WTI (July) $87.36 -$1.54, Brent (Aug)*91.12 -$4.67, Diff -$3.76 -$1.05
USNG (July) $3.29 u/c, UKNG (July) 115.89p +0.94p, TTF (July) €47.7 -€0.02
*Denotes expiry of July contract

Oil price

After prices fell again on Friday when the 60 day ceasefire seemed a genuine runner things were looking up, after all in May WTI was down $17.71 and Brent fell by $18.42 easing the pressure somewhat.

But trigger happy Generals all round have over the weekend rather livened things up somewhat, Iran has apparently been laying mines again to which the US responded, then Tehran attacked a US airbase with limited success by the looks of it and finally Israel accused the Hezbollah of breaking their ceasefire and having taken over Dracula’s castle have apparently attacked Beirut today.

So the oil price has done what it knows best and panicked, WTI as I write is $94.57, up $7.21 and Brent has risen by $6.47 to $97.59. The Baker Hughes rig count showed another increase, oil rigs followed last weeks rise of 10 units by another 4 but are still some 22 down year on year. 

Savannah Energy

Pre-AGM Trading Update and New Loan Facility

Ahead of its Annual General Meeting (“AGM”) on 1 June 2026, Savannah Energy PLC, the British independent energy company focused around the delivery of Projects that Matter, is pleased to provide the following trading update for the four months to 30 April 2026 and announces that it has entered into a new unsecured loan facility. All figures are unaudited.

Andrew Knott, CEO of Savannah, said:
“Savannah continues to deliver against the nine core focus areas we set out for the business at the start of 2025. In Nigeria, we have seen a significant improvement in cash collections, with a 48% year-on-year increase in the first four months of the year, alongside a 17% year-on-year increase in Revenues and a 22% reduction in our trade receivables balance since year-end 2025. This reflects our ongoing focus on disciplined cash collections and receivables management, which remains a key priority for the business this year.

Operationally, we are advancing a number of important projects, including the drilling of two new gas wells at the Uquo field, and the production expansion programme at Stubb Creek which has already delivered an 8% increase in average daily production (compared to the first four months of 2025).

In our power division, we continue to progress our greenfield wind, solar and hydro portfolio. Alongside this, we continue to pursue further value-accretive acquisitions across both hydrocarbons and power, with several opportunities under active discussion.

We are also pleased to have secured a new £32 million loan facility from NIPCO plc (“NIPCO”), our largest shareholder, strengthening our financial flexibility and further underpinning our confidence in delivering continued operational, financial and strategic progress through 2026 and 2027.”

There is plenty of news in these two important announcements, published in full here. The trading update has good news, particularly with regard to cash collections which are up some 48% against the 1st four months of 2025 whilst revenues are up 17% also against 1st four months of 2025 with an improvement of  22% in the trade receivables balance to under $400m compared to year end 2025.

This shows that cash collections and receivable management is a key priority for Savannah and one that is having a real effect. Add to this the fall in group net debt to the end of April despite drilling costs and the financial position has strengthened.

Operationally the Uquo NE development well was successfully drilled and is currently being tied back with first gas expected next month. The rig is now being moved to drill the Uquo South exploration well. Following the drilling, H2 gas production is expected to be significantly stronger than H1 and overall the company has given FY 2026 production guidance of 20-22 Kboepd.

It is worth noting that the company has significant flexibility with regard to its hedging policy, it will allow substantial upside on the price realisations for Stubb Creek Oil for example and with the asset progressing well at the moment. Indeed, current oil  production at Stubb Creek is up around 8% y/y, while the full 24-month expansion programme is expected to result in an uplift to total 4.7 Kbopd. 

Elsewhere I note that discussions are ongoing with regard to Niger and that a new £32m loan from NIPCO has been agreed and that complements the pay-down of many debt facilities so far this year. Finally it is clearly interesting and beneficial that Andrew Knott, CEO has agreed the share purchase, it takes his stake up to c. 20% and he continues to align his own interests with those of the shareholders.

Savannah is clearly performing well operationally as can be seen and its discipline with regards to cash and receivables is paying off judging by the cash collections. Further progress can be expected and the CEO is now more aligned than ever.

Highlights

Operational

• Following completion of the SIPEC Acquisition in March 2025, the production expansion programme underway at Stubb Creek has delivered an 8% increase in average gross daily production to 3.1 Kbopd for 4M 2026 (4M 2025: 2.8 Kbopd). Group average gross daily production was lower at 15.7 Kboepd for 4M 2026 (FY 2025: 18.8 Kboepd) with gas production volumes constrained as a result of the ongoing drilling and operational activity, and customer gas demand1;
• Drilling and completion activities at the Uquo NE well location have now been concluded, with rig-down operations currently underway ahead of mobilisation to the next well. Flowline installation is in its final stages, with tie-in activities ongoing at the Uquo CPF, while tie-in works at the well pad are expected to commence shortly. First gas is targeted for early July 2026, supporting the higher forecast gas production expected in H2 2026;
• Site construction activities at the Uquo South exploration well location are progressing well, and the site is currently expected to be ready by early June 2026. Conductor piling operations are also ongoing in preparation for the rig move from the Uquo NE location; and
• Actively reviewing opportunities in both the oil & gas and thermal & renewable power sectors, with the expectation of announcing transaction(s) over the course of the next 24 months.

Financial (unaudited)

• Entered into a new £32 million unsecured loan facility (the “Loan Facility”);
• 4M 2026 cash collections increased by 48% year-on-year to US$183.5 million (4M 2025: US$124.1 million);
• 4M 2026 Revenues increased by 17% year-on-year to US$104.1 million (4M 2025: US$89.1 million);
• As at 30 April 2026, cash balances were US$64.7 million (31 December 2025: US$42.8 million) and net debt stood at US$641.7 million (31 December 2025: US$658.6 million); and
• Trade Receivables balance as at 30 April 2026 was US$395.2 million, a 22% reduction on year-end 2025 (31 December 2025: US$507.2 million).

Operational Update

Hydrocarbons Division

Average gross daily production was 15.7 Kboepd for 4M 2026 (FY 2025: 18.8 Kboepd), of which 80% was gas (FY 2025: 83%)1.

Following completion of the SIPEC Acquisition in March last year, the Stubb Creek expansion programme continues to progress well, already delivering an 8% year-on-year increase in average gross daily production to 3.1 Kbopd in 4M 2026. The full programme, expected to take up to 24 months, is anticipated to raise gross production to as much as 4.7 Kbopd. The Front-End Engineering and Design phase of the expansion programme is nearing completion, while we are planning the execution phase, with the signing of an Engineering, Procurement and Construction contract expected in H2 2026. In parallel, early works have been fast-tracked to support an accelerated production ramp-up ahead of the broader expansion programme.

Drilling of the Uquo NE development well commenced in early April 2026 and successfully completed at the end of May 2026. First gas is targeted for July 2026, following completion of the associated flowline installation and tie-in activities. In parallel, construction works at the Uquo South exploration well site have continued to progress, with drilling operations scheduled to commence in June 2026. The Uquo South exploration well is targeting an unrisked gross GIIP of 131 Bscf, providing incremental prospective gas resource potential within the Uquo licence area. Savannah expects average daily production for 2026 to be in the range of 20 to 22 Kboepd.

The Company continues to engage constructively with the Government of Niger in relation to the R1234 PSC and the forward work programme. These discussions are aimed at resolving disputed issues arising under this contract and notably cover the contractual and operational framework for recommencing activity, including the treatment of periods during which operations have been materially constrained. The Company continues to reserve its rights under the R1234 PSC and is seeking to agree a mutually acceptable basis with the Government for future operations. Work will only recommence on these assets if, and when, the Company reaches such a satisfactory agreement with the Government.

The R3 East development plan has been significantly re-worked since the last published Niger Competent Persons’ Report (“CPR”) of December 2021, with a plateau production rate of approximately 10 Kbopd now assumed, compared with 5 Kbopd in the previous development case. The Company has updated its internal management estimate of the potential PV10 value, on an unrisked asset-level basis, for R3 East to US$179.6 million, compared with the last CPR asset value estimate of US$150 million, assuming a US$65/bl long-term oil price assumption. On the same basis, if we assume a long-term oil price of US$95/bl the PV10 value of R3 East is estimated at US$381.0 million. For FY 2024, Savannah had a carrying value of the R1234 PSC Area in its accounts of approximately US$175m and the carrying value of this asset is being assessed according to the relevant accounting standards as part of the finalisation of the FY 2025 accounts. If a satisfactory resolution is reached with the Government and a successful well testing programme is subsequently conducted, the Company would seek to accelerate plans to commence commercial oil production from the R3 East Area and incorporate the acquired data into an updated field development plan.

Power Division

We continue to seek to progress our portfolio of renewable projects.

In Niger, our Parc Eolien de la Tarka project has made significant progress to date, with the Minister of Energy confirming that the project is on the Government’s list of priority projects. The draft Environmental and Social Impact Assessment has been prepared and is in the final stages of completion, ahead of its expected submission to the relevant authorities in H2 2026. Having officially obtained favourable opinions for the project from both the regulator and the strategic agency in charge of Public-Private Partnerships, we continue to seek to negotiate outline terms in relation to the project’s proposed power purchase agreement and continue to work on the project in close collaboration with the US International Development Finance Corporation. The timing and sequencing of further development activities in relation to the Parc Eolien de la Tarka project are expected to be linked to the timing and outcome of the Company’s ongoing discussions with the Government of Niger regarding the R1234 PSC and the potential recommencement of oil activities described above.

In Cameroon, negotiations with the Government are at an advanced stage regarding a Joint Development Agreement for the up to 95 MW Bini a Warak hybrid hydroelectric and solar project. This is expected to replace the Memorandum of Agreement signed in April 2023 and secure the terms under which Savannah will collaborate with the Government of Cameroon to further develop the project. For the next phase of this development, it is currently intended that we will introduce a development partner to the project.

On 19 September 2025, the Company announced the proposed acquisition of indirect interests in three East African hydropower projects. The Company continues to work towards completion of this transaction. Completion of this transaction remains subject to, inter alia, the satisfaction of various transaction requirements. Accordingly, there can be no certainty as to when completion will occur or whether completion will occur at all.

Savannah is no longer in an exclusivity period in respect of the possible acquisition previously referred to in the Company’s announcement of 4 February 2026, in relation to a portfolio of renewable projects located in Sub Sahara Africa with an aggregate gross capacity in excess of 100 MW.

New Loan Facility

Savannah has entered into the Loan Facility with NIPCO which provides Savannah with access to up to £32 million for a term of 36 months from the date of first drawdown (the “Maturity Date”).

The facility is structured in two tranches. The first tranche of up to £20 million (“Tranche A”) is immediately available for drawdown in one or more tranches until 1 June 2027. The second tranche of up to £12 million (“Tranche B”) will be available for drawdown from 1 July 2026 (or such earlier date as may be agreed) until 30 November 2027, with the first utilisation under Tranche B being subject to the prior consent of NIPCO.

The Loan Facility carries an annual interest rate of 4.5%, accruing on a simple, non-compounding basis and payable on the Maturity Date. The Company will pay an arrangement fee equal to 5% of the total facility amount, payable in cash within ten business days of the first utilisation of Tranche A.

Savannah may, at its sole discretion, repay all or any part of the Loan Facility, together with any accrued but unpaid interest, at any time prior to the Maturity Date without penalty.

A key feature of the Loan Facility is that, subject to the regulatory and shareholder approval mechanics described below, Savannah has a Company-only optional conversion right. This gives Savannah, and only Savannah, the right, at its sole discretion, to elect to repay a all or part of the Loan Facility, including any accrued but unpaid interest, through the issue to NIPCO of new ordinary shares in the capital of the Company (“Conversion Shares”) at a price of 8 pence per share (the “Loan Conversion Right”). The Loan Conversion Right may be exercised by the Company either: (i) at any time following a change of control of the Company; or (ii) no later than 15 business days prior to the Maturity Date.

NIPCO has no right to require conversion of the Loan Facility into Conversion Shares and Savannah is under no obligation to issue Conversion Shares in repayment of the Loan Facility. If Savannah does not elect to exercise the Loan Conversion Right, or if the Loan Conversion Right is not capable of exercise for the reasons described below, the Loan Facility will be repayable in cash.

The Board considers this Company-controlled conversion mechanism to be an attractive and protective feature of the Loan Facility. It provides Savannah with additional flexibility to preserve cash and manage its capital structure, while ensuring that any equity issuance in repayment of the Loan Facility remains solely at Savannah’s election and cannot be required by NIPCO.

If the Loan Conversion Right was exercised by Savannah, the resulting increase in NIPCO’s shareholding could normally result in NIPCO being required to make a general offer to Savannah’s shareholders pursuant to Rule 9 of the City Code on Takeovers and Mergers (“Rule 9”), unless NIPCO had reduced its shareholding in the Company by the date of exercise such that a Rule 9 offer would not be required upon the issue of the Conversion Shares (a “Reduced Shareholding Scenario”). 

Accordingly, unless a Reduced Shareholding Scenario exists at the relevant time, the Loan Conversion Right will not become effective unless the Panel on Takeovers and Mergers (the “Panel”) grants a dispensation from the requirement for NIPCO to make a mandatory offer under Rule 9 and such dispensation is approved by Savannah’s independent shareholders by ordinary resolution at a general meeting of the Company (a “Waiver Resolution”).

If the above mentioned dispensation is not granted by the Panel and/or the Waiver Resolution is not passed, and a Reduced Shareholding Scenario does not exist at the date on which Savannah would otherwise elect to exercise the Loan Conversion Right, the Loan Conversion Right will have no force or effect and the Loan Facility will be repayable in cash in full on the Maturity Date, unless repaid earlier.

The Company intends to seek the abovementioned dispensation from the Panel and, if granted, currently intends to convene a general meeting of shareholders in due course at which the Waiver Resolution will be proposed.

The Loan Facility provides the Company with additional financial flexibility, with proceeds to be applied for general corporate purposes and working capital of the Group, including but not limited to capital expenditure, debt repayments, acquisitions, capital management and future share buybacks.

Related Party Transaction

NIPCO is a substantial shareholder of the Company and, accordingly, the Loan Facility constitutes a related party transaction for the purposes of Rule 13 of the AIM Rules for Companies.

The Directors of Savannah, having consulted with the Company’s nominated adviser, Strand Hanson Limited, consider that the terms of the Loan Facility are fair and reasonable insofar as the Company’s shareholders are concerned.

Financial Update (unaudited)

4M 2026 Performance Highlights

4M 2026 cash collections increased by 48% year-on-year to US$183.5 million (4M 2025: US$124.1 million), while 4M 2026 Revenues rose by 17% year-on-year to US$104.1 million (4M 2025: US$89.1 million).

As at 30 April 2026 cash balances were US$64.7 million (31 December 2025: US$42.8 million) and net debt stood at US$641.7 million (31 December 2025: US$658.6 million). During the four-month period, a number of debt facilities were repaid and cancelled, including all debt at both the Company level and at Accugas Holdings UK PLC (the holding company for the Nigeria gas business) plus repayment of the remaining principal balance of the Accugas US$ facility.

The Trade Receivables balance as at 30 April was US$395.2 million, a 22% reduction on year-end 2025 (31 December 2025: US$507.2 million). This relates primarily to amounts due under various gas sales agreements in Nigeria. Delivering an increase in cash collections in Nigeria remains a key focus area for the business.

Hedging

Savannah implements a rolling hedging programme for Stubb Creek oil production to ensure appropriate levels of cash flow in periods of oil price weakness. This strategy is primarily achieved through purchasing put options together with some limited volumes of collars where appropriate. Savannah does not utilise swaps or other fixed price instruments.

For Q2 to Q4 2026, Savannah has hedged 475,000 bbls of production using put options with a weighted average strike price of US$55/bbl and a further 335,000 bbls of production with collars with a weighted average floor price of US$55/bbl and weighted average ceiling price of US$84.3/bbl. Over three-quarters of the forecast oil production for 2026 has unlimited oil price upside and the remainder has a ceiling price broadly in line with the current average forecast oil price for the period.

Future M&A Activity

The Company continues to view mergers and acquisitions activity as a core driver of potential future value creation and is actively pursuing opportunities across both the hydrocarbon and renewable energy sectors. The Company maintains an active business development pipeline comprising a number of potential transactions at various stages of evaluation, although no opportunities have, at this stage, reached such a level to necessitate disclosure under applicable regulations. The business development pipeline is sufficiently large that we are however confident of announcing further transaction(s) over the course of the next 24 months.

Arbitration Update

Our wholly owned subsidiary, SCI, commenced arbitral proceedings in 2023 against the Government of the Republic of Chad in response to the March 2023 nationalisation of SCI’s rights in the Doba fields in Chad, and other breaches of SCI’s rights. Another wholly owned subsidiary, SMIL, commenced arbitral proceedings in 2023 in relation to the nationalisation of its investment in TOTCo, the Chadian company which owns and operates the section of the Chad-Cameroon pipeline located in Chad. SMIL has also commenced arbitral and other legal proceedings for breaches of SMIL’s rights in relation to COTCo, the Cameroon company which owns and operates the section of the Chad-Cameroon pipeline located in Cameroon. We currently expect these arbitral proceedings to be concluded in H2 2026.

SCI and SMIL are claiming in excess of US$775 million (plus interest which is currently estimated at in excess of US$215 million and costs) for the nationalisation of their rights and assets in Chad.2 SMIL has a claim valued at approximately US$330 million (plus interest which is currently estimated at in excess of US$67 million plus costs) for breaches of its rights in relation to COTCo.3 Whilst the Government of the Republic of Chad has acknowledged SCI’s and SMIL’s right to compensation, no compensation has been paid by the Government of the Republic of Chad to date. Savannah remains ready and willing to discuss with the Government of the Republic of Chad an amicable solution to the disputes. However, in the absence of such discussions, SCI and SMIL intend to vigorously pursue their rights in the arbitration proceedings.

SCI is involved in further arbitral proceedings in which designates of Société des Hydrocarbures du Tchad allege breaches by SCI of the Doba fields joint operating agreement.4 SCI is defending the claims vigorously. We currently expect these arbitral proceedings to be concluded in H1 2027.

Capital Allocation

As stated in the Company’s update on 4 February 2026, Savannah’s capital allocation policy remains unchanged. The Company intends to allocate any excess capital to its highest risk-adjusted return investment opportunities, assessed against the potential to return capital to shareholders. In this context, the Company has authority, granted by shareholders at the general meeting held on 28 November 2025, to purchase up to 318,098,135 Ordinary Shares and may undertake share buybacks opportunistically, subject to the Company being in an open period and not being in possession of inside information, and having regard to corporate liquidity and prevailing market conditions. An on-market share buyback of 32,063,641 Ordinary Shares was completed in February 2026, with the Ordinary Shares subsequently cancelled.

AIM Quotation Review Update

As previously announced on 22 October 2025, the Board initiated a review of the appropriateness of Savannah Energy PLC’s current admission to trading on AIM and the potential alternative options available to the Company, including alternative listing venues or structures (the “Review”). 

The Review has now reached a stage at which the Board expects to conduct a shareholder consultation in June 2026, with the outcome of the Review expected to be communicated to shareholders in Q3 2026. As previously announced, the Board deferred the commencement of the shareholder consultation process to allow the Company and its shareholders to consider the potential implications of the London Stock Exchange’s Feedback Statement, Shaping the Future of AIM, published on 21 November 2025, which set out the direction of travel in relation to proposed reforms to AIM. While the proposed amendments have not yet been fully incorporated into the AIM Rules, the Board has determined that it is appropriate to proceed with the Review and the related shareholder consultation, having regard to the interim approach announced by AIM Regulation and the direction of travel indicated by the Feedback Statement. 

Of particular relevance to Savannah are AIM Regulation’s proposed reforms and interim approach in respect of reverse takeovers under AIM Rule 14. Pending the redrafting of the AIM Rules, where a nominated adviser is able to demonstrate to AIM Regulation that a proposed acquisition does not result in a fundamental change of business, AIM Regulation may determine that the transaction should be treated as a substantial transaction under AIM Rule 12 rather than as a reverse takeover under AIM Rule 14, notwithstanding that one or more of the class tests may exceed 100%. AIM Regulation may nevertheless require shareholder approval for such a transaction. In addition, where a transaction is treated as a reverse takeover, AIM Regulation may consider requests from nominated advisers not to impose a suspension of trading where appropriate alternative disclosure can be made. As previously noted, the Company welcomes these developments, which are relevant to its previously stated view that larger acquisition opportunities can represent attractive opportunities for value-accretive growth, but have historically been discouraged by the risk of prolonged suspension periods, particularly in jurisdictions where regulatory approvals may be protracted.

The Review remains ongoing and no decision has been taken by the Board in relation to its outcome. Any conclusions arising from the Review are expected to be considered only following the shareholder consultation exercise. A further announcement will be made as and when appropriate.

Proposed EBT Share Sale, Entry into Relationship Agreement and Option Cancellation

Savannah Energy PLC, the British independent energy company focused around the delivery of Projects that Matter in Africa, announces that Andrew Knott, the Company’s Chief Executive Officer, has agreed to make a substantial further personal equity investment in the Company. 

Mr Knott has agreed to acquire 128,550,000 existing Ordinary Shares (the “Shares”), representing approximately 6% of the Company’s issued share capital for an aggregate consideration of approximately £8.74 million from the Savannah Energy 2022 Trust, the Company’s independently managed employee benefit trust (the “EBT”). The acquisition is being made through an investment vehicle which is wholly owned by Mr Knott and will take his aggregate interests in the Company to approximately 20% of the Company’s issued share capital.

The transaction is a non-dilutive secondary acquisition of existing Ordinary Shares which will significantly increase Mr Knott’s ownership interest in Savannah, further strengthening his alignment with the Company’s long-term shareholders. Alongside the share acquisition, Mr Knott has agreed to: (1) enter into a relationship agreement with the Company, providing a package of important governance and minority shareholder protections designed to preserve the Company’s independence while recognising Mr Knott’s existing role as Chief Executive Officer and a Director of the Company; and (2) cancel all of his outstanding options over, in aggregate, 38,347,622 Ordinary Shares in the Company for nil consideration, reducing the potential risk of future dilution for shareholders.

The EBT Share Sale

Mr Knott has agreed to acquire the Shares from the EBT. In aggregate Mr Knott has agreed to purchase 128,550,000 existing Ordinary Shares through Lothian Capital Partners 6 Limited, a wholly owned investment vehicle (the “Purchaser”), at a price of 6.8 pence per Ordinary Share, being the middle market closing price of the Company’s shares as quoted by the London Stock Exchange on Friday 29 May 2026 (the “EBT Share Sale”). The aggregate consideration payable by the Purchaser to the EBT is approximately £8.74 million. Approximately £1.75 million (“the Initial Consideration”) is payable in cash on completion of the EBT Share Sale (“Completion”), with the balance deferred and payable in cash over a six-year period. Annual interest will accrue on outstanding amounts at a rate of 6% per annum, with interest of approximately £420,000 to be paid on each anniversary of Completion, with the remaining balance of deferred consideration payable on the sixth anniversary of Completion.1 Mr Knott has provided a personal guarantee to the EBT in respect of the deferred consideration and an asset and liability letter to the trustee of the EBT (the “Trustee”) in support of the EBT Share Sale. The EBT Share Sale will not involve the issue of any new Ordinary Shares by the Company and will not involve any purchase, cancellation or holding in treasury of Ordinary Shares by the Company. The Purchaser has a period of 50 business days from the date of the share purchase agreement, being 30 May 2026, to pay the Initial Consideration.  The Shares will be acquired by the Purchaser on payment of the Initial Consideration. 

As at the date of this announcement the EBT holds 205,701,993 Ordinary Shares.

Background to the EBT Share Sale

As announced on 22 October 2025, the EBT was issued 210,000,000 new Ordinary Shares as part of a broader package intended to provide improved transparency regarding the potential future equity dilution faced by shareholders, particularly in light of the Company’s acquisition-led growth strategy and associated headcount expansion, and to enhance the Company’s flexibility to incorporate equity components into future remuneration arrangements.

Mr Knott proposed to the Board that he acquire some of the existing Ordinary Shares held by the EBT, alongside the entry into a minority shareholder protective relationship agreement and the cancellation all of his outstanding options over 38,347,622 Ordinary Shares for nil consideration. 

Following that proposal, the Directors, other than Mr Knott, (the “Independent Directors”) considered the Company’s current and expected employee incentivisation requirements, including existing and anticipated awards, anticipated integration, retention and hiring needs, the expected balance between cash-based and equity-based incentivisation and the Company’s current business development pipeline.

Having independently considered the position and taken independent advice, the Trustee has determined to sell the Shares to the Purchaser on the terms described in this announcement.

Cancellation of Options

Conditional on completion of the EBT Share Sale, Mr Knott has agreed with the Company to cancel all of his outstanding options over Ordinary Shares for nil consideration. The options to be cancelled comprise options over 38,347,622 Ordinary Shares, of which 21,312,418 options are over Ordinary Shares held by the EBT and 17,035,204 options are over unissued Ordinary Shares. The Board considers that the option cancellation is in the best interests of shareholders as a whole, as it reduces potential future dilution and simplifies Mr Knott’s long-term economic alignment with shareholders by replacing option-based economics with a materially increased direct equity interest.

Entry into Relationship Agreement

In connection with the EBT Share Sale, Mr Knott, Lothian Capital Partners 6 Limited, Lothian Capital Partners 2 Limited and the Company have entered into a relationship agreement, conditional on Completion. The Relationship Agreement provides a package of governance and minority shareholder protections designed to ensure that the Company is capable of carrying on its business independently of Mr Knott and his connected persons, while recognising Mr Knott’s existing role as Chief Executive Officer and a Director of the Company.

These protections include undertakings from Mr Knott and his controlled entities that arrangements with the Group will be conducted at arm’s length and on normal commercial terms, that the Group will be managed for the benefit of shareholders as a whole and independently of Mr Knott and his controlled entities, and that Mr Knott and his controlled entities will not seek to circumvent the proper application of the AIM Rules. The Relationship Agreement also includes related party voting restrictions, undertakings to support the Company maintaining at least two independent Directors, and commitments designed to support the Company’s continued compliance with applicable law, the Company’s articles of association (the “Articles”), the AIM Rules and its adopted corporate governance framework.

The Relationship Agreement also provides for limited Board representation rights. For so long as Mr Knott and his controlled entities hold, in aggregate, at least 20%, but less than 27.5%, of the Company’s voting rights, they will have the right to nominate one person for appointment as a Director, but only if Mr Knott is not then a Director.

For so long as Mr Knott and his controlled entities hold, in aggregate, 27.5% or more of the Company’s voting rights, they will have the right to nominate one person for appointment as a Director if Mr Knott is then a Director, and up to two persons for appointment as Directors if Mr Knott is not then a Director. Accordingly, while Mr Knott remains a Director of the Company, the additional Board nomination right at the 27.5% threshold is limited to one person.

Any appointment of a Director pursuant to the Relationship Agreement is subject to the prior approval of the Company’s Nominated Adviser following such due diligence as the Nominated Adviser considers appropriate. Mr Knott and his controlled entities must also consult with the Chair of the Board before making any nomination, and any nomination or removal notice must be copied to the Company’s Nominated Adviser.

Any Director appointed pursuant to the Relationship Agreement will be subject to retirement and re-election in accordance with the Articles and the Company’s corporate governance practices and will owe statutory duties to the Company. The principal governance and Director representation provisions of the Relationship Agreement will be suspended if Mr Knott and his controlled entities cease to hold, in aggregate, at least 20% of the Company’s voting rights, and will be reinstated if that threshold is subsequently met again.

Prospex Energy

Prospex has announced that it has entered into a strategic collaboration agreement with the IMMAGE (Investigating Miocene Mediterranean-Atlantic Gateway Exchange) Land-2-Sea drilling project in relation to the Romeral concession. IMMAGE is an international scientific drilling initiative investigating the impact of the Messinian Salinity Crisis on global climate.

These investigations will target cores recovered from the wells to be drilled by Prospex within the five well programme which is currently awaiting permits. The coring is funded by the International Continental Scientific Drilling Program (ICDP).

IMMAGE-Prospex Collaboration Highlights

• IMMAGE will contribute up to US$1.5 million to cover coring and logging operations of the late Miocene to Pliocene sequence in a subset of of the Romeral planned wells – ensuring Prospex incurs no additional costs for this research.
• Increased global visibility of the El Romeral Project through participation in a high-profile palaeoclimate and palaeoenvironmental research programme

Under the terms of the agreement Tarba Energía S.L. (“Tarba”), where Prospex holds a 100% ownership interest, will provide access to the drilling sites during the drilling operations. Tarba and Prospex  will support the IMMAGE project scientists in the recovery of cores and transport to the core repository, with the help of a specialist company.

Tom Reynolds, Prospex’s CEO, commented:
“We are delighted to be able to combine the drilling programme to be undertaken by Tarba at El Romeral with important science being carried out by the IMMAGE project.  This is a mutually beneficial collaboration for both academic research and industry. The additional core and data will significantly increase our understanding of the reservoir geology and support efficient recovery of the energy resource at Romeral.”

This is indeed a fascinating move by Prospex as it shows that their drilling programme and its ongoing activity can benefit these sorts of academic programmes and of course has the added benefits such as providing other very good reasons for authorities to support permitting of drilling programmes.

Added to that, in addition to the core samples funded by the project there will be added benefits such as much more, and detailed information about the lithology which will be very helpful in the whole process.

With this study having wider connotations and significant benefits to Prospex, and clearly at no cost to the company, the upside is obvious and yet another example of how the company is moving on and I still see plenty of upside in the shares.

About the IMMAGE Project

Investigating Miocene Mediterranean-Atlantic Gateway Exchange

IMMAGE is an ambitious scientific drilling and climate research project designed to recover sediments that record Atlantic -Mediterranean exchange 8 – 4 million years ago. This record is critical for understanding the role of the Mediterranean outflow in driving climate change at a time when the connection between the two marine systems was shrinking, causing Mediterranean salinity to rise. This led to the formation of a salt giant, a c. 1.5km layer of salt that precipitated across the Mediterranean Sea floor. This event, known as the ‘Messinian Salinity Crisis’, changed both the chemistry of the ocean and altered its circulation pattern.

Today, the Mediterranean connects to the Atlantic through the Strait of Gibraltar. This single gateway configuration only developed ~ 5 million years ago. Before that, a wide, open seaway evolved into two narrow corridors: one in northern Morocco, the other in southern Spain. Records from both sides of the Gibraltar Strait, and from these ancient marine connections, which are now buried on land, are critical to understanding the climate impact of Mediterranean-Atlantic exchange before, during, and after salt giant formation. IMMAGE is recovering these records by drilling offshore with the Integrated Ocean Discovery Programme (IODP) and onshore in Spain and Morocco with the International Continental Scientific Drilling Project (ICDP).

IODP Expedition 401 carried out scientific drilling on either side of the Gibraltar Strait in December 2023 – February 2024. Phase-2 drilling to recover the record of exchange preserved in Spain is planned for 2027-28 and is being supported by ICDP. Initial planning for IMMAGE Phase-3 drilling in Morocco is underway.

IMMAGE Land-2-Sea Website link: https://www.immageland2sea.ac.uk/

Hunting

Hunting has announced that Jim Johnson, Chief Executive, has given notice of his intention to retire as a Director of the Company by mid-2027.

As part of the long-term succession plans of the Company, the Nomination Committee has initiated a process to appoint a successor to Mr Johnson, which will give consideration to both internal and external candidates that can lead Hunting through the next phase of its growth.

Mr Johnson has held senior management positions within Hunting from 1992 up to his appointment as Chief Operating Officer of the Group in 2011. He was appointed as Chief Executive in 2017 and has guided Hunting through a period of significant development as the Group looks to deliver on the Hunting 2030 Strategy announced in 2023.

Further updates on the search process will be provided in due course.

Commenting on Jim Johnson’s retirement, Stuart M. Brightman, Hunting’s Company Chair said: 
“Jim’s long tenure at Hunting is testament to the strong culture of the organisation. His leadership of the Company since his appointment as Chief Executive in 2017 has been exceptional and I want to place on record my heartfelt thanks for all his hard work on behalf of the wider Hunting team.

“Having successfully led the repositioning of the Group since 2020, particularly in relation to our subsea and offshore businesses, Jim will leave the Company in a strong position to capitalise on future energy and power demand and I look forward to continuing to work with him over the coming months to ensure an orderly hand over to his successor in due course.”

Jim Johnson, Chief Executive added:
“It has been a huge privilege to play a part in the Hunting story and to have led the business over the last nine years. I am very proud of how Hunting has navigated a period of almost unprecedented change to emerge as one of the leading businesses in our sector and would like to thank all of my Hunting colleagues for their hard work, dedication and commitment in making the business what it is today. I look forward to working with the Board and my eventual successor in the months ahead.”

Whilst it is always sad to see a highly successful CEO hang up his boots and hard hat, and Jim Johnson has been as good as it gets, I’m confident that Hunting with its record of excellent succession management will make the right call for the future.

Over the last nine years Hunting under JJ has been the outstanding oilfield services company and I would specifically say that the concentration on its high margin subsea and offshore businesses and their contribution to the Hunting 2030 strategy has been behind that success. 

I wish Jim Johnson all the very best and I’m sure that whoever Hunting chooses to follow him will continue the strategy and that the company will continue all the recent success and go on to deliver the 2030 goals that will maintain the excellent share price performance. My 600p target price is highly achievable and for choice maybe a touch conservative, I maintain my positive stance on Hunting. 

Sunda Energy

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

Operational highlights for 2025

• Extensive operational and funding preparations for the drilling of the Chuditch-2 appraisal well (“Chuditch-2”), which had been expected to commence during Q3 2025 but was postponed.
• Postponement of Chuditch-2 drilling was a significant setback, but efforts to get back on track are progressing.
• Completion of an Environmental Baseline Survey (“EBS”) in the area of Chuditch-2, and integration of results into Environmental Impact Statement and the Environmental Management Plan.
• First successes in Sunda’s new venture strategy, with the award of a 37.5% working interest in two licence blocks in the Philippines, with two discovered gas fields and world class exploration potential.

Post-period end operational developments

• Awarded an Environmental Licence for the drilling of Chuditch-2.
• Letter of intent signed with Finder TIMOR-LESTE B.V. to work together to secure a drilling rig for the two companies’ drilling campaigns offshore Timor-Leste.
• Signature of a share sale and purchase Agreement (“SSPA”) for the conditional acquisition of Matahio Energy NZ Limited (“Matahio NZ”), bringing 100% of five production and exploration permits in New Zealand, with around 1,000 boepd production plus exploration and development upside.
• Matahio NZ assets performing well, with substantial oil lifting in May 2026 at exceptionally high prices, directly benefitting Sunda given effective date of SSPA of 1 January 2026.

Financial highlights for 2025

• Cash reserves at 31 December 2025 were £0.33 million (31 December 2024: £3.17 million).
• Loss after taxation of £2.84 million (2024: £2.05 million).
• Convertible loan note agreement with three institutional investors raising up to US$9.0 million to fund Sunda’s share of anticipated Chuditch-2 drilling costs, of which only US$1.5 million issued and drawn down.
• Completed a Directors’ Subscription and WRAP Retail Offer to raise £0.71 million (gross) in October 2025.

Post-period end financial developments

• Unsecured loan agreement of £1.5 million with Dr Andy Butler, CEO, entered into in February 2026 (the “AB Loan”) with initial drawdown of £0.4m, followed by two further drawdowns of £0.75 million in March 2026 and £0.35 million in April 2026.
• Financing secured in April 2026 for the Matahio NZ acquisition including a Firm Subscription of £0.9 million with Alumni Capital, a £4.25 million Convertible Loan Note Subscription with Alumni Capital and a Conditional Subscription of £0.8m with Directors of the Company, including the conversion of £0.75 million of the AB Loan into equity and a WRAP Retail Offer raising c.£0.4 million.

Commenting on the results, Gerry Aherne, Non-Executive Chairman, said:
“2025 was a milestone year for Sunda. We faced tremendous headwinds, especially with the involuntary postponement of drilling in the Company’s Chuditch project in Timor-Leste, but also entered a period of transition, the fruits of which we are starting to see in 2026. With plans for Chuditch getting back on track, the entry into two highly prospective exploration assets in the Philippines, and the recent announcement of the proposed acquisition of a material portfolio of production, development and exploration assets in New Zealand, Sunda is truly advancing on its journey to become a meaningful upstream oil and gas player in the Asia-Pacific region. During this time of heightened concerns around energy security, Sunda’s strategy of building a portfolio of material oil and gas assets is clearly robust and offers the company a secure and successful future.”

These historic figures are, as with most loss-making exploration companies, of little interest and what matters most is what has happened since the period end. With continued delays at Chuditch, now maybe drilling this year or next the company has wisely diversified away from Timo-Leste.

With money raised from a variety of supporters the company now has potential in the Philippines as well as in New Zealand where there are a number of deals being done now they have rowed back from their net zero policies. This de-risking and diversification of the portfolio is highly laudable but the jury is still out on either move although it is clearly better than being a single project play…

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