WTI (July) $90.03 +$1.83, Brent (Aug) $93.10 +$1.65, Diff -$3.07 -18c
USNG (July) $3.19 +5c, UKNG (July) 121.4p +4.15p, TTF (July) €50.365 +€1.445

Oil price

The oil price rose yesterday and is up by just short of a dollar today after US military strikes on Iran continued after the President claimed that they were being ‘taken for suckers’ in peace talks. Either way the ‘kinetic’ action as it is being labelled is back. 

Whilst inventory reports are less important at the moment it is worth noting that crude stocks drew sharply last week, the API had it by 9.119m barrels and the EIA by 7.2m Product stocks are all over the place but he US is exporting a great deal…

Zephyr Energy

Zephyr has provided initial hydrocarbon production results for the first quarter of 2026 from the Company’s non-operated asset portfolio.

• Q1 production averaged 918 barrels of oil equivalent per day, net to Zephyr (versus average production in the fourth quarter of 2025 of 983 boepd).

o  Q1 production totals exceeded management’s forecast and reflects the expected natural decline rates of the portfolio.
o  Q1 production was 71% oil.

• At 31 March 2026, the portfolio consisted of interests in over 600 gross wells (or approximately 30 net wells) available for production.
• The portfolio now consists of well and acreage interests in Utah, Colorado, Wyoming, Montana and North Dakota, providing strong production diversity and lowered risk across multiple operators and basins.
• During Q1, the Company was hedged for a total of 8,000 barrels of oil (circa 14% of the quarter’s production) at a weighted average price of US$64.25 per barrel of oil.
• The portfolio delivered strong cash flow to the Company in Q1 due to higher-than-expected production levels and higher commodity prices in Q1 compared to Q4. In addition, the Company recovered a US$1 million bad debt from a working interest owner. The amount was written off in 2024 (and was disclosed in the Company’s 2024 Annual Report).

Colin Harrington, Zephyr’s Chief Executive, said:
“I am pleased to report on the ongoing strength of our non-operated production portfolio.

“The quarter’s robust production levels combined with our recent opportunistic undeveloped acreage disposals and strong commodity prices provided considerable resources to the Company which can be recycled back into the Paradox project. 

“We continue to monitor global events closely and will be responsive with regard to further portfolio management and hedging activity as opportunities arise.”

Another piece of good news from Zephyr today as the company reports production from its non-operated portfolio, which despite a small drop, understandably attributed to natural decline, showed excellent revenues as the 71% of production mix being in oil benefited from strong realisations and exceeded expectations. 

The company have been a market leader in this innovative financing of its wider portfolio funding requirements and in addition to the revenues it has received, has made very smart asset disposals which have contributed significantly to the Zephyr’s finances. The company has also recovered a $1m bad debt previously written off  in the 2024 accounts, it never rains but it shines eh?

Indeed the acquisition made only last August has not only generated nearly $9m in revenues and disposal gains but additionally retains the vast majority of production from the transaction, ‘demonstrating the excellent economics of the deal’. 

On Tuesday I wrote that the ILI news validated my 20p target price and that the shares were up a short 10% on the day, today the shares are up 3.5% and over 3p but this news can only add to the potential value for Zephyr. I remain convinced that as seen today that the non-operated portfolio is proving a fantastic asset for the company as it moves sharply towards developing the Paradox Basin, itself a blue chip asset. 

Serica Energy

Further to its announcement on 30 September 2025, Serica has announced that the acquisition from ONE-Dyas of a 10% interest in the Catcher Field and a 5.21% interest in the Golden Eagle Area Development (‘GEAD’), has now completed.

The acquisition further diversifies Serica’s producing portfolio, with current net production of around 2,500 boepd, and adds combined net 2P reserves of 3.0 mmboe and 2C resources of 0.5 mmboe as at 31 December 2025.

Serica has settled the consideration of $6.75 million, and has received a payment of $13.0 million, reflecting interim post-tax cashflows between the Economic Date of 1 January 2024 and the date of completion. In addition, Serica will receive around 85,000 barrels of oil equivalent in respect of an underlift position, with the associated cash proceeds of c.$8 million to be received in Q3.

Good news today from Serica as the acquisition from ONE-Dyas has completed slightly ahead of schedule. Following the Capital Markets Day recently Serica remains in a very strong position with the Spirit deal yet to complete and with its strong balance sheet and tax position enabling further M&A activity still to come.

The shares have performed well but my 400p target price is easily achievable and in current markets with high realisations there is still much upside to look forward to. A Bucket List stalwart with a great deal of good news yet to come Serica looks very well set in current markets. 

Touchstone Energy

Touchstone has announced the closing of its previously announced integrated fundraise on the terms previously disclosed in the Company’s announcement dated June 8, 2026.

The aggregate 26,631,330 new common shares of no par value issued in connection with the integrated fundraise have received conditional approval for listing and trading on the Toronto Stock Exchange and have been admitted to trading on the AIM market of the London Stock Exchange. 

In addition, the Company has issued unsecured non-convertible debt securities (the “Debt Securities”) with an aggregate principal amount of approximately US$8.4 million to Purebond Limited (“Purebond”) as part of the integrated fundraise.

2026 Annual and Special Meeting of Shareholders

Touchstone’s virtual Annual and Special Meeting of Shareholders (the “Meeting”) will be held on Thursday, July 23, 2026 at 8:00 a.m. (Mountain Time).

Registered and beneficial shareholders will be mailed a notice-and-access notification and form of proxy on or about June 23, 2026, advising as to the electronic availability of the Meeting materials, including the 2026 Management Information Circular (the “Circular”), the 2025 audited consolidated financial statements and related Management’s Discussion and Analysis. For holders of the Company’s depositary interests, hard copies of the Circular and form of direction will be mailed on or about June 23, 2026.

The Meeting materials will be available under the Company’s profile on SEDAR+ and on the Company’s website following mailing.

Among other matters to be considered at the Meeting, independent shareholders will be asked to approve a resolution pursuant to which the Debt Securities would be repaid in full and the repayment proceeds would be applied to subscribe for 89,765,000 new common shares of the Company. Further information regarding the resolution will be included in the Circular.

As previously disclosed in the Company’s June 8, 2026 announcement, Purebond’s entry into the subscription agreement, together with the proposed repayment of the Debt Securities and resubscription for common shares, constitutes a related party transaction under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The repayment of the Debt Securities and the application of the proceeds to a subscription for common shares are subject to receipt of required shareholder and regulatory approvals.

The repayment and resubscription will result in the issuance of additional common shares to Purebond, an insider of the Company, and are expected to result in Purebond becoming a control person. The transaction will be subject to approval by disinterested shareholders in accordance with TSX requirements and MI 61-101, with Purebond and other participating insiders, and their affiliates and associates, excluded from voting.

Nothing to add here, time for Touchstone to kick on with it’s programme, now fully funded and with better pricing all round and it’s time for the numbers to do the talking…

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