WTI (Dec) $61.04 +91c, Brent (Jan) $65.16 +$1.10, Diff -$4.12 +19c
USNG (Dec) $4.57 +23c, UKNG (Dec) 81.87p +1.43p, TTF (Dec) €31.49 +€0.525

Oil price

Oil has shaken out today, the market awaits confirmation from the House of Reps tonight ending the closure of the Government. 

Genel Energy

Genel has issued the following trading and operations update in respect of the third quarter and first nine months of 2025.

Paul Weir, Chief Executive of Genel, said:
“Since our half year results in August, we have been delighted with the progress made on resuming maximum production from the Tawke and Peshkabir fields, with the two fields currently back to producing around 80,000 bopd. We now look forward to working with the operator to deliver an increased activity programme that can build on these production levels.

Our core business continues to generate free cash flow despite discounted domestic sales prices of just over $30/bbl. We are encouraged by the progress made on the operational resumption of Kurdistan exports, with reports of all Kurdistan oil production now flowing through the export pipeline and being sold at Ceyhan. We hope that the implementation of the export payment process is effective and sees international oil companies paid their full entitlement revenue at international prices, which could enable the Company to participate and significantly increase its core business cash generation. We continue to monitor progress closely and remain in regular contact with relevant stakeholders.

In Oman, on Block 54, we have started work towards testing the discovered resource. We are excited about the potential of the acreage and look forward to progressing activities there in the coming months.

We retain a strong balance sheet. At 30 September 2025, our net cash was $135 million with cash of $226 million, prioritised for the purchase of new production assets.”

Genel is in a very strong position, with Tawke and Peshkabir producing c.80/- b/d, net to Genel some 16,920 barrels and with plans to build on these levels via increased activity signs are good. Interestingly the company is still opting to sell to local refiners, at $33 a barrel rather than to rejoin the export pipeline to Ceyhan and this I totally understand.

The wording by Paul Weir above is key, with regard to selling through the pipeline it is hoped that the ‘implementation of the export payment process is effective and sees international oil companies paid their full entitlement revenue at international prices, which could enable the Company to participate and significantly increase its core business cash generation’.

Standing back from the current process is very wise, selling locally may be at a discount but at present there is absolutely no guaranty that selling through the pipeline creates payment certainty, indeed Genel has played this game before and has the receivables scars to prove it, seeing how others are rewarded before they move seems like common sense.

Elsewhere in Oman the outlook is promising, with preparations ongoing for the BW-1 well including 3D seismic and the hope is to drill on the acreage before long. Genel remains in a very strong position with $135m of cash, the bonds extended via buy in and still with plans to acquire ‘new production assets’ where possible. I remain confident that Genel is extremely well placed and the shares are significantly undervalued with a great deal of long term upside. 

PRODUCTION: KURDISTAN TAWKE PSC (25% interest)

• Gross production levels are now back to around 80,000 bopd, consistent with the levels achieved in the first half of the year before the interruption from drone strikes, whilst domestic sales prices averaged $31/bbl for the quarter, with year to date average price $33/bbl (FY2024: $35/bbl)
• Working interest production up to 30 September of 16,920 bopd (FY2024: 19,650 bopd)
• Efficient and effective work on well intervention and workovers continues to yield good results, with plans to recommence drilling of production wells well underway
• We expect to receive an insurance payment by the end of the year of around $3 million for lost production arising from the drone strike

PRE-PRODUCTION

• OMAN BLOCK 54 (40% interest)
  • Phase 1 of the 3-year work plan includes testing of the Batha West-1 (BW-1) discovery well, conducting 300km2 of 3D seismic and drilling two vertical exploration wells
  • Initial operations will involve the workover of the existing borehole to confirm suitability for testing followed by testing of multiple pay zones to confirm reservoir deliverability
  • Preparations are underway, with the workover anticipated to be completed around the end of the year and testing results to follow around the end of Q1 2026
  • BW-1 well test will inform the location for 3D seismic and subsequent wells
     
• SOMALILAND SL10B13 (51% interest)
  • We continue to work towards achieving conditions that support drilling of the highly prospective Toosan-1 exploration well

OUTLOOK

• We reiterate our guidance of net cash around the same level at the end of the year as the start
• The Company continues to work towards building a business with a strong balance sheet that delivers resilient, reliable, repeatable and diversified cash flows that support a dividend programme
• Our near-term objectives are:
  • the restart of exports from the Tawke and Peshkabir fields
  • maximisation of production and reserves from the Tawke and Peshkabir fields
  • appraisal on Oman Block 54
  • an agreed plan with KRG for recovery of overdue receivables
  • the acquisition of new production assets

AGM UPDATE

• Following the Annual General Meeting on 8 May 2025 the Company announced that resolutions 2, 3, 4, 5, 6, 7, 8, 10,11 and 12 had over 20% of votes cast against them and is required to provide an update on actions taken. The Company has reached out to major shareholders to understand their views and as a result of this process no specific actions have been identified

Arrow Exploration

Arrow has provided an update on the operational activity at the Mateguafa field on the Tapir Block in the Llanos Basin of Colombia where Arrow holds a 50 percent beneficial interest.

Mateguafa 5 well

The Mateguafa 5 well (M-5) well was spud on October 24th, 2025, and reached target depth on October 30th, 2025.  The M-5 well was the first to be drilled into the Mateguafa Attic field after the procurement of the 3D seismic program shot in 2024, and results from this well have confirmed the productive potential of the multi-pool field. The well was drilled, on time and on budget, to a total measured depth of 10,560 MD feet (9,334 feet true vertical depth) and encountered multiple hydrocarbon-bearing intervals.

Arrow put the M-5 well on production in the Guadalupe formation, which has approximately 26 feet of net oil pay (true vertical depth). The pay zone is a clean sandstone exhibiting an average porosity of  22% with high resistivities. An electric submersible pump (ESP) has been inserted in the well after perforating.

The M-5 well also encountered approximately 11 feet of net oil pay (true vertical depth) in the Carbonera C7 formation.  Arrow plans to test this formation in future wells.

The well was put on production at very restrictive operational parameters to allow the well clean-up and a proper water cut evaluation. Currently, the well is operating at a pump frequency of 30 Hz and a choke aperture of 17/128.

In the final 72 hours of the test, M-5 produced at a heavily restricted rate, 17/128 choke and 30 Hz pump frequency, of approximately 570 BOPD gross (285 BOPD net). The oil quality is 31° API and there is an 8% water cut (completion fluid and formation water). The water cut has been decreasing throughout the testing.

The testing results indicate the well is capable of higher rates and the ultimate flow rate will be determined in the first few weeks of production.

Initial production results are not necessarily indicative of long-term performance or ultimate recovery.

The well also encountered the Ubaque and Gacheta formations, however, these sands were not deemed to be commercial at this location.

Mateguafa 6

The Mateguafa 6 (M-6) well was spud on November 8th, 2025. The M-6 well will further delineate the C7 and Guadalupe formations to develop a horizontal well program.  The drilling, testing and completion of the well is expected to take three to four weeks from spud. The M-7 well is scheduled to be drilled immediately upon completion of the M-6 well.

2025 3D Program

The 2025 3D program has identified multiple prospects with the Icaco prospect, in the southeast corner of the Tapir block, the first one to be drilled in 2026.   The Company continues to progress the necessary licenses, permits and drilling pad with the expectation that the Icaco prospect will be drilled in mid Q1 2026.  Multiple hydrocarbon reservoirs are being targeted at the Icaco prospect.

Production

Including the restricted production from the M-5 well, total corporate production is approximately 4,000 boe/d, in line with company modeling.

Cash Balance

On November 1, 2024, the Company’s cash balance was US$8.2 million reflecting the intensive, two rig drilling program that Arrow operated during the second quarter.  The company continues to have no debt.

Marshall Abbott, CEO of Arrow commented:
“Initial production from the M-5 discovery has exceeded expectations and is an exciting event for Arrow. In addition to the thick pay zones encountered on the Guadalupe formation, an additional pay zone currently behind pipe, the C7, provides further opportunities for production and reserves increases.”

“The Mateguafa Attic discovery is material to Arrow and we are looking forward to the M-6 and M-7 results which will further develop this discovery and help determine the extent of the pools and the potential reserves additions.  Initial results indicate that the discovery will develop into another core area for Arrow with the potential for horizontal drilling development.”

“We look forward to providing further updates on this low-risk development drilling program.”

The update from the M-5 well is very pleasing and is the first well in the Mateguafa Attic field and confirms the productive potential of a multi-pool field. With 26 feet of oil pay in the Guadalupe formation and 11 feet in the Carbonera C7, as Marshall Abbott explains above, they provide ‘further opportunities for production and reserves increases’. 

The M-6 well has already spudded and M-7 will follow, hopefully boosting production, currently at 4/- b/d and provide another development opportunity for horizontal drilling activities. The company has $8.2m of a  cash balance having drilled ‘intensively’ during the second quarter. Arrow remains a core Bucket List holding with a great deal of upside.

United Oil & Gas

United has announced that following on from its announcement on the 9th October about signing a MOU with TDI Brooks International is pleased to confirm that it has signed a contract with TDI Brooks International to supply the R/V Gyre survey vessel for the planned piston coring and surface geochemical programme on the Walton Morant Licence, offshore Jamaica.

This milestone comes as Jamaica begins its recovery from the recent hurricane, which caused significant damage in parts of the island. United extends its thoughts to all those affected and reaffirms its long-term commitment to supporting Jamaica’s energy development and sustainable growth. United are continuing to work with local authorities to support the on-going relief efforts.

Highlights:

• Contract signed with TDI Brooks International for the R/V Gyre vessel expected to arrive mid to late December 2025 for piston coring and surface geochemical survey.
• The programme comprises the collection of 40 to 60 seabed cores from the Walton and Morant Basins, together with bathymetric, multibeam, and heat-flow surveys.
• Operations expected to last two to three weeks; initial results expected early Q1 2026
• Represents critical technical de-risking step supporting ongoing farm-out discussions and shareholder value creation.
• Port infrastructure remains operational, with inspection and readiness procedures being coordinated with the relevant Jamaican authorities.

Survey Scope and Strategic Context

The piston coring and surface geochemical campaign, to be conducted by TDI Brooks International, represents a key component of United’s forward work programme under its extended licence, which runs until January 2028.

The survey will acquire seabed core samples and supporting datasets designed to confirm the presence of thermogenic hydrocarbons, refine basin modelling, and enhance the definition of key prospects, including Colibri and Oriole.

Collected data will be analysed for geochemical and thermal signatures to confirm the presence of a working petroleum system offshore Jamaica. The results are expected to significantly de-risk the basin and strengthen the technical basis for ongoing farm-out discussions.

The survey operations are expected to take two to three weeks, with initial analytical results expected in early Q1 2026.

Commitment to Jamaica and Local Engagement

United continues to work closely with the Ministry of Energy, Telecommunications and Transport, the National Environment and Planning Agency, and local stakeholders as recovery efforts continue. 

The Company recognises the challenges faced by coastal and fishing communities, particularly in the west, and will maintain engagement through its Country Manager in Kingston.

Brian Larkin, Chief Executive Officer of United Oil & Gas, commented:
“While Jamaica focuses on recovery from the recent hurricane, United remains fully committed to supporting the country and advancing our planned operations responsibly and is working with local authorities to support relief efforts. Further updates will be provided in due course.”

Signing the vessel contract with TDI Brooks is a major step forward and it sets a clear schedule for a December mobilisation, marking the transition from planning to execution.

The piston coring and geochemical survey will provide vital new data to confirm the presence of hydrocarbons and materially de-risk the Walton Morant Basin. We expect operations to last just a few weeks, with initial results in early Q1 2026.

This programme represents a key value catalyst for United, strengthening our technical position and supporting our drive toward a successful farm-out and future drilling activity.”

While this is obviously good news for UOG and will de-risk the licence, shareholders should be aware that one swallow does not a summer make, sure a catalyst but the journey is still a very long one.

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