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…
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.