Dec 14

Hydrodec Re-refines Transformer Oils and Removes PCB Contaminants
Hydrodec is a London, UK based firm that recovers oil from electrical transformers. The firm trades on the London Stock Exchange under the ticker HYR. The company was born in 2001 in Australia, launched on the LSE in 2004, and opened its first plant in Australia in 2006. A second plant opened in the US in 2008, and the firm recently signed a joint-venture agreement with a Japanese firm to a construct a processing facility in Japan.

Electrical transformers throughout the world require special oil, known as transformer oil, for insulation and cooling. Transformer oils are highly and engineered, and are an essential part of the functioning of the transformer. However, they are subject to breakdown from thermal stress, and therefore require periodic replacement. Some oils can be sold into a secondary market and used for a variety of purposes as lower grade oils. In many cases, however, transformer oils are contaminated with PCBs and therefore cannot be reused.

Hydrodec buys used transformer oils on a spot market. It then uses its own patented process to re-refine transformer oils. The re-refined oils are then sold back into the higher value market for transformer oils, instead of into lower value markets. The process allows indefinite re-refining of transformer oils, reducing the demand for new oil production for transformers. The firm also has a patented process that removes PCBs from transformer oils, eliminating the necessity to dispose the contaminated oil. A critical benefit of Hydrodec’s refining process is that it produces no hazardous by-products. Even PCBs are entirely broken down and rendered harmless.

Both the Australian and US facilities serve both local and export markets, and grew total volumes by nearly 100 percent from 2009 to 2010. The firm only recently received regulatory approval in the US for its PCB process. It expects that approval will create higher volumes in the near future.

Since June, the price has, despite the crash in the Euro, risen by 25%

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Jun 16

Hydrodec’s business is founded in a proprietary method of re-refining transformer oil by taking the toxins out so that it can be reused. It has effectively created its own market, allowing for the collection and resale of transformer oil at far reduced prices from the oil’s initial costs. The recycled oil, known as Superfine transformer oil, allows businesses in the electrical industry to save money, time and the environment.

Over the past several years since Hydrodec’s inception in 2004, the company has seen a number of minor setbacks which have deflated its price in the markets. For instance, it celebrated the opening of its first major refinery in October 2008, yet soon after suffered from a lack of working capital because its expectations for growth were not conservative enough. Hydrodec has been seen by many investors as a risky long-term investment, full of potential yet also full of potential losses. This is in part due to the fact that it is the only company of its kind providing PCB-removal services from recycled oil.

As of May 2011, Hydrodec has utilised a £2 million debt financing solution to help purchase feedstock and fund recent growth. Its recent investments around the world, especially in Japan where recycled transformer oil is in high demand, have made this debt financing a smart move in the eyes of many investors. However, there is always the worry that capital won’t flow as strongly as the company hopes that it will, due to the relative lack of similar companies for comparison. This keeps the price of Hydrodec stock volatile, which makes any investment in this AIM stock potentially quite valuable.

In the future, Hydrodec seeks to expand its business to cover other types of machine oil including hydraulic oils. This may make an investment in this stock a good idea over the medium to long term.

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May 14
Matra Petroleum (MTA)

The company was initially named Ming Resources and was listed in 2005. In 2006, it was renamed Matra Petroleum and was given readmission to AIM after the company completed a reverse takeover of Inke Petroleum (a private Australian company) and began oil and gas exploration in Hungary.

Matra Petroleum is an oil and gas exploration and production company operating within the Russian Federation. The company is now building a portfolio of ventures and producing assets through the Volga/Urals regions of Russia.

In 2007 Matra acquired its Russian subsidiary Arkhangelovskoe which owned full rights in the Orenburg Oblast of Russia. Later in the same year, Matra discovered the Sokolovskoe Field. At the same time Delek-International Energy Limited became a significant shareholder in Matra. In early 2008 Matra exited from Hungary in order to focus on its Russian discoveries.

The Volga/Urals region contains abundant oil and gas production. TNK-BP is the largest drilling company in the Orenburg Oblast and has production in excess of 350,000 barrells per day in 2008. A large number of discovered oil fields are still either undeveloped or at least only partially developed. New areas are often being released for exploration.

Orenburg Oblast is within the Russian Federation, close to the southern border with Kazakhstan, and west of the Ural Mountains. The city of Orenburg is 1,300 km from Moscow with a population of over 500,000 people. The city is a prominent regional center particularly in the energy industry.

In April 2011 Matra announced that production has started from both wells in the Sokolovskoe Field.

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Feb 01
Gold Oil Plc was incorporated in 2004 to identify and develop oil and gas interests in Latin America, currently focusing on Peru, Colombia and Cuba.   The company aims to search out, evaluate, and develop oil and natural gas fields and build up capital value through the projects so that it can pay dividends to investors.

The Directors of the company have extensive experience in mergers and acquisitions, corporate management, and working with businesses in Latin America put them in a unique position to locate and evaluate investment opportunities.

Assets

Currently Gold Oil has established entry positions in Peru and Colombia, and one of its fields, Nancy, is currently producing at a rate of 300 barrels of oil per day (bopd).  The company expects to expand this production by 200-400 bopd in early 2011.

Gold Oil is in the process of exploring and analyzing two additional fields in Colombia, Azar and Rose Blanca.  In Azar Block, Gold is entering into agreements for 70 square miles of 3D seismic above one large lead area, as well as one exploration well.  in the Rose Blanca block, the company has struck a deal with a Colombian company, Montecz SA, for drilling one well plus testing.

In Peru, the company has obtained licences for two different blocks.  In Block XXI, drilling has begun on two exploratory wells; however the work in this block is on hold pending approval for environmental permits.  The licence for Block Z-34 and the Environmental Impact Assessment have been approved and 2013 kilometres of 2D seismic have been obtained.  The contract is currently on hold pending environmental permit approval for a modification of the 3D seismic grid planned for the next phase of exploration.

Gold Oil has also entered into an agreement with German company Ferrostahl for a major petrochemical development in Peru.

The company has also taken the first steps toward expanding operations to Cuban-held reserves by becoming qualified as an Onshore and Offshore Operator in Cuba.

Shares of Gold Oil Plc (GOO) are listed on the London Stock Exchange’s Alternative Investment Market and were trading at 5.22 p as of 26 January 2011.

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Jan 12
Global Energy Development PLC (“Global” or the “Company”) focuses its petroleum exploration and production enterprises on Latin America.  The management team is experienced in operating in the area, and the company pursues a long-term strategy of finding and developing reserves.

Global holds six development contracts, five in Colombia and one in Peru.  These contracts range from fully developed and producing oil, to the earliest stages of exploration, thus balancing the company’s portfolio between exploration, development and production opportunities.  As of December 2009, Global held 147.1 million barrels of oil equivalent (BOE) in proved plus probable reserves.  With possible reserves added in, the total is 272.9 million BOE.

Of the company’s three contracts in the Llanos basin area of Colombia, one is fully developed and producing oil; a second is at the stage of drilling exploratory wells, with several drilling projects for 2010 and 2011.  For the third contract, and for two additional Colombian contracts in the Middle Magdalena basin, the company is in the process of setting up 3D seismic exploration projects.

In their September 2010 interim report, the company reported that profits were up 63% over the previous year, based largely on oil price recovery.  This report also described Global’s ambitious 3-year plan to accelerate exploration and development of its holdings, which includes drilling 13 new wells and re-entering one well, and obtaining 3D seismic analysis of two contracts, as well as building facilities to exploit discoveries.  Global anticipates that this 3-year plan will increase its proven reserves by approximately 200 million BOE in proved reserves (current total is 60.8 million BOE).

Global Energy Development has one contract in Peru, which is poised to enter the development stage.  On 13 December 2010, share prices rose 15% upon the announcement of an agreement to farm-out 60% of Global’s interest in the Peruvian contract to Gran Tierra Energy, which will assume 100% of the operating costs.  Global retains a 40% interest in the contract.

Shares of Global Energy Development Plc (GED) are listed on the London Stock Exchange’s Alternative Investment Market and were at 110.00 p as of 07 January 2011.

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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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Nov 04

Faroe Petroleum Plc focuses on exploration, evaluation and development of oil and natural gas field opportunities in the Atlantic Margin, North Sea and Norway offshore regions.

Faroe Petroleum Plc was founded in December 2002, and its shares were admitted to trading on the Alternative Investment Market of the London Stock Exchange in June 2003. Since acquiring its first UK licence in 2004, Faroe has increased its portfolio from two licences near the Faroe Islands to one that includes holdings in the Faroes, UK West of Shetlands, Norway and the UK southern North Sea.

Major Assets

The Company works to develop and invest in a varied assortment of operated and non-operated properties, and holds a portfolio of exploration and appraisal assets in the Atlantic Margin, North Sea, Norwegian Sea and Barents Sea. The portfolio balances between higher risk/higher reward assets in the Atlantic Margin and deep water off Norway, lower risk/lower reward assets in the North Sea, and development and production holdings in offshore UK and North Sea areas.

Faroe Petroleum has partnered in joint ventures with companies such as BP, Chevron, DONG, Eni, E.ON, OMV, RWE, and Statoil.

Latest Developments

Faroe Petroleum announced in November, 2010 that an exploration well drilled in the Licence 005 area off the Faroe Islands had reached its full depth and had found “robust evidence of the presence of an active petroleum system.” Further analysis is under way. In addition, the company announced that drilling has begun on a new Lagavulin well in the Atlantic Margin area, located in an area with estimated reserve potential of more than 500 million barrels of oil equivalent. Lagavulin is one of the Atlantic Margin’s largest undrilled expanses. The well is expected to take around 120 days to complete.

In October, 2010, the company also announced that it was provisionally awarded 4 new licences in the West of Shetlands offshore area in the UK 26th Licencing Round, adding to its assets in an area where Faroe Petroleum is already active and knowledgeable.

The Company has offices in Aberdeen, U.K.; Stavanger, Norway and Torshavn, Faroe Islands.

Shares of Faroe Petroleum (FPM) are listed on the London Stock Exchange’s Alternative Investment Market and were at 172.25 p as of 29 October 2010.

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Nov 01

Tomco Energy (TOM): Constant Share Prices and Good Market Decisions

Tomco Energy (TOM) is a company that is based in Douglas in the United Kingdom. However, they have numerous businesses that take place in the United States, including owning an oil shale reserve in Utah. The main business goal of Tomco Energy is to acquire participation in the shallow producing oil wells and for the prospect of drilling for oil.

The chief executive officer of Tomco Energy is Mr. Stephen Komlosy, while Mr. John Joseph May serves as the financial director and Mr. John P Ryan serves as the commercial director.

Tomco Energy has many hands in the oil world. The company is very dominant in the Israel area in which they have an estimated 100 million barrels of reserve oil that can be used for world consumption. The deals that Tomco Energy has made with Israel over the course of their involvement has many times made headlines as they have replaced many top officials in their companies and have resulted to taking out loans to cover expenses that have popped up. However, this has not had any major effect on the cost of shares for those holding Tomco Energy (TOM) stocks and shares.

Historically, the cost of shares for Tomco Energy have been constant, and not suffered from any decreases or gained from an increase in costs. This makes Tomco one of the best companies to invest in as they have a constant share cost. This data is according to the London Stock Exchange information that is on hand and is the most current available. The LSE listed the TOM share price at 0.35, which was the same amount as the day before. Overall, with the field that Tomco Energy is in and the current data concerning shares, it is reason to believe that Tomco Energy is a company that is a constant in the market and will remain so in the future.

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Oct 28

Black Rock Oil and Gas changed its company name to Woburn Energy in January of 2009. The company is a gas and oil exploration company that searches for areas rich in gas and oil that can quickly be developed. Woburn Energy’s stated mission is to “acquire low risk opportunities with a high chance of early success leading to production” in low-risk countries in both Europe and South America. Only countries with a stabile government are considered for exploration and development. Demand for the oil and gas produced by Black Rock is based on U.S. and U.K. consumption.

The company previously held acreage in Ireland and Australia but recently gave up on those areas to focus efforts on deposits in the United Kingdom North Sea and Colombia. Colombia currently shows the most potential for development. In Colombia, The Las Quinchas block contains an estimated 5-10 million barrels of recoverable oil. Testing in the Acacia Este exploration prospect has indicated that long-term production could potentially produce 40 barrels of heavy oil a day. In the UK North Sea, Woburn Energy holds a 15% stake in a hydrocarbon-rich gas field in Monterey. This field contains an estimated 165 billion cubic feet of recoverable natural gas and is undeveloped as of yet.

The board of directors is made up of 6 members. Kamran Ahmed, Rustom Bejon Kanga, Hasan Hashwani, Anthony Brian Baldry and Arif Kemal are non-executive directors. The executive managing director is Dr. John Malcolm Cubitt. Dr. Cubitt has over 27 years experience in the natural resources exploration industry and is a registered Chartered Geologist. He has both a BS and a PhD in geology.

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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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