Oilman Jim's Letter - February 5, 2025

Pulsar Helium (PLSR.V PLSR.L PSRHF Y3K.F) announced successful completion of drilling the Jetstream #2 appraisal well at its Topaz project in Minnesota. The drilling operation reached total depth of 5,638 feet on February 1, 2025, successfully penetrating the entire interpreted helium-bearing interval, and beyond. Elevated helium values were encountered over a gross vertical thickness of 3,178 feet with samples containing up to 3.5% helium identified, despite dilution from atmospheric air due to the rotary air drilling method used. Actual helium concentration is likely higher than the measured 3.5% and uncontaminated samples for laboratory analysis will be acquired to determine the true helium concentration. Flow testing will be conducted for Jetstream #1 and #2 in March…more

Top End Energy (TEE.ASX) announced it has completed the acquisition of 100% of Serpentine Energy and its 100% owned and operated natural hydrogen project in Kansas. The project is strategically located at the heart of an active land rush, supported by numerous historical observations of natural hydrogen and a recent surge in exploration, including seismic surveys, drill permitting, drilling and flow testing. The company is now actively expanding its lease holdings in anticipation of upcoming drilling programs, while also conducting geological evaluation for its own exploration drilling in H2 2025. This sector is attracting investment from major energy and mining companies, including Mitsubishi Heavy Industries, Osaka Gas, Fortescue, Rio Tinto and BP. The Company holds the exclusive right to explore and produce hydrogen and helium across approximately 20,000 acres in Marshall, Washington and Riley counties. Six exploration companies are known to be leasing and operating within the project area and adjacent counties in Kansas…more

Desert Mountain Energy (DME.V DMEHF QM01.F) announced a non-brokered private placement offering to raise up to C$2 million via the sale of up to 8 million units at C$0.25 per unit, each of which will consist of one common share and one share purchase warrant allowing the subscriber to purchase one additional share of the company for a period of one year from the date of the closing at a price of C$0.35 per share. The expiry of the warrants may be accelerated at the election of the company if the closing price shall be equal to or greater than C$0.75 per share for a minimum of ten consecutive trading days. Finder's fees are payable of up to 8% in cash and 8% in finder warrants, with the finder warrants having an exercise price of CAD $0.35 per share, but with no forced conversion. Proceeds from the private placement will be utilized for development of the company's New Mexico natural gas and helium projects plus its Arizona helium projects, as well as working capital and general corporate purposes. The units will be subject to a 4-month hold period…more

Helix Exploration (HEX.L) announced that it will commence re-entry and acidisation of the Clink #1 well and has commissioned Petroleum Consultants to oversee contractor services. Acidisation will commence mid-February and is expected to take around10 days, testing the capacity to stimulate flow from the Charles Formation. Additional production wells are being surveyed at Rudyard for drilling in Q2 2025. The company is fully funded to bring Rudyard into production in the coming months, with additional capital to fund growth projects…more

Arrow Exploration (AXL.V CSTPF AXL.L C1JT.F) announced an update on the operational activity at the Alberta Llanos field on the Tapir Block in the Llanos Basin of Colombia where the company holds a 50% beneficial interest. The AB-1 vertical well has resumed production and is currently producing from the Ubaque reservoir at a rate of 260 barrels of oil per day gross (130 barrels of oil per day net) of 13.6° API oil with an 80% water cut.  The well is expected to pay out in 10 months. The AB-2 vertical well was spud on December 25, 2024, and reached target depth on January 1, 2025. The well was drilled to a total measured depth of 10,795 feet (8,846 feet true vertical depth) and encountered multiple hydrocarbon-bearing intervals. The well came in structurally lower than prognosis and produced sub-economic oil rates and accordingly was temporarily shut in. Arrow is reviewing alternatives for this well, such as performing a recompletion in an alternative zone. The AB-3 vertical well was spud on January 11, 2025, and reached target depth on January 19, 2025. AB-3, targeting the extreme south of the Alberta Llanos field, confirmed the productive potential of the multi-pool field. The well was drilled to a total measured depth of 9,650 feet (8,801 feet true vertical depth) and encountered multiple hydrocarbon-bearing intervals.  The well encountered four oil bearing sands, the Carbonera C7, Guadalupe, Gacheta and Ubaque, with approximately 96 total feet of oil pay. On January 24, 2025, Arrow put the AB-3 well on production in the Ubaque formation and currently the well is producing 580 barrels of oil per day gross (290 barrels of oil per day net) of 13.6° API oil with a 9% water cut.  The well is expected to pay out in 5 months. Results from AB-3 confirm the ability to develop the Alberta Llanos field with horizontal wells, thus a new pad is being prepared to drill horizontal wells to the north in the Alberta Llanos discovery and to the south, in the northern part of the Carrizales Norte field. Total corporate production in January was over 4,500 barrels of oil equivalent per day, exceeding the company's forecast. The rig is currently being moved to the Carrizales Norte pad, where further development of the northern and southern areas of the field will begin by the end of February.  Management plans to drill 3 horizontal wells targeting the Ubaque sands in the coming months.  The rig will then be moved to the Mateguafa Oueste prospect to drill Arrow's first exploration well in that area. Management plans to utilize a second rig in the second quarter of 2025 to bring on low risk production. Rig 2 will begin at the RCE pad to drill 4 directional, development wells and will then move to the Alberta Llanos prospect to begin horizontal development of the Ubaque reservoir.  Management plans to drill two horizontal well in existing cellars with more wells expected to follow once cellar construction has been completed. Later in the year the Mateguafa Attic and Capullo prospects will also be drilled. The East Tapir 3D seismic acquisition program is progressing on schedule with personnel and equipment being mobilized to the field. The value added by the initial detailed 100 km2 3D seismic survey on the Northern Tapir Block is said to have transformed has transformed the company and the East Tapir 3D will cover another 100 km2. On February 1, 2025, Arrow's cash balance was $22.7 million…more

These are opinions only of the individual author. The contents of this piece do not contain investment advice and the information provided is for educational purposes only and no discussions constitute an offer to sell or the solicitation of an offer to buy any securities of any company. All content is purely subjective and you should do your own due diligence. No representation, warranty or undertaking, express or implied, as to the accuracy, reliability, completeness or reasonableness of the information contained in the piece is made. Any assumptions, opinions and estimates expressed in the piece constitute judgments of the author as of the date thereof and are subject to change without notice. Any projections contained in the information are based on a number of assumptions and there can be no guarantee that any projected outcomes will be achieved. No liability is accepted for any direct, consequential or other loss arising from reliance on the contents of this piece. The author is not acting as your financial, legal, accounting, tax or other adviser or in any fiduciary capacity.