Proactive Oil & Gas weekly highlights: EnQuest, United Oil & Gas, Mosman, i3, 88 Energy

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EnQuest Plc (LON:ENQ) inked a deal to divest the majority of the Eagle discovery, in the North Sea, for a nominal dollar.

The buyer, Anasuria Hibiscus UK Limited, is farming into the project – taking 85% of the project equity – and will fully carry all EnQuest’s costs through to ‘first oil’. It comes as EnQuest focusses on current production and cashflow, boosted by a recent transaction that will add around 10,000 bopd of lower cost production.

It is expected the transaction will close during the second quarter of 2021, after which EnQuest will retain a non-operated 15% interest in the project.

United Oil & Gas PLC’s (LON:UOG) preliminary test results from the ASH-3 development well, at the Abu Sennan project, beat expectations.

The ASH-3 well showed a maximum rate of 7,720 barrels oil equivalent per day, comprising 6,379 barrels of oil per day and 6.7mln cubic feet per day, from the Alam El Bueib (“AEB”) reservoir during well-testing. On a choke reduced to conditions that are representative of production, the well yielded a rate of 4,140 boepd – 3,561 bopd and 2.9mln cubic feet of gas.

United said it expects the well will be brought onstream in the coming days.

Mosman Oil & Gas Ltd (LON:MSMN) reported total production of 34,569 barrels of oil equivalent (boe) for the six months to end-December. Of this, 9,871 net boe was attributable to the AIM-listed company, which is up from the 8,650 boe previously announced before receipt of additional production data on its Falcon and Arkoma projects in the US.

There was 1,096 of net attributable boe from the Falcon project, where production restarted on 11 December, and 123 boe from Arkoma. These numbers showed the significant benefit of Falcon-1 production, said chairman John W Barr.

i3 Energy PLC (LON:I3E, TSE:ITE) said production remains predictably stable, averaging 9,150 barrels oil equivalent per day in the period from November 2020 to January 2021. The company, which in 2020 acquired production assets in Canada to add to its undeveloped North Sea portfolio, said the assets continue to perform at or above expectations.

88 Energy Ltd (LON:88E) highlighted that the Merlin-1 exploration well, in the Peregrine project area in Alaska, is due to spud in early March. The well is targeting a prospect that’s estimated to host some 645mln barrels of oil, and, subject to results, it is planned to be followed by another exploration well, Harrier-1, which has 417mln barrels of prospective resources.

These are two of three prospects identified in a prospective resources statement which was completed in January 2020 and was today relayed by 88 Energy. It was produced by third-party consultant ERC Equipoise and outlined some 1.63bn barrels of total prospects (Merlin, Harrier and Harrier Deep).

The resource statement was first published last year by XCD Energy, which 88 Energy acquired in the second half of 2020.

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