WTI (Mar) $73.77 +60c, Brent (Mar) $77.49 +41c, Diff -$3.72 -19c
USNG (Feb) $3.48 -22c, UKNG (Feb) 123.0p +3.13p, TTF (Feb) €49.54 +€1.05

Oil price

Oil is down about 40 cents today ahead of the Fed decision likely to be unchanged. With tariffs on Canada and Mexico due on 1st February market watchers are concerned about crude oil and the product markets. Libya stopped loading yesterday morning which tweaked prices but not for long as the dispute appears to have been settled already. 

The API inventory stats were mixed, crude added 2.86m barrels, better than the whisper of 3.7m and gasoline added 1.89m whilst no surprise after recent weather meant that distillates drew 3.75m b’s. 

Union Jack Oil

Union Jack has announced a positive update on the Moccasin 1-13 well, located in Pottawatomie County, Oklahoma, USA.  Union Jack holds a 45% working interest in this well.

• Moccasin drilled on budget to Target Depth of 5,690 feet
• Electric logs have been acquired and several zones of interest and test intervals have been identified
• Production casing has been run and cemented
• The technical team at Reach Oil and Gas Company Inc., the Operator, have informed Union Jack that evaluation and testing will begin on or around 3 February 2025
• Moccasin drill and completion costs have already been funded from the Company`s cash resources

Moccasin was an untested 3D seismic supported Hunton and Wilcox structure with secondary targets in Pennsylvanian Channel Sands and Base Pennsylvanian Unconformity Sand.  The Moccasin structure is a compressive feature, associated with the regional Wilzetta Fault.  This strike-slip fault was active through the Ordovician to early Carboniferous periods and is responsible for several large oil accumulations.

The Woodford Shale, the main source for light oil across the region is present within the Moccasin structure and between the primary reservoir targets.

In the area of the Moccasin well, a deviation in the fault has caused compressive forces forming numerous dome and fault structures which have led to proven oilfields, such as the adjacent productive North-East Shawnee and North-West Redhill fields.

David Bramhill, Executive Chairman of Union Jack, commented: 
“We look forward with positive anticipation to the evaluation and test results from Moccasin which have the potential to be of major importance for Union Jack.

“I am pleased to report that the Company remains in a robust financial position having paid all major outgoings including drilling and completion costs for its current USA activities.

“We continue to generate material revenues in the UK from our flagship project at Wressle (Union Jack 40%), where approvals to proceed with the next stage of development are awaited.  These revenues are expected to be boosted by Keddington production (Union Jack 55%), where restart is expected in early 2025.

“Cash generation in the UK is complemented by our entry into the USA which we announced in early 2024, with cash flow from the two Andrews’ wells discoveries (Union Jack 45%), plus additional revenues from our US Mineral royalty portfolio that provides a constant and pleasing rate of return of over 31% on our investment.

“Notably, we have meaningful interests in all our principal projects that we believe will assist in delivering on our stated growth strategies in both the UK and USA.

“We look forward to reporting in due course on evaluation and test results from Moccasin and completion results from the Taylor 1-16 well drilled late 2024.”

UJO report from the Moccasin 1-13 well, located in Pottawatomie County, Oklahoma, today and the vibes from the USA continue to please. Whilst testing doesn’t start until next week what I can see looks positive and with a number of exciting targets this could be substantial, and ‘have the potential to be of major importance for Union Jack’.

The operator, Reach say that logs have been acquired and several zones of interest and test intervals have been identified which again looks promising. The well is paid for and the fourth with Reach and given the less than flattering attention given to the company’s UK activity I know where I would rather be. UJO also announce that completion results from Taylor 1-16, drilled late last year are imminent. 

Back in the UK the company update from Wressle where ‘approvals to proceed with the next stage of development are awaited.  These revenues are expected to be boosted by Keddington production, where restart is expected in early 2025’.

Given all this news and with an exciting portfolio of high class potential waiting to be developed I’m confident  that the shares at this level are scandalously cheap and with West Newton down the line the future is decidedly rosy…

Pharos Energy

Pharos has announced that on 28 January 2025, in accordance with the terms of the extension of its share buyback programme announced on 6 December 2023, it purchased the following number of ordinary shares of £0.05 each in the Company through Peel Hunt. The shares purchased will be cancelled.

With this trade, the Company’s current share buyback programme, initiated on 22 July 2022, has been completed. Over the course of the programme, the Company acquired in aggregate 30,949,334 Ordinary Shares between 20 July 2022 and 28 January 2025 for a total consideration of approximately £7.323 million (net of expenses), at a volume weighted average price paid of approximately 23.66 pence per Ordinary Share. All purchases made under the programme were made through Peel Hunt, the Company’s joint broker.

Following the purchase and cancellation, the Company will have 423,481,926 Ordinary Shares of £0.05 each in issue, of which 9,122,268 Ordinary Shares are held in treasury. Therefore, the figure of 414,359,658 may be used by shareholders as the denominator for calculating whether they are required to notify their interest in, or a change to their interest in, the Company under the FCA’s Disclosure Guidance and Transparency Rules.

In accordance with Article 5(1)(b) of the UK version of Regulation (EU) No. 596/2014 (the “Market Abuse Regulation”) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, the tables below contain detailed information of the individual trades made by Peel Hunt as part of the Programme.

For record only, I suspect that any further news about any further buy backs will be telegraphed with the 2024 finals due on 26th March.

SDX Energy

SDX announces details of the secondary market trading facility that will be in place following the cancellation of trading on AIM of its Ordinary shares, following approval by shareholders at the General Meeting held on 24 January 2025. The last day of dealings in Ordinary Shares on AIM is expected to be 31 January 2025 and the Cancellation will take effect from 7.00 a.m. on 3 February 2025.

The Company has now appointed Asset Match (www.assetmatch.com) to facilitate trading in the Ordinary Shares following Cancellation. Asset Match, a firm authorised and regulated by the Financial Conduct Authority (FRN 579310), will operate an electronic off-market dealing facility for the Ordinary Shares. This facility will allow existing holders of Ordinary Shares in the Company (“Shareholders”) and new investors to trade Ordinary Shares by matching buyers and sellers through periodic auctions.

New investors and Shareholders are encouraged to register on www.assetmatch.com and add SDX to their ‘Watchlist’ to continue to receive Company updates and auction/price information. Please note the SDX page on the Asset Match website will go live on 3 February 2025.

The secondary market trading facility is expected to operate for a minimum of 12 months after the Cancellation. The Directors’ current intention is that it will continue beyond that time, but Shareholders should note that it could be withdrawn and therefore inhibit the ability to trade the Ordinary Shares.

The Asset Match trading facility operates under its own code of practice which governs the behaviour of participants and the running of the periodic auctions. Asset Match operates an open auction system where volumes of bids and offers at different prices are displayed on its website together with the closing date of the auction. At the end of each auction period, Asset Match passes this information through a non-discretionary algorithm that determines a “market-derived” share price based on supply and demand and allocates transactions accordingly. Bids and offers may be made and withdrawn at any time before the closing date of each auction.

Shareholders will continue to be able to hold their shares in uncertificated form in CREST and should check with their existing stockbroker whether they are willing or able to trade in unquoted shares via Asset Match. Shareholders wishing to trade shares through Asset Match must do so through a stockbroker. A comprehensive list of stockbrokers who have signed up to access the Asset Match platform is available on request.

Full details will be made available to Shareholders on the Company’s website at www.sdxenergygroup.com. Shareholders and investors may contact Asset Match in relation to any queries regarding trading via the secondary market trading facility by emailing dealing@assetmatch.com.

So, SDX leaves its listing on Aim, the management assures me that they are gone but not forgotten and the Asset Match platform can enable the company to return with news deals from this management.

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