WTI (June)* $89.67 +$3.09, Brent (June) $98.48 +3.00, Diff -$8.81 +$2.94
USNG (May) $2.70 +1c, UKNG (May) 105.00p +6.64p, TTF (May) €41.785 +€2.455
*Denotes WTI May contract expiry

Oil price

Oil has rallied by a couple of dollars today, earlier it was easier as the USA extended the ceasefire and kept the blockade but today Iran has apparently seized two cargo ships in the Strait using gunboats from a navy that has been ‘obliterated’ apparently…

The API inventory stats showed a draw of 4.4m barrels of crude, gasoline was dow 5.165m b’s and distillates lost 4.59m b’s which might be the sign of things to come, EIA tonight. And the EIA also announced the US retail gasoline prices, at $4.044 per gallon it was the first fall for a while down 7.9 cents w/w. 

Kistos

Kistos has provided an operational and unaudited financial update for the Q1 period ended 31 March 2026.

The Company also provides an update on the acquisition of interests of Blocks 3&4 and Block 9 in Oman, as announced on 9 December 2025.

Highlights

Q1 Production Update

• Pro forma production(1) for Q1 2026 averaged 21.8 kboepd (Q1 2025: 7 kboepd excluding Oman)
• FY26 proforma(1) production guidance remains at 19 – 21 kboepd(1)

Q1 Financial Update

As at, and for the 3 months ending 31 March 2026:

• Cash, including near-cash equivalents, of $204 million(2)
• Adjusted net debt(3) of $78 million (representing cash and near‑cash equivalents net of outstanding bond debt with a face value of $282 million)
• Proforma EBITDA of approximately $75 million(1)

Kistos has mandated ABG Sundal Collier and Fearnley Securities to arrange fixed income investor meetings from 22 April 2026, in connection with the potential issuance of a USD 300 million 4‑year senior secured bond, which will primarily be used to refinance existing Norwegian bonds(4). 

Oman acquisition update

• Acquisition of Blocks 3&4 and Block 9 remain on track, with the completion of Blocks 3&4 anticipated to precede Block 9 due to the different EPSA framework.
• All necessary approvals for the transfer of Blocks 3&4 have been obtained, including Ministerial Approval, with completion expected following issuance of the Royal Decree.
• Once complete, the acquisition is expected to add 25.6 mmboe (operator estimates) of 2P reserves net to Kistos, with a valuation of approximately $5.80/boe of 2P reserves.
• Both Blocks 3&4 and Block 9 have continued to produce and export uninterrupted throughout the recent developments in the wider area.
• Further announcements will be provided in due course, upon completion of the acquisition, including any information on completion mechanics and the financial impact of the transaction on the Company.

Kistos will announce the publication of its Annual Report and Accounts in due course.

Andrew Austin, Executive Chairman of Kistos, commented:
“Kistos’ entry into the Middle East is set to double the Company’s current production and 2P reserves, adding immediate scale and geographic diversity. The oil and gas produced from these assets is exported directly via the Arabian Sea, bypassing traffic in the Strait of Hormuz.

“Elsewhere, operations continued to perform in line with expectations, buoyed by strong production from Norway following last year’s delivery of the Balder Future project.

“The company remains well capitalised with readily available cash and funding lines post the completion of the Oman acquisitions, providing us with optionality to continue pursuing M&A opportunities in our target regions of MENA and Europe.”

This 1Q update from Kistos is very promising indeed stating as it does that production is rising sharply, to 21.8/- boe/d and with guidance of 19-21/- boe/d remaining in place. Pro-forma EBITDA was $75m with the second quarter expected to be better as a consequence of current high realisations.

The balance sheet is extremely robust with cash of $204m and net debt of $78m after the Norwegian tax rebate and the company has started a fixed income roadshow with plans to refinance the existing Norwegian bonds. Expect a $300m senior secured bond issue for these existing assets which is a regulation refinancing of existing assets.

That the company has chosen to do this is important, it has demonstrably increased the size of the business with the acquisition of the Oman assets which will add 25.6 mmboe of 2P reserves net to Kistos with a valuation of $5.80/boe of 2P reserves. It is worth noting that both Blocks 3&4 and Block 9 have continued to produce and export uninterrupted throughout the recent developments in the wider area.

Kistos is in good shape, it has a fast growing, dynamic high quality portfolio with immediate development potential and with no sign that the company is not going to stop its inorganic growth strategy any time soon. On the organic front expect growth at the gas storage facility, much needed in this market.

Indeed Chairman Andrew Austin notes that ‘the company remains well capitalised with readily available cash and funding lines post the completion of the Oman acquisitions, providing us with optionality to continue pursuing M&A opportunities in our target regions of MENA and Europe’. 

Kistos also benefits in current circumstances from being totally unhedged in this high price market with Norwegian production better at the Balder X project and with completion of the Oman deal expected to be imminent and where I see substantial potential upside. 

The shares are performing well, up 8.5% today, +18% over 1 month, 80% over 6 months and 121% year on year but I feel that this could and should be much better. I upped my target price to 500p recently and it is a leading light in the Bucket List, Kistos is firing on all cylinders and my next target is getting the Chairman into the studio…

(1) Proforma figures include production from the Oman Acquisition as if the acquisition of Blocks 3&4 and Block 9 had completed on the 1 January 2026. On a non-proforma basis, the Group produced 13kboepd during Q1 2026 and 7kboepd during the comparable period in 2025.
(2) Non-IFRS measure. Includes $28 million of near-cash, representing the Norwegian tax rebate for the 2025 calendar year, which is payable in December 2026 but is regarded by management as a near‑cash asset as at 31 March 2026. Also includes a deposit in escrow for the acquisition of Blocks 3&4 of $34.6 million, a deposit for the acquisition of Block 9 of $2.4 million and $16 million maintained in escrow for standard credit and decommissioning arrangements.
(3) Non-IFRS measure. Adjusted net debt is a measure that the management team believes is useful as it provides an indicator of the Group’s overall liquidity. It shows the impact on net debt as if the 2025 Norwegian tax rebate of approximately $28 million had been received as at 31 December 2025 and is defined as cash and cash equivalents, including restricted cash/funds, less the carrying amount of outstanding bond debt.
(4) The net proceeds from the contemplated bond issuance will primarily be utilised to refinance the outstanding bonds in Kistos Energy (Norway) AS (ISIN NO0012867318 & NO0011142036) in an aggregate amount of approximately USD 290 million (plus accrued and unpaid interest), and for general corporate purposes of the Group.

Prospex Energy

Prospex  announce that further to the announcement dated 1 April 2026, its wholly owned subsidiary PXEN Tatra Sp z.o.o. has been formally awarded the Dunajec onshore licence area in Poland.

Dunajec is the Company’s second licence award in Poland, following the award of the San licence announced on 1 April 2026. The licences are located onshore in southern Poland in areas with proven gas production and associated infrastructure. With high prospectivity across the targeted geological horizons and limited activity since 2000, Prospex intends to use modern imaging, evaluation and development techniques to support resource discovery and development. The Company is currently gathering historical data across both licences to inform and prioritise its work programme planning.

The Dunajec licence also includes a shallow undeveloped oil discovery with near-term commercial potential, where the Company plans to assess the opportunity for early development.

Tom Reynolds, Prospex’s CEO, commented:
“The formal award of Dunajec means that Prospex has been awarded both licences it applied for in Poland  which, together with San, provides  highly attractive prospectivity. Both licences are located within one of  Poland’s most prolific gas regions, with  Dunajec also presenting near-term development potential through the Mniscow undeveloped oil discovery.

I am excited about the opportunity to apply our technical expertise together with modern exploration and development techniques to unlock strategic energy resources on this acreage. I look forward to providing further updates on work programmes and our plans to unlock the commercial potential of the licences.”

No surprise here and further confirmation of good news from Prospex, this is a good result and one that brings with it significant upside with the opportunity to use its 100% stakes to bring in funding partners and create huge potential compared to its current scale.

One interesting point is the rather intriguing previous oil discovery here, a shallow find which delivered oil flow to the surface and thus, with the application of modern tools could deliver cash flow quite quickly. 

This is another benefit that Prospex are offering to shareholders, exposure to such upside that they can’t get elsewhere and thus, the still short reign of the CEO, is again delivering meaningful potential benefits for shareholders. I remain confident that the market needs European onshore domestic gas plays and Prospex remains very cheap. 

Seascape Energy Asia

Seascape has published ‘Notification of Transaction by Person Discharging Managerial Responsibilities’ with regard to its Deferred 2025 Annual Bonus 

The Executive Directors have elected to receive the as yet unpaid element of their annual 2025 bonus in the form of equity in the Company.

The Awards

Fifty percent of the Executive Directors’ 2025 bonus was to be paid in cash but contingent upon a suitable liquidity event having occurred. Whilst the recent placing of new ordinary shares in the Company qualifies as such an event, the Executive Directors have taken the view that it would not be appropriate to use those monies in part to pay the cash element of their bonuses.  Moreover, taking the award in equity enables them to continue to continue to build their equity stakes in the Company, ensuring alignment with shareholders.

Following the vesting of these awards, together with those awarded in January and the existing shareholdings, the Directors will hold a total of 7.8% of the Company’s issued share capital.

Accordingly the Company’s Remuneration Committee has decided to make these equity awards under  the existing  LTIP scheme. This will see the Executive Directors being awarded nil cost options to acquire ordinary shares in the Company. The number of shares and percentage of the Company’s current issued share capital (“ISC”), is set out below:

To be consistent, the calculation of the Awards has utilised the same price and date of grant used for the first part of the bonus made by way of an LTIP Award, announced on 13 January 2026.  Subject to the rules of the Plan the Options will vest in 12 months from the date of grant and be exercisable for a period of up to five years from grant.

The LTIP

The LTIP, which is designed to provide incentivisation and retention for the Company’s personnel, was approved by shareholders at the 2020 AGM and the principal terms are summarised in the Company’s Re-admission document of 10 June 2021 (available on the Company’s web site).

Notification of Deal Forms of each PDMR can be found below. This announcement is made in accordance with Article 19 of the EU Market Abuse Regulation 596/2014.

A smart move here by the Seascape directors, deferring their cash components and taking it in paper, showing shareholders that they are on their side especially after the recent raise. As a committed fan of the Seascape team I feel that a decent rally, based on potential value in the portfolio is only a matter of time.

My target price was raised to 125p when the latest changes were made to the Bucket List, whilst the shares are still handsomely up over a year they have been quiet lately something I believe will change in coming months. Accordingly recent investors should reap rewards when the South East Asia policy comes off, as it surely will. 

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