WTI (July) $75.85 -75c, Brent (Aug) $80.57 +72c, Diff -$4.72 +$1.47
USNG (July) $3.23 u/c, UKNG (July)  101.45p +2.2p, TTF (July) €42.63 +€1.055

Oil price

Oil has fallen this morning after the talks in Switzerland ‘progressed well’ although the seeds of dissent have been sown by Irans accusations of Israel attacking the Lebanon, they in turn suggested that they were ‘returning fire’.

The Opec report last week showed that the end for fossil fuels is not nigh, looking out until 2050 shows a seriously positive outlook as total energy consumption is expected to rise from 105.1m barrels this year to 124.1m in 2050. 

With the light end of the barrel much in demand and travel the driver, expect the world to need more not less crude oil and natural gas at the cost of coal and of course renewables will gain but not as much as the wasters at the IEA think. 

UK politics has today turned a corner with the resignation of PM Sir Keir Starmer and the King of the North about to storm Parliament. The questions our industry faces is what will be the new leadership view be on energy taxation and the North Sea.

Early talk is that Ed Miliband may become Chancellor, a plus as it takes him from the Department of Energy, a minus when he controls fiscal policy. The ‘other’ bye-election result worth noting was at Aberdeen South where the Conservatives won a safe SNP seat on a policy of drill baby drill. 

Europa Oil & Gas

Europa has provided an update regarding the binding Farm-out Agreement signed by its associated company, Antler Global Limited and Fuhai (Beijing) Energy Limited, a wholly owned subsidiary company of the privately owned Fuhai Group New Energy Holding Co, Ltd to farm-out a 40% interest in the EG-08 production sharing contract in offshore Equatorial Guinea.

Further to the announcement of the FOA to Fuhai on 30 December 2025, the Company reports that the Longstop Date for completion of the transaction has by mutual agreement been extended to 31 July 2026.

The deal has received approval from the Ministry for Mining and Hydrocarbons Department of Equatorial Guinea (“MMHD”), as announced on 29 May 2026, and remains subject to Overseas Direct Investment (“ODI”) approval from the Shandong Provincial government. Europa understands that the various government approvers are now satisfied with the ODI application and expects to receive this approval in the coming weeks. Following receipt of ODI approval, Fuhai will be added to the PSC and joint operating agreement, completing the farm-out process.

Europa has a 42.9% equity interest in Antler which, on completion of the FOA, will hold a 40% working interest in the EG-08 PSC, and remain as operator, with 40% held by Fuhai and the remaining 20% held by GEPetrol (Guinea Equatorial de Petróleos), the national oil company of Equatorial Guinea, representing the State’s interest.

The Company expects to drill the Barracuda-1 well at the earliest opportunity, which is expected to be during early 2027. 

William Holland, Chief Executive Officer of Europa, said:
“The extension of the Longstop Date reflects the practical timing required to finalise the remaining approval and complete the legal procedures of the farm-out to Fuhai. Having secured MMHD approval in May, we remain confident that we will receive ODI approval in the coming weeks and continue to make good progress with our preparations for drilling.”

After a period in which the MMHD approval was welcomed, EOG is now able to suggest that the ODI approval is imminent and the shares have rallied on the news of an extension until the end of July. 

Assuming that this comes through, Europa will move on with preparations for the Barracuda-1 well which following a recent announcement is now likely ‘early’ next year. The shares have recovered a good deal today, up by 15% after giving back longer term gains having lost 18% in the last six months and only flat over a year. 

Everything now rests on Equatorial Guinea in general and Barracuda in particular for next year’s excitement, shareholders will be thinking long term. 

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