WTI (Apr) $71.23 +$4.21, Brent (Apr) $77.34 +39c, Diff -$6.51 -22c
USNG (Apr) $2.96 +10c, UKNG (Apr) 119.8p +23.68p, TTF (Apr) €55.365 +€16.415

Oil price

Oil has rallied sharply again today, yesterday it seemed to pause as if the market was reflecting the rise over previous weeks of expectation of war, today the brutal reality of the closure of the Straits of Hormuz is hitting home. WTI is $76 and Brent nearly $83 as I write. 

But apart from that nothing much has changed since then, 20%+ of crude oil off the market, the gas market is worse, Qatar is totally off the market making gas a better performer than oil this week. 

Indeed UKNG is 54% up from Friday and TTF has risen 76%, making the fact that there are hydrocarbons available in the North Sea and not used for ourselves even more scandalous. Even if things in the Gulf change for the better soon there is little chance that the alleged supply glut in the oil market can reach markets before damage is done. 

As long as Iranian missiles can indiscriminately land on any of its neighbours, friend and foe are being attacked making long term peace in the area almost impossible, US forces are finding it difficult to contain the modern day scourge of the drone so it looks like going on for a while longer. Oil may not visit $100 yet but even though the market may have expected something it certainly wasn’t this, lower prices won’t return for a while…

Sintana Energy

Sintana has announced that the planned 3D seismic acquisition campaign on AREA OFF-1, offshore Uruguay, has commenced.

The AREA OFF-1 survey is being carried out by the contractor Viridien, using the BGP Prospector vessel, and will cover a total of approximately 4,300 km2. Acquisition fieldwork will take place over two seasons: February-April 2026 and November 2026-April 2027, with most acquisition relevant to the key prospects on AREA OFF-1 expected to be completed in the first season. Fast-track results from seismic acquired in the first season are expected in Q4 2026, with full PSDM results from the first season expected in Q2 2027.

Sintana Energy holds a 40% non-operated interest in the AREA OFF-1 block, following the farm-out in 2025 of a 60% operating interest to an affiliate of Chevron Corporation (“Chevron”), and is carried for the total anticipated cost of the 3D seismic acquisition program.

It is noted that commencement of seismic acquisition follows rejection by courts in Uruguay of several attempted interventions by activist groups, demonstrating the depth of the upfront preparatory work for the campaign, and the robustness of Uruguay’s environmental consultation and permitting process. Sintana Energy remains committed to all operations with which it is associated being in compliance with the highest health, safety, and environmental standards. 

Robert Bose, Chief Executive Officer of Sintana Energy, commented: 
“We are excited to see activity on AREA OFF-1 beginning so soon after completion of our acquisition of Challenger Energy in December 2025. 3D seismic acquisition is a key next step in defining the potential of Uruguay’s offshore embedded within our Transatlantic portfolio, and which is underpinned by a relationship with Chevron that spans the conjugate margins. We look forward to providing further updates on progress over the coming quarters.”

Following my interview with Sintana last week this comes as no great surprise, the seismic acquisition campaign has been well telegraphed and despite the attempted interventions by activist groups it is good to note the ‘robustness’ of the Uruguay Government in the process. I have added the link to the interview below in case it was missed.  

So, the seismic has started on AREA OFF-1, the offshore Uruguay block operated by Chevron and 40% owned by Sintana. The process is split into two periods, it will firstly run from now until April and then from November until April 2027, mainly in the first period and fast-track processing should deliver results should be available in 4Q 2026 and full PDSM by 2Q 2027.

The seismic data will be used to make a drill decision for an initial exploration well for which Sintana is carried 50% by Chevron. This is very good news for the company as the first Uruguay block starts to get underway and the relationship with Chevron, here and in other parts of the portfolio is of huge importance. 

This is in-line with the company having high quality partners, is fully funded across possibly the most exciting portfolio in the industry and with opportunities in key parts of the conjugate margin worldwide. Totally justified in the recent Bucket List I upped my TP to 75p which is easily justifiable on current metrics and may even be conservative, this is another, more than handy, tick in the Sintana box. 

Core Finance interview: Eytan Uliel and Robert Bose from Sintana Energy

Buccaneer Energy

Buccaneer has announced a successful fundraise supported by a new cornerstone investor, institutional investor Premier Miton, alongside Directors and Management, existing shareholders and other new investors, to complete the acquisition of an adjacent producing asset and to expand the application of Organic Oil Recovery in the Pine Mills area.

The Company has raised £350,000, c.US$472,500, through a subscription and placing of 3,500,000,000 ordinary shares at a price of 0.01p per share.

Highlights 

• £350,000 fundraise completed with strong support from institutional investor Premier Miton, alongside Directors, management and existing shareholders
• Proceeds will be used for the acquisition of 100% working interest in the Carlisle 1 well for a consideration of $425,000 that will add immediate net production of approximately 25 barrels of oil per day (bopd) (“Acquisition”)
• Company production is expected to increase to approximately net 160 bopd following Acquisition
• The Acquisition increases Buccaneer’s working interest and strategic position within the proposed Fouke waterflood unit
• Funds raised will also allow expansion of OOR programme, a service provided by Hunting Plc following the successful pilot delivering a 100% production uplift in the treated area
• Directors participated in the fundraise, demonstrating alignment with shareholdersThe Fundraise Shares each have an attaching grant of warrants on a one for one basis, exercisable at 0.0125p per ordinary share and expiring in two years

Use of Proceeds

The proceeds of the Fundraise will be used towards the funding of the Company’s 100% WI acquisition of the Carlisle 1 well in the Fouke area of the Pine Mills field for a cash consideration of $425,000. The well is being acquired from a private Texas based oil production company.

The well is currently producing 25 bopd and will form part of the Fouke water flood unit. The well was previously owned by a private company and was not part of the development undertaken together by Buccaneer and its partner in the Fouke area. The well is located south of the Fouke 2 well and is producing from the same horizons as the Fouke 1 and 2 wells.

Funds will also be used to continue the Company’s OOR program in the Pine Mills field.  A successful pilot program was initiated in the northern portion of the Field and delivered a 100% uplift in production rates in the treated area. The funds will support additional OOR treatments in the pilot area and expand the pilot program across the Pine Mills field, including treatment on the Carlisle 1 well. 

Paul Welch, Buccaneer Energy’s Chief Executive Officer, said:
“I am pleased to announce the successful completion of this fundraise, supported by both institutional and existing shareholders for the progression of our major operational program at the Fouke Area in East Texas.

The acquisition of the Carlisle 1 well adds immediate production of approximately 25 bopd net and strengthens our equity position in the proposed Fouke area waterflood unit, an important step as we focus on increasing recovery and production from this area.

Following this acquisition, Buccaneer’s net production will increase to approximately 160 bopd. At current oil prices and with its low onshore operating costs, Pine Mills generates strong cash margins, and we remain focused on converting our existing NPV10 $9.6m reserve value into cash flow and shareholder value.

The funds also allow us to expand our OOR program in the Pine Mills field, where we have already seen a 100% uplift in production in our pilot area. Expansion of the pilot program is expected to further increase production across this mature waterflood asset. Additionally, the OOR knowledge gained in Pine Mills is directly applicable to the proposed Fouke area flood where we have the opportunity to expand further its application.

I would like to thank Premier Miton, alongside new and existing shareholders for their continued support. We have ambitious plans for this business, both organic and inorganic, and we look forward to sharing further updates with all our stakeholders in due course.”

Buccaneer yesterday announced a raise and an acquisition that the company has completed in the Fouke area of their Pine Mills field in East Texas. The adding of some 25 b/d is modest but it increases the company’s equity percentage in the waterflood upon startup. 

It looks like a good price to me, clearly negotiated at lower oil prices than today and the raise has been done at a premium which is good news for shareholders and shows that investors believe in the management and its portfolio. 

On another note, the 206 well in the north of the field, on which Buccaneer performed the OOR treatment, is still producing water free a month after treatment. The funds raised yesterday will enable them to expand those treatments further improving production rates and cash flows. 

I have been a supporter of Paul Welch since he resurrected Buccaneer and this is better news for others who have backed him. It has been by necessity a slow start given what he had to work with but this double news looks like the important turning of a corner. I expect much more when the opportunities arise and that may be a larger acquisition of production in order to scale up the business which is key to long term success. 

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