Oilman Jim's Letter - January 26, 2025

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Pantheon Resources (PANR.L PTHRF P3K.F) announced a Megrez-1 upgrade after preliminary log, core and cuttings analysis and a consequential anticipated upgrade of resource for Ahpun's Eastern Topset. Preliminary volumetrics for the Upper Schrader Bluff and Upper & Lower Prince Creek formations indicate the potential for a 15% - 50% increase in resource estimates from the pre-drill estimate of 609 million barrels. Four initial flow tests are planned of 10 days each, beginning in Q1 2025, and resources are expected to be reclassified to contingent (2C) upon successful flow testing. Three additional potential oil bearing zones in the Lower Sagavanirktok formation have been identified, resulting in substantial further resource upside potential in the Lower Sagavanirktok, which also will be tested if confirmed by further logs and analysis, prior to suspension of the well as a potential future producer/injector…more

D3 Energy (D3E.ASX DNRGF) announced the successful completion of production testing at Nooitgedacht Major, a legacy borehole located in the northern area of ER315, South Africa. The well achieved an average gas flow rate of 95 million cubic feet per day over a 14-day period, with measured helium and methane concentrations of 5.6% and 83.2% respectively, further confirming the potential of the northern area of ER315 as another production province for helium and natural gas. The northern area of ER315, including the Nooitgedacht Major borehole, benefits from shallower drilling depths, which is expected to reduce development costs and enhance the economic viability of future operations…more

Zephyr Energy (ZPHR.L ZPHRF VD5N.F) announced that operations to drill the extended lateral on the State 36-2 LNW-CC-R well have commenced. The extended lateral will be drilled horizontally from near the base of the existing wellbore and will target an additional 5,500 feet of the Cane Creek reservoir. Drilling operations are expected to take approximately 30 days. Immediately after drilling operations have concluded, the Nabors rig will be demobilised at which point equipment for the completion and production testing of the well will be moved to site. It is currently expected that the results from the production test on the well will be available by the end of March 2025…more

GeoPark (GPRK) announced its 2025 work program, designed per the company to deliver increasing value to shareholders through disciplined capital allocation, operational excellence, and sustainable growth, integrating the key principles of GeoPark’s North Star strategy. The company aims for more than $400 million of annual EBITDA generation, focused on growth through big assets, big basins and big plays, targeting 70,000 barrels of oil equivalent per day mid-term (2028) and 100,000 barrels of oil equivalent per day long-term (2030), with strong cashflow generation ($120-180 million ending cash) and maintaining an annual dividend of $30 million…more

Predator Oil & Gas (PRD.L 1EM.F) announced that civil engineering work, to improve access roads and prepare the MOU-5 well pad, has commenced on its Guercif licence, onshore Morocco. Presently, it is forecast that MOU-5 drilling operations are on track to commence on or about 25 February 2025. As Paul Griffiths, CEO, points out the hydrocarbon sector has seen a global resurgence of interest and activity outside of the UK and Europe over the past few months led by the United States, Norway, Middle East, Africa and Far East…more

Falcon Oil & Gas (FO.V FOG.L FAC.F) announced commencement of the stimulation campaign at the Shenandoah S2-2H ST1 and Shenandoah S2-4H wells in the Beetaloo Sub-Basin, Northern Territory, Australia with joint venture partner Tamboran (TBN TBN.ASX). Liberty Energy (LBRT), which mobilised equipment and sand to location before the end of last year, will carry out the stimulation campaign on behalf of the Beetaloo JV partners. For the next drill phase of the pilot, which involves the drilling and stimulation of the remaining four wells, Falcon has elected to reduce its participating interest from 5% to 0%, which will significantly reduce it’s 2025 capital expenditure. Falcon participated in the Shenandoah S-1H well in 2023 at its 22.5% participating interest which created a drill spacing unit of 20,480 acres and participated in the S2-2H ST1 and the S2-4H wells in 2024 at its reduced 5% participating interest which created two drill spacing units totalling 46,080 acres. The Beetaloo JV partners are planning on creating an enlarged area around the pilot, which would amalgamate the acreage and participating interests from the current and any further drill spacing units that may be created as part of the pilot, Falcon’s combined participation entitlement in which could be up to 10%. Falcon also retains a 22.5% participating interest in the remaining 4.52 million acres in the Beetaloo, 1 million net acres to Falcon…more…more

Helix Exploration (HEX.L) announced updated reserves and results of economic modelling at its Rudyard project and a proposed capital raising of not less than £4 million through the issue of a minimum 26,666,667 new ordinary shares at 15 pence. Reserves of 355 million cubic feet of helium are said to have been calculated by Aeon Petroleum Consultants on the northern dome. Net revenue of $115.2 million over a 12.5-year life of field has been calculated with a peak sustained post-tax cash flow of $15-25 million per year using a flat helium price of $500 per thousand cubic feet…more

Empyrean Energy (EME.L E1E.F) announced it has successfully completed the acquisition of an option to participate in a conventional oil exploration project, the Wilson River prospect, situated close to existing infrastructure in the prolific Cooper Basin in South West Queensland, Australia, and adjacent to several producing oil fields. The prospect is being prepared for near-term drilling once final surveys are complete and permits granted. Wilson River is said to have multiple stacked reservoir targets, lies within an oil migration pathway and shares similar structural orientation and features to nearby fields. Based on current rig availability, and subject to the completion of surveys and permitting, the well is scheduled to be drilled in March 2025. The prospect has been mapped with a combination of 2D and 3D seismic and, per the company, has estimated prospective oil in place in the range of 8.7 million barrels of oil equivalent to 37.4 million barrels of oil equivalent with a mean of 21.3 million barrels of oil equivalent. Nearby fields are said to have recovery factors in the more prolific formations of up to 59%. The option allows Empyrean to earn a minimum 40 % working interest in the permit by paying two-thirds of the cost of drilling an exploration well, estimated at approximately A$2.8 million gross.

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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.