WTI (Aug) $68.45 +$1.88, Brent (Sep) $70.36 +$1.72, Diff-$1.91 -16c
USNG (Aug) $3.31 -3c, UKNG (Aug) 85.5p +1.5p, TTF (Aug) €35.51 +€0.475

Oil price

Oil starts the week quietly, last week it rose as the market seems to believe the research from the Opec team more than the IEA…Also the US are talking more sanctions against Russia re the Ukraine war and also against Iran where crude oil smuggling has increased again. 

PetroTal Corp

PetroTal has provided the following operational and financial updates. All amounts are in US dollars unless stated otherwise. 

Key Highlights

• Group production averaged approximately 21,039 barrels of oil per day (“bopd”) in Q2 2025, a 15% increase over the same period last year;
• H1 2025 production averaged approximately 22,160 bopd, a 20% increase over H1 2024;
• Successfully replaced electric submersible pumps in three wells at the Bretana field, with the one remaining pump replacement scheduled for completion during the month of July, 2025;
• Paid a regular quarterly dividend of $0.015 per share on June 13, bringing YTD and cumulative returns of capital to shareholders to approximately $30 million and $140 million, respectively;
• Total cash of $142.1 million as of June 30, 2025, including $31.9 million held in escrow from the first tranche of the previously announced COFIDE term loan; 

Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented:
“PetroTal’s preliminary Q2 2025 results reflect continued strong operational performance from our core asset base. I am pleased to report that the Bretana field continues to produce near all-time highs, in-line with expectations. Our operations team has already replaced three out of the four electric submersible pumps that failed earlier this year, restoring approximately 3,300 bopd of production capacity that was previously offline.

We are continuing preparations for our Block 131 drilling program, although we have experienced delays in the commissioning of our new drilling rig. Despite this delay, our YTD production continues to track directly in-line with guidance, while our capital expenditures are substantially below budget so far in 2025. We intend to provide additional details on our remaining 2025 development program, including associated production expectations, with Q2 2025 results on August 7, 2025.”

Today’s Q2 update is, as is often the case for PetroTal, extremely good and in line with guidance. Whilst production in the quarter is slightly down, which is due to the replacement of three electric submersible pumps, it will be back with that 3,300 b/d and the fourth pump soon and note that it is still up on this quarter last year. 

Also the interim with 22,160 b/d was 20% up H/H showing the wonder that is the Bretana field as it continues to produce ‘near all-time highs’ in line with expectations. Elsewhere at the Los Angeles field the service rig will move from the Bretana field and begin a workover programme by September this year.

The Erosion Control project is continuing  as previously reported in terms of date and budget and also I am expecting a ‘comprehensive update’ along with the results next month. The shares which have picked up somewhat lately remain excellent value and with top quality management prepared to recompense shareholders so well are key Bucket List members.

Q2 2025 Production and Operations Update

PetroTal’s group production averaged 21,039 bopd in Q2 2025, including 20,512 bopd from the Bretana field (Block 95; PetroTal 100% WI) and 526 bopd from the Los Angeles field (Block 131; PetroTal 100% WI). Bretana production declined approximately 2,150 bopd relative to the prior quarter, due to a combination of natural declines and previously disclosed pump failures in four producing wells in Q4 2024 and Q1 2025. Three of the pumps have already been replaced, restoring approximately 3,300 bopd of production capacity, while replacement of the remaining pump is expected to be completed by the end of July 2025. Los Angeles field production declined by approximately 90 bopd relative to the prior quarter, due to planned well-logging activities which required the shut-in of targeted wells. Once PetroTal has completed the pump replacements at Bretana, it will move the service rig to the Los Angeles field, where a workover program is scheduled to begin by September 2025.

PetroTal continues to advance preparations for its planned drilling program at the Los Angeles field, aiming to have its drilling rig available once the workover program is completed. Importantly, the Los Angeles field currently represents less than 5% of PetroTal’s corporate production, and the delay is not expected to materially impact 2025 production guidance.

As of June 30, PetroTal’s 2025 YTD capital expenditures were approximately $40-50 million. Over the next three to six months, pump replacements at Block 95 and the workover stimulation program at Los Angeles remain on track to support production. The Erosion Control project is also continuing as planned, with no major changes to the expected project completion date or budget. PetroTal will provide a comprehensive update on its 2025 development program, including revised timelines and production expectations, with its Q2 2025 results announcement on August 7, 2025.

Cash and Liquidity Update

PetroTal ended Q2 2025 with a total cash position of $142.1 million, of which approximately $99.3 million was unrestricted. This compares to total cash of $113.6 million at the end of Q1 2025 and $95.8 million one year ago. As disclosed previously on May 13, 2025, PetroTal entered into a term loan with a syndicate of Peruvian banks in the second quarter of 2025. The first tranche of the loan, amounting to $50 million, was drawn on May 20, 2025, to fund ongoing expenses associated with the erosion control project. Of the approximately $42.8 million that PetroTal carried as Restricted Cash on June 30, approximately $31.9 million was related to the escrow account of the COFIDE loan, as previously announced on May 12, 2025.

As of June 30, PetroTal’s unaudited accounts payable and receivable were approximately $57.1 million and $65.8 million, respectively (vs. comparable values of $60.0 million and $87.0 million as of March 31, 2025, respectively).

PetroTal maintains production hedges on approximately 35% of its forecast 2025 production volumes. The costless collars have a Brent floor price of $65.00/bbl and a ceiling of $82.50/bbl, with a cap of $102.50/bbl. As of Monday July 7, PetroTal’s production hedges had a present value of approximately $3.5 million.

Management Appointment

Jose Contreras, who served as PetroTal’s Chief Operating Officer since May 2023, departed the Company on June 13, 2025. Max Torres, previously PetroTal’s Vice President of Exploration since August 2024, has been appointed Interim Chief Operating Officer. Mr. Torres brings over 30 years of experience in the global oil and gas industry, including senior management roles at Repsol and Ecopetrol. PetroTal thanks Mr. Contreras for his contributions and wishes him well. The company has engaged an executive search firm to find a permanent replacement for the Chief Operating Officer position.

Corporate Presentation Update

The Company has updated its Corporate Presentation, available for download or viewing at www.petrotalcorp.com.

Q2 2025 Webcast on Thursday August 7, 2025

PetroTal’s management team will host a webcast to discuss its Q2 2025 Results on Thursday August 7, 2025 at 9:00am CT (Houston) and 3:00pm BST (London). Please see the link below to register.

https://brrmedia.news/PTAL_Q2_25

Touchstone Exploration

Touchstone has provided an operational update on the Central Block asset located onshore in the Republic of Trinidad and Tobago.

As previously announced, on May 16, 2025 the Company, through its wholly owned Trinidadian subsidiary, completed the acquisition of 100 percent of the share capital of Shell Trinidad Central Block Limited. The acquired entity, now renamed Touchstone Trinidad Central Block Ltd., holds a 65 percent operating interest in the onshore Central Block exploration and production licence. Heritage Petroleum Company Limited holds the remaining 35 percent participating interest. The Central Block asset includes four producing natural gas wells and a gas processing facility. Financial and operational results from the acquired entity have been consolidated into the Company’s financial statements from the May 16, 2025 acquisition date.

Production Update

Gross production volumes from the Central Block averaged 2,969 boe/d (1,930 boe/d net) during the first quarter of 2025, comprising approximately 16.74 MMcf/d of natural gas and 179 bbls/d of NGLs.

Based on preliminary field estimates, second quarter 2025 gross production averaged 3,023 boe/d (1,965 boe/d net), comprised of approximately 17.05 MMcf/d of natural gas and 181 bbls/d of NGLs.

Sales and Pricing Update

Natural gas from the Central Block is sold under two separate contracts: one linked to LNG export pricing and the other to domestic market pricing, primarily supplying Trinidad’s petrochemical sector. LNG sales are subject to vessel availability, referred to as liftings.

From January through April 2025, eleven LNG liftings (including associated liquids) were completed, totaling 2,207,696 MMBtu. An additional 11,065 MMBtu was sold into the domestic market. These volumes generated gross revenue of $13.6 million ($8.9 million net). After transportation and processing costs, gross revenue totaled $8.9 million ($5.8 million net). The Central Block also generated $1.0 million in gross revenues ($0.65 million net) from condensate sales at the facility, resulting in total gross revenue of $9.9 million ($6.4 million net) for the period. All sales volumes are subject to a 12.5 percent state royalty and applicable plant operating costs.

The LNG liftings and associated liquids achieved an average realized price of $6.15 per MMBtu, translating to a plant gate price of $4.00 per MMBtu after deductions. Domestic sales achieved an average net plant gate price of $4.33 per MMBtu. Condensate was sold at an average price of $48.49 per barrel.

Development Activities

Touchstone has completed site surveys for two additional well pads, each capable of supporting up to four drilling locations. The Company is currently awaiting government construction approvals. 

Paul R. Baay, President and Chief Executive Officer, commented:
“We are pleased to provide our first operational update on the Central Block following the successful completion of the acquisition. Since the completion, we have delivered quarter-over-quarter production growth through continued plant optimization – an excellent achievement by our Central Block team. 

This update also highlights the strategic advantage of integrating LNG-based pricing into our marketing portfolio. With commercial documentation complete and the first LNG payment expected by the end of July, we are positioned to benefit from predictable cash flows under the export contract.

The Central Block’s strong performance supports our acquisition rationale and enhances our marketing flexibility, diversifying revenue streams across LNG, petrochemical, and fixed-price gas sales.“

The proof if any was needed that the advantages of the acquisition of the Central Block assets were a strategic success are in todays update. The team running the asset is already at home here and have managed to work production growth already, through ‘continued plant optimisation’. 

In my written work and in interviews with Paul Baay we have talked about the strategic advantage of LNG-based pricing, integrating it into the marketing portfolio thus significantly upping the group-wide margin. We now know that the first payment under this scheme is imminent and will be another ace in the pack. 

All to look forward to then as Touchstone turns a corner after the Central Block acquisition, with recent good news from Cascadura the outlook for Touchstone is getting better and better.

Jadestone Energy

Jadestone has provided an update on the drilling of the Skua-11ST well at the Montara field offshore Australia.

The Company will issue its trading statement for the first half of 2025 on 24 July 2025.

Skua-11ST Drilling Update

The Skua-11ST well has reached target depth, with analysis confirming the presence of over 900 meters of high-quality reservoir, more than double the reservoir section completed in any of the previous Skua wells.  As a result, initial production rates are expected to exceed previously disclosed estimates of 3,500 bbls/d. Well operations are nearing completion, and following demobilisation of the drilling rig, the Skua-11ST well is expected to be brought onstream in early August 2025.

As previously disclosed, the Skua-11ST campaign has taken longer than originally planned. The total capital cost of the Skua-11ST well is now estimated at approximately US$96-100 million, compared to the US$70 million expected cost disclosed in May 2025[1].  Several factors outside Jadestone’s control resulted in the well cost increase, including significant weather events and changes to the demobilization plan which have added an estimated US$13-14 million. Additionally, operational factors during drilling required additional rig days and account for the remainder of the incurred incremental cost.

T. Mitch Little, Chief Executive Officer of Jadestone, commented:
“The Skua-11ST drilling campaign is nearing its conclusion, and I want to recognize the safe and environmentally responsible way the program has been executed to date.  We look forward to Skua-11ST adding meaningful volumes to Group production once tied in, which will immediately reduce unit operating costs at Montara and extend field life by a year. This will add to our previously announced cost management initiatives that we intend to expand to other parts of the Group.

Learnings from this drilling campaign will be integrated into the planning of any future wells in the Skua area, as part of my broader focus on driving operational excellence to both improve project delivery and enhance margins across the business.”

This is a sort of good news, bad news announcement but to be fair the company should be congratulated for emphasising the cost overruns on the well as much as the potential of adding ‘meaningful volumes to group production’ which will immediately reduce operating costs and indeed extend the life of the Montara field by a year.

And there is still much to come, after all a good reservoir section must be investigated and flow tests have to be verified and logs continue to deliver initial promise. But the company, with a number of new faces on the board I suspect are determined to remove as many cost overruns as they can whether they be short term or more realistically capex, opex or G&A charges through into next year.

I can certainly detect a new breeze blowing through Jadestone, it’s not long until the trading update in ten days time and of course I won’t be the only one looking forward to meeting the new team as they start to elucidate the strategy with which they hope to claim back the trust lost in a number of areas in the last couple of years.

Sound Energy

Sound Energy PLC, (AIM:SOU) the AIM listed transition energy company, is pleased to announce that Graham Lyon , the Company’s Executive Chairman, will be holding a live Investor presentation and Q&A session via the ShareSoc Investor Platform on Wednesday 23rd July 2025 at 5pm UK local time.

The presentation is open to all existing and potential shareholders and attendees can register and attend using the following ShareSoc link  Discovery Company Webinar – ShareSoc

 The link to the presentation will be placed on Sounds website shortly after the presentation.

Another chance to hear the thoughts of Chairman Graham Lyon, always worth the while and with Sound in transition much to learn.

Seascape Energy Asia

Seascape Energy, an E&P company focused on Southeast Asia, is pleased to announce that, in conjunction with an investor roadshow in London, an updated corporate presentation will be available on the Company’s website from 9:00 AM BST.

The presentation does not contain any material, new information but highlights for investors Seascape’s recent expanded scale and scope in Southeast Asia and the growth potential which remains both in the existing portfolio and across the region.

Work continues on an independent Competent Persons Report (“CPR”) by Sproule-ERCE which will incorporate the contingent resources in the Temaris Cluster and DEWA Complex Cluster and the potentially significant prospective resources in the Temaris Cluster. It is anticipated that the results of the CPR will be published during the summer 2025.

Again worth grabbing a look at the updated presentation from Seascape Energy, in a recent meeting with Chairman James Menzies I learned a lot about the management’s plans and I like what I heard.

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