WTI (July) $93.76 +$1.60, Brent (Aug) $96.00 +$1.02, Diff -$2.24 -58c
USNG (July) $3.17 -1c, UKNG (July) 117.57p +1.09p, TTF (July) €48.925 +€0.735

Oil price

Oil has rallied by another near three dollars this morning after actions by both the US and Iran last night. The US carried out ‘defensive strategies’ on shipping targets and Iran attacked US targets as well as air bases in Kuwait and Bahrain. 

Retail gasoline prices in the US have fallen slightly recently, today’s US average price is $4.305 per gallon which is down 17 cents w/w, 14.7c off on the month but clearly still up year on year, by $1.178. 

In the UK Wes Streeting, a candidate to replace Sir Keir Starmer as Prime Minister has called on the Government to increase oil and gas drilling in the North Sea saying that it could support economic growth and generate additional tax revenue. He said that Britain was ‘cutting off our own nose to spite our face without contributing to the greater whole’. 

And the FT has apparently reported that BP held talks with Ithaca Energy with the aim of selling its UKCS assets for c.£2bn but that the discussions came to nowt. BP is still almost certain to be a seller one way or another and press reports have also recently suggested that they are planning to shift their quote and possibly domicile to the USA where at least they won’t get treated like a pariah as the UK Department of Energy does. After all, fancy giving all those taxes to the UK Exchequer when you are not wanted? 

Reabold Resources

Reabold has noted the announcement made by Zenith Energy today and confirms that it has entered into an exclusivity agreement granting Zenith exclusivity to evaluate the potential acquisition of Reabold’s shares in Daybreak Oil and Gas, in which Reabold holds approximately 42% of the ordinary shares outstanding.

As this is a  non-core asset for Reabold it makes plenty of sense to proceed with such an agreement but it looks to me like pretty early days but either way it’s never wrong to give the process a chance. 

Rockhopper Exploration

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

2025 AND POST PERIOD HIGHLIGHTS

• Sea Lion Phase 1 sanctioned
• Rockhopper funded for Phase 1
• First oil targeted Q1 2028
• 110 mmbbls 2P reserves net to Rockhopper
• 211 mmbbls 2C resources net to Rockhopper

Sea Lion Development

Project

• Development of Phase 1 of the Sea Lion field - offshore to the north of the Falkland Islands - sanctioned
• Debt Financing in place consisting of US$1.0 billion of senior debt, of which US$350 million is Rockhopper debt
• Equity raises completed to fund the development of Phase 1 of Sea Lion

o  Placings raising US$142 million
o  Significantly oversubscribed open offer raising a further US$9.2 million

Key project commercial contracts in place including, but not limited to:

o  FPSO charter
o  Drilling rig
o  Drilling and completion services

• Notice was served on the FPSO in the UK to disconnect, with the vessel having left its previous production location, ahead of a period of refurbishment work prior to deployment at Sea Lion
• Phase 1 FPSO work moved from the Middle East to Asia
• Target for First Oil remains Q1 2028 following a Final Investment Decision on Phase 1 in December 2025
• JV investigating the possibility of accelerating development of subsequent phases
• MOU signed for second larger FPSO with production capacity of approximately 125,000 barrels per day

Reserves and Resources

Updated independent technical report (RKH working interest):

• 110 mmbbls 2P reserves comprising 57.9 mmbbls associated with Phase 1 (Reserves under development) and 51.9 mmbbls associated with Phase 2 (Reserves planned for development)
• 211 mmbbls 2C resources
• Significant upside potential

Corporate and Financial

• Cash and term deposits balance at 31 December 2025 of US$179 million* (31 December 2024: US$20.9 million)

Ombrina Mare Arbitration

• Ombrina Mare Arbitration Award (the "Award") annulled
• Receipt of €31 million under terms of the insurance policy in respect of the Award
• A new request for arbitration was made in September 2025, with the new funder responsible for all associated costs

* Includes US$8 million classified as held for sales

Sam Moody, Chief Executive Officer of Rockhopper, commented:
“This has been a transformative period for Rockhopper as the Sea Lion project moves into full development phase following its financing and sanction late in 2025. We look forward to continuing our very constructive working relationship with operator Navitas in the coming months as we further progress the project. We remain hugely grateful for shareholders’ continuing support and look forward to updating them on Sea Lion in due course.”

Another set of figures that are both historic and of no significance although the progress that Rockhopper has made in the last year or so is hugely important and makes the future for the company very exciting. 

Sea Lion is going ahead after ‘financing and sanction in late 2025’ and with that financing RKH are fully funded for the early phase of development and partner Navitas has provided excellent JV support.

With first oil targeted in 1Q 2028 and the updated independent technical report giving Rockhopper 110 mmbbls 2P reserves comprising 57.9 mmbbls associated with Phase 1 (Reserves under development) and 51.9 mmbbls associated with Phase 2 (Reserves planned for development) and 211 mmbbls 2C resources with ‘significant upside potential’. 

Readers will not be surprised to hear that having believed in Sea Lion and Rockhopper for many years I remain confident that we are now in the serious phase of development and shareholders will be further rewarded for their patience.

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