Oilman Jim's Letter - April 12, 2025

Buy gold in the ground for $14 an ounce

• 2 million ounce gold resource in Finland

• 80,000 ounces/year gold production resuming in June

• Public listing planned for October on CSE

• Largest gold plant in Europe fully built and ready to start 

• Highly leveraged to rising gold price

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Reconnaissance Energy Africa (RECO.V RECAF 0XD.F) announced a drilling update for Prospect I, located onshore Namibia in Petroleum Exploration Licence 073. This is the company's largest prospect to be drilled so far, targeting 365 million barrels of unrisked and 32 million barrels of risked prospective light/medium oil resources, or 1.9 trillion cubic feet of unrisked and 140 billion cubic feet of risked prospective natural gas resources on a 100% working interest basis, based on the most recent prospective resources report prepared by Netherland, Sewell, & Associates. Per Brian Reinsborough, President and CEO, ReconAfrica remains on track to spud the well this quarter. Pre-construction activities are continuing on schedule and the pre-drill evaluation is complete. The company is targeting a drilling depth of 3,800 metres with the potential to drill deeper…more

PetroTal (TAL.TSX PTALF PTAL.L SER1.F) announced operational and financial updates. Production averaged approximately 23,280 barrels of oil per day in Q1 2025, including a full quarter contribution from Block 131. Bretana Q1 2025 production averaged approximately 22,660 barrels of oil per day, a 17% increase on Q4 2024 and a 22% increase on Q1 2024. Total cash as of March 31, 2025 was $114 million. Per Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, the operations team is hard at work preparing for two projects that will ramp up during the second quarter. The company is currently mobilizing equipment and steel components for the erosion control project, where field work should commence at Bretana next month and at Block 131, TAL is preparing a workover program at the Los Angeles field, before the new drilling rig arrives around mid-year…more

Sunda Energy (SNDA.L GHA.F) announced it has submitted to the Timor-Leste regulator, Autoridade Nacional do Petróleo, drafts for public consultation of the Environmental Impact Statement and Environmental Management Plan for the drilling of the planned Chuditch-2 appraisal well on Timor-Leste Production Sharing Contract TL-SO-19-16. The public consultation commences immediately, with announcements in Timor-Leste online, broadcast and print media. It will run for a statutory period of 14 days, after which SundaGas will submit final versions of these documents to ANP for review and approval. The company says that further details on the preparations for the drilling of the Chuditch-2 well will be announced in due course…more

Pulsar Helium (PLSR.V PSRHF PLSR.L Y3K.F) announced that its wholly-owned Minnesota operating subsidiary, Keewaydin Resources, has executed a project finance facility line of credit note with University Bancorp pursuant to which University Bancorp has extended a $4 million project finance facility to fund operational activities on Pulsar's Topaz Helium project in the near term. The facility has been guaranteed by Pulsar and secured by a pledge of all of the shares of Keewaydin and a first lien on all assets of Keewaydin. The facility will mature on March 31, 2026 and will bear interest on any amount drawn at 12% per annum. A utilization fee of 2% will be charged on the balance of any draws on the facility, however, these fees will be reimbursable to Keewaydin at maturity…more

Arrow Exploration (AXL.V CSTPF AXL.L C1JT.F) announced an update on recent operational activity at the Tapir Block in the Llanos Basin of Colombia where the company holds a 50 percent beneficial interest. Production is now over 4,500 barrels of oil equivalent per day, with 2 horizontal wells drilled since the last update: CN HZ10 producing 1,183 barrels of oil equivalent per day gross (591 barrels of oil equivalent per day net); and CN HZ9, which is now on production. Since the February 5 update, the cash position has increased to $25 million, while drilling two horizontal wells in the period. Further production growth is expected in Q2 with drilling underway at CN11. Per the company, with a strong balance sheet and no debt or drilling commitments, Arrow has flexibility in its work program and is able to take advantage of any economic downturn with possible acquisition opportunities. Significant additional production is expected to be added prior to the end of the second quarter with planned development wells in the C7 and Ubaque reservoirs…more

HyTerra (HYT.ASX HYTLF 8TP0.F) announced it has two firm wells in the drilling sequence for the Nemaha Project in Kansas. This marks the first steps for the company in executing a comprehensive 12-month exploration work program designed to unlock the potential of natural (white) hydrogen in Kansas. Murfin Drilling is on track to mobilise Rig 116 to the Sue Duroche 3 well location early next week, with spud expected days later. Murfin is one of the leading drilling companies in the Midwest now having drilled over 20,000 wells. Additionally, the aerial gravity-magnetic survey was successfully completed by New Resolution Geophysics and the initial results are said to be already supporting the company’s increased understanding of hydrogen and helium prospectivity for the Exploration Stage II drilling program…more

Helix Exploration (HEX.L) announced the commencement of drilling at the Linda #1 well in the Rudyard Project, Montana. This is the second company development well at the project; commercial helium gas was previously encountered over 276 feet in the Darwin #1 Souris and Red River formations. Linda #1 will also drill through Cambrian strata to examine potential for previously untested helium and hydrogen potential in the Flathead Sandstone Formation. One additional development well location has been surveyed.  Another development well location is to be surveyed by the end of April. Additionally, Helix has signed a letter of intent to secure a 20-acre plant site, which would allow the company to begin construction and installation of the PSA plant and membrane package ahead of first production in summer 2025. Additional production wells will be self-financed through cashflow from the Rudyard plant…more

Blue Star Helium (BNL.ASX BSNLF) and Helium One Global (HE1.L HLOGF HE1.F) announced an update for the Galactica Project. The Jackson-29 well has been successfully drilled to total depth of 1,183 feet measured depth with free gas confirmed by wireline logs. The well is said to have flowed naturally during drilling and at total depth, demonstrating good reservoir communication. The well encountered 61 feet gross pay of high-quality, gas-saturated sands in the Upper Lyons Sandstone Formation. Samples have been sent to the laboratory for analyses of helium and CO2 concentrations and the well head being installed ahead of surface pressure readings and flow testing. It is anticipated that, upon successful testing at Jackson-29, the well will be completed, ready to be tied-in to production facilities. The rig will soon be mobilised to the Jackson-27 well location where pad construction is underway. Blue Star is advancing the Galactica Project in joint venture with Helium One…more…more

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