Shares in the small-cap oil and gas exploration company, Bayfield Energy Holdings plc (LSE:BEH), surged 38.5% today, the largest percentage gain on the London Stock Exchange today by more than 6%. The share price has risen 5.00 pence to 18.00, recovering in a single day of trading what it had lost in the previous month.
A Bit of Background
Bayfield issued an operational update regarding its Trinidad operations on 14 May 2012. The report was not the glowing kind that investors like to read. It contained phraseology like, “Management has assessed that the Company’s net 2C Contingent Resources of 24.67 mmbbl will be reduced by approximately 2.9 mmbbl,” with regard to it EG7 well. It also sidetracked its EG1 well to begin exploration in deeper waters after attempts at its previous location proved fruitless. The company announced that it was seeking opportunities to increase the flexibility of its operations in Trinidad, including raising additional financing. It also reported significantly constrained production in the Trintes field due to operational and technical factors. On Friday, 11 May, the Bayfield share price had closed at 44.88. On the next business day, Monday, 14 May, the day of the update, the share price had dropped to 28.50 and has been trending down ever since.
Today’s News
Today the company reported that the B3 well in the Trintes field has been brought into production with a stabilized rate of 536 bopd and that three new wells will be drilled in the field this year. Now that the B3 rig is functional, employees with begin replacing pumps on six existing wells that are expected to increase incremental production by 250-300 bopd. Bayfield is reporting that total production in the Trintes field has surpassed the 2,300 bopd mark.
Bayfield is now expecting profits of £15 million from revenues of £46.30 million for this fiscal year.
Company Spotlight
Bayfield Energy is five days short of the first anniversary of its listing on the London Stock Exchange on 18 July 2012. Although it recently obtained an exploration licence in South Africa, the company’s main focus is in the Columbus basin in the shallow waters off the east coast of Trinidad where it secured a 25-year licence for exploration and production in 2009.