WTI (Aug)* $73.84 -$1.50, Brent (Aug) $77.01 -$1.84, Diff -$3.17*
USNG (July) $3.85 -14c, UKNG (July) 99.45p +4.45p, TTF (July) €41.625 +€0.85.
*Denotes expiry of July WTI contract

Oil price

Well, the game changed again on Saturday night as President Trump bombed three nuclear sites and said that their was more from whence that came if there was any further signs of nuclear activity. Where to from here? With Iran promising reprisals there could be attacks anywhere but military bases are expected to see some action, in the UK it only takes a couple of people on bikes to get in with tins of paint. 

With the Iranian Parliament approving retaliation it goes to the Supreme National Security Council who then have the authorise such actions as blocking the Straits of Hormuz, probably not the best way to make your name as Iran’s biggest clients, the Chinese, take their sales through there. Maybe revenge is a dish served cold..

And Sam Laidlaw is being tipped as BP Chairman, I can’t think of a better bloke to do it but it’s a herculean task…..

Kistos

Kistos notes the announcement made today by Vår Energi, the operator of the Balder Area, Norway, confirming the start of production from the Jotun FPSO.

Andrew Austin, Executive Chairman of Kistos, commented:
“First oil from the Balder Future project is a significant milestone for Kistos. Working alongside our partner in the Balder Area, this provides the foundation for further incremental value accretion from our interest in Norway. With production set to ramp up over the next few months, adding 8,000 boepd (net) to our existing 3,000 boepd (net) from the wider Balder Area, peak production in Norway is expected to exceed 11,000 boepd (net). These low-cost barrels will notably increase the oil weighting of our portfolio and deliver significant cashflow.

“Utilising the infrastructure now in place, Balder Phase V and the recently sanctioned Phase VI project will bring new production wells onstream as early as this year, accelerating the conversion of 2C resources to 2P reserves and offering fast-track developments to sustain long-term, high-value production.

Our entry into Norway, has delivered significant upside for the Company and its shareholders, for a nominal consideration with significant mitigations put in place around the timing of the completion of the Balder Future project. It highlights the importance that we will always place as a management team on identifying opportunities which offer significant near-term value accretion, at the right price and on the right terms.

It may be long awaited but it is no less welcome to Kistos that first oil from the Balder Future project has arrived and as the production builds up over the next few months the company will benefit substantially. As I understand from Andrew Austin, when production has built up, Kistos will be on between 11,000 and 11,500 b/d net to them from Norway alone.

This is a meaningful amount and is incredibly economically beneficial to Kistos with its low operating costs, and thus producing high value barrels extending a life towards 2045 and beyond.  This oil contribution to the revenue will rebalance and add ‘significantly’ to the cashflow. This very good news can only redouble the team’s efforts to make more accretive acquisitions for which they are rightfully famous and make them a certainty for the Bucket List.

Full Vår Energi press release below:

Vår Energi today successfully started production through the Jotun FSPO. This marks the start of a new era for the Balder field in the North Sea, extending the life of the first production licence, PL001, on the Norwegian Continental Shelf, adding high value barrels towards 2045 and beyond.

By bringing the Jotun FPSO onstream, production is expected, within three to four months after start-up, to increase by approximately 80 thousand barrels of oil equivalent per day (kboepd) gross, on top of the current production of approximately 30 kboepd gross through the Balder FPU and Ringhorne facilities. The Jotun FPSO will have a low operating cost of around USD 5 per barrel and estimated gross proved plus probable recoverable reserves from the project at 150 million barrels of oil equivalent (mmboe).

“Vår Energi is set for transformative growth in 2025. Together with the recent start-ups of Halten East and Johan Castberg, this marks a key milestone in reaching our production target of more than 400 kboepd in the fourth quarter of this year. Furthermore, with infrastructure and facilities designed to extend production beyond 2045, the start-up of the Jotun FPSO opens up wide potential for continued value creation from the area. I wish to extend the Company’s gratitude to the people in the project organisation, our suppliers, employee representatives and our partner for the strong dedication and collaborative efforts required in successfully completing this complex project. Also, the support by the Norwegian authorities has been fundamental, and much appreciated,” said Nick Walker, CEO of Vår Energi.

All 14 production wells have been completed and will be brought onstream during the ramp-up period to reach peak production. Together with the Balder Phase V project starting up later this year, the project has a payback time of around two years¹. In addition, with the Jotun FPSO installed as an area host, Vår Energi is taking necessary steps to add new production through infill drilling, exploration and tie-back developments with short time to market.

Vår Energi is operator (90%) of the Balder field, with Kistos Energy Norway AS as partner (10%).

(1) From production start-up

Touchstone Exploration

Touchstone has provided an update regarding its previously announced private placement. 

Further to the Company’s June 16, 2025 announcement, £10.325 million of the £15.375 million in gross proceeds from the private placement remains outstanding. Touchstone has been advised by OAK Securities and Portillion Capital that the settlement of proceeds from certain investors has taken longer than anticipated. The Company has received assurances that the outstanding funds are expected to be received by close of business on June 27, 2025. 

The Toronto Stock Exchange extended its conditional approval of the private placement, allowing the Company to complete the offering on or before June 27, 2025.

As previously disclosed, on May 16, 2025, the Company issued 75,000,000 new common shares to the settlement agent acting on behalf of OAK Securities. To date, 24,636,586 common shares have been distributed to investors. The remaining 50,363,414 shares are currently held by the settlement agent and will be distributed upon the expected receipt of the outstanding funds.

Operationally, Touchstone has completed running intermediate casing to approximately 5,800 feet at the Cascadura-5 development well. The Company will now proceed to drill the primary target zone.

 Apparently a technical delay with registration, the most important note here is that of the Cascadura-5 well is headed for TD and hopefully production in due course.

Afentra

Afentra has announced that it has initialled a Risk Service Contract for Block KON4, located in the onshore Kwanza basin, Angola.

Afentra has been in discussions to secure an operated interest in KON4 as part of its strategy to further consolidate its position in the onshore Kwanza basin and to establish itself as an Operator in Angola. The initialling marks a significant step forward to securing Block KON4. Under the terms of the proposed KON4 RSC, Afentra will be Operator with a 35% equity interest. The Block offers both short cycle, low-cost production opportunities linked to field redevelopment alongside low-cost near-term exploration potential similar to that being pursued in KON15 and KON19. The contract will now progress through the formal governmental approval process, and the Company will provide a further update to the market once the agreement has been fully executed and signed.

About KON4

Block KON4 covers 1,387 sqkm and is situated in a historically productive area of the onshore Kwanza basin, where 11 oil and 2 gas fields have been discovered and over 90 mmboe produced to date. The block features the Quenguela Norte field – the largest onshore discovery to date – estimated to hold over 200 mmbbls of discovered oil in place. The field achieved peak production of 12,000 bopd, with 42 mmbbls recovered before it was eventually shut-in and abandoned in 1999. This represents an opportunity to unlock significant value through the reactivation of legacy oil fields, supported by modern technology and re-development techniques that have advanced considerably since the fields were last in production decades ago. In addition, the Block’s proximity to the Luanda refinery and the existing road infrastructure could allow early production and export to the refinery.

KON4 also provides low-cost, near-field exploration opportunities that further enhance Afentra’s footprint and strategic optionality in the onshore Kwanza basin. The three blocks together offer a complementary portfolio with exposure to a diverse range of play types – across both post-salt and pre-salt petroleum systems – as well as opportunities to appraise and re-develop multiple discovered but abandoned oil fields.

Paul McDade, Chief Executive Officer of Afentra plc, commented:
“The initialling of the KON4 RSC is a significant step in our continued strategy to build a material position in onshore Kwanza basin in Angola. While this marks the beginning of the formal approval process, we are already working closely with our partners in the contractor group to prepare for an efficient review of the block’s existing oil fields and the potential for early development opportunities. In addition, we will be bringing our significant experience in the use of eFTG data, which is currently being acquired across the basin, to understand the full exploration potential of KON4 as well as our other licenses KON15 and KON19.

The addition of the KON4 license to our existing onshore licenses will represent a compelling opportunity to work with local Angolan companies to both revitalise historic oil fields with modern production and development techniques as well as understand the full exploration potential of this underexploited basin where exploration activities stopped over 40 years ago.”

Another very useful acquisition here from Afentra as they sign up for KON4 RSC which adds to their growing portfolio onshore Angola.  With short term production potential from old wells that they can ‘revitalise’ with modern techniques and an understanding the eFTG data which is being acquired across the basin chances are good.

A meaningful deal for Afentra and with the shares recovering well, up some 54% since the April low management the long term uptrend is being reestablished and a prime place in the Bucket List assured. Angola is proving to be an excellent home from home for Afentra whether it be onshore or offshore.

Investor Webinar Presentation

Afentra plc will host a live online investor presentation via the Investor Meet Company platform on Tuesday 24 June 2025 14:00 BST to present its onshore Kwanza strategy and answer questions.

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 23 Jun 2025, 09:00 BST, or at any time during the live presentation. 

Investors can sign up to Investor Meet Company for free and add to meet AFENTRA PLC via:

https://www.investormeetcompany.com/afentra-plc/register-investor 

A short presentation has been uploaded to the Afentra website: https://wp-afentra-2025.s3.eu-west-2.amazonaws.com/media/2025/06/2025.06-AET-Onshore-Opportunity.pdf

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