Proactive weekly oil & gas highlights: 88 Energy, Aminex, Touchstone Exploration, DGOC, Cadogan Petroleum, Union Jack Oil …

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Proactive weekly oil & gas highlights: 88 Energy, Aminex, Touchstone Exploration, DGOC, Cadogan Petroleum, Union Jack Oil …

88 Energy Ltd (LON:88E, ASX:88E) this week agreed a deal for a unanimously recommended takeover of Aussie-listed Alaska neighbour XCD Energy Ltd’s (ASX:XCD), at an improved price.

In the all-paper deal, 88 Energy will issue 2.4 new 88 Energy shares and 0.7 for every listed share option held – up from 1.67 per share and 0.5 per option.

88 Energy said the combination creates an explorer with a diversified portfolio on Alaska’s North Slope, with three distinct key areas: Project Icewine, Project Peregrine, and the Yukon licences.

It will have improved scale, market presence and funding capability, and share liquidity, according to AIM and ASX listed 88 Energy.

Elsewhere, on Wednesday, Aminex PLC (LON:AEX) shares jumped higher as it told investors that it has agreed an advance of a US$2mln loan from incoming partner ARA Petroleum to pay a tax in Tanzania so that the farm-out transaction can complete.

The move will then allow Aminex and ARA to advance work programmes on the Ruvuma project and see the Ntorya discovery move towards development.

In a statement, the company noted that the Tanzanian authorities require a capital gains tax (CGT) charge of US$2.2mln to be paid before the Minister of Energy will approve the farm-out transaction.

Touchstone Exploration Inc (LON:TXP) (TSE:TXP) announced, in a statement after Monday’s close, that it had signed a framework agreement for the sale of natural gas and gas liquids produced from the Ortoire block, onshore Trinidad.

The agreement is signed with the National Gas Company of Trinidad and Tobago and Heritage Petroleum Company.

Touchstone has so far enjoyed success in its first two wells at Ortoire with the Coho and Cascadura discovery wells exceeding expectations. It intends to drill the third target, Chinook, in due course.

On Monday, Diversified Gas & Oil PLC (LON:DGOC) told investors it maintained production levels in the first quarter and it is to pay a 3.5 cents per share dividend for the period.

In a trading update, the company said its production in the three months ended March 31, 2020, was marked at 94,000 barrels of oil equivalent per day (boepd) – 564mln cubic feet equivalent per day – helped by the group’s well management programme which offset natural declines.

DGOC noted that its decision to maintain its dividend is in line with its commitments to shareholders. In the year to date, the company has paid US$22mln to shareholders and has completed US$16mln of share buy-backs. The company had US$190mln of current liquidity.

Later this month, DGOC is set to move its listing up from AIM to the Main Market of the London Stock Exchange.

Meanwhile, Cadogan Petroleum Plc (LON:CAD) confirmed a 15% increase in year-on-year production during 2019, although losses in its gas trading and services divisions impacted profit for the year.

In its annual financial report, the Ukraine-based producer said some 104,816 barrels oil equivalent flowed in 2019, up from 91,085 barrels the year before.

Union Jack Oil PLC (LON:UJO) got a boost after relaying communications by West Newton operator Rathlin Energy to the communities in the vicinity of the project in East Yorkshire relating to the coronavirus (COVID-19) pandemic.

Rathlin detailed that, as from today, it is starting the construction of an access track to the West Newton B site. The work programme is expected to last for five to six weeks. In due course, site construction work will also take place, which is slated to take five to six weeks as well.

Meanwhile, Rathlin noted that it is permitted to restart production testing at the West Newton A site, once necessary personnel and equipment are available Last month, the testing programme was given an environmental greenlight.

Proactiveinvestors.co.uk

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