Latest from ASX-Listed Energy and Resource players- BYE, SFR, WEL, BC8

ASX Listed

Byron Energy Limited (ASX: BYE)

Byron Energy Limited (ASX: BYE), an Australian Securities Exchange listed, oil and gas explorer in the Gulf of Mexico, announced on 21st June 2019 that the company’s operated first test well on the South Marsh Island 74 block- SM74 D-14, is currently drilling as planned.

The well drilling is testing the depth of 12,960 feet Measured Depth and 12,320 feet True Vertical Depth. BYE cemented a 9-5/8 inch intermediate casing in place at a depth of 12,723 feet Measured Depth and obtained a new 10 feet formation along with a Formation Integrity test of 17.9 pounds mud weight equivalent.

The company previously reported on 16th May 2019 that the test well is designed in a way that it would test multiple amplitudes supported target sands, which is further prognosed to be intersected at a depth below 13,800 feet Measured Depth. The test well is planned to drill a total depth of 16,747 Measured Depth and 14,726 feet True Vertical Depth and logged.

As per the company, if the well becomes productive,  BYE would proceed with a cemented casing of 7-inch further to mark the completion of the test well.

Byron farmed-out 30 per cent of the working interest share of the well to Metgasco Limited (ASX: MEL), on the industry standard terms.

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Under the terms, MEL would be able to earn the interest by paying 40 per cent of the $11.4 million initial well dry hole costs, and Byron would pay the remaining 60 per cent. The farm-out terms further mentioned that both the parties would bear their respective working interest cost of 30 and 70 per cent post the drilling of the initial well to the total depth.

BYE is acting as the operator of the well through its wholly-owned subsidiary in the United States- Byron Energy Inc, and the company recently secured an award for the SM60 block.

In a separate announcement, MEL mentioned that the SM73 D-4 platform is currently being drilled from the SM73 D platform, which is operated by Ankor Energy LLC. BYE entered an agreement with Ankor to produce the well through SM73 D platform, which, in turn, would reduce the threshold of the economic reserves.

On 24 June 2019, the shares of the BYE are trading at AS$0.315 (as at AEST:  12:36 PM), up by 5 per cent as compared to its previous close.

Sandfire Resources NL (ASX: SFR)

Sandfire Resources NL (ASX: SFR), a mineral explorer on ASX  announced on 21st June 2019 that company updated the underground Ore Reserve for DeGrussa and Monty Mines, which includes Conductor 1, 4, and 5 deposit of the mines.

As per the company, the net increase in the overall underground Ore Reserves is due to the resource definition drilling conducted by SFR on the Conductor 5 deposit along with the orebody remodelling in conjunction to the revised factors.

The definition drilling and subsequent remodelling inched up the Ore Reserves by 0.4 million tonnes and contained copper by 2,000 tonnes. Post considering the annual mining depletion of approx. 1.6 million tonnes, SFR mentioned that the mine life would be supported till mid of the calendar year 2022.

Sandfire is currently undertaking a grade control diamond drilling at the Monty Mines, and it recently consented over the bid implementation between Andes Resources and Metminco Limited.

The updated Underground Ore Reserves contain 5.5 million tonnes of Ore Reserves with 4.8 per cent copper and 1.6g/t of gold, which would account for 264,000 tonnes of contained copper and 277,000 ounces of contained gold respectively.

The updated Underground Mineral Resources include 4.9 million tonnes of Mineral Reserves with 6.3 per cent copper and 2.0g/t of gold, which would account for 306,000 tonnes of contained copper and 313,000 ounces of contained gold respectively.

The total Ore and Mineral reserves for both the mines are as:

Source: Company’s Report

The total Ore and Mineral reserves by Orebody for both the mines are as:

Source: Company’s Report

In its announcement today on ASX, SFR in conjunction with its JV partner White Rock Minerals Limited provided an exploration update on its Red Mountain Project in Central Alaska, which is a high-grade zinc and precious metals VMS project.

The project holds two high-grade deposit with an Inferred Mineral Resource of 9.1 million tonnes, the average grade of the resource is 12.9 per cent of zinc equivalent with 1.1 million tonnes contained zinc equivalent.

The company started the summer field exploration activities in late May at the Newman’s Creek, and SFR (JV) commenced surface reconnaissance mapping, surface geochemical sampling which included both rock chips and soil samplings along with other on-ground activities.

The surface reconnaissance and geochemical sampling took place at the Glacier Trend and the Dry Creek trend across north-west and south of the tenement, while the results of both the on-ground activities are pending.

SFR (JV) drilled three diamond drill holes away from the known deposits and intersected no significant sulphide mineralisation; however, the company intersected mineralisation during its 2018 drill program at the Hunter prospect, and now plans to test the dip and strike with two drill holes (HR19-05 and HR19-06).

The company fully funds the Joint Venture, and SFR is progressing further with the exploration. White rock minerals recently completed a High-powered airborne electromagnetic survey over the 475km2 strategic belt-scale tenement of Newman’s Creek.

On 24 June 2019, the shares of the SFR were trading at A$7.045 (as at AEST: 12:36 PM), up by 0.643 per cent as compared to its previous close.

Winchester Energy Limited (ASX: WEL)

Winchester Energy Limited (ASX: WEL), an Australia-based oil and gas explorer, announced on 21st June 2019 that the company formulated a development plan to fast-pace the oil production from the Strawn Fry Sand member of the United States-based Mustang Prospect.

The company consulted Mire & Associates, a U.S. based petroleum consultants post the success of White Hat 20#3, which led towards the initial production of 306 barrels of oil per day.

WEL consulted the Mire & Associates to optimise and update the Gross Prospective Resources of the Strawn Sand Fry member. As per the studies, the development optimisation study further identified nine well locations within the central Mustang area.

The identification of nine well locations was further supported by the possible 25 wells across the Mustang North and South, which in turn, would lead to a total of 34 development well; however, the development is still subjective to the outcomes of the ongoing drilling.

White Hat 20#3 is producing the oil as per the company’s expectation and post the measurement of the modest commercial gas volumes; the well is presently being connected to gas sales. After incorporating the data from White Hat 20#3 the Strawn Fry Sand members Prospective Resources are as:

Source: Company’s Report

The overall Gross Prospective Resource estimates for the prospect are as:

Source: Company’s Report

Furthermore, today, 24 June 2019, the company announced to the market that the it has been informed by US Energy Corporation of America Inc (USEC) on the successful execution of a vertical frack within the three Fingers Shale Member (TFS) of the Thomas 119-1H well and the start of production. USEC further updated that the well has been producing oil and gas at an average of 29 bopd and 450k cubic feet of gas per day (mcfgd) over the last week.

TFS now provides a highly attractive target for horizontal drilling and fracture technologies. The company also reported that TFS has been penetrated in multiple wells in Winchester’s acreage (yet to be tested) and all the wells have found good oil and gas shows. White Hat 39#1 sidewall cores assured fracture capability and oil potential of the TFS.

It is to be noted that WEL has the right to 12.5% working interest back-in to Thomas 119-1H post USEC recovers the costs from the oil and gas revenues.

The shares of WEL were trading at AS$0.030 (as at AEST: 12:10 PM), down by 6.25 per cent as compared to its previous close.

Black Cat Syndicate Limited (ASX: BC8)

Black Cat Syndicate Limited (ASX: BC8), a mineral explorer, presented an update on its Bulong Gold Project on 21st June 2019.

The company conducted extensional drilling at Myhree, which is now down to an average spacing of approx.  25m x 30m and the drilling continues to provide thick and high-grade intersections. The  extensional drilling resulted in

The drill hole identified as 19MYRC052 intersected 7m @ 4.24 g/t of gold from 187m and 4m @ 5.85 g/t of gold from 201m.

The drill hole identified as 19MYRC044  intersected 11m @ 2.63 g/t of gold from 185m.

The drill hole identified as 19MYRC040  intersected 6m @ 3.53 g/t of gold from 105m and 6m @ 3.58 g/t of gold from 143m and 4m @ 5.67 g/t of gold from 168m.

As per the company, Myhree remains open at depth, and the extensional drilling is progressing to the north and at depth.

BC8 also conducted an RC infill drilling with 33 holes for 3,954m, and the result received by the company was consistent. The significant results from the drilling include:

The drill hole identified as 19MYRC043  intersected 10m @ 3.82 g/t of gold from 113m.

The drill hole identified as 19MYRC0431  intersected 8m @ 3.63 g/t of gold from 78m.

The drill hole identified as 19MYRC0437  intersected 3m @ 8.16 g/t of gold from 38m.

The drill hole identified as 19MYRC0439  intersected 2m @ 7.96 g/t of gold from 122m.

The infill drilling boosted the confidence of the company in the present Resource, and BC8 is awaiting results from SAM Target 1.

On 24 June 2019, the shares of the BC8 were trading at AS$0.270 (as at AEST: 12:36 PM), up by 1.887 per cent as compared to its previous close.


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