Wessex Exploration shares dip on Guyane drilling delays

Wednesday, Aug 24 2011 by
3
Wessex Exploration shares dip on Guyane drilling delays

Shares in AIM listed oil and gas company Wessex Exploration (LON:WSX) fell by 6% to 2.6p this morning on news of delays during the drilling of a well on its acreage offshore Guyane, South America. Wessex holds a 1.25% interest in the Guyane Maritime block, which is operated by Tullow Oil (LON:TLW) and includes Royal Dutch Shell (LON:RDSA) as a majority stake holder. Tullow has previously described its initial drilling target, the Late Cretaceous Zaedyus prospect, as similar to its hugely successful Jubilee field offshore Ghana. However, in it its half-year results today Tullow said that delays had occurred largely as a result of drilling in a new basin with little or no comparative data.

Tullow also blamed the slower than expected progress on the fact that the ENSCO 8503 rig had been forced to handle periods of increased ocean currents and some hole instability. The company said the final section of the GM-ES-1x well was now being drilled and results are expected in September. In response to the update, Wessex reiterated that it had adequate funds to meet its financial obligations with regard to the drilling of the well.

Wessex was admitted to AIM in March this year after previously raising £1.875 million via an open offer and placing in October 2010 when it was trading on PLUS. The company is chaired by David Bramhill, previously of Nighthawk Energy (LON:HAWK), who also runs another AIM exploration and production business, Bluebird Energy (LON:BBE).

Earlier this month Bluebird announced an operation and strategic review of its business – less that six weeks after the company floated on AIM. The review was triggered by news that Running Foxes Petroleum Inc, Bluebird’s partner on the Centurion project in Kansas, US, had sold 60% of its 50% stake in the project. At the time of its flotation in July, when its raised £2 million in a share placing, Bluebird said its focus in the first half of 2011 had been largely on the further development of the Centurion project where there are six wells on production. It said it was also evaluating unconventional gas projects in Europe. Announcing the review last week, the company said it strongly believed that the current share price did not accurately reflect the value of the company’s assets.


Disclaimer:  

As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested. ?>


Do you like this Post?
Yes
No
3 thumbs up
0 thumbs down
Share this post with friends



Hague and London Oil PLC, formerly Wessex Exploration Plc, is a United Kingdom-based exploration and production company. The Company is principally engaged in the exploration for oil and gas. The Company's segment is the exploration and future development of hydrocarbon projects, principally in the United Kingdom/Netherlands, French Guyana and the Philippines. It is the License Administrator of Promote Blocks, 98/7b, 98/8a and 98/12 (northern part). These licenses partially surround the Wytch Farm oil field off the coast of Dorset, Southern England. The Company, through Northpet Investments Limited, holds interests in the Guyane Maritime Permit. The Company, through its subsidiary, Maghreb Exploration Limited, holds interests in approximately three license blocks, such as Bojador, Guelta and Imlili, in Western Sahara. It also holds interests in the Duyung Production Sharing Contract in Indonesia, and in the Service Contract SC54A in the Northwest Palawan Basin, offshore Philippines. more »

LSE Price
12.13p
Change
 
Mkt Cap (£m)
n/a
P/E (fwd)
n/a
Yield (fwd)
n/a

Tullow Oil plc is an independent oil and gas exploration and production company. The Company's primary activity is the discovery and production of oil and gas. Its segments include West Africa; East Africa, and New Ventures. The West Africa Business focuses on its production and development projects in West Africa and Europe. The business includes its operated asset, the Jubilee field in Ghana, the TEN Project and a portfolio of non-operated production assets in approximately five countries across the region. The East Africa Business is focused on exploration activity across the Company's acreage position in Kenya. The New Ventures Business is focused on its frontier exploration and appraisal activity across Africa and South America. It manages its New Ventures portfolio through both license acquisitions and farm downs of existing acreage. Its activities include targeted exploration and appraisal, and selective development projects. It has operations in Africa and South America. more »

LSE Price
231.1p
Change
-4.2%
Mkt Cap (£m)
3,230
P/E (fwd)
11.3
Yield (fwd)
2.1

The Royal Dutch Shell plc explores for crude oil and natural gas around the world, both in conventional fields and from sources, such as tight rock, shale and coal formations. The Company's segments include Integrated Gas, Upstream, Downstream and Corporate. The Integrated Gas segment is engaged in the liquefaction and transportation of gas and the conversion of natural gas to liquids to provide fuels and other products, as well as projects with an integrated activity, ranging from producing to commercializing gas. The Upstream segment includes the operations of Upstream, which is engaged in the exploration for and extraction of crude oil, natural gas and natural gas liquids, and the marketing and transportation of oil and gas, and Oil Sands, which is engaged in the extraction of bitumen from mined oil sands and conversion into synthetic crude oil. The Downstream segment is engaged in oil products and chemicals manufacturing, and marketing activities. more »

LSE Price
2391.5p
Change
-2.7%
Mkt Cap (£m)
198,430
P/E (fwd)
11.5
Yield (fwd)
5.9



  Is LON:HNL fundamentally strong or weak? Find out More »


4 Comments on this News show/hide all

pezza 29th Aug '11 1 of 4
4

Caution required here as it's a David Bramhill company...ensure full research is carried out on the likes of HAWK and BBE etc.

The article states:

"Earlier this month Bluebird Energy 'BBE' announced an operation and strategic review of its business – less that six weeks after the company floated on AIM. The review was triggered by news that Running Foxes Petroleum Inc, Bluebird’s partner on the Centurion project in Kansas, US, had sold 60% of its 50% stake in the project."

The sale by RF's was public knowledge on many public boards before the Bluebird even announced it !!

And a public announcement from Stevie Tedesco and Admiral Bay, from the 18 August :

"Admiral Bay Resources Inc., along with its partner Bluebird Energy, is plugging the wells at the Revloc project and has decided not to renew the leases representing 12,381.81 net acres. This reduces the net acreage to the company of 3,691.846 net acres for coal or coal bed methane and 300.0 net acres of oil and gas leases. The abandonment is due to adverse gas market conditions, uncertainty of state and federal regulations concerning fracking, increase in overall regulatory costs, and it eliminates $120,000 (U.S.) gross yearly rentals to the partners. The company feels that the present project is uneconomic. The remaining acreage is being placed with a broker to be put up for sale or farm-out.
We seek Safe Harbor."

Has anyone seen an announcement from Bluebird (BBE) yet ?

"We seek safe harbor" !!!!! Who from ?

Also, I thought the Revloc split was 50% BBE, 25% RF and 25% Exodus.I might be missing something, but if that was the case in the AIM docs from two months ago, when was it announced that Exodus had sold their position to ADB ? I thought ADB was winding down ?

Another week, and Bluebird would have made it two months since listing with both pieces of information becoming public in that time, along with an additional fund raising and a pending open offer !!

I am not bitter about my catastrophic investment in HAWK, just interested in how David's new ventures are going.

| Link | Share
JPGH 29th Aug '11 2 of 4
1

Pezza,
Leaving aside the DB link to these companies (HAWK, Running Foxes, Blue Bird) and his recent introduction to Wessex a few months back, what has this to do with success/failure of Zaedeus drill and the immediate impact on Wessex Exploration's share price?

Is there some chance here that DB will steer WSX incorrectly in short term on the back of a sharp SP rise (success in Zaedeus)?

Can you explain?


JPGH

| Link | Share
pezza 29th Aug '11 3 of 4
2

Hi JPGH,

I don't believe you can put DB's connection aside for any of his companies as he is a huge factor. Although the drilling is down to TLW, should they fail, the co will be down to their other assets in which they will need to rely on DB. As a result, the DB factor is very important in my view though probably his best company at the moment.

Also, over half the article by Stockopedia is concerning DB, HAWK and BBE so I don't believe I have gone off topic either. In fact, I don't believe I even have WSX on my watchlist and it only came up because of the mention of HAWK and BBE in the article.

Hopefully, your happy with the reasons behind my post even if you might be a WSX shareholder. It should be noted that my original post is not opinion, and I believe is based on fact. For this reason, I believe investors should be cautious of DB's track record.

Out of interest, do you hold WSX and if so, can I ask if it simply for the exposure to the share in TLW's license or do you believe DB will be a success here with the other assets ? At this time, it would seem like a high risk strategy to hold WSX in the event that TLW should not have the success wanted.

| Link | Share
JPGH 29th Aug '11 4 of 4
2

Pezza,

I am in for Zaedeus only. Have no intention of staying beyond drill result.
If a good result then after quick analysis I will check has Market under or overreacted. If over then immediate disposal, if under might wait a day or so see if there is to be any further rises before selling.
If a bad result then will sell immediately or later when dust settles.

Met DB once after an Oilbarrel conference a few years ago and he seemed OK enough but he was a little bit precious about his reputation and far too aware (for somone who should have better things to do) of BB individuals who were "dising" him. Never liked HAWK for geographical reasons and DB's demeanour was a little threatening for a CEO.

Anyway am aware of what happened at HAWK under his tenure but as I said am in for the best Zaedeus "bang for your buck" of all companies involved here and I will depart soon afterwards.

Ta for heads up though.

JPGH

| Link | Share

What's your view on this news? Log In to Comment Now

You can track all @StockoChat comments via Twitter


About Stockopedia News

Stockopedia News

Stockopedia News Bulletins aim to report on stories and companies that are relevant to and popular with online investors.  It's a free service provided to registered users of Stockopedia. 



Stock Picking Tutorial Centre



Let’s get you setup so you get the most out of our service
Done, Let's add some stocks
Brilliant - You've created a folio! Now let's add some stocks to it.

  • Apple (AAPL)

  • Shell (RDSA)

  • Twitter (TWTR)

  • Volkswagon AG (VOK)

  • McDonalds (MCD)

  • Vodafone (VOD)

  • Barratt Homes (BDEV)

  • Microsoft (MSFT)

  • Tesco (TSCO)
Save and show me my analysis