Oilman Jim's Letter - January 19, 2025

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Eco (Atlantic) Oil & Gas (EOG.V ECO.L ECAOF EOI.F) announced the completion of its transaction with Africa Oil for the sale of an interest in Block 3B/4B, and replacement of a member of the board. Azinam, Eco's wholly owned subsidiary, has agreed to sell and assign a 1% participating interest in Block 3B/4B, offshore the Republic of South Africa, to Africa Oil (AOI.TSX AOIFF AFZ.F) in exchange for the cancellation of all shares in the company and warrants over shares held by Africa Oil. Eco now holds a fully carried 5.25% interest in Block 3B/4B, reduced from 6.25%, and following the cancellation of Africa Oil's interests, the outstanding share capital is now reduced to 315,231,936 shares and 48,541,666 warrants. Africa Oil's representative, Oliver Quinn, has stepped down from Eco's board of directors and Emily Ferguson has been appointed with immediate effect. Ms Ferguson most recently spent six years at TotalEnergies, where she served as VP of exploration for Europe, the Middle East, North Africa and Asia…more

Sintana Energy (SEI SEUSF) announced an update regarding the operations associated with the Kapana 1-X exploration well located on Block 2813B which is governed by Petroleum Exploration License 90 and operated by Harmattan, an indirect subsidiary of Chevron. Trago Energy, a wholly owned subsidiary of Custos Energy in which Sintana maintains a 49% indirect interest, is a 10% working interest owner in PEL 90. Trago has been notified by Chevron that the well did not find commercial hydrocarbons, however, the operations returned information on aspects of the basin that has increased confidence in the future program on this licence…more

Helios Energy (HE8.ASX) announced an independent contingent resource report for its Presidio project confirming substantial hydrocarbon potential, highlighting significant oil, natural gas liquids and gas resources discovered through drilling and testing of four wells. Contingent resources include 5-8 million barrels of oil, 2-4 million barrels of natural gas liquids, and 36-57 billion cubic feet of gas. The Ojinaga formation is analogous to the Austin Chalk formation, suggesting substantial resource potential. Helios plans to advance the project with technical experts and anticipates increased drilling density and reduced costs. Per the company, future efforts will focus on enhancing technical evaluation, infrastructure development, and regulatory engagement.

First Helium (HELI.V FHELF 2MC.F) announced that it has engaged the services of a drilling contractor to drill its 7-15 high-impact exploration location, along with its proven undeveloped 7-30 oil location. The company expects the rig to arrive at the 7-30 location and begin drilling within two weeks. Following drilling of the 7-30 well, the rig will be released and mobilised directly to the 7-15 location to begin drilling in early February. 7-15 on seismic is approximately 5 times the areal extent of HELI’s successful 1-30 light oil pool discovery. Work has begun at both the 7-30 and 7-15 vertical well locations to prepare for drilling. Pending results, necessary preparations are being made to complete, equip and tie-in the two wells prior to spring break in Alberta…more

Helium Evolution (HEVI.V HEEVF) announced an update on its helium discovery following the completion of the Deadwood zone and initial testing of the 10-1 joint well. The company previously announced that the well successfully flow tested at approximately 9.5 million standard cubic feet per day (0.75% helium and 96.3% nitrogen) and a post-flow pressure transient analysis has now calculated an absolute open flow potential of 26 million standard cubic feet per day. The absence of water during the test period is a favourable factor for helium recovery and processing. Per Greg Robb, CEO, the positive findings underscore the potential for a large and productive helium reservoir in southern Saskatchewan and provide additional confidence as the company continues to advance its exploration and development activities. Next is the 12-29 well, which is expected to spud on or around January 20…more

Petro Matad (MATD.L PRTDF HA3.F) announced a Heron-1 production update and a new production sharing contract. The Heron-1 well in Block XX continues to produce oil naturally without pumping, maintaining stable production of over 200 barrels per day and 15,750 barrels have been transported and stored in Block XIX facilities, with sales revenue expected to commence soon. A new production sharing contract for Borzon Block VII has been signed, covering a large exploration area in southern Mongolia, the financial commitment for which is low, with a phased work program allowing for exploration and potential farmout opportunities. Petro Matad now is seeking partners for exploration activities in this block, with field work planned for Q2 2025…more

D3 Energy (D3E.ASX DNRGF) announced confirmation of the potential of the northern area of ER315 with successful production testing. Per the company, production testing at Nooitgedacht Major in the northern area of ER315 shows promising results with significant helium and methane concentrations. The findings are said to suggest a new production province with lower development costs. Nooitgedacht Major recorded an average flow rate of 102 thousand cubic feet per day over a 7-day period, with gas analysis showing helium concentrations of 5.6% and methane at 83.2%. The results are stated by D3 to highlight the potential of the northern area as a significant helium and natural gas resource. The testing is part of D3 Energy's strategy to unlock the full potential of ER315 and the shallower depths suggest lower development costs compared to southern wells…more

Pulsar Helium (PLSR.V PLSR.L PSRHF Y3K.F) announced the successful completion of the deepening operation for the Jetstream #1 appraisal well at its Topaz project in Minnesota. The drilling operation reached total depth of 5,100 feet on January 11, 2025, successfully penetrating the entire interpreted helium-bearing reservoir and beyond, with multiple helium zones encountered throughout the deepening operation from 2,200 feet to 5,100 feet. Mud log gas levels containing up to 7.24% helium were encountered during drilling. These samples are diluted by atmospheric air due to the rotary air drilling method used and unaffected samples for laboratory analysis will be acquired in due course. Down-hole wireline logging data was acquired over January 11-12 and this data will be integrated with additional downhole data that will be acquired over the coming weeks. Drilling for the Jetstream #2 appraisal well has now commenced. Jetstream #2 is planned to reach approximately 5,000 feet depth and is scheduled to reach total depth around the end of January…more

Mosman Oil and Gas (MSMN.L) announced the disposal of EP-145 to Echelon Resources (ECH.ASX NZEOF). The net proceeds combined with planned expenditure on EP-145 in 2025 that will no longer be incurred are estimated to be circa A$3 million. Additionally, Mosman will retain a 5% helium and hydrogen royalty. The A$400,000 received from Echelon will be used to progress helium exploration in the US projects. Per Andy Carroll, Mosman CEO, the company has taken a commercial decision to focus capital allocation and future operational activities on its US projects. The US has the considerable commercial advantages of a proven helium production basin, lower drilling and operating costs, ready availability of services, production infrastructure and access to markets. The transaction, once completed, restores Mosman to being fully funded for all exploration commitments in the next 12 months, and with funding available for discretionary exploration activities…more

Blue Star Helium (BNL.ASX BSNLF) and Helium One Global (HE1.L HLOGF HE1.F) announced a drilling update for the Galactica-Pegasus project in Las Animas County, Colorado. Blue Star Helium has now completed site works for the Jackson 31 and Jackson 04 wells, all casing has been delivered to the site, the drilling contractor is preparing to mobilize the rig and drilling at Jackson 31 is set to commence next week. The rig will move to Jackson 04 after completing Jackson 31, following which three additional wells are approved for drilling…more…more

Standard Lithium (SLI SLI.V S5L.F) and Equinor (EQNR EQNR.OL) announced that their jointly-owned US subsidiary, SWA Lithium, has closed the $225 million grant from the U.S. Department of Energy’s Office of Manufacturing & Energy Supply Chains. The grant will support construction of Phase 1 of the South West Arkansas project. SWA is said to be one of the highest-grade lithium brine projects in North America and expected to be one of the world’s first commercial-scale direct lithium extraction facilities. The project, located in Lafayette and Columbia Counties, Arkansas, is expected to produce 45,000 tonnes per annum of lithium carbonate, developed in two phases of 22,500 tonnes each. It is being developed in partnership with global energy leader Equinor, with ownership shared at 55% by Standard Lithium and 45% by Equinor. The partnership is targeting a final investment decision by the end of 2025 with Phase 1 production commencing in 2028…more

Invictus Energy (IVZ.ASX IVCTF) announced an update on its 80% owned SG 4571 licence in Zimbabwe’s Cabora Bassa Basin. Geo Associates, the company’s 80% owned subsidiary and holder of Special Grant 4571 has received notification that the Minister of Mines and Mining Development has extended the tenure of the SG 4571 licence, containing the Mukuyu discovery, for a further three years. Invictus plans to undertake a comprehensive work program during the third three-year licence period including 3D seismic acquisition and additional exploration/appraisal drilling and testing. The company is able to apply for a production special grant licence at any stage.

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