WTI (Oct)* $62.71 -29c, Brent (Oct) $66.84 +$1.05, Diff -$4.13 +69c*
USNG (Sep) $2.75 -18c, UKNG (Sep) 79.88p +3.09p, TTF (Sep) €32.27 +€0.9
*Denotes WTI September contract expiry

Oil price

Today the Jackson Hole symposium continues and the Fed Chairman speaks tomorrow, markets are expecting more of the same with a cut in September.

Oil is going better again as the expectations for peace in Ukraine lessen as Russia reverts to type and hunkers down into a ‘not happy with this’ state of mind. Quite what Trump will do is anyones guess but it should mean tightening sanctions until they come to the table…

The inventory stats were much better than the API and the whisper as well, crude drew by 5.014m barrels against expectations of 1.8m and gasoline drew by 2.72m b’s vs the whisper of 900/-. BP’s Whiting refinery has started to return to business but slowly. 

Kistos

The board of directors of Kistos has announced that the reduction of capital required to effect the cancellation of the Capital Reduction Shares issued by the Company prior to the Court Hearing was approved on 19 August 2025 by the High Court of Justice of England and Wales.

The Court order confirming the Capital Reduction and a statement of capital approved by the Court in connection therewith will shortly be sent to the Registrar of Companies. The Capital Reduction will become effective upon the registration of the Court order and associated statement of capital by the Registrar of Companies. Completion of the Capital Reduction will not affect the rights attaching to the Ordinary Shares and will not result in any change to the number of Ordinary Shares in issue (or their nominal value).

Full details of the Capital Reduction are set out in the notice of annual general meeting which was sent to shareholders of the Company on 4 June 2025 (the “AGM Circular”). The AGM Circular is also available for inspection on the Kistos website, https://kistosplc.com/. Unless otherwise stated, defined terms in this announcement are the same as those set out in the AGM Circular. As set out in the AGM Circular, provisional dates were previously obtained by the Company for the required Court Hearings, which were subsequently changed at the discretion of the Company.

Nothing to see here, in essence it just gives the company more flexibility as it has done in the past.

Prospex Energy

Prospex has announced that Po Valley Operations Pty Limited (PVO), a wholly owned subsidiary of Po Valley Energy Limited (ASX: PVE) and operator of the Selva Malvezzi production concession, together with its JV partners, PXOG Marshall Limited (PXOG) and UOG Italia Srl (UOG), have signed a new gas sales agreement (GSA) with Hera Trading S.r.l. (Hera Group).

PVO is the operator of the Selva Malvezzi production concession under a Joint Operating Agreement (JOA) and holds a 63% interest with Prospex’s subsidiaries holding 17% through PXOG Marshall Limited (PXOG) and 20% through UOG Italia Srl (UOG).

Highlights

• Selva Malvezzi Joint Venture signs a new GSA with Hera Trading to supply gas from its Podere Maiar-1d well facility in Italy
• 12-month contract commencing 1 October 2025 to supply approximately 27.963 million standard cubic metres of gas, with the option to extend
• Gas supply price will be linked to the Italian Gas Index (IG INDEX GME)
• Podere Maiar-1d has delivered ≈54.4 million standard cubic metres of gas from the C2 level in the well to date since first gas on 4 July 2023

Hera Trading, a group entity headed by Hera S.p.A, with operational headquarters in the Bologna province (Emilia Romagna region), offers the Joint Venture the opportunity to collaborate with a local business and strengthen engagement with the local community.  Hera is a major Italian multi-utility company listed on the FTSE MIB, Borsa Italiana’s main Index, which includes the 40 largest stocks by capitalisation, liquidity and trading volume.

The GSA with Hera will commence on 1 October 2025 for gas production from the Podere Maiar facility (PM-1d well) in the Selva Malvezzi production concession, replacing the current GSA with BP Gas Marketing which expires on 1 October 2025.  The GSA was agreed following a competitive tender process, with local player Hera Trading emerging as the successful bidder.  The operator Po Valley expects the outcome to be strongly supported by local stakeholders.

The Selva Malvezzi Joint Venture has completed nearly 2½ successful years with partner BP Gas Marketing from first gas flow in July 2023, to date delivering 54.4 million standard cubic metres of gas from PM-1d.  The agreement with BP Gas Marketing Ltd has been a valued and effective partnership.  BP’s professionalism and support have contributed to the Joint Venture’s success.  Po Valley and Prospex thank BP Gas Marketing for its support and collaboration as the agreement concludes on 1 October 2025.

Mark Routh, Prospex’s CEO, commented:
“We are pleased that Po Valley has secured a new gas sales agreement with Hera Group, a respected energy company with operational headquarters in the Bologna area.  This is a significant engagement for both Po Valley and Prospex, strengthening the Joint Venture’s relationship with the region and demonstrating its commitment to supply locally sourced energy to the community.  The agreement with Hera will replace the current GSA with BP Gas Marketing Ltd, which expires on 1 October 2025.

“The publicly quoted Italian Gas Index ‘IG Index GME’ gas price trades at a premium to the Dutch TTF gas price, so we expect the Selva Malvezzi asset will continue to achieve a premium for its gas sales.”

Clearly this is a good deal as Prospex have made a great deal of it, signing with a local energy company rather than with BP is only that but it was agreed ‘following a competitive tender process’ so I’m thinking it had to be the best deal in all regards, I mean you don’t take down just for locality do you?

So, it trades at a premium to TTF which is good and the local company must have the ability to compete in such a fashion which is good for shareholders. The shares are having a good short term run, up 10% on the month but still a long way off the previous highs, this is a good deal and should help continue that recent bounce.

–which tends to trade at a premium to TTF –suggesting that the JV will get decent prices for future sales. The new GSA replaces the prior one with BP Gas Marketing. This is encouraging and decent pricing should deliver some stable revenue for PXEN, despite the relatively low net volumes.

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