WTI (May) $86.91 +32c, Brent (June) $91.17 +52c, Diff -$4.26 +20c
USNG (May) $1.79 n/c, UKNG (May) 65.56p +0.56p, TTF (May) €26.39 -€0.015

Oil price

Oil was up $3.75 last week and it would have been more if the Non-farm-Payroll numbers hadn’t been so hot encouraging the market to become more concerned about any rate cuts at all. Also there are rumours of fresh peace talks to be help in Egypt this week but Hamas has denied any progress today. 

Chariot

Firstly today apologies, in the Bucket List on Friday Chariot was omitted from the text although was tagged in the header. The piece got lost between Word and WordPress, my apologies!

Chariot remains in the list as it is on the threshold of significant progress with both its operations in Morocco and has addressed the funding of the Transition Power division by way of a strategic review. Here, power and water solutions in Africa are being addressed and renewable energy generation with particular respect to South Africa, where interest has already been expressed and given differing differing funding solutions are required, that is understandable. At Loukos drilling is imminent and if successful would be fast tracked to development, at Anchois Chariot are working with Energean to progress further drilling this year. All this leaves me confident that there is substantial upside at Chariot. 

Union Jack Oil

Union Jack has announced a positive drilling update in respect of the Andrews 1-17 well, to test the West Bowlegs Prospect, located in Seminole County, Oklahoma, United States in which Union Jack holds a 45% working interest.

Further to the spud announcement of 28 March 2024, the Andrews 1-17 well was drilled to a total depth of 4,600 feet.

The main objective for this well, the Hunton Limestone, is confirmed to be present and was penetrated at approximately 4,200 feet, showing high porosity and elevated gas readings, with good reservoir quality being interpreted on the wireline logs.

The Dan D2 drilling rig has now been demobilised and completion and production testing of the Andrews 1-17 well is scheduled to commence within the next 14 days.

The Hunton Limestone is one of the main hydrocarbon reservoirs in Oklahoma and is unconformably overlain by the main oil-prone source rock, the prolific, Woodford Shale.

Drilling and completion costs have already been paid for from the Company’s cash resources.

Further announcements will be made when more information becomes available.

David Bramhill, Executive Chairman of Union Jack, commented: 
“Our first well in the United States looks to be a major success subject to testing, and an excellent start for the Company in its recent drilling partnership with Operator, Reach Oil & Gas Inc (“Reach”).

“Reach and its drilling and ground team conducted activities with precision, below budget and of key importance, safely and incident free.

“With our appetite whetted and as we learn more about the technical and production attributes of the well over the coming weeks, I am certain that our United States drilling activities will be accelerated and another positive phase of growth will be added to the Company’s already successful ventures, both sides of the Atlantic.”

Last week I wrote about UJO and headlined it the British are coming as the company reported on getting a quote over there, today’s news will be bound to create even more interest. That is because UJO has announced today that the Andrews 1-17 well, their first with Reach Oil & Gas, has been ‘a major success’ and has confirmed the Hunton Limestone, the primary target has been penetrated and  good reservoir quality having been interpreted.

This is indeed excellent news for Union Jack who have started to use their Wressle cash flow to invest in US properties, although one cannot expect a 100% success rate they must be delighted that this has come in and given the economics of US onshore hydrocarbons will be making a good return on investment very soon. 

Savannah Energy

Further to the Company’s announcement on 28 March 2024, the Company provides the following additional information on its proposed acquisition of PETRONAS International Corporation Limited’s energy business in South Sudan through the acquisition of Petronas Carigali Nile Limited, as first announced by the Company on 12 December 2022.

Completion of the Proposed Transaction remains subject to satisfaction of certain conditions precedent, principally the receipt of written approval for the Proposed Transaction from the Government of South Sudan. Following receipt of this approval, Savannah would then progress to finalise an AIM Admission Document to facilitate seeking a restoration to trading on AIM of the Company’s ordinary shares.  

Publication of the AIM Admission Document requires the release of the Company’s FY 2023 audited annual results, together with the finalisation of the audit of the financial statements for FY 2023 of PCNL. It is currently anticipated, therefore, that the AIM Admission Document, together with Notice of General Meeting to approve completion of the Proposed Transaction pursuant to AIM Rule 14, would be published in late Q2 2024 /early Q3 2024. 

Nothing to add here, readers know that these deals take a long time to complete and at least we have a target timescale.

KeyFacts Energy Industry Directory: Malcy's Blog