leadf
logo-loader
viewNu-Oil and Gas PLC
(
AIM:NUOG
)

ENEGI Oil eyes many more opportunities for marginal field projects

oil_barrel_stack_350_551a501e54144.jpg

ENEGI Oil (LON:ENEG) is seeing many more opportunities for its marginal field initiative in the North Sea as a result of lower oil prices.

The AIM-quoted oil company’s strategy is to use low cost, mainly un-manned and redeployable engineering solutions to develop marginal fields. Through this strategy it is working with joint venture company ABT Oil & Gas.

This morning, in the group’s interim results statement, it said that lower oil prices not only meant there are more projects that can be addressed by its low opex / capex solutions, but also the project’s themselves are larger.

Lower oil prices also make these solutions more attractive and will see returns increasing significantly as the oil price strengthens in the future.

ENEGI as a result now expects to add more projects to the portfolio.

"The significant opportunities afforded by marginal fields, particularly in the current climate, remains the company's focus,” said chief executive Alan Minty.

“Dialogue with the market and, in particular, asset owners continually reinforces the need for delivery capability to be demonstrable.

“Our offering requires expertise across a broad spectrum of disciplines and, as such, we are looking to build a consortium of established industry partners, with discussions well advanced in a number of cases, to deliver this.”

Minty added that completing these arrangements will provide a very strong endorsement to our marginal field initiative.

ENEG told investors that the implementation of its business plan will require an injection of new capital, though it believes it will generate sufficient value to significantly exceed the effect of any potential shareholder dilution.

The company reported a loss of £1.08mln for the six months to December.

Quick facts: Nu-Oil and Gas PLC

Follow
AIM:NUOG

Price: - -

Market Cap: -

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of named herein, including the promotion by the Company of in any Content on the Site, the Company receives from said issuer annual cash...

FOR OUR FULL DISCLAIMER CLICK HERE

Nu-Oil and Gas a volatile play, but you could double your money

Nu-Oil and Gas PLC (LON:NUOG) is a “very volatile play” according to Zak Mir, but if you’re brave enough to take the plunge you could almost double your money over the next few months. In the latest segment of the Proactive Investors Bulletin Board, the analyst explains: “It’s a very...

on 8/2/17

2 min read