WTI (Feb) $77.88 -80c, Brent (Mar) $80.79 -50c, Diff-$2.91 +30c
USNG (Feb) $3.95 -31c, UKNG (Feb) 117.8p +1.55p, TTF (Feb) €46.5 +€0.5

Oil price

With US markets shut today for Martin Luther King Day and also for the inauguration of Donald Trump, inspiration is in short supply, we wait to see what the Executive Orders will be and the legislative programme shall deliver. Last week crude oil rose by around a dollar, the rig count fell again and the ceasefire is underway. 

Today a number of overpaid and under qualified executives, politicians and staffers will start to crawl out from under the stones they have been hiding in and head for Dav-oh in the Swiss Alps where they will press the flesh and tell the world what to do. Expect hordes from Central Banks around the world giving the massive expense accounts a bit of a belting…

Zephyr Energy

Zephyr has confirmed that operations to drill the extended lateral on the State 36-2 LNW-CC-R well have commenced.

The extended lateral will be drilled horizontally from near the base of the existing wellbore and will target an additional 5,500 feet of the Cane Creek reservoir. Drilling operations are expected to take approximately 30 days.

Immediately after drilling operations have concluded, the Nabors rig will be demobilised at which point equipment for the completion and production testing of the well will be moved to site. It is currently expected that the results from the production test on the well will be available by the end of March 2025.

Very little to add here, it is a very exciting day for the team and shareholders who have waited patiently for the 5,500ft horizontal section to be drilled and so in 30 days, followed by flow testing we shall know the secrets of the Paradox Basin. 

Jadestone Energy

Jadestone has announced that Group production exited 2024 at c.24,000 boe/d, a monthly record for the Group and an increase of c.40% compared to January 2024. 

Production performance into year-end 2024 benefitted from several factors, including stabilisation of operations at the Akatara project in Indonesia, good uptime and subsurface performance at Montara and continued outperformance at the CWLH asset.  There was also the continued positive impact of the Malaysia drilling campaign in late 2023 and elevated gas demand in northern Thailand supporting higher Sinphuhorm output.  Stag production also increased into the year-end, benefitting from successful recent workover activity.

Production for 2024 is estimated to have averaged c.18,700 boe/d, in line with guidance and an annual record for the Group, representing c.35% production growth year-on-year.  This was achieved with an excellent HSE performance, zero major environmental events and over 10 million manhours worked in aggregate at the Company’s Indonesia and Malaysia operations without a lost-time injury.

Jadestone intends to issue a trading statement in February 2025 in respect of its 2024 operational and financial performance, which will also include 2025 guidance. 

Adel Chaouch, Executive Chairman of Jadestone, commented:
“Jadestone’s portfolio performed strongly into the end of 2024, boosted by the onset of sustainable production from the Akatara project and showcasing the increasing diversification and resilience of our business.  This delivered record results for monthly, year-end exit rate and annual production.  Our focus during 2025 will be to build on this strong performance through maximising uptime levels across the asset base and mitigating portfolio natural decline.”

Interesting this, FY exit production was excellent, the asset base is performing well and met, albeit massively lowered, expectations in the market. This leads me to wonder why the board sacked the CEO who sorted out all the disasters created by the operational foul-ups…

Predator Oil & Gas

Predator has announced that civil engineering work, to improve access roads and prepare the MOU-5 well pad, has commenced on its Guercif licence onshore Morocco at the MOU-5 drill site.

Presently it is forecast that MOU-5 drilling operations are on track to commence on or about 25 February 2025.

Paul Griffiths, Chief Executive Officer of Predator, commented:
“We are very pleased to have put together this new fully-funded drilling campaign efficiently and within budget guidance to allow us to drill MOU-5, as currently forecast, next month.

The Titanosaurus structure may be potentially transformational to the Company’s already diversified asset base in a success case. It is a rare opportunity to drill a potentially high-impact structure adjacent to an existing gas infrastructure in an attractive fiscal regime.

Our hydrocarbon sector has seen a global resurgence of interest and activity outside of the UK and Europe over the past few months led by the United States, Norway, Middle East, Africa and Far East.

Dwindling gas storage reserves in Europe this winter and geopolitical concerns over security of gas supply provides cold comfort for policy makers seeking to reduce energy costs and promote economic growth.

We are potentially entering a “golden age” for gas exploration and production to support: the energy transition by lowering CO2 emissions through replacing coal and oil; and to ameliorate energy price rises by increasing supply and security of access to gas at “crunch” times, when renewable energy cannot cope due to unattractive weather conditions.

It is not often that macro geopolitical and economic factors align with a gas development strategy. We are currently in that cycle and ready to attempt to take advantage of it.”

This is Predator preparing to drill MOU-5 next month, a potentially ‘transformational’ structure which we shall see what happens.

Original article   l   KeyFacts Energy Industry Directory: Malcy's Blog