Latest updates from the oil and gas sector

Falcon Oil & Gas Ltd this week highlighted what it described as very encouraging initial gas composition data from the Kyalla 117 well, at the Beetaloo project in Australia’s Northern Territory.

Gas samples taken during a 17-hour unassisted flow period confirm a 17-hour unassisted flow period, the company said. The data meets expectations, it added, and also supports the view that Kyalla gas stream will have elevated LPG and condensate yields.

“The initial gas composition data are very encouraging providing a strong indication for the liquids-rich gas play in the Kyalla formation,” said Philip O’Quigley, chief executive in a statement.

On Tuesday, partner and Beetaloo project operator Origin Energy submits a formal notification to the Australian authorities.

Canadian Overseas Petroleum Ltd on Thursday inked a term sheet for US$65mln of debt financing that will facilitate its acquisition of US onshore producer Atomic Oil and Gas LLC.

The arrangement, for a senior credit facility, is with a US-based global investment firm. It will have a four-year duration and COPL described the terms as competitive whilst noting that it is subject to typical lending conditions. It has a US$45mln base plus a further US$20mln accordion facility that can fund future development initiatives, at the discretion of the lender.

Genel Energy PLC said it is positioned to grow in 2021, with a twelve-well drill campaign among the slated catalysts. The company said it expects production to be slightly above the 2020 average though there is potential for a higher exit rate and stronger volumes in 2022 subject to results in the appraisal campaign at the Sarta field.

Sarta’s start-up was a key highlight of 2020 as it marked the company’s fourth producing operation.

88 Energy Limited, on Friday, told investors it is minimising spending as it awaits clarity over its oil exploration assets in Alaska. The company said it is seeking clarification on a recently announced 60-day suspension of authority for the US Department Bureaus and Offices in relation to the issuance of new drilling permits on Federal land.

An application for a drill permit was submitted on January 12, 2021, and was expected to be approved within a standard 30-day timeframe - that would be due by February 12. The group added that it has been in close communication with the Bureau of Land Management regarding the interpretation and implementation of the 60-day suspension.

Previously, on Thursday, in quarterly activities update, 88 Energy highlighted progress at Project Icewine and Project Peregrine.

Union Jack Oil PLC has updated on the planning and permitting process for the West Newton project in Yorkshire. Project operator Rathlin Energy is advancing the process with the East Riding of Yorkshire Council.

Earlier, on Monday, agreed to buy a further 15% stake in the Biscathorpe project in the Humber basin, to increase its holding in the PEDL253 licence to 45%.

Westmount Energy Limited agreed to increase its exposure to high impact exploration drilling presently underway offshore Guyana. It is increasing its stake in privately owned JHI Associates which owns a 17.5% interest in the ExxonMobil operated Canje block, where the Bulletwood-1 well is being drilled.

Westmount is buying some 287,000 JHI shares for C$718,750. It increases Westmount’s stake in JHI to 7.7%, from 7.2% previously.

Drilling at the first Canje well, Bulletwood-1, kicked off in January and completion of the well is anticipated around mid to late February. Additional Canje drilling will follow-on in the first half of 2021.

Mosman Oil and Gas Limited completed the sale of a stake in the Welch Project, in Texas, for US$420,000. The company, in a brief statement, noted that the sale was completed with full settlement of the deal consideration in cash.

In early January, Mosman announced it had agreed to a new transaction with Steadfast Energy Partners LLC and Silver Dollar Energy Investments to exit Welch.

Read the latest issue of the OGV Energy magazine HERE.