WTI (June) $106.88 +$6.95, Brent (June) $118.03 +$6.77, Diff -$11.15 -18c
USNG (June) $2.55 -4c, UKNG (June) 117.7p +8.92p, TTF (June) €47.15 +€3.60

Oil price

Oil rallied sharply overnight after it became clear that President Trump was getting tired with the impasse with Iran and is taking briefings on further military options in the Strait of Hormuz. This could include a tightening of the blockade on Iran and potential military strikes but the US say that all options are still on the table. 

First thing this morning WTI was as high as $110 and Brent at $125 before markets cooled off and this afternoon is trading lower at $106.02 and $114.30 respectively.

Watch out for Brent expiry tonight coming as it does after the last trading day of the month and at one stage today pushing the differential to WTI to nearly $16. 

The Fed held rates with three dissenting on the easing bias and one member who actually voted for a cut. Chair Powell, about to lose his job to Kevin Warsh has decided to stay on as a member in what looks like a small child throwing its tots out of the pram.

And the EIA inventory stats showed a bigger draw in crude than the API, at -6.234m it indicated much higher exports which comes as no surprise in the current circumstances but gasoline and distillates drew by 6.075m and 4.494m b’s respectively. 

On that point it’s worth looking at the Phillips 66 results, they comfortably cruised past the whisper, reporting eps of 49 cents against consensus of only 39 cents as refining margins surged. 

Star Energy

Star has, right after the close announced a placing and subscription to raise approximately £8.4 million and Retail Offer of up to £0.6m. The raise is at 15p which is a virtually nil discount and it seems that there was a significant demand for the shares.

This announcement has just been made by Star, I will comment much more tomorrow when more details are available but my initial comment is very positive. Readers know how keen I have been on Star since Ross Glover took over and this gives him the opportunity to really concentrate on M&A work and to utilise those tax losses. 

Further to the announcement made by the Company of its full results for the year ended 31 December 2025 that was released at 7.00 a.m. on 29 April 2026, Star Energy, a British energy company with core activities centring on oil and gas extraction, announces that it is proposing to undertake a conditional placing of approximately 56 million new ordinary shares of 0.002 pence each in the capital of the Company at a price of 15 pence per Placing Share to raise gross proceeds  of approximately £8.4 million.

The Company also proposes to raise £31,000 (before expenses) by way of a conditional subscription, comprising the issue of 206,665 new Ordinary Shares at the Issue Price. Ross Glover, Frances Ward, Kate Coppinger, Anthony White, Aneliya Erdly and Philip Jackson, being the directors of the Company, will enter into subscription letters to subscribe for the Subscription Shares at the Issue Price. 

In addition to the Placing and the Subscription, it is proposed that there will be a separate conditional retail offer to existing Shareholders via the BookBuild Platform up to £0.6 million at the Issue Price via the issue of further new Ordinary Shares.

The New Ordinary Shares (assuming that the maximum number of Placing Shares, Subscription Shares and Retail Offer Shares will be allotted and issued) will represent approximately 31.5 per cent. of the Company’s enlarged share capital immediately following Admission (the “Enlarged Share Capital”) and the Issue Price represents a discount of approximately 9.2 per cent. to the Closing Price of 16.25 pence per Ordinary Share on 30 April 2026, being the date of the release of this announcement.

The New Ordinary Shares will rank pari passu in all respects with the Existing Ordinary Shares, including the right to receive all dividends and other distributions declared, made or paid in respect of such Ordinary Shares after the date of issue.

Background to and reasons for the Fundraising

Over the past 18 months, Star Energy has taken decisive action to right-size the business, strengthen the balance sheet and refocus the Group on value creation from its core UK oil and gas portfolio.

The Group’s UK onshore oil and gas business remains cash generative, with production of 1,886 boepd in 2025 and 2026 production guidance of approximately 2,000 boepd. The Singleton gas‑to‑wire project is targeting a Q2 2026 start-up and bolsters production, with a forecast production c.74 boe/d. The portfolio is underpinned by 2P reserves of 15.7 mmboe, a strong operational track record and a material UK tax loss position of approximately £260 million. During 2025, the Group delivered net cash from operations before working capital and tax of £8.7 million, notwithstanding a weaker commodity price environment, and achieved more than £2.0 million of G&A savings.

These actions have created a leaner, more resilient platform from which the Board believes the Company can pursue disciplined growth. The Board’s objective is to significantly increase profitable production through a combination of value-accretive acquisitions and selective investment in organic in-field and near-field opportunities within the existing portfolio.

The Board believes that the current UK oil and gas market presents an opportunity for well-capitalised and experienced operators. The sector has been, and continues to be, characterised by consolidation and subsequent portfolio rationalisation, creating opportunities to acquire cash generative production assets from vendors seeking to streamline their asset bases or exit non-core positions. The Directors believe that Star Energy’s UK operating experience, reduced cost base and substantial tax loss position provide a strong platform from which to pursue such opportunities.

In parallel, the Group has a number of permitted organic development opportunities within its existing portfolio, including the Glentworth West development and the Corringham infill well.

The Group has also taken steps to sharpen its strategic focus. As announced on 24 April 2026, Star Energy signed an agreement for the sale of its Croatian geothermal subsidiary, IGeoPen d.o.o., to Enna Geo d.o.o. IGeoPen holds the Ernestinovo, Sječe and Pčelić geothermal exploration licences in Croatia. The transaction, which remains subject to completion, comprises initial cash consideration of €1.5 million, of which Star Energy’s share is €1.3 million, together with a potential earn-out of €0.5 million per licence payable on the commercial operation date of a geothermal power plant developed on each licence.

The sale is consistent with the Board’s disciplined approach to capital allocation. Subject to completion, it is expected to release approximately €5.2 million of restricted cash, remove future licence commitments and ongoing costs associated with the Croatian business, and allow management to concentrate on the Group’s UK oil and gas and UK geothermal opportunities. Following completion, Star Energy’s geothermal activity will be focused on maintaining a capital efficient UK development platform, where early-stage expenditure can be kept low and progression is expected to be supported by grant funding, third-party capital and/or an improved policy framework.

The Directors therefore believe that the Fundraising represents the logical next step for Star Energy. The business’s cost base has been reset, the balance sheet has improved and the Group is now positioned to pursue disciplined, UK-focused growth. The Board believes that additional capital will strengthen Star Energy’s ability to increase profitable production, enhance cash generation and support the delivery of shareholder value from a more resilient operating platform.

Use of Proceeds

Star Energy proposes to use the net proceeds of the Fundraising to support its strategy of significantly increasing profitable production through both inorganic and organic means.

A key focus will be the acquisition of value-accretive production assets, initially focused on UK opportunities, including the UK Continental Shelf. The Directors believe that the current market environment is creating opportunities to acquire producing assets from companies seeking to rationalise portfolios, reduce exposure to mature UK assets or reallocate capital elsewhere.

Star Energy intends to focus on operated or non‑operated portfolios of up to approximately 2,500 boepd. The Company will apply a disciplined acquisition framework, with particular emphasis on:

• near-term cash generation;
• robust underlying economics;
• manageable decommissioning exposure;
• limited near‑term capital expenditure requirements;
• clear downside protection; and
• the ability to utilise the Group’s UK tax loss position.

The Board believes that acquisitions of profitable UK production assets could be particularly valuable for Star Energy given the Group’s approximately £260 million of available UK tax losses, its reduced corporate overhead base and its UK operating and regulatory experience. Where onshore acquisition opportunities arise, the Company may also be able to benefit from operational efficiencies through its existing scalable operating platform.

The net proceeds may also be used to progress selected organic in-field and near-field  development opportunities within the Company’s existing portfolio. These include permitted projects such as Glentworth West and Corringham, where the Company has identified opportunities to add production and reserves. This expenditure will by its nature be phased.

Any such expenditure will be phased and subject to the Board’s capital allocation criteria, with capital deployed only where projected risk-adjusted returns meet the Company’s hurdle rates. The Board’s priority is to deploy the net proceeds of the Fundraising in a manner that increases profitable production, strengthens the Group’s asset base and enhances cash generation. It is envisaged that successful value-accretive acquisitions investment, whether through acquisition or organic development, would provide additional cash flow to support further inorganic and organic growth opportunities, while maintaining the Company’s disciplined approach to capital allocation.

Details of the Placing

The Placing will be effected by way of an accelerated bookbuild (the “ABB”) at the Issue Price.

The ABB will open with immediate effect following the release of this Announcement in accordance with the terms and conditions set out at Appendix I to this Announcement.

The Placing is conditional upon, among other things, (i) the Placing Agreement between the Company and Zeus not having been terminated in accordance with its terms and (ii) the passing of the Resolutions at the General Meeting (see General Meeting section below for further details).

The timing for the close of the ABB and allocation of the Placing Shares shall be at the absolute discretion of Zeus, in consultation with the Company. The final number of Placing Shares to be issued pursuant to the Placing will be agreed by Zeus and the Company at the close of the ABB. The result of the Placing will be announced as soon as practicable thereafter. The Placing is not being underwritten. The Placing Shares are not being made available to the public and are not being offered or sold in any jurisdiction where it would be unlawful to do so.

Details of the Subscription 

The Company proposes to raise approximately £31,000 (before expenses) by way of a conditional Subscription, comprising the issue of 206,665   Subscription Shares at the Issue Price. Ross Glover, Frances Ward, Kate Coppinger, Anthony White, Aneliya Erdly and Philip Jackson, being the Directors, will enter into subscription letters to subscribe for the Subscription Shares at the Issue Price.

The Subscription is conditional upon (amongst other things) the passing of the Resolutions, the Placing Agreement not having been terminated and Admission occurring on or before 8.00 a.m. on 19 May 2026 (or such later date and/or time as Zeus and the Company may agree, being not later than 8.00 a.m. on 29 May 2026). 

Details of the Retail Offer

The Retail Offer will be directed solely at existing Shareholders and is intended to give retail Shareholders in the Company an opportunity to participate in the Fundraising. A separate announcement will be made by the Company following the close of the Placing regarding the Retail Offer and its terms. Those investors who subscribe for Retail Offer Shares pursuant to the Retail Offer will do so pursuant to the separate terms and conditions of the Retail Offer that are contained in that announcement. The Placing is not conditional upon any minimum amount being raised under the Retail Offer. For the avoidance of doubt, the Retail Offer is not part of the Placing. The launch of the Retail Offer will be announced separately following this announcement. The Retail Offer will conclude prior to the deadline for receipt of voting proxy forms in connection with the General Meeting and the Retail Offer Shares shall be admitted simultaneously with admission of the Placing Shares. If the Placing is terminated prior to admission, the Retail Offer shall also lapse.

General Meeting

The Directors do not currently have authority to allot the expected total number of New Ordinary Shares to be issued pursuant to the Fundraising and therefore the Directors will seek further authority to allot the New Ordinary Shares on a non-pre-emptive basis for cash at a general meeting of the Company (“General Meeting”), which is expected to be held at 10.30 a.m. on 18 May 2026. Accordingly, the Fundraising is conditional, inter alia, on the passing of certain resolutions (“Resolutions”) by Shareholders at the General Meeting in order to grant such further authority to the Directors.

A circular containing, inter alia, further details of the Fundraising and a notice convening the General Meeting in order to pass the Resolutions (the “Circular”), is expected to be despatched to Shareholders in due course and the Circular, once published, will be notified and made available on the Company’s website at https://www.starenergygroupplc.com/.

Shareholders should note that the Fundraising is wholly conditional upon, inter alia, the Resolutions, which are required to implement the Fundraising, being duly passed by Shareholders at the General Meeting.

Admission, settlement and dealings

Application will be made to the London Stock Exchange for the New Ordinary Shares to be admitted to trading on AIM. It is expected that Admission will become effective and that dealings in the New Ordinary Shares will commence, at 8.00 a.m. on or around 19 May 2026, subject to passing of the Resolutions at the General Meeting.

The New Ordinary Shares will, on Admission, rank pari passu in all respects with the existing Ordinary shares (“Existing Ordinary Shares”) in issue and will rank in full for all dividends and other distributions declared, made or paid on Ordinary Shares after Admission. Definitive share certificates in respect of the New Ordinary Shares will be despatched within 10 business days of Admission.

The ISIN number of the New Ordinary Shares is GB00BZ042C28. The TIDM is STAR.

Participation of the Directors in the Fundraising

The Directors have agreed to subscribe for New Ordinary Shares pursuant to the Subscription. The number of New Ordinary Shares subscribed for by each participating Director and their resulting shareholdings upon Admission are set out below:

Prospex Energy

Prospex has provided an update from the Selva Malvezzi production concession in Italy following the publication by Po Valley Energy Limited of its Q1‑2026 activity report.  Po Valley Operations Pty Limited, a wholly owned subsidiary of PVE is the operator of the Selva Malvezzi production concession, which has a 63% working interest, while Prospex has the remaining 37% working interest.

Gas production and revenues from PM-1 gas facility in the Selva Malvezzi Production Concession

Highlights

• Stable production performance from the Podere Maiar-1 (PM-1) well throughout the quarter, in line with expectations, supporting continued strong operating cashflows.
• Progress made on Environmental Impact Assessment (EIA) updates and development planning for the Casale Guida-1d, Ronchi-1d, Bagnarola-1d, and Selva Malvezzi-1d wells, incorporating feedback from the Ministry.
• Completion of the 3D geophysical survey, with data currently undergoing processing by Schlumberger Italy for delivery of a final 3D seismic volume for in-house interpretation

Tom Reynolds, Prospex’s CEO, commented:
“The consistent production and strong cash flow from Podere Maiar-1 is very welcome and underpins activity across Prospex wider portfolio of assets on which we expect to provide a short quarterly update in due course.

“European gas prices have been elevated in the period, influenced by geopolitical tensions in the Middle East, underlining the need for secure, domestically sourced energy. With operations and exposure across key markets including Italy, Spain and Poland, the Company is well positioned to benefit from this supportive pricing environment while continuing to build value through its diversified European presence.”

A very good quarterly update from Prospex, net production from the PM-1 well was a stable 2,686.9 (Dec quarter 2,579) mcm, in-line with expectations and of course revenues were much better than initially forecast with a weighted average price of €0.43 scm. 

This generated net revenue of €1,155,000 (Dec quarter €852/-) ‘supporting continued strong operating cashflows’ and ‘is very welcome and underpins activity across Prospex wider portfolio of assets’. 

A combination of strong production and high gas prices supports the entire company as it also has an acceleration effect as it provides increased free cash for re-investment in the company’s other assets. The statement says that they plan to publish a quarterly update shortly which will summarise all the assets in the portfolio.

Elsewhere progress is being made on the EIA updates and development planning for the three further wells ‘incorporating feedback from the Ministry’. Finally the 3D seismic survey data is undergoing processing and in-house interpretation. 

I remain confident that for a number of reasons Prospex has started this year extremely well, management restructuring combined with the new licences in Poland and of course a strong following wind from the gas price means that shareholders have much to be happy about.

Podere Maiar-1 (PM-1) Production

Production performance remained consistent during the quarter:

• Gross gas production totalled 7.26 million scm, generating €3.1 million (gross) in revenue.
• Net production attributable to Prospex at 37% was 2.69 million scm and €1.16m in revenue.
• Average daily production was approximately 80,000 scm/day, with only minimal downtime for scheduled maintenance in January.

Cumulative production since commencement has reached 72.9 million scm (gross), exceeding the certified P1 reserves outlined in the July 2022 CPR.

The average realised gas price for the quarter was €0.43/scm. Prices strengthened toward the end of the period, reflecting tightening global energy markets and heightened geopolitical risk associated with the conflict in Iran.

Royalty expenses of €116k were accrued during the quarter, with payments scheduled annually in arrears (next payment due Q2 2026).

Broader Selva Development Programme

The Operator continues to progress development planning for four key wells within the concession:

• Casale Guida-1d (Selva North)
• Ronchi-1d (South Selva)
• Selva Malvezzi-1d (East Selva)
• Bagnarola-1d (Riccardina)

The EIA submitted in December 2024 is currently being updated to incorporate Ministry feedback and expanded project scope, including facilities, pipelines, and upgrades to the Podere Maiar field. Specialist studies requested by the EIA Commission are ongoing and are expected to be submitted in Q2 2026.

Eco (Atlantic) Oil & Gas

Eco has provided an update, further to the Company’s announcement on March 11, 2026, regarding the proposed acquisition of JHI Associates, Inc. by way of a court-approved plan of arrangement. 

Eco confirms that JHI has successfully obtained an interim order from the Ontario Superior Court of Justice, which provides for, inter alia, the calling, holding, and conducting of the annual and special shareholders’ meeting and other procedural matters in connection with the Arrangement. The receipt of the Interim Order is a key milestone in the transaction process and allows JHI to proceed with seeking final shareholders’ approval.

JHI has set its annual and special meeting of shareholders for May 12, 2026, at 10:00 a.m. (Toronto time). At the meeting, JHI shareholders will be asked to, among other things, pass a special resolution approving the Arrangement with Eco. Approval of the Arrangement requires at least two-thirds of the votes cast by JHI shareholders present at the meeting, in person or by proxy. Eco is informed that shareholders representing approximately 60% of JHI’s outstanding shares have already entered into voting support agreements in favour of the Arrangement, demonstrating strong alignment on the transaction.

Following shareholder approval, JHI intends to seek a final order of the Court, on May 15, 2026, to approve the Arrangement. 

Once the shareholder approval is obtained at the meeting, the Transaction is expected to close on or before the end of the third quarter of 2026, subject to the satisfaction of customary closing conditions under the Arrangement agreement, including applicable regulatory approvals by the Falkland Islands Government and the TSX Venture Exchange.

Assuming completion of the Transaction, Eco will indirectly hold 100% of the outstanding Shares in JHI and, in turn, a 35% participating interest in PL001 offshore the Falkland Islands operated by Navitas Petroleum LP (holding the remaining 65% interest).

Gil Holzman, President and Chief Executive Officer of Eco Atlantic, commented: 
“The JHI acquisition is progressing well with this important milestone of the interim court order. The next step, expected within two weeks, is to receive JHI’s final shareholders’ approval, and as early voting support agreements indicate there is overwhelming support for the plan of arrangement. Eco expects a positive outcome from the JHI shareholder meeting allowing the companies to progress to closing of the Arrangement and completion of the JHI acquisition upon final approvals from the Falkland Islands Government. We then look forward to working closely with Navitas Petroleum on the exploration of the PL001 license offshore the Falkland Islands. Additionally, it is noted that in the interim JHI remains engaged with the Government of Guyana with respect to a potential extension of the Canje block offshore.”

Nothing much to add to this announcement an ‘important milestone’ in the due process for the JHI acquisition which is expected to complete following the final approvals from the Falkland Islands Government.

More importantly Eco is in fine shape, 2026 is the year for the company to achieve all of its corporate goals and indeed its transactional catalysts in the Falklands, Guyana and South Africa and also having ticked the box in Namibia recently.

By the end of the year Eco will have met its tough internal hurdles, they will be a non-operated, carried partner on all their blocks, by any measure one hell of an achievement. Eco remains, despite the incredible share price performance, a Bucket List favourite and my target price of 150p is by no means out of range. 

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