WTI (Apr) $68.62 -31c, Brent (Apr) $72.53 -49c, Diff -$3.91 -18c
USNG (Apr)* $3.96 -2c, UKNG (Mar) 101.0p -4.31p, TTF (Apr)* €43.97 -€1.105.
*Denotes expiry of March contracts

Oil price

Oil has picked up a bit this morning but sentiments are still negative but what isn’t uncertain at the moment? The EIA inventory stats were very mixed, crude was 5 million barrels wide of the forecast and came in at a draw of 2.232 m b’s against the build whisper of 2.6m. Against that both gasoline and distillates built against forecasts of a draw. who would be a teenage scribbler eh?

Serica Energy

Serica has announced that the OFAC License and secondary sanctions assurance relating to the Rhum field (SQZ: 50%), previously extended by two months to 31 March 2025, have now been renewed, with a new two-year License ending on 28 February 2027.

The License and assurance permit certain U.S. and U.S.-owned or controlled entities, and all non-U.S. entities, to continue providing goods, services and support to the Rhum field.

The Rhum field has benefited from an OFAC License continuously since 2013.

Nothing significant here, the license renewal was a technical matter to do with the change in US Administration and having been like this since 2013 I wasn’t expecting anything different.  

Challenger Energy Group

I have noted in recent weeks that Morgan Stanley USA has been increasing its stake in CEG, this morning I see that they have declared that their holding has increased by another 1.01% to 7.14%. Again I know that Stifel are planning a further marketing trip to the States and that with Robert Bose’s Charlestown Energy Partners having taken a substantial stake there are clearly energy investors following them in. 

Eco (Atlantic) Oil & Gas

Eco has announced its results for the three and nine months ended 31 December 2024.

Financials

• The Company had cash and cash equivalents of US$6.03 million and no debt as at 31 December 2024.
• The Company had total assets of US$27.18 million, total liabilities of ~US$82 thousand and total equity of US$26.35 million as at 31 December 2024.

South Africa

Block 1

• Eco announced the acquisition of Block 1, Offshore South Africa Orange Basin, in June 2024. Through its 100% owned subsidiary Azinam South Africa Limited (“Azinam South Africa”), the Company will farm-in and acquire a 75% Working Interest from OrangeBasin Oil and Gas (Proprietary) Limited and will become Operator of a new Exploration Right (the “Block 1 Acquisition”). Further updates on the plans for the licenses will be made once the final requisite government approvals have been received.

Block 3B/4B

• In January 2025, Eco received approval from the Government of the Republic of South Africa, under Section 11 of the Mineral and Petroleum Resources Development Act, in relation to Eco’s Assignment and Share Cancellation Agreement between Azinam, Africa Oil and Africa Oil SA Corp (“AOSAC”). The conditions precedent to the Exchange Transaction, including requisite regulatory approvals from the Government of the Republic of South Africa, TSX Venture Exchange, applicable Canadian Securities Commissions, and the relevant approvals from the Block 3B/4B Joint Venture Partners, have been satisfied and accordingly, Azinam has assigned the Assigned Interest to AOSAC and in return Africa Oil has transferred the Eco Securities which have been cancelled.
• Eco now holds a fully carried 5.25% interest in Block 3B/4B Offshore South Africa, reduced from 6.25%. Following the cancellation of Africa Oil’s previously held in aggregate, 54,941,744 Common Shares (valued at c. $CAD11.50 million as at 29 July 2024) (the “Share Cancellation”) and 4,864,865 Warrants (collectively, the “Eco Securities”), the outstanding common share capital of the Company is now reduced to 315,231,936 Common Shares and 48,541,666 warrants. 

Namibia

• The previously announced multi-block farm out process for all or part of Eco’s four offshore Petroleum Exploration Licences (“PEL”): 97, 98, 99, and 100 is ongoing.  Eco holds Operatorship and an 85% Working Interest in each PEL representing a combined area of 28,593 km2 in the Walvis Basin.
• Eco continues to receive considerable interest in its licences and is currently assessing options to progress its exploration work programmes that will include potential farm-out partners. The Company will provide further updates as appropriate.

Guyana

Eco continues its discussions with interested parties regarding the farmout initiative for the offshore Orinduik Block. ExxonMobil operator of the adjacent Stabroek block announced Hammerhead as its 7th development project and the first one of heavy oil.

Gil Holzman, President and Chief Executive Officer of Eco Atlantic, commented: 
“We continue advancing Eco’s promising exploration licenses in key hydrocarbon regions. During the period, we completed our transaction with Africa Oil on Block 3B/4B, securing significant exposure to a multi-billion-barrel prospect. This deal also enabled us to cancel approximately CAD $11.5 million in shares and welcome Emily Ferguson to our Board of Directors.

While the farmout processes are progressing, we are in advanced discussions on potential deals in both Namibia and Guyana and look forward to updating the market in due course. Meanwhile, offshore South Africa, we are excited about the upcoming drilling campaign on Block 3B/4B with our JV partners and the formal issuance of Block 1 in the Orange Basin.

With a strong balance sheet and an additional $11.5 million expected from the 3B/4B deal upon milestone completions, Eco is well-positioned for a dynamic period of exploration and deal making.”

As always with results there is nothing new in today’s report and the announcements in the quarter have been very important and make eco a really exciting prospect. With Block 3B/4B looking like it might see imminent action any news here would be great for market sentiment but the company has a number of other exciting opportunities in Namibia, South Africa and in Guyana. In the Bucket List for a good reason, the upside has huge potential. 

Corcel

Like London buses TR-1 announcements in Corcel are coming out thick and fast. After I had posted the blog yesterday another stake in the company was announced, this time Nurzhan Subhanberdin also announced an 8.43% holding.

I know some people are going to be concerned as to why I’m commenting so much but with so much news around it would be foolish not to try and follow the trail. Clearly Corcel is appealing to investors and as I have said a number of times the share is one to watch so I make no excuse for doing just that…

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