May 14
Genesis Petroleum Corp. (GPC)

Genesis Petroleum Corporation Plc, was formerly known as Zari Resources plc. The company was founded in November 2003 with the primary purpose of exploring for petroleum and natural gas deposits starting with Brazil, West Africa and the North Sea. The initial business opportunity began with the issuance of a non-exclusive license that gave founding members access to the 3D seismic data in a region equal to 50,000 square kilometers in area.

Since the company’s inception, Genesis Petroleum Corp has developed a total of 13 explorations based on their initial database of seismic data. Of these explorations, only a select few have thus far been chosen for implementation. The first exploration project implemented was in the U.K. North Sea Project. Genesis was given a license in September 2004to Block 9/10c by the Department of Trade and Industry (DTI) of the U.K. government. The company has decided to undertake drilling at the exploration site. In September 2005, DTI awarded Genesis Petroleum Corp three more blocks in the North Sea.

The next of Genesis’ projects was the Offshore West Africa Project. A license had been applied for to explore in the shallows of these region. After this, Genesis sought to explore offshore in Brazil during the first part of 2006. Other opportunities being evaluated by the company include areas in the Middle East and Russia.

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Nov 22

Gasol Plc is an energy resource development company operating in west Africa, primarily focusing on natural gas.  Gasol’s main goal is to form alliances with other corporations to create a supply chain for production and transport to market of liquefied natural gas (LNG), allowing for development of “stranded” natural gas assets that are isolated from existing pipelines.

Liquefied natural gas (LNG) is natural gas that has been refined and compressed to turn it from a gas to a liquid.  As a liquid, it can be transported more economically, and can be carried by ships or other means to natural gas pipelines.  There it is reconstituted into gas and distributed to markets.

Gasol was incorporated in 2005 in England and Wales, and has traded on the Alternative Investment Market (AIM) of the London Stock Exchange since 2008.

Strategic Alliances

Since 2005, Gasol has concentrated on building alliances along the LNG supply chain, from gas gathering, processing into LNG, and transporting and regassifying the LNG at entry points into high-value markets in Europe, North America, and Asia.

To this end, Gasol has formed strategic alliances with several companies already established in the energy sector in Nigeria and Equatorial Guinea, and is pursuing further opportunities in other Gulf of Guinea countries.  Current partners include:

  • Afren Plc — Gasol’s upstream partner in the supply chain.  Gasol holds exclusive right of first refusal to buy and market their natural gas production.
  • Teekay Corporation — Partner for developing floating LNG production facilities, pipelines, and other infrastructure and transport solutions.
  • E.ON Ruhrgas AG — Partner in Nigeria.
  • Electricite de France — Partner in Gulf of Guinea countries other than Nigeria.

Recent Developments

In June 2010 Gasol Plc completed a strategic review of its current and future goals.  The review concluded that the company will continue to pursue its current supply-chain-focused strategy which emphasizes transport of natural gas to markets outside of Africa, but will add a second strategic track that will concentrate on using natural gas resources for electrical generation within Africa.  The company finds that the two parallel strategies are complimentary and by adding the latter track, will potentially net more and faster income to the company.

Shares of Gasol Plc (GAS) are listed on the London Stock Exchange’s Alternative Investment Market and were at 1.02 p as of 18 November 2010.

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Nov 17

Forum Energy Plc (“Forum”) is a gas and oil exploration and production company based in the UK. Its main area of operation is the Philippines. Forum was created in 2005 from the consolidation of the Philippine oil, gas and coal assets of Canadian company FEC Resources, Inc. and UK-based Sterling Energy Plc into one corporation.

Forum Energy Plc was admitted to trading on the Alternative Investment Market of the London Stock Exchange in 2005.

Assets

Forum holds a balanced portfolio of interests in oil and gas fields in the Philippines. These include:

  • A 2.27% interest in NW Palawan, which contains the Galoc field, currently producing over 8000 barrels of oil per day. This production provides income for the company and helps fund exploration of its higher risk, higher potential interests.
  • A 66.7% interest in Block SC40 (Cebu), a service contract containing the onshore Libertad gas field and Maya oil discoveries. Exploration of the area using gravity survey is underway.
  • A 70% interest in Block SC72 (formerly GSEC 101), located off the northwest coast of Palawan Island in the Philippines. This contains the Sampaguita gas field discovery, which has potential to be one of the most significant natural gas finds in recent years. In 2006 interpretation of 3D seismic data indicated a range of gas-in-place up to nearly 20 trillion cubic feet (TCF). Further testing and the drilling of 3 exploratory wells has confirmed a mean volume of 3.4 TCF gas in place.

Recent Developments

In February, 2010, Forum Energy Plc was awarded the Service Contract for GSEC 101 and is continuing exploration and analysis of the area in preparation for further development.

In addition to the confirmed reserves, which contain up to 10 TCF gas in place, there are unexplored areas of the block which can potentially double the amount of gas in place. Under the terms of the service contract, Forum has committed to spend a minimum of $3 million in further exploration (continuing seismic data gathering plus appraisal wells) over the next 18 months, and is projected to invest significantly more, subject to funding being raised.

Shares of Forum Energy Plc (FEP) are listed on the London Stock Exchange’s Alternative Investment Market and were at 50.30 p as of 16 November 2010.

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May 26

Gold Oil Plc, a 6-years-old small, independent oil and gas exploration and production company, was set up to acquire oil and gas projects in Southern and Central America, particularly in Peru and Colombia, areas that have seen intensified oil and gas interests with their friendly governments in the backdrop, plus low tax regimes. Shares in the company (GOO) are quoted in LSE’s AIM sub-market and were at 3p as of 25 May 2010. However, equity shareholders fund on the company’s balance sheet has increased substantially over the years, from a mere £305,000 in 2004 to about £8m in 2008. The company’s goal is to build up the capital value of its projects to a point where it can pay dividends.

Operations Overview

Gold Oil intends to seek low risk cash flow projects by establishing significant license positions within a few geographic areas. It is recognised as both an onshore and off shore operator in Peru and on shore in Colombia. At the end of fiscal year 2009, the company had two exclusive license interests in peru, Block XXI and Block Z34, and three partial license interests in Colombia, the 58.5% Burdine-Maxine-Nancy, the 49% Rosa Blanca, and the 20% Azar Block. Activities on all five licence interests are being actively pursued. Negotiations to farm out part of the 100% interests in Peru have been planned. The main focus on Nancy and Burdine in Colombia is to increase production. An exploration well on the Azar Block may be carried out pending results of seismic interpretation. Exploration on Rosa Blanca has been ongoing, with one testing well drilled back in 2008 and a planned seismic shooting in late 2009. New activities will depend on further seismic and geological work.

Selective Financials

Revenue for fiscal 2009 increased to £1.004m and gross profit was £79,000. But development expenditure and administrative expenses over weighed, resulting in a loss after tax of £3.039m. The situation should be improved after more productions come on line. The company had £2.179m of cash at bank in hand at the end of fiscal 2009, after undertaking two share placings during the year, with one issued at 8p for 22.92m ordinary shares to raise £1.8m and the other at 4p for 16.125m shares to raise £645,000. Because of the capital intensive nature of the business, having that access to capital in building up cash reserves in the current constrained credit market environment provided a much needed funding relieve for the company to allow it to continue operations and move forward with all of its assets.

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Jan 07

I have a habit of watching the oil AIM shares, for two reasons.  The first is I have friends in the industry, as my wife trained as a Geologist, and I got to know many of them at Aston University.

I spotted this in the news and it hit a spot.

uk.reuters article

This company, 4 months or so ago, were dropping like a stone as they were not achiving the drill speed they had expected.  The suspicious investor could think that it was a sign they were up against the wall, and were unlikely to hit gas at any time in the future.  (Or at least while their funds were still available).

It seems (and I can only say in retrospect) that they have hit gas, and so the business can grow some more.  There are some interesting comments on the LSE board if you use it.

If anyone has any other companies like this, it would be good to hear.

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