Proactive weekly oil & gas highlights: Bahamas Petroleum, Tower Resources, Echo Energy, Union Jack Oil …
Bahamas Petroleum Plc (LON:BPC) took significant steps forward this week with a bold growth strategy, transforming the company over just a few days.
A deal announced on Thursday marks the biggest change by adding production, appraisal/development, and exploration assets across Trinidad and Suriname.
Earlier in the week, BPC expanded its exploration footprint as Uruguay awarded the OFF-1 licence covering a high-potential but early-stage area off the Atlantic coast.
In Uruguay it landed the OFF-1 licence which has been estimated internally to host 1bn barrels of oil equivalent resource potential. Specifically, the company noted the presence of multiple exploration plays in relatively shallow waters across the new licence, which spans some 15,000 square kilometres.
It highlighted that the play system in the licence is believed to be “directly analogous” to the prolific Cretaceous turbidite discoveries that are currently being evaluated and developed offshore Guyana and Suriname.
Thursdays acquisition, meanwhile, is a paper deal that sees Columbus shareholders receive 0.803 new BPC shares for each share they own. It is pitched at 2.57p per share which is a 11% premium to the shares closing price on Wednesday. It puts the Columbus value at £25.1mln, and, its shareholders will together account for nearly 24% of the new company.
Posting its 2019 full-year results, the company noted that Brent crude is now trading at around US$40 per barrel, longer-term pricing (the December 2025 future) is pitched above US$52 per barrel, and there is potential for a tightening of supply in the coming years due to industry-wide cuts in capital investment.
The results statement from Echo Energy PLC (LON:ECHO) has confirmed an average production of 2,394 barrels oil equivalent (boe) per day in the first quarter of 2020 whilst detailing an opportunity for low-cost development work. In an update on resources and reserves in Argentina, the company told investors that it has identified an initial portfolio of sixteen low-cost workover and inRead More – Source