The shares of 4 British companies investing in Moroccan gas fell by 33% over the past year (2023), despite the developments witnessed in hydrocarbon discoveries in the Kingdom.
The decline in the shares of British companies comes at a time when Morocco continues to develop gas reserves, and some discoveries are about to be put on production lines in the coming period.
According to data and analysis of the specialized energy platform, the shares of Chariot, Sound Energy, SDX Energy, and Predator Oil & Gas Holdings declined, with gas prices declining in 2023. .
Spot gas prices declined during the year 2023, at rates ranging between 60% and 70% across the main pricing regions in Europe and Asia until the first 9 months of 2023, compared to their record levels in 2022, before rising somewhat, with the escalation of tensions in the Middle East. .
The average spot gas prices in Europe during 2023 reached $13 per million British thermal units, while in Asia it reached $13.5, while gas prices in the United States reached $2.7 per million British thermal units.
The average spot gas prices in the European Union reached $32.3 per million British thermal units in 2022, while they reached $13.7 in Japan, while in the United States they averaged $5.1 per million British thermal units, while in China they reached $15.9.
It is noteworthy that natural gas prices usually differ according to regions, as global gas markets are characterized by being fragmented markets, unlike oil prices, which appear to be almost uniform worldwide.
Chariot stock in 2023
Chariot’s shares, listed on the London Stock Exchange, fell by 36% over the past year, reaching 9.98 British pence (0.13 US dollars) at the end of trading on Friday, December 29 (2023), according to data monitored by the energy platform.
The recent movement of the British company’s shares has been linked to developments in Moroccan gas projects, especially the Inchoua gas field, as it recorded its highest level over the past year at 19.43 cents ($0.25), while its lowest level was 9.6 cents ($0.12).
* The pound sterling, divided into 100 pence, equals $1.22
In December, the British company Chariot signed an agreement to sell part of its shares in marine licenses in Morocco to the Israeli company Energean Plc, at a value of up to $925 million.
Under the Moroccan gas deal, Energean will acquire 45% and 37.5% stakes in the Lexus and Resana licenses, respectively, and operate both licences, while Chariot will retain a 30% and 37.5% stake in Lexus and Resana, respectively, with the National Office retaining For hydrocarbons and minerals, with a 25% share in each license.
Morocco currently produces about 100 million cubic meters of natural gas annually from small fields, and imports the rest of the domestic consumption needs, estimated at one billion cubic metres, and is counting on the Anchoa offshore field under the “Lexus” license to meet its needs in the near future.
The British company, in cooperation with Energean, intends to begin exploration in the Locos onshore license, early this year (2024), in order to deliver Moroccan gas supplies to the industry.
Sound Energy stock in 2023
London-listed Sound Energy shares have fallen 23% over the past year, hitting 0.69 pence ($0.01) in trading on Friday.
According to data and analysis of the specialized energy platform, Sound Energy shares recorded their highest level over the past year at 2.13 cents, while their lowest level was at 0.61 cents.
Sound Energy intends to double the size of Moroccan gas reserves, by concluding agreements to finance the development of the Tenderara gas field.
The British company aims to start producing Moroccan gas from the Tenderara field during the coming period, and has a 10-year commitment from the first gas production, to sell a contractual quantity estimated at 100 million cubic meters annually.
On June 28, 2023, Sound Energy announced that it had reached an agreement to finance the debts of the second phase of the development of the Tenderara field production concession, with Attijariwafa Bank, at a value of 2.365 billion dirhams (237 million US dollars), to implement the second phase of the Moroccan gas production project. From Tundara.
The funding is scheduled to be allocated to complete drilling work, operate wells, and build a pipeline to transport the produced natural gas to the National Office of Electricity and Drinking Water.
SDX Energy (SDX) stock in 2023
SDX Energy shares fell by about 55% during trading last year, recording 3.85 pence (0.05 US dollars) during trading on Friday, December 29 (2023).
Sound Energy stock hit a high of 9.1 cents over the past year, while its low was 3.5 cents.
The company is looking forward to producing commercial quantities of Moroccan gas sufficient for several months, from the Kasri-21 well (KSR-21), after the success of the drilling campaign and the discovery of gas in late September 2023.
The British company succeeded in producing approximately 0.4 billion cubic feet (69.25 thousand barrels of oil equivalent) during the first half of 2023, according to data seen by the energy platform.
The company is implementing a drilling campaign to increase Moroccan gas production after the rise in prices, and its success in renegotiating with the National Office of Hydrocarbons and Mines regarding the gas sales agreement with one of its major clients in Morocco.
SDX Energy owns shares in 5 exploration licenses in the Gharb Basin in Morocco: Sebou, Lalla Mimouna North, Gharb Centre, Lalla Mimouna South, and Moulay Bouchti Ouest, as it owns a 75% stake in Exploitation rights, while the National Office of Hydrocarbons and Minerals holds 25%, and also holds other exploitation concessions, including gas-producing wells in Morocco.
During the last 5 years, the company drilled 22 wells, 16 of which discovered natural gas, and 14 of which were connected to the gas transportation pipeline network in the region.
The company has a number of exploitation concessions that contain wells producing gas, which is sold to 8 customers at contracted prices, ranging from 10 to 12 US dollars per cubic foot.
Predator Oil & Gas stock in 2023
Predator Oil & Gas shares, listed on the London Stock Exchange, fell by more than 18% during last year’s trading, closing at 0.715 pence (0.01 US dollars).
Sound Energy stock had a high of 2.126 cents over the past year, while its low was 0.61 cents.
The British company Predator Oil & Gas plans to drill new exploratory wells in the Moroccan gas field concession, “Gersif”.
Early last year (2022), the British company announced gas discoveries in the Gharcif field license, as preliminary assessments of Moroccan gas discoveries in the field indicate the presence of reserves of about 393 billion cubic feet of reserves.
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2024-01-01 15:45:11
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