WTI (May) $90.32 +$2.19, Brent (May) $102.22 +$2.28, Diff -$11.90 +9c
USNG (Apr) $2.95 +6c, UKNG (Apr) 135.53p -10.07p, TTF (Apr) €54.125 -€2.21

Oil price

Nothing much to add today, still totally conflicting news from the war as no one knoiws who is talking to whom. The deadline runs out tomorrow…….

Every day the price swings are by recent standards amazing, note yesterday which after I published when crude was down actually ended up over two dollars, today as I write oil is up again WTI by $4.69 and Brent by $6.51, who knew…?

PetroTal Corp

PetroTal has reported its operating and financial results for the three months and year ended December 31, 2025. All amounts herein are in United States dollars unless stated otherwise.

Selected financial and operational information outlined above should be read in conjunction with the Company’s unaudited consolidated financial statements and management’s discussion and analysis (“MD&A”) for the three months and year ended December 31, 2025, which are available on SEDAR+ at www.sedarplus.ca and on the Company’s website at www.PetroTal‐Corp.com.

Key Highlights

• Average Q4 2025 sales and production of 15,059 and 15,258 barrels of oil per day (“bopd”), respectively;
• Average FY 2025 sales and production of 19,212 bopd and 19,473 bopd, respectively, representing increases of approximately 9% relative to FY 2024;
• Generated Adjusted EBITDA(1) of $18.5 million ($13.38/bbl) in Q4 2025 and $166.3 million ($23.71/bbl) in FY 2025;
• Annual net income of $44.2 million in FY 2025, compared to $111.5 million in FY 2024;
• Development capital expenditures (“capex”) of $15.3 million in Q4 2025 and $75.6 million in FY 2025, compared to $50.1 million in Q4 2024 and $172.1 million in FY 2024;
• Annual free funds flow(1) of $90.4 million ($12.90/bbl) in FY 2025, compared to $74.1 million ($11.54/bbl) in FY 2024;
• PetroTal paid total dividends of $0.045/share and repurchased 4.9 million common shares in 2025, representing approximately $44 million of total capital returned to shareholders (compared to $65 million in 2024) prior to pausing distribution programmes in mid-November 2025;
• Total cash increased to $139.1 million at year-end 2025, compared to $114.5 million at year-end 2024.

(1) Non-GAAP (defined below) measure that does not have any standardized meaning prescribed by GAAP and therefore may not be comparable with the calculation of similar measures presented by other entities. 

Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented:
“PetroTal reported solid financial and operational results in 2025, increasing our production by an average of 9% over 2024, while returning $44 million to shareholders through dividends and share buybacks. Despite substantially weaker oil pricing in 2025, we generated $90 million of free funds flow and ended the year with almost $140 million of cash on our balance sheet. We also invested $20 million to advance our erosion control project, after wrapping up our development drilling program in the first quarter of the year. Looking ahead, we are actively evaluating plans to optimize and expand water handling capacity at Bretana, which is key to restoring production output from wells we have already drilled, and to accommodate new production from our upcoming development drilling program.

To that end, I am pleased to report that our Board of Directors has made the important step of approving a tender award to a third-party drilling contractor, which keeps us on schedule to resume development drilling at Bretana by October 2026, as we have previously guided. This week, we have also made the decision to terminate our contract with the consortium that is managing the erosion control project. The project has fallen behind schedule, and we felt a change in management was required to complete the project in a safe, timely and cost-effective manner.

Recent strength in oil pricing is welcome, but cost reductions and capex optimization remain a key focus of our Board and management team in 2026. We are continuing to target significant reductions in operating costs and run-rate G&A expense over the course of 2026. I would like to thank shareholders for their continued support, as well as PetroTal’s Board of Directors and the rest of the PetroTal team for their continued valuable contributions to our success.”

These are of course historic figures but they do show that PetroTal has strong and profitable underlying  production from the Bretana field and that with the new, tighter grip on costs will before long be able to benefit from the potential here.

The opportunities are strengthened by the generation of some $90m of free funds flow which left the company with almost $140m in cash on the balance sheet at the year end and that having invested $20m in the erosion control project. 

Last year production was 19,473 b/d, up 9% y/y which gave EBITDA of $166.3m and the company plans to ‘optimise and expand’ water handling at Bretana which is key to restoring production from the existing wells and also will be able to accommodate new production from the upcoming drilling campaign.

Another step in the company’s war on costs, and I suggest efficiency, is that they have approved a tender award to a third-party drilling contractor which keeps the company on schedule to resume the drilling programme at Bretana ‘by October 2026’, as guided. 

On the same theme the company has terminated the contract with the consortium that is managing the erosion control project which is behind schedule and needs to be completed ‘in a safe, timely and cost-effective manner’. All these decisions strike me as a result of the appointment of the COO and shows quite how strong his presence is being felt.

The company note the recent strength in the oil price, saying that whilst it is welcome, cost reductions and capex optimization remain a key focus of the company, not surprising given the current situation. Reducing both operating costs and the G&A expense is expected to lead to ‘significant reductions’ in both and with the highly leveraged nature of the current oil price, will deliver more profitable barrels.

The company do hedge some of their production, about 25% but it should be remembered that the price is linked to ICE Brent but with a three month delay so gains from recent oil price strength will only start to be seen in the next few months.

I remain confident that PetroTal will return to justified former achievements, the Bretana field is a world class asset and it is clear that the efficiency moves being effected by the new COO will bring a return to a highly cash generating and profitable state. 

The shares are starting to pick up, I kept the company in the updated Bucked List and with a target price of 75p I see considerable upside, the shares are up 36% in the last month and I am hearing a growing confidence in the new personnel and an ‘uplifted’ board. 

Selected Financial Highlights

1. Approximately 92% of 2025 sales were through the Brazilian route vs 88% in 2024.
2. Royalties include the impact of the 2.5% community social trust.
3. Non-GAAP measure that does not have any standardized meaning prescribed by GAAP and therefore may not be comparable with the calculation of similar measures presented by other entities. See “Selected Financial Measures” section.
4. Net operating income represents revenues less royalties, operating expenses, and direct transportation.
5. Adjusted EBITDA is net operating income less general and administrative (“G&A”) and plus/minus realized derivative impacts.
6. Market capitalization for Q4 2025 and Q4 2024 assume share prices of $0.28 and $0.38 respectively on the last trading day of the period.
7. Free funds flow is defined as adjusted EBITDA less capital expenditures. See “Selected Financial Measures” section.
8. Includes restricted cash balances.

Serica Energy

Serica has announced its audited financial results for the year ended 31 December 2025.  

Chris Cox, Serica’s CEO, stated:
“Serica delivered positive strategic progress in 2025, significantly strengthening our portfolio and organisation, and positioning the Company for materially increased production and the delivery of future growth. Successful acquisitions mean that Serica will have an increasingly resilient and diversified portfolio, with production set to reach over 65,000 boepd by the end of 2026 as they all complete. Our production is generating material cash flows, enhanced further at current commodity prices, boosting our liquidity position and supporting our ability to allocate capital to both attractive growth opportunities and shareholder returns. Our disciplined capital allocation is focused on the short‑cycle, low‑risk opportunities in our portfolio. 

Following our newly completed transaction with TotalEnergies we also operate strategic West of Shetland gas processing infrastructure serving one of the UKCS’ most prospective hydrocarbon regions at a time when the importance of domestic gas supply is so starkly in focus. 2026 will be a year of further delivery on our strategy as we high‑grade and progress our organic growth opportunities, and deliver stronger, more reliable performance across a diversified asset base. Serica is better placed than ever to create sustainable value for shareholders and be an important contributor to the UK’s energy security.”

Serica has produced a solid set of results, in line with guidance, the 10p dividend confirmed and guidance, whilst slightly enigmatic, is very positive. Also, given the current level of commodity prices the company is well positioned to improve on what they have already said would be ‘material cash flows’. 

Proof of this particular pudding can be seen in the reduction in the net debt figure, down by over $100m in Q1 and that wasn’t a ‘bumper’ production quarter mainly due to Triton downtime. And as other acquisitions are made Triton becomes less of the total. 

These acquisitions added some 19% to 2P reserves and today sees the completion of the West of Shetland assets which offers a very interesting growth option. Owning the strategic infrastructure, through the Shetland Gas Plant, for the most prospective basin on the UK continental shelf could be looked back on as a mini-masterstroke…

There was more talk in their investor presentation of the growth opportunities ahead, plenty for them to get their teeth into and there will be more details at the forthcoming capital markets day.

I remain of the view that there is still significant upside at Serica, my target price remains at 400p and they are a solid backbone of the Bucket List. Recent performance is good, up 50% over six months and nearly 100% year on year but given recent events, for choice the performance should improve from here. 

Results summary ($ million unless stated)

Highlights

Production set to rise materially over the course of 2026

• Production of 27,600 boepd in 2025 (2024: 34,600 boepd), impacted by unscheduled downtime at the Triton FPSO
• Production year to date of 38,600 boepd, following a production interruption for further maintenance work at the Triton FPSO
• Production has averaged over 50,000 boepd since resumption from Triton on 9 March
• Production from Serica's portfolio has the potential to exceed rates of 65,000 boepd by the end of 2026, once all acquisitions announced in 2025 have been completed

 Successful M&A delivering increased production, cashflows, and growth opportunities

• Announced four cash-generative acquisitions through 2025 at an attractive combined valuation of $3.3/boe per 2P boe of reserves
• Acquisition of 40% of the Greater Laggan Area ('GLA'), West of Shetland, from TotalEnergies has now completed, with a net completion payment of $56 million received by Serica
  • The acquisition adds production of just over 5,000 boepd from GLA net to Serica, as well as additional potential growth opportunities with the Glendronach tie-back and Tormore infills, while the strategic Shetland Gas Plant offers material value creation potential from owned and third-party business
• The number of producing fields in the Serica portfolio is set to more than double once all acquisitions complete, significantly increasing the diversification, reliability and predictability of future production and revenues

Material increase in reserves and resources following completion of acquisitions

• 2P reserves of 116.8 mmboe as at end-2025 (end-2024: 118 mmboe), broadly evenly split between oil (58.9 mmboe) and gas (57.9 mmboe), following 2025 production of 10.4 mmboe
  • Pro forma for the completion of acquisitions announced in 2025, 2P reserves increase 19% to 138.5 mmboe, of which 54% is gas
• Acquisitions are gas weighted and add longer-life producing fields to the portfolio
• 2C resources increased 16% to 103.4 mmboe as at end-2025 (end-2024: 89 mmboe), driven by additional infill well opportunities at Bruce and the farm-in to the Wagtail licence
  • Pro forma 2C resources of 112.6 mmboe, boosted by the inclusion of a 40% stake in Glendronach, as the Company grows its organic hopper materially through M&A  

 Organic growth options have the potential to sustain and grow production well into the next decade

• Market screening for a rig is currently underway with a view to drilling a programme of new wells targeting infills and tie-backs in the broader Serica portfolio, potentially to commence with infill drilling at the Bruce field in 2027. Low-risk new wells have the potential to add materially to production, with very short payback and highly attractive returns

Balance sheet strength and efficient tax position supports investment in growth and returns

• Cash and restricted cash of $31 million (31 December 2024: $148 million) as at 31 December 2025
  • Total liquidity of $290 million, comprising cash, restricted cash and undrawn committed RBL facility availability as at 31 December 2025 of $259 million
  • Borrowings of $231 million (31 December 2024: $231 million), resulting in a net debt position of $200 million as at 31 December 2025
  • Net debt position to more than halve in Q1, following receipt of $56 million from TotalEnergies
• Group tax assets more than doubled in 2025, with a notional value of over $1 billion
• Loss after taxation for 2025 of $52 million, following previously announced non-cash deferred tax charge of $65 million taken in Q1 2025 as a result of the extension of EPL to 2030
• Final dividend declared today of 10 pence per share (2024: 10 pence per share) subject to approval at Serica's 2026 AGM
  • The final dividend is payable on 24 July 2026 to shareholders registered on 26 June 2026, with an ex-dividend date of 25 June 2026

 Outlook and guidance - significant uplift in production forecast

• Unchanged guidance for 2026 production of significantly over 40,000 boepd
• Capital expenditure guidance of $175-195 million and opex guidance of $380-400 million unchanged
• Material free cash flow was forecast to be generated in 2026 even at an oil price of $63/bbl and gas price of 69p/therm, with cash generation significantly higher at current commodity prices
  • Serica has been proactively and opportunistically building its hedge book mostly since early March, taking advantage of sharp increases in the front end of the curve in both oil and gas while bolstering downside protection
• Completion processes for Catcher, Golden Eagle Area Development and Spirit Energy assets are on track and due to complete through the course of 2026
• The Company continues to be active, but highly selective, in screening a broad range of cash-generative and value accretive M&A opportunities, in both the UK North Sea and overseas
• Serica remains committed to moving from AIM to the Main Market of the LSE at the earliest viable opportunity in 2026, which is now expected to be during Q3

Further to its announcement on 30 September 2025, Serica Energy Plc has announced that the acquisition of a 40% operated interest in the Greater Laggan Area (‘GLA’) and associated infrastructure, and operated licence interests in four near field exploration blocks, from TotalEnergies, has now completed.

The acquisition delivers a new operated hub for Serica in the West of Shetland basin with current net production of just over 5,000 boepd, multiple sources of organic growth potential, and a strategic position as the key gas processing infrastructure host for one of the most prospective basins on the UK Continental Shelf. The growth opportunities include the Glendronach tie-back, infill potential on the Tormore field, four exploration licences, and third-party business at the Shetland Gas Plant.

The GLA is estimated to contain net 2P reserves of 4.0 mmboe and 2C resources of 5.4 mmboe as at 31 December 2025[1].

Serica has settled the consideration of £1, and has received a payment of $55.7 million, reflecting interim post-tax cashflows between the Economic Date of 1 January 2024 and the date of completion.

Angus Energy

The Company announces an update on the timing of publication of its audited results for the financial year ended 30 September 2025.

The Company had been working towards announcing its audited results by the end of March 2026. However, the audit has been delayed due to resourcing constraints and scheduling pressures within the Company’s external audit firm, which have impacted the timing of completion of their review.

The Board notes that these delays are outside of the Company’s control. Importantly, the Board confirms that the delay is not due to any issues relating to the Company’s underlying financial performance, accounting policies, or internal controls.

The Company continues to engage closely with its auditors to complete the process as soon as practicable and now expects to publish its audited results by 8 April 2026.

Nothing to add here, the good news is that there are no problems with the underlying financials and 8th April should see a return to the market.

Sunda Energy

Sunda has announced that it has drawn down a further £750,000 from the unsecured loan agreement announced on 10 February 2026 taking the total amount drawn down to £1,150,000. The Facility, with Dr Andy Butler, CEO and a director of the Company, is for up to a total amount of £1.5 million. The funds are to be used to cover additional capital requirements associated with the proposed acquisition of a portfolio of oil and gas production, development and exploration assets and to provide the Company with additional working capital, as indicated in the Facility Announcement.

Discussions on the Proposed Acquisition remain at an advanced stage and the Company’s board of directors is hopeful of a satisfactory outcome. However, there can be no certainty that a binding sale and purchase agreement will be executed or that the Proposed Acquisition will complete, nor the terms or timing of either thereof.

The Company will provide further information on the Proposed Acquisition in due course.

This will presumably all be sorted when the acquisition is announced, subject to a satisfactory outcome that is…

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