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Proactive Oil Highlights: 88 Energy, John Wood Group, Mosman Oil And Gas ...

Published: 05:00 17 Feb 2018 EST

Oil Derrick

88 Energy Ltd (LON:88E) this week secured “a level of certainty” that it will receive A$6.75mln of additional capital funding in March, after entering into an underwriting agreement related to listed share options.

There are around 340mln listed options which are exercisable at 2 Australian cents before a deadline of March 2 (current ASX price: 2.9 Australian cents).

“The underwriting gives 88 Energy a level of certainty that the 88E options that haven't already been exercised will result in funding of A$6.75mln,” the exploration company said in a statement. This funding along with the existing strong cash position ensures the company is well funded for the next important programmes of work.”

Mosman Oil And Gas Limited (LON:MSMN) announced that it had produced 3,558 barrels of oil in the four months to January from its Welch project in Texas.

Cash flow from the project was also positive over the period. The first phase of workovers has established production of up to 40 barrels per day. An investment decision on a horizontal drilling programme will be taken later this year after a reserves report.

In other news, Mosman revealed it has replaced all of the directors of GEM International Resources (CVE:GI) with its own nominees including John W Barr.

Mosman owns 7.6mln shares in GEM, which is currently suspended on the Canadian Venture Exchange after failing to lodge its financial report.

And on Thursday, the company announced that it has raised £500,000 in working capital through the issue of new shares in a placing.

The firm issued a total of 45.45mln new shares at a price of 1.1p each. According to Mosman, the funds will be put towards its evaluation of new acquisition opportunities and general purposes.

Looking to Africa, Tlou Energy (LON:TLOU) revealed that it has been asked by the Botswana government to re-tender for the 100Mw Lesedi coal bed methane-powered power station contract.

The Ministry of Mineral Resources, Green Technology and Energy Security has requested that both short-listed bidding companies, Tlou and Sekaname, re-submit bids. The decision to cancel the original RFP and re-tender has been approved by the Public Procurement & Assets Disposal Board (PPADB) in Botswana.

In a later statement, Tlou revealed that neither of the submitted bids met compliance requirements and it has been given details regarding the non-compliant issues.

Tlou added that it believes the ministry is amenable to amending the tender document as required, and, it intends to write to the ministry to respond to all compliance matters raised.

In Asia, Petro Matad Limited (LON:MATD) said it expects to kick off its new exploration drilling campaign in Mongolia during the second quarter following the receipt of drill permits.

A recent US$16.8mln equity funding is to pay for four new wells. The first, the Wild Horse exploration well, located in Block IV, is going to be drilled by a contracted Sinopec rig.

Wild Horse is targeting a 290mln barrel oil prospect. The well is expected to be drilled and log in 30-45 days, and it is expected to cost US$4mln.

Meanwhile, in the UK, Union Jack Oil PLC (LON:UJO) highlighted “high impact” drilling planned for the Biscathorpe and Holmwood projects as the onshore British oiler updated investors on upcoming work programmes anticipated for 2018.

It also expects a new planning application to be made for the stalled Wressle oil field development project. The new documents are due to be submitted to the authorities in April, UJO noted.

The company also said it plans to advance discussions regarding potential development plans for the Dukes Wood, Kirklington and Keddington oil assets.

Mayan Energy Ltd (LON:MYN) shares got a boost on Thursday after the company updated investors on the Gilbreath-15 well at the Forest Hill field in Texas.

The well has yielded 51 barrels of oil in the first 24 hours of production, the company said. Additionally, it highlighted that the Gilbreath-19 well and the Morris-1 well continue to produce at rates consistent with their initial flow rates, meanwhile, the company is continuing to progress workover programmes.

An overall production target of 300 to 500 barrels of oil per day is “in sight”.

And Angus Energy Plc (LON:ANGS) told investors on Friday that it has now sealed its partnership with Cuadrilla for the Balcombe oil project in southern England.

The AIM-quoted company has made a £1.85mln payment to Cuadrilla and Lucas Bolney, securing a 25% stake in the newly rearranged Balcombe joint venture,

It will now seek consent for the operatorship to be transferred to Angus, from Cuadrilla, for the Balcombe field discovery.

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