Oil & Gas weekly highlights: Touchstone Exploration, Echo, Eco Atlantic, Europa, Tower Resources, Genel, Solo Oil, i3 Energy Plc

It was a busy week of project updates, well results and management changes.

Well success propelled Touchstone Exploration Inc which revealed successful testing from Cascadura-1ST1, confirming a significant liquids-rich natural gas discovery in the Ortoire block in Trinidad.

The well encountered a total of 777 feet of pay in the Herrera formation, and, first stage testing covered the lower-most 162 feet.

Flow rates were measured at 5,180 barrels oil equivalent per day (boepd) over a fourteen-hour test period – comprising 26.9mln cubic feet and 694 barrels of natural gas liquids per day. The rate saw a peak of 5,736 boepd.

Echo Energy PLC revealed the positive impact of its acquired Santa Cruz Sur production assets in Argentina.

Production for the period - starting on the effective date of the acquisition, 1 November 2019, and ending on 31 January 2020 - averaged 2,481 barrels oil equivalent (boe) per day. That average rate comprised around 560 barrels of oil and condensate per day, plus around 11.5mln cubic feet of gas per day. Aggregate production for the period amounted to 228,249 boe.

Guyana focussed explorer Eco Atlantic Oil & Gas Limited reported a 29% increase in the estimate of the amount of oil contained at its Orinduik Block, offshore Guyana. Gross prospective resources are now estimated at 5.14bn barrels on a p50 basis or best basis, which amounts to a net 771mln barrels to Eco for its 15% stake.

The competent persons report (CPR) identified 22 prospects of which 11 are in the upper cretaceous horizon, where oil is expected to be lighter and more commercial than recent heavy oil discoveries in the tertiary layer.

Leads in the Tertiary horizon are estimated to contain 1.2bn barrels while the Cretaceous section contains an estimated 3.94bn barrels with two targets in this section (Amaila/Kumaka and Iatuk-D) each containing 725mln barrels. Over half of the 22 prospects have a 30% chance of success or greater.

Offshore Ireland, Europa Oil & Gas Holdings PLC exited Licensing Option (LO) 16/19, in the South Porcupine Basin, offshore Ireland. It follows an exploration programme which concluded that the prospectivity of the area is limited, the company said.

The company had been partnered with Cairn Energy PLC in the exploration project, with the partner owning 70% of the asset and, as a result, Europa spent £94,000 of carrying costs. This will be written off in the current period.

Europa expects that by relinquishing LO 16/19 it will avoid £105,000 of future costs.

Tower Resources PLC is expecting to finalise its drill schedule later this month for the NJOM-3 well, offshore Cameroon. The explorer, in a statement, told investors that Geoquip Marine’s survey vessel MV Investigator is presently in the anticipated NJOM-3 area conducting a site survey.

Geoquip’s findings and a final report should allow the company to move to more concrete scheduling of the NJOM-3 well on the Thali block later in February, the company said.

Genel Energy PLC told investors that its 25% owned Tawke PSC project, host to the Tawke and Peshkabir fields, yielded average production of 122,800 barrels of oil per day (bopd) in the fourth quarter of 2019.

The Tawke field produced 63,900 bopd in the three months ended 31 December whilst Peshkabir averaged 58,900 bopd. Genel noted that a new project, Peshkabir-to-Tawke gas gathering and reinjection, aims to increase oil recovery rates at Tawke while eliminating flaring at Peshkabir and it is expected to complete this spring.

In a separate statement, Genel also announced management changes, with David McManus appointed as its chairman with immediate effect. Steve Whyte resigned as chairman back in December, to be temporarily replaced by interim chair George Rose.

Solo Oil PLC said that talks with ONE Dyas over a possible acquisition are continuing with a view to renegotiating terms to enable the deal to proceed.

In a statement, the junior oiler said that in support of the potential acquisition it continues to assess all debt and equity funding options available to the company. Solo also said it continues to progress a number of complementary business development opportunities, in line with its European gas strategy.

i3 Energy Plc’s chair David Knox is leaving the North Sea oil and gas firm to oversee Australia’s largest renewable energy provider.

The company, in a statement, noted that Knox took on the role of chairperson at Snowy Hydro Limited and he is now stepping down from the I3 board and departing to focus on this new role during a critical and trying time in Australia. Linda Beal will be i3’s interim chair whilst a formal search for Knox’s replacement is undertaken.

i3 also updated on its well site survey for the Serenity and Liberator West project areas, which kicked off last week and will conclude this month.

Source: Proactive Investors