Lochard Energy (LON:LHD) started to move better today, jumping 12% to 10.5p as holders get ready for an update on the FPSO. The last time the copnay spoke about this was back on the 12th of January, when the company said 'The Athena field development activities continue to progress. The BW Athena FPSO, is undergoing final phases of conversion work in Dubai Dry Dock World. Commissioning is underway and will be completed before sailaway from Dubai to ensure that the hook-up and offshore commissioning phase is minimised once the vessel arrives on location. Further to the Company's update of December 8, 2011, engineering work on the mooring design and associated power supply has resulted in the mooring system receiving certification for year round operation in the UK North Sea. Commissioning of the vessel power turbine is well advanced. Sailaway from Dubai is scheduled for mid-February and hardening of the vessel to add protection during its transit to the UK is now in progress.' We are pretty much bang in the middle of February now, so it would be no surprise if the company were getting ready to update the market on the FPSO. Stand by your beds!
One of the most followed stories of the day was the Aminex (LON:AEX) and SOLO Oil (LON:SOLO) Ntorya-1 update. After what looked like a dry well at the previous announcement, and caused both shares to tumble, has now turned in to a bullish one. The update said 'the Ntorya-1 exploration well in the Ruvuma Basin onshore in Tanzania has now been drilled to 2,750 meters, and prior to reaching that depth encountered strong gas shows in a good quality reservoir sand at a depth of 2,660 meters. A logging program will start shortly to evaluate the new section drilled below 2,500 meters.' Aminex were trading 28% better at almost 4p and SOLO Oil were up 14% to 0.68p.
Xcite Energy (LON:XEL) broker another major resistance level today at 120p, pushing 12% better after lunch to 125p. If the shares can hold above the 120p major resistance and build a base of support, then a test of resistance from 2011 at 150p could be the next level to keep an eye out for.
Chariot Oil & Gas (LON:CHAR) jumped 8% to 152p just before lunch, and had traded yesterday's volume by the half-way point in the day. Looking through the recent updates, possibly the market is getting ready for the last line of this statement 'The Company is in active negotiations regarding a number of other available rigs and now expects to spud the Tapir South exploration well in Q2 2012. This timing is subject to on-going negotiations and further to a rig contract being formally signed, the Company will update the market with the anticipated spud date.' We will be watching the news wires on this one.
Magnolia Petroleum (LON:MAGP) continued its bullish run, pushing 7% better to 1.95p after the company said that it has acquired, for no cash cost, an additional 480 gross acres with an average 83.33% working interest in the oil producing Mississippi Lime Formation, Oklahoma. Acquisition via a Farm-Out Agreement of an average 83.33% working interest in 480 gross acres assigning Magnolia the right to drill in the Mississippi Lime Formation. On course to drill one well in the Mississippi Lime Formation by the end of 2012 - Magnolia as operator. This transaction has been completed at no upfront cost to Magnolia Petroleum. This news looks to add weight to the bullish run, and a test of the previous high at 2p looks to be on the cards here.
Bahamas Petroleum (LON:BPC) were active again today, trading back down to support at 10p. We have seen no updates from the oil majors drilling in the same region, and this could be a catalyst for the next major move here. We will continue to watch the news wires of Statoil and Total SA for any sniff of an update.
Written by Steven Asfour, Sales Trader at Fox-Davies