced
• Regulatory granting of the entry into the First Extension Period
• First use of new Sandjet and coiled tubing technology in Morocco
• MOU-3 rigless testing programme unchanged

Sandjet rigless testing – CNG to Moroccan industrial market

Sandjet rigless testing tools and chemicals required for rigless testing operations were imported into Morocco following customs clearance documentation issued on 12 June 2024.

The remaining rigless testing equipment was imported after customs clearance was granted on 2 August 2024. This comprised primarily the Baker Hughes logging and coiled tubing units which were sourced from the Netherlands. Pictures of the coiled tubing unit, new to Morocco, have been uploaded to the Company’s website at www.predatoroilandgas.com to provide context for the scale of the operation being undertaken by the Company.

The delay in customs clearance was beyond management’s control.

First Extension Period

Ratification of Petroleum Agreement Amendment No. 4 which extended the Initial Period of the Guercif Petroleum Agreement and corresponding Exploration Permits to 61 months until 5 June, 2024 was announced on 1 May 2024.

An application to enter the First Extension Period was submitted as required 2 months before the expiry of the Initial Period on 5 June 2024.

Confirmation of entering the First Extension Period requires obtaining the required statutory approvals under the form of an order executed by the Ministry of Energy approving the extension to the Exploration Permits into the First Extension Period.

MOU-3 rigless testing programme unchanged

The Company’s rigless testing operations commenced before 5 June 2024 with site preparations at MOU-3 with initial customs clearances received on 12 June 2024 to import the Sandjet testing tools and chemicals. Unfortunately it was beyond management’s control that the programme would be subsequently impacted by the ratification required to approve entering the First Extension Period with a corresponding delay in receiving further customs clearances.

The Company took steps to manage the mobilisation logistics to ensure that no significant standby costs were incurred whilst waiting on regulatory documentation.

At all times the Company’s primary concern was to maintain the ability to utilise the key rigless testing equipment and services within its available time slot for exclusive use by the Company. This we have successfully achieved.

The Company is introducing new rigless testing technology in the form of the Sandjet testing tools and the Baker Hughes coiled tubing unit. Positive results from MOU-3 could potentially transform rigless testing strategies and increase cost-effectiveness.

The MOU-3 testing programme remains as announced on 6 June 2024.

A further operations update will follow once the MOU-3 rigless testing programme is completed.

The Company does not intend to provide an operations schedule for testing at present as plans remain flexible and may be modified depending on initial test results and operational efficiencies.

The Company thanks ONHYM for their ongoing support and partnership through the regulatory process which largely resulted from the Company’s desire to keep the momentum of operations going in order to avail of limited availability of well services equipment in a competitive global market.  

Paul Griffiths, Executive Chairman of Predator, commented:
“It goes without saying that the last 12 months following the achievement of the MOU-3 and MOU-4 drilling programmes has been immensely frustrating for Directors, Management and shareholders alike. Planning for rigless testing has been impacted by several amendments to the Initial Period of the Guercif Petroleum Agreement, whilst trying to balance access to limited well services and equipment caused by global competition. Ours is a big operation for Morocco but not by global standards. We have to be patient and creative.

However, by entering the First Extension Period we can look forward to re-establishing our operational momentum and newsflow.

Our near-term ability to supply CNG to the Moroccan industry is more advanced than other possible options. The Company is debt-free which allows it to have greater flexibility when considering different options, including M&A transactions and a partial divestment, for the modest levels of development finance required for “First Gas”. This is why Afriquia Gaz remains heavily engaged with the Company and supportive of our efforts to get gas to market at the very earliest opportunity.”

Getting back on the go is good news for Predator and its very patient shareholders who have waited for this day. The management is going to be patient and creative which will be important as there are very substantial expectations around… 

KeyFacts Energy Industry Directory: Malcy's Blog