WTI (July) $91.30 +76c, Brent (Aug) $94.25 +$1.16, Diff -$2.95 +40c
USNG (July) $3.15 -8c, UKNG (July) 120.01p -2.97p, TTF (July) €49.735 -€0.965

Oil price

Oil is off around two dollars today after a certain amount of cajoling and a big stick from Pennsylvania Avenue,  the peace between Israel and Iran was somewhat reluctantly resumed. This offset the gains made at least yesterday and tbh I’m not overly confident that this is the last of the handbags…

Zephyr Energy

Zephyr has provided an update on activity in the Paradox Basin, Utah, U.S. including the successful completion of the gas pipeline in-line inspection process (the “ILI”). This allows for the formal commencement of the regulatory approval process required to ship gas on the publicly regulated pipeline connected to Zephyr’s leaseholding in the Paradox project.

Further to the Company’s announcement on 24 March 2026, a team under the supervision of Enbridge Inc. (“Enbridge”) (the owner and operator of the pipeline that will export gas from the Paradox project) completed a detailed technical evaluation of the results from the ILI on the 20.9 miles of pipeline running from Zephyr’s Powerline Road Gas Plant to the Northwest Pipeline operated by Williams Companies, Inc.

Analysis of the ILI results confirmed that the pipeline is structurally sound at the current system operating pressure, with no repairs required and no immediate integrity concerns.  To ensure integrity at the uprated operating pressure required to export Zephyr’s gas to the Northwest Pipeline, four short sections of pipeline (totalling 25 feet in length) have been identified for visual inspection. Enbridge views such inspections as routine and are not considered a risk to achieving first gas export, even if any section should require a repair.

The completion of the ILI is a vital step in the process of delivering first gas from the Paradox project and has enabled the commencement of the regulatory approval process required to increase pipeline operating pressure and transport gas to the Northwest Pipeline.  Zephyr intends to provide an update on the timing to first gas when it receives further guidance from Enbridge on the regulatory approval schedule.

In addition to the initiation of the regulatory approval process, Enbridge has continued other operational activities, including the piping and mechanical upgrades required to transport Zephyr’s gas to market.  Over the coming weeks, Zephyr and its third-party infrastructure consultants will finalise the design and initial capacity of its gas processing solution.  As part of this process, planning for the drilling of additional Paradox project wells is also underway, in conjunction with detailed formal discussions related to asset-level funding opportunities.

Zephyr believes that the successful ILI results will have a further positive impact on the Company’s farm-out and hydrocarbon marketing efforts, both of which have advanced significantly over the last few months.

Colin Harrington, Chief Executive of Zephyr, said:
“I am pleased to report the successful completion of the ILI process, a major step to ensure significant new natural gas volumes can be safely transported from our field, and I am looking forward to the follow-on activity including the regulatory approval process required for gas export.

“With the pipeline integrity largely confirmed, we can now finalise our offtake agreements and advance the farm-out process, and will provide updates on these two critical milestones in due course.”

Make no mistake this is a very important step in the right direction for Zephyr and one that shareholders should celebrate big time. It is a big domino to fall and it allows the company to accelerate its marketing programme and of course ‘advance the farm-out process’ which is now very much on the radar screen.

On the technical front this clearance gives Zephyr the green light to get to first gas without major repairs, no integrity concerns and without doubt it’s solid progress.

First gas is clearly a huge positive for Zephyr and of course as soon as that happens,  Zephyr will start to receive meaningful revenues from the Paradox, subject of course to the final regulatory approvals completing. I’d also expect to see an offtake deal is signed sooner rather than later.

Zephyr can now get on with a great deal more work,  as it will be planning the programme for the drilling of the additional Paradox project wells and of course the ‘detailed formal discussions related to asset-level funding opportunities’.

This is a genuinely great piece of news for Zephyr and investors should take note, connection is everything here and Enbridge are clearly on their side, after all it is a huge corporation with other fish to fry. With the door open to export through the Northwest pipeline the floodgates are opening and I expect much news to flow in coming months.

That news will, I am certain, validate my target price which is an unapologetic 20p and the shares, up a good 7.5% today, should start to justify their position in the Bucket List. Do not forget the size of the prize here, as I have continued to say, the Paradox will justify best expectations.  Zephyr, through ingenious funding and smart tactics, have secured a proper slice of what is about to be a very large pie.

Afentra

Afentra has confirmed, further to the announcement made on 4 June 2026, the result of the WRAP Retail Offer. The WRAP Retail Offer was oversubscribed, demonstrating strong support from the company’s retail shareholder base and new investors.

The Company announces that it has raised gross proceeds of £2 million pursuant to the WRAP Retail Offer, alongside the previously announced Placing. Accordingly, the Company will issue a total of 2,985,074 WRAP Retail Offer Shares at the Issue Price.

In total, the Placing has raised gross proceeds of approximately US$40 million for the Company, via the Placing of 22,615,600 Firm Placing Shares and 21,699,640 Conditional Placing Shares. The WRAP Retail Offer has raised £2 million (US$2.7 million) via the issue of 2,985,074 WRAP Retail Offer Shares.

The WRAP Retail Offer and the Conditional Placing are conditional on admission to trading on AIM (“Second Admission”). The Company intends to convene a shareholder meeting, expected to be held on or around 25 June 2026, to approve the allotment of the Conditional Placing Shares and the WRAP Retail Offer Shares. Afentra will publish a Notice of General Meeting, setting out the resolutions requiring approval, on or around 9 June 2026. 

Nothing more to add to add to my previous comments, this oversubscribed retail offer, along with the institutional raise means that the company is stuffed with cash ready for any opportunities. But those may be limited to the onshore in Angola as Afentra are carried in the current drilling programme and Etu is paying more than top dollar offshore, although that has crystallised significant value on the AET  portfolio which is a big plus. 

Afentra remains a Bucket List favourite and the well results could make a substantial difference to Afentra’s value and of course share price performance, whilst I’m not changing my target price yet it may be that drill bit success could elevate that later this year.

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