Oilman Jim's Letter - February 16, 2025

HEVI.V HEEVF FO.V FOG.L FAC.F TBN TBN.ASX LBRT BNL.ASX BSNLF NZ.V NZERF EME.L E1E.F CEQ.V HELI.V FHELF 2MC.F TCF.CSE TRLEF Z62.F

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Helium Evolution (HEVI.V HEEVF) announced preliminary test results from its 10-36-3-9W3 helium discovery well, in which the company holds a 20% working interest. Completion, perforation and initial production testing of the well are ongoing, nevertheless, after an extended 5-day flow testing period, the 10-36 well was already producing approximately 11.5 million standard cubic feet per day at 13,100 kiloPascal flow tubing pressure. The preliminary test results also confirmed a helium content of 0.81%, significantly higher than the commercially viable threshold of 0.3%. Additionally, the well produced negligible water, signaling strong potential for efficient helium recovery and processing. Following the extended production flow period, the well will be shut in for 14 days to gather reservoir pressure data, which will be analyzed to further evaluate the resource potential and optimize future development. Meanwhile, the operator, North American Helium, has finalized drilling operations at joint well 5-30-3-8W3 and completion operations are underway. The drilling rig has now moved to the 3-19-3-8W3 location, in which HEVI has confirmed its 20% participation, with the company’s share of the drilling costs expected to be approximately $0.4 million…more

Falcon Oil & Gas (FO.V FOG.L FAC.F) announced an update on the stimulation campaign for the Shenandoah S2-2H ST1 and Shenandoah South 4H wells in the Beetaloo Sub-basin, Northern Territory, Australia, with the company’s joint venture partner, Tamboran (TBN TBN.ASX), which acts as operator. Stimulation operations were successfully completed over 35 stages across the 5,483 feet horizontal section of the Amungee Member B-shale with Liberty Energy (LBRT) stimulation equipment and the SS-2H ST1 well is being prepared for the commencement of initial flow back and extended production testing. Announcement of 30-day initial production flow rates is targeted for April. Meanwhile, SS-4H commenced stimulation operations in January, however, completion operations had to be paused due to the detection of stress in a casing connection. Reinforcement activities are planned to be conducted in Q1 2025, aiming for stimulation activities to recommence in Q2 2025, as soon as the IP30 flow test is completed at SS-2H ST1. The deferred stimulation program should provide an opportunity to incorporate lessons from the SS-2H ST1 campaign. Announcement of IP30 flow rates is targeted for mid-2025. Additionally, Falcon Australia has received a A$4.7 million research and development tax offset in cash; the group’s current cash balance is US$8.2 million…moremoremore

Blue Star Helium (BNL.ASX BSNLF) announced the commencement of well testing activities at its newly optioned helium assets in the Great Plains field in Lincoln and Cheyene Counties, Colorado. These tests will be crucial in confirming the company’s assessment of these assets, which include existing wellbores with historic helium shows of 1.36% to 2.02% and raw gas flow rates of 5 to 10 million cubic feet per day. The initial wells to be tested are Ma State 16 and Bubba State 3, measuring helium concentrations, flow rates and pressures in order to establish gas well type curves, estimate expected ultimate recoveries for the assessment of commerciality and guide option exercise and development decisions. Positive test results could be a major catalyst for Blue Star. Meanwhile, the drilling rig has been mobilised to the Jackson 31 well location in Las Animas County and is currently in the process of rigging up. Drilling operations are expected to commence shortly after rig up is completed…more

New Zealand Energy (NZ.V NZERF) announced that the recently completed Tariki-5A well intersected the target Tariki sands 11 metres higher than prior wells and has confirmed the presence of significant remaining free gas and condensate in place up-dip in the field. These results and the high quality of the 55 metres net sand intersected has also confirmed the viability of Tariki as a gas storage field. Work is in progress to update the associated reserves and associated forecasts. Flow rates of more than 4 million cubic feet per day have been seen; stable rates have been approximately 1 million cubic feet per day with 25 to 30 barrels of condensate. To accelerate the storage phase of the Tariki field, the company is proceeding with design of the first stage injection and extraction gas storage project based on wells Tariki-5A and Tariki-1A; the target is injection at 10 to 15 million cubic feet per day and extraction at ~30 million cubic feet per day. Most of the required infrastructure for Stage 1 is already in place, with the exception of the final stage compression required at the well site. Studies indicate that the field is likely to be able to safely store between 25 and 40 billion cubic feet of gas. With the completion of Tariki-5A well operations, the company has focused field operations on restoring oil production from Waihapa wells 6A and H1 and anticipates them returning to production by mid and late February respectively, adding between 30 and 60 barrels per day oil production plus associated gas. The two well interventions are currently scheduled for Q2 2025…more

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Empyrean Energy (EME.L E1E.F) announced that it has secured the right to earn an additional 12.8% working interest in the Wilson River-1 well, taking its working interest upon completion of the earn-in up to 52.8%. The company has raised £625,000 before costs through a placing of 500,000,000 new shares at a price of 0.125p. The amended agreement allows for Empyrean and Condor Energy to earn an additional 20% interest in ATP1173, upon which the Wilson River-1 well will be drilled, by paying for a number of required pre-drill expenses, including surveys and permits. Empyrean and Condor Energy have agreed to share these costs pro rata to the earn-in terms whereby Empyrean pays 66% and Condor Energy pays 34%. Following the earn-in, the respective JV partners' working interests will be Empyrean 52.8%, Condor Energy 27.2% and Chi Oil 20.0%…more

Criterium Energy (CEQ.V) announced an update on the Tungkal gas development plan, with the initial development of the Southeast Mengoepeh field and provided details of its fully funded 2025 capital program. There are five discovered gas fields in the Tungkal PSC, but little to no development previously due to a limited regional gas market and no proximal infrastructure. More recently, demand for domestic gas has increased and infrastructure has been put in place. In 2025 the company intends to focus on developing the SE-MGH field gas resources targeting the Talang Akar Formation. During the next 12 months, key milestones anticipated for gas development in the SE-MGH field include site preparation, an extended well test on the existing SE-MGH well to confirm deliverability and a gas sales agreement. First sales gas is anticipated in Q1 2026, at which time the company will continue to look for further opportunities within its existing portfolio to deploy the ModularLNG concept. Estimated capital expenditure required to reach first gas is approximately $3-5 million net to Criterium. Initial production is expected to range between 4-7 million cubic feet per day…more

First Helium (HELI.V FHELF 2MC.F) announced that it has completed drilling the 7-15 exploration well at its Worsley Property in Northern Alberta. The well has been cased for completion and testing and the company is now proceeding with a plan to complete and test both the 7-30 and 7-15 wells. The proximity of the two locations, approximately 6 kilometers apart, will enable the company to efficiently complete and test both wells. Subject to results, necessary preparations are being made to complete, equip and tie-in both wells prior to spring break up in Alberta, a period from mid/late March through May when Provincial highway restrictions limit heavy equipment movement. First Helium holds over 53,000 acres along the Worsley Trend in Northern Alberta which has been the core of its exploration and development drilling activities to date. Cash flow from its successful oil wells at Worsley has helped support the company's ongoing exploration and development growth strategy; further potential oil drilling locations have also been identified on the land base…more

Trillion Energy (TCF.CSE TRLEF Z62.F) announced an operational update for the SASB offshore gas project, Turkey. During January 2025 the company completed installation of new velocity string tubing in two wells located on tripods (Alapli-2 and Bayhanli-2), having previously completed installation of new tubing in four wells on the Akcakoca platform during the fall of 2024. A total of 6 wells have now received the new smaller tubing size to mitigate water loading conditions. The tripod wells continue to receive nitrogen injections to stimulate production; both Alapli-2 and Bayhanli-2 initially responded positively to the ongoing operational efforts, however, stable long-term flow rates have yet to be sustained. The company is currently preparing to stimulate the Akcakoca-3 and South Akcakoca-2 wells in the upcoming week. Additionally, the company plans to enhance production by installing a progressive cavity pump in one well and two slim-hole electric submersible pumps. These strategic interventions involving artificial lift are said to be critical to sustaining long-term production rates and optimizing well performance and are expected to occur in the upcoming months…more

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