Arrow Exploration (AXL) provided an update on the drilling activity at Rio Cravo Este on the Tapir Block in the Llanos Basin of Colombia and is providing an operations update. The company said initial production from the RCE-5 well has exceeded expectations. In addition to the thick pay zones encountered on the Carbonera C7 formation, additional pay zones currently behind pipe may provide further opportunities for production and reserve increases. Drilling and completion costs came in on budget and within the time frame expected. The RCE-4 and RCE-3 wells are currently producing better than expected and the company is choking the wells back in an effort to manage the reservoir and discourage premature water production. Arrow has engaged the pumps on RCE-3 and RCE-4 and is slowly increasing production as the wells are more stable. Arrow is now moving the rig to the Carrizales Norte pad to begin drilling the CN-1 well towards the end of April.
Comment: As the company continues to show, it has and is exceeded its own expectations, and it remains only a matter of time before this is reflected in the share price. Indeed, one could say that the longer AXL shares remain in their current range, the greater the eventual breakout should be.
Pennpetro Energy (PPP), an independent oil and gas company, advised that the drill rig has now set the packer in the 7-inch casing at 7,483 feet measured depth in the Whistling Straits 5H well in the Peach Creek Oil Field, Gonzales County, Texas. The company said the Whistling Straits 5H well is the first well to be drilled under its recently signed Participation, Development and Option Agreement between Pennpetro’s 100% owned subsidiary, Nobel Petroleum USA Inc, and Millennium PetroCapital Corporation within the 250,000 acre (1,011 km2) Area of Mutual Interest (“AMI”) petroleum joint venture in Gonzales County, Texas. The AMI is located about 290 miles due west of Houston and will provide PPP’s Nobel with a large inventory of low-risk development options in a world class oilfield.
Comment: PPP has been revitalised in recent weeks, and this is shown in the form of the increased newsflow, such as today’s regarding Whistling Straits. It should not be too long before such events are reflected in the share price.
Bens Creek Group (BEN), the owner of a metallurgical coal mine in North America, noted yesterday’s share price movement and confirmed that it is not aware of any commercial or operational reason for the share price movement. The company said it is aware that MBU Capital Group Limited, the company’s largest shareholder owning 53.7 per cent. of the voting rights in the company, is in advanced discussions to sell a significant portion of its shareholding at a price of 18 pence per share to an international commodity trading business which is expected to result in the purchaser becoming interested in 29.9 per cent. of the current issued share capital of the company.
Comment: After saying it knows of no reason for share price movement which has not really moved that much in recent days, BENS then reveals that it does know why there would be share price movement, and once again it involves MBU Capital. It would appear that there are Siamese Twins who have more distant relationships than BENS / MBU.
Mirriad (MIRI), the in-content advertising company, provides an update regarding the Strategic Review and Formal Sale Process announced on 20 January 2023. Further to Mirriad’s announcement on 29 March 2023 and following discussions with interested parties regarding a potential investment into or a potential acquisition of the company, the board of the company has concluded that there is no prospect that an offer for the issued and to be issued share capital of the company will be forthcoming by early April and has accordingly decided to terminate the formal sale process.
Comment: In the current environment it is hardly surprising that Mirriad has terminated its sale process. At least the company has also announced that it has partnered with Harmonic Inc. and has over £7m in the bank.
Creo Medical Group (CREO), the medical device company, provided an update on the earn out agreement related to the acquisition of Albyn Medical S.L. as announced on 24 July 2020. The company said the complementary acquisition of Albyn Medical has proven to be a strong strategic fit, providing Creo with an established platform that has accelerated the development of its commercial footprint across Europe. Satisfying the earn out criteria in full demonstrates the continued performance of Creo Medical’s team in Europe whilst validating our rationale for the acquisition.
Comment: There has been a tentative recovery in Creo shares so far this year, with the company looking for a fresh driver to add further momentum, with newsflow like today’s.
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