IGAS shares rose 12% in Friday afternoon’s deals as the path was cleared to allow shale gas Cuadrilla to start a fracking campaign in Lancashire.
It comes as the High Court in London dismissed a ‘last minute’ request made by protestors for an interim injunction to block the project. Justice Supperstone concluded that there was no evidence to support the contention that LCC had breached any of the relevant duties concerning emergency planning, Cuadrilla said in a statement.
Hydraulic fracturing operations at its Preston New Road shale gas exploration site, near Blackpool, will now get underway tomorrow (Saturday 13 October). “We are delighted to be starting our hydraulic fracturing operations as planned,” said Francis Egan, Cuadrilla chief executive.
“We are now commencing the final operational phase to evaluate the commercial potential for a new source of indigenous natural gas in Lancashire. If commercially recoverable this will displace costly imported gas, with lower emissions, significant economic benefit and better security of energy supply for the UK.”
The legal greenlight is a boon for IGas Energy which also holds shale gas assets in North West England.
Chariot Oil & Gas Ltd (LON:CHAR)
Chariot Oil & Gas revealed that the Prospect S exploration well, offshore Namibia, did not encounter a hydrocarbon accumulation. The well encountered its targeted stacked reservoirs within pre-drill prognosis, but, they were found to be water bearing.
Well data will now be used to allow the company to understand the implications for the prospectivity of the surrounding area. The well will be plugged and abandoned.
"Whilst very disappointing that we have not established a hydrocarbon accumulation in the prospect, we have learnt valuable information about the reservoir potential of these turbidite systems which form the primary targets across many of the prospects within the Central Blocks portfolio,” said Larry Bottomley, Chariot chief executive.
Diversified Gas & Oil PLC (LON:DGOC)
Diversified Gas & Oil has announced its latest US acquisition, with a $183mln deal for Core Appalachia Holding Co LLC.
It adds around 5,000 wells - located in Kentucky, West Virginia and Virginia - to the group’s portfolio and brings an additional 11,200 barrels oil equivalent per day (comprising 90% gas) to DGOC’s daily production volumes.
Once complete, the acquisition takes group production to 71,000 boepd and it will have total reserves measuring 493mln barrels oil equivalent. "Our strategic acquisition of Core will allow us to unlock significant value from our enlarged base of assets in Kentucky and West Virginia that would otherwise not be achievable on a stand-alone basis,” said Rusty Hutson, DGOC chief executive.
UK Oil & Gas Plc (LON:UKOG)
The latest results coming out of the Horse Hill production test have exceeded those seen in the previous tests back in. UKOG, the largest UK listed stakeholder in the project, has revealed that the first Kimmeridge test has seen oil flow continuously and naturally from the KL3 zone to surface over the past 50 hours.
Moreover, the flow of oil was measured at rates between 563 and 771 barrels of oil per day over the past 24 hours. At the same time, gas rates measured at 186 thousand cubic feet per day via an enclosed flare. The 2018 test rates to date compare very favourably to the 464 bopd rate recorded for the same Kimmeridge section two years ago.
Also, UKOG said that pressure data indicates that the KL3 zone and the overlying KL4 zone comprise one single connected oil pool, with an implied minimum vertical extent of 358 feet. Four tankers carrying crude produced in the Kimmeridge test have been transported to the Fawley refinery.
The company added that no formation water has been recorded, and although it noted that water from well completion continues to be recovered as the well continues to proceed through the ‘clean up’ phase.
The Horse Hill production test programme continues. The first 24-hour pressure build up (PBU) test is now underway. It will be followed by further operations including additional clean-up, flow stabilization, oil sampling, and more PBUs.
After that, the programme will move on to test production from KL4 where, in 2016, a rate equivalent to 901 bopd was measured over a four hour period.
Columbus Energy told investors that it is on track to deliver on its production target for 2018, with output due to top 1,000 barrels of oil per day by the end of the year.
The Trinidad-focused oil firm, following the recent completion of the Steeldrum acquisition, on Wednesday released a operations update for the third quarter. Significantly, as the transaction’s effective date was 13 July the reported volumes include a material contribution from the Steeldrum assets.
"It has been an exciting few months for all at Columbus as we sought to complete the acquisition of Steeldrum after it was announced in early Q3 2018,” said Leo Koot, Columbus executive chairman.
"We are already seeing the real benefits of having increased optionality for production and joining the two entities together provides a stronger platform for growth and helps de-risk our portfolio in Trinidad.”
Production averaged 735 bopd for the three month period, compared to 553 bopd in the comparative period of 2017. Volumes peaked at 879 bopd during the quarter, and, the company highlighted that in September the rate averaged 751 bopd.
Some 62,658 barrels of oil were sold, and the company said it generated $3.85mln of gross revenue for the quarter. The realised sales price averaged $60.80 per barrel, which is broadly consistent with the comparative period, and, the price peaked at $62.14 per barrel in September.
The company told investors it has spudded the new TLP-103C well at the Tilapia field, in the Republic of the Congo. The well will be drilled down to 2,700 metres and it is expected to take 64 days to complete, including testing. It is being deviated to assess offshore targets.
It is targeting three zones. One is the field’s currently producing zone, R1/R2, another is for the appraisal of the Mengo zone, and while the third is the deeper Djeno exploration prospect. The first reservoir target is scheduled to be encountered in around 25 days.
"I am immensely proud of the work by the entire team which has enabled TLP-103C to be spudded within only five weeks of the suspension of drilling at TLP-103,” said David Sefton, AAOG executive chairman.