1947 Oil & Gas plc (LSE:1947) has reported the resumption of production at its Eugene Island 331 field and increased output from Ship Shoal 198, following its admission to AIM and completion of the Renaissance Offshore transaction in September 2026.
The US-focused oil and gas producer said production at Eugene Island 331 resumed in late September at approximately 1,200 barrels of oil equivalent per day (boepd) gross and 1,000 boepd net, following an extended shutdown caused by repairs to a downstream condensate gathering facility.
Meanwhile, production at Ship Shoal 198 increased to 1,275 boepd gross and 1,060 boepd net following a workover programme undertaken before the Renaissance transaction was completed.
The company also announced the award of two offshore lease blocks, adding approximately 10,000 gross acres to its portfolio in the Gulf of America.
Eugene Island 331 Production Resumes Following Facility Repairs
1947 Oil & Gas confirmed that production at the Eugene Island 331 field was restored in late September 2026 after an extended period of inactivity.
The field had been shut in because of repairs required at a downstream condensate gathering facility.
Following the completion of the necessary work, production resumed at approximately 1,200 boepd gross, equivalent to around 1,000 boepd net attributable to the company.
The restored production is approximately 81% oil-weighted, with the remaining output comprising other hydrocarbons.
The company said the restart was consistent with its operational expectations following completion of the Renaissance Offshore transaction.
No additional details were provided regarding the cost of the repairs or the duration of the shutdown.
Ship Shoal 198 Net Production Increases to 1,060 Boepd
1947 Oil & Gas also reported an increase in production at its Ship Shoal 198 field following a workover campaign conducted before the Renaissance transaction closed at the end of September 2026.
Production at the field has increased to approximately 1,275 boepd gross and 1,060 boepd net.
This compares with average net production of 545 boepd during the first half of 2026.
The latest reported net production rate represents an increase of approximately 94% compared with the first-half average.
The company attributed the higher output to the workover activities undertaken at the field.
Workover programmes generally involve interventions in existing wells to maintain or restore production, although 1947 did not provide details of the specific operations carried out at Ship Shoal 198.
The company has not disclosed a revised annual production forecast following the reported increases at Eugene Island 331 and Ship Shoal 198.
Two Offshore Lease Blocks Add 10,000 Gross Acres
1947 Oil & Gas announced that it has been awarded two offshore lease blocks in the Gulf of America following the Big Beautiful Gulf 3 Lease Sale held on 12 August 2026.
The blocks are West Delta 133 and South Timbalier 314, which together cover approximately 10,000 gross acres.
The company said the two blocks were previously included in the Renaissance Offshore portfolio.
The combined bids for the leases totalled approximately $260,000.
Both leases carry a royalty rate of 12.5%, which is lower than the rates previously applicable to the acreage.
1947 said the revised royalty terms are expected to improve the economics of potential redevelopment activities by reducing the proportion of production revenue payable as royalties.
The company did not provide estimates of recoverable reserves, potential production volumes or development expenditure associated with the newly awarded blocks.
Offshore Lease Awards Form Part of US Gulf Development Programme
The lease awards were made through an offshore licensing process administered by the Marine Minerals Administration, according to the company’s announcement.
1947 said the August auction represented the third offshore oil and gas lease sale required under the One Big Beautiful Bill Act.
The company intends to assess redevelopment opportunities across the newly awarded acreage alongside its existing producing assets.
The addition of West Delta 133 and South Timbalier 314 expands the company’s leasehold position in the region.
However, the announcement did not identify specific drilling plans or provide a timetable for development of the two blocks.
Any future production from the acreage would depend on further technical evaluation, investment decisions and applicable regulatory approvals.
1947 Oil & Gas Continues Portfolio Review Following Renaissance Acquisition
1947 Oil & Gas completed its transaction with Renaissance Offshore at the end of September 2026, establishing its operating portfolio following its admission to the London Stock Exchange’s AIM market.
The company focuses on acquiring and redeveloping mature conventional oil and gas assets in the US Gulf Coast region and offshore Gulf of America.
Its strategy involves identifying existing producing fields where additional investment, well interventions or technical improvements may support further production.
Executive Chairman Tim Duncan said the restoration of production at Eugene Island 331 and the increase in output at Ship Shoal 198 were consistent with management’s expectations.
He added that the company is reviewing opportunities within its existing portfolio while continuing to assess potential acquisitions.
1947 has not announced any additional transactions or provided financial terms for potential future acquisitions.
Company Focuses on Existing Assets and Potential Acquisitions
Following the operational changes, 1947 Oil & Gas reported combined net production rates of approximately 2,060 boepd from Eugene Island 331 and Ship Shoal 198.
These figures represent the reported production rates at the two fields rather than an average production rate for the company’s entire portfolio.
The company intends to continue evaluating redevelopment opportunities across its existing assets while assessing potential acquisitions in the US Gulf Coast and offshore markets.
Management also expects further operational developments during 2027, although no specific production targets or capital expenditure guidance were provided in the update.
The latest announcement establishes the restoration of production at Eugene Island 331, higher output at Ship Shoal 198 and the addition of two offshore lease blocks to the company’s portfolio.
Further updates will be required to assess how these developments affect the group’s overall production, operating costs and financial performance.
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