WTI (Apr) $67.02 +$1.81, Brent (May)* $77.35 +$6.42, Diff -$10.23 +$4.79
USNG (Apr) $2.86 +3c, UKNG (Apr) 96.12p +18.32p, TTF (Apr) €38.95 +€7.48
*Denotes expiry of Brent April contract

Oil price

Whilst WTI closed up less than $2 on Friday night Brent had been open on International markets and rose sharply just before markets closed. Today WTI is around $72 and Brent $78 which represents the likelihood of the Straits of Hormuz being closed for a while following the start of operation Epic Fury. 

Deciding how high the price goes clearly depends on a number of factors, probably how long the effective closure of the Straits of Hormuz will go on for, as well as how much damage is done to infrastructure and how much Lloyds of London raises war premium rates to and for how long. 

One of those pieces of infrastructure is the Ras Tanura refinery in Saudi Arabia which was hit by Iran overnight and whilst there was some fire damage I think that the biggest refinery in the world is still functioning. 

Also, the Qatari gas facilities have suffered, and as I understand it really is shut-in, this means that the gas market is actually suffering more than the crude market. In fact whilst oil has settled down today at the higher levels gas has kicked on and as I write has gained another 20% from the overnight levels. 

This is because Qatar has closed down all 14 trains, 20% of the world’s output and QatarEnergy is the world’s largest LNG producer. Add that to losing some 20% of the world’s crude oil and it looks like getting worse before it gets better…

With no SPR for gas and apart from the USA precious little storage facility those who had started to get used to LNG from Qatar may be disappointed. Since I mentioned it, well sort of, that brings UK energy policy to the fore, well we are sitting on the North Sea full of gas and oil and yet our own Government has banned us from utilising it… It’s all very well Ed Milliband saying we can buy from whom we choose but not if it’s shut-in. Don’t tell us you weren’t warned, any money on another U turn…?

China, India and Japan are also in a similar boat but not quite so much of their own making, but they may risk the wrath of the US sanctions and lean on mother Russia. 

Finally in a fairly futile gesture OPEC+ met and decided to increase production from next month by 206/- b/d, more than the expected 13l/- b/d and not altogether game-changing as most countries can’t increase that much and the short-term might change things. 

Arrow Exploration

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

Mateguafa 10 well

The Mateguafa 10 well (M-10) was spud on February 11, 2026, and reached target depth on February 18, 2026.  The M-10 well was drilled, on time and under budget, to a total measured depth of 10,930 MD feet (9,294 feet true vertical depth) and encountered multiple hydrocarbon-bearing intervals.

Arrow put the M-10 well on production February 24, 2026 in the Carbonera C7 formation (“C7”), which has approximately 20 feet of net oil pay (true vertical depth) at this location. The pay zone is a clean sandstone exhibiting an average porosity of 20% with high resistivities. An electric submersible pump (ESP) has been inserted in the well after perforating.

The M-10 well also encountered approximately 25 feet of net oil pay (true vertical depth) in the Carbonera C9 formation (“C9”).  Arrow plans to test this formation in future wells.

The well was put on production at a heavily restricted rate, 25/128 choke and 30 Hz pump frequency, of approximately 1,100 BOPD gross (550 BOPD net). The oil quality is 31° API and there is a 6% water cut (completion fluid and formation water).

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.

Mateguafa 9HZ well

The Mateguafa HZ (M-9HZ) well was spud on January 21, 2026, and reached target depth on February 7, 2026.  The M-9HZ well was drilled, on time and on budget, to a total measured depth of 15,025 MD feet (8,427 feet true vertical depth) and encountered multiple hydrocarbon-bearing intervals, including the Gacheta, the C9 and the C7.

Arrow put the M-9HZ well on production on February 10, 2026, in the C9 formation, which has approximately 5,025 feet of horizontal oil-bearing section.  The M-9HZ is the longest horizontal well Arrow has drilled in Colombia.  The pay zone is a clean sandstone exhibiting an average porosity of 23% with high resistivities. An ESP has been inserted in the well after perforating.

The well was put on production at a restricted rate, 31/128 choke and 38 Hz pump frequency, of approximately 850 BOPD gross (425 BOPD net). The oil quality is 31° API and there is a 16% water cut (completion fluid and formation water).

Arrow is currently in the process of increasing the pump frequency on this well to encourage oil production from the toe section of the well.  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.

Mateguafa 8 well

The decision has been made to convert the Mateguafa 8 (M-8) well into a water disposal well.  The Mateguafa pad will require water disposal facilities to keep operating costs down, and the M-8 well is an excellent candidate for water disposal.  The well has discontinued production and the rig has been moved to the M-8 location to begin the recompletion.  The recompletion is expected to take one week, and regulatory approval is expected to take another six weeks.  The water disposal well will then begin operations when required.

Mateguafa HZ7 well

The Mateguafa HZ7 (M-HZ7) which reached target depth on December 4, 2025, is continuing to produce strongly, with current production approximately 1,250 BOPD gross (625 BOPD net) with an 11% water cut. The M-HZ7 well is producing from the C9 formation.  The well has experienced very low decline rates during this initial production phase.

Mateguafa 6 well

Production from the Mateguafa 6 well (M-6) is currently approximately 410 BOPD gross (205 BOPD net) with a 40% water cut. The M-6 well is producing from the C7 formation.

Mateguafa 5 well

The Mateguafa 5 well (M-5) is producing at a current rate of approximately 676 BOPD gross (338 BOPD net) with a 71% water cut. The M-5 well is producing from the C9 formation.

Forward Drilling Plans

After the Mateguafa 8 recompletion, the Company plans to move the rig to the Mateguafa 11 (M-11) location, which will be a vertical well with both C7 and C9 targets.  After M-11 the rig will move to the newly completed Icaco pad to drill an exploration well, which is expected to spud in April.

Production

Including the restricted production from the M-9HZ and M-10 wells, total corporate production is approximately 4,900 boe/d.  The CN-7 well remains shut in due to pump failure.  When shut in the well was producing 250 BOPD gross (125 BOPD net).

Cash Balance

On February 1, 2026, the Company’s cash balance was US$7.2 million.  This reflects the increased activity drilling wells on the Mateguafa pad, completing the Icaco pad and initiating operating costs savings projects in the field. The Company continues to have no debt.

Tapir Extension

Arrow and its partner in the Tapir block remain in discussions with authorities on the extension of the Tapir block.  To date the dialog has been very constructive.  Arrow is confident that all conditions required for the extension to be granted have been met and management remains very confident that the extension will be granted.  The Company will continue to update the market on developments as they occur.

Marshall Abbott, CEO of Arrow commented:
“The success of the M-9HZ and M-10 wells reinforce the materiality of the Mateguafa field to Arrow.  The initial discovery and development of Mateguafa demonstrate the resource-rich potential of the Tapir block and the experience of the professional team at Arrow to quickly unlock that potential. The initial development wells drilled at Mateguafa continue to produce at considerable rates with low decline, with significant further pay seen in formations to which Arrow plans to return at a later date.”

“After drilling and putting the M-11 well on production, Arrow plans to move the rig to the newly finished Icaco pad.  The Icaco prospect is one that has been developed by the Arrow team using both 2D seismic and later the more recently shot 3D seismic program.  Management believes the Icaco prospect will also result in a material discovery for Arrow.  We look forward to updating our shareholders on the progress at Icaco over the coming months.”

Today has seen Arrow announce production at two very successful wells at the Mateguafa field in the Tapir block where the company has reinforced a very good valuation based on a higher than expected overall flow rate of some 4.9m b/d made better by that figure being net of production. 

The M-9HZ horizontal well encountered the Gacheta, C9 and C7 formations and has been brought onstream at a net 450 b/d with the potential to be higher as the company tweaks the ESP and choke sizes. 

The M-10 vertical well, which found hydrocarbons in both the C7 and C9 formations and already has good production of a net 550 b/d and again on a restricted choke which again gives scope to increase the rate. 

Next stop for Arrow is to drill the vertical M-11 development well, targeting both the C7 and C9 formations and then bring that onto production. Then, having already completed the Icaco pad, they will drill an exploration well which is expected to spud in April. 

Arrow shares are up nicely today and having had a good run of well results and with today’s good production numbers are up 30% over six months. Arrow was deservedly in the Bucket List last week and with my TP still at 40p I think that there is a great deal of upside, I am interviewing Marshall this week so have much to talk about.

Eco (Atlantic) Oil & Gas

Eco has noted that, further to its announcement on 12 January 2026, Navitas Petroleum LP, with whom Eco has signed a Framework Agreement related to several assets, has today confirmed that it has signed a definitive farm-in agreement with JHI Associates Inc, in which Eco has a 6.6% interest. Under the farm-in agreement Navitas is to acquire a 65% working interest in the PL001 North Falkland’s Basin Licence (“PL001”).

PL001 is adjacent to the Navitas operated Sea Lion Development and covers 1,126km2 in circa 500m water depth and contains significant exploration potential, with JHI’s Best Estimate of 3.1 billion barrels across multiple prospects and leads, including multiple Lower Cretaceous prospects analogous to the Sea Lion field.

Figure 1: Map of PL001 and Sea Lion Development

Gil Holzman, President and Chief Executive Officer of Eco Atlantic, commented:
“Navitas’ farm-in to this highly prospective field not only strengthens its presence offshore the Falkland Islands but further deepens our relationship, adding further shared acreage as part of our Strategic Partnership. Through our holding in JHI, Eco looks forward to working closely with Navitas to further the development of the licence, as we are doing in both Guyana and South Africa.”

This is another piece of good news for Eco Atlantic who are riding high on the back of successful liaisons and at long last monetising its excellent portfolio of assets. I comment briefly below on the results but here is another positive step for the company, in this case in the Falkland Islands.

Eco has announced its unaudited results for the three and nine month periods ended 31 December 2025. 

Highlights:

Financial

• The Company had cash and cash equivalents of US$2.9 million and no debt as at 31 December 2025, before a capital raise of US$10 million completed on 29 January 2026.
• The Company had total assets of US$19.9 million, total liabilities of US$1.3 million and total equity of US$18.7 million as at 31 December 2025.
• On December 4, 2025 Eco signed a binding Framework and Options Agreement with Navitas Petroleum LP (“Navitas”) for the Orinduik Block offshore Guyana and Block 1 CBK offshore South Africa as well as future oil and gas cooperation for the entire portfolio and new ventures (the “Framework Agreement”).  As part of the Framework Agreement, Navitas paid Eco Atlantic US$2 million to enter into an exclusive option agreements to farm-in to the Orinduik Block and Block 1 CBK.

Post-period end

• On January 29, 2026, Eco raised US$10 million at the then market price with new Israeli based institutional investors.
• On February 19, 2026 the trading of the common shares in the capital of Eco migrated to the London Stock Exchange’s SETS trading platform (“SETS”), enabling new and existing international institutional investors to trade Eco’s shares on a continuous basis.
• Further to the Company’s announcement on January 13, 2025, a total of 3,700,000 Restricted Share Units (“RSUs”) issued to certain directors and officers of the Company have now vested and automatically will be converted into common shares in the capital of the Company (“Common Shares”) (the “RSU Conversion Shares”).

South Africa

Block 1 CBK

• As part of the Framework Agreement, Navitas was granted the Block 1 CBK Option agreement, giving it the right to execute a farmout agreement to farm-in to Block 1 CBK offshore South Africa such that, on exercise, Navitas will make a US$4 million payment to Eco and become the Operator of the block with up to a 47.5% working interest, subject, inter alia, to customary government and regulatory approvals.
• Eco’s remaining working interest, amounting up to 47.5%, assuming the exercise of the option with OrangeBasin Energies (Pty) ltd. will be carried by Navitas for the work programme, the value of the carry being capped at US$7.5 million net to Eco.
• In honour of the late Colin Brent Kinley, Eco Atlantic’s Co-Founder and former Chief Operating Officer, who passed away on November 5, 2025, Azinam South Africa Limited (“Azinam SA”), the Operator of Exploration Right 12/3/362, in agreement with its Joint Venture Partner, renamed Block 1 Offshore South Africa to “Block 1 CBK” effective 17 November 2025.   
• On 19 November 2025, the Petroleum Agency of South Africa granted the Assignment and Transfer of a 25% participating interest from the local JV partner Tosaco Energy (Pty) Ltd to OrangeBasin Energies (Pty) ltd., a B-BBEE-rated South African entity. 

Block 3B/4B

• Throughout 2025, Eco and its JV partners continued to advance the licence work programme and preparations for the drilling campaign, including selection of the initial drilling target, detailed well planning, and procurement of long-lead items in anticipation of drilling permit approval.
• Third-party legal proceedings around environmental authorisation in Block 5/6/7 have delayed the Department of Forestry, Fisheries and the Environment’s decision on the Block 3B/4B Environmental Authorisation, a delay which remains outside Eco’s control. The Company, with legal and regulatory advisers and in coordination with Joint Venture partners, continues to maintain engagement with relevant stakeholders and awaits further direction from the Department of Mineral Resources and Energy.
• The Company is due to receive additional US$11.5 million from Block 3B/4B JV partners upon milestones in accordance with previously signed farm out agreements announced March 6, 2024.

Namibia

• Eco continued to explore options to optimise its portfolio in Namibia, as the Company shifted its geological focus to deeper proven plays in the country.
• Eco farmed out its entire Working Interest, in PEL 98 (Block 2213 “Sharon Block”) to an arms-length wholly Namibian-owned company, Lamda Energy (Pty) Ltd (“Lamda Energy “) pending government approval. 
• Eco has continued to receive considerable interest in its licenses in Namibia and is in the process of assessing options to further progress its exploration work programmes amid a potential farm-out. 

Guyana

• As part of the Framework Agreement, Navitas was granted the Orinduik Option giving it the right to execute a farmout agreement to farm-in to the Orinduik Block offshore Guyana such that, on exercise, Navitas will make a US$2.5 million payment to Eco and become the Operator of the block with an 80% working interest, subject, inter alia, to customary government and regulatory approvals.
• Eco’s remaining 20% working interest, assuming exercise of the option, will be carried in respect of the work to be performed in the Orinduik Block, which may include drilling the first exploration well or performing an appraisal programme over the existing Jethro-1 and Joe-1 heavy oil discoveries. The Orinduik carry is capped at US$11m net to Eco and excludes mobilisation costs, if any.

Post-period end

• As announced on January 14, 2026, Eco, together with Navitas, is engaged in ongoing, constructive discussions with the Ministry of Natural Resources (“MNR”), Government of Guyana, regarding the continuation of Eco’s appraisal and exploration programme on the Orinduik Block area.
• To this effect, the MNR and Guyana Geology and Mines Commission are in receipt of the relevant joint submissions from Eco Atlantic and Navitas. Eco Atlantic and Navitas continue to pursue the most efficient and value-accretive path forward that will be acceptable to the Ministry.

Falkland Islands

Post-period end

• On January 12, 2026, Navitas signed a non-binding Memorandum of Agreement with JHI Associates Inc (“JHI”), in which Eco has a 6.6% interest, for a farm-in to acquire a 65% Working Interest in the PL001 North Falklands Basin Licence, which is adjacent to Navitas’ operated Sea Lion Development. Eco expects that the parties will reach a definitive agreement in March 2026.

Corporate Presentation

Eco also announces that a new Corporate Presentation has been published on its website and is available at the following link: https://www.ecooilandgas.com/investors/results-presentation/

Gil Holzman, President and Chief Executive Officer of Eco Atlantic, commented:  
“This period saw Eco deliver a number of important strategic and financial milestones that have transformed our business and further strengthen our platform across the Atlantic Margins. Most notably, we are now in a Strategic Partnership with Navitas, which includes option agreements over both Orinduik and Block 1 CBK. This represents a significant validation of the quality of our portfolio and, on exercise,  will provide near-term capital alongside meaningful carried exposure across key assets. We look forward to deepening our collaboration with Navitas further as we explore options to maximise the potential of our world-class assets.

“In South Africa, we were pleased to see progress at Block 1 CBK, renamed in honour of the late Colin Kinley, with the approval of the 25% interest transfer to OrangeBasin Energies, reinforcing our commitment to local partnerships. While we wait to hear back from the South African Government on the environmental permitting for Block 3B/4B, we remain confident that a solution to progress the project will be found and the JV will continue its drilling preparations.

“In Guyana, we continue to work constructively with Navitas and the Government to advance the Orinduik block in a manner that is in alignment with all stakeholders and value-accretive for our investors. We look forward to providing further updates as we progress the development of our highly prospective acreage in the country.

“As part of its ongoing efforts to maximise shareholder value across its assets, Eco has shifted its strategic focus in Namibia towards proven deepwater plays. In doing so, Eco was able to secure licence extensions across its licences while also optimising its portfolio through the farmout of its interest in PEL 98. We are making significant headway in our farmout negotiations for our other acreage offshore Namibia and look forward to being able to update investors as these negotiations progress further.

“Post period end, the successful US$10 million private placement and our migration to SETS have helped to further enhance our financial flexibility and market accessibility. With a strengthened balance sheet, high-quality partners, and multiple catalysts across our jurisdictions, Eco is well positioned as we move into the rest of 2026 and beyond.”

As usual results were pretty meaningless but Eco has been very busy in the partner market, the highlight having been the Strategic Partnership with Navitas which includes option agreements over both Orinduik and Block 1 CBK as well as a raise at a good price. 

Eco states, and with which I concur, that ‘this represents a significant validation of the quality of our portfolio and, on exercise,  will provide near-term capital alongside meaningful carried exposure across key assets’. Eco has been the best performer in the Bucket List for over a year and I have no reason to believe that this will not continue, there is so much to get excited about. 

Gulf Keystone Petroleum

Gulf Keystone has announced that it has temporarily shut-in production operations and has taken measures to protect staff in light of the developing regional security environment. The Company’s assets have not been impacted.

The Company is closely monitoring the situation and will provide further updates as appropriate.

No surprise here and with so much collateral damage to operation Epic Fury the market should expect more of the same. 

United Oil & Gas

United has announced the successful completion of its Seabed Geochemical Exploration  programme, including the final Stage 3 piston core survey, within the Walton-Morant Licence offshore Jamaica.

The SGE programme represents a key operational step toward further de-risking the Walton-Morant Licence and progressing discussions with interested parties.

Highlights

• All 3 stages of the SGE survey completed safely and as planned within the Walton-Morant Licence offshore Jamaica
• Stage 1 – Multibeam Echosounder (MBES) successfully completed with 1,189 line kilometres of high-quality data acquired and processed
• Stage 2 – Heat flow probe data acquired in both the Walton and Morant basins
• Stage 3 – Based on the integration of the MBES data with existing seismic data, 42 piston coring sites were selected. During piston coring operations seabed sediment was successfully recovered from all 42 selected locations.

The piston core samples are now being prepared for shipment to TDI-Brooks laboratories in the United States where they will undergo geochemical analysis to test for the presence of thermally derived hydrocarbons. Initial laboratory results are expected in the coming weeks.

Results will be integrated with existing datasets to support continued advancement of United’s technical evaluation and further de-risking of the Licence area. Positive results are expected to strengthen the Company’s data room materials and support discussions with interested parties.

The Company will provide further updates in due course.

Brian Larkin, CEO of United Oil & Gas, commented:
“Completing the SGE programme safely and as planned is an important milestone for United and the Walton-Morant Licence. The recovery of seabed sediment cores at all 42 selected locations is a fantastic achievement, and we look forward to receiving the results of the laboratory analysis and to integrating them into our subsurface work shortly.

At the same time, we will continue to progress discussions with potential partners with the objective of advancing towards a potentially transformational offshore exploration drilling phase for Jamaica.”

Nothing to add to this, UOG are keeping us fully up to date with progress at Walton Morant but the only real news will, of course be about any farm-out….

Illustrative imagery from the programme, including a multibeam echosounder three-dimensional seabed visualisation and photographs of vessel and piston coring operations, is included below.

Figure 1: A three-dimensional, perspective view of the high quality MBES bathymetry data acquired in the Walton Basin (illustrative)

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