Oilman Jim's Letter - January 29, 2025

Reconnaissance Energy Africa (RECO.V RECAF 0XD.F) announced that it has completed the farm down agreement with BW Energy (BWE.OL), the sale of a 20% working interest in Petroleum Exploration Licence 73 in northeast Namibia having now been approved by the Namibian Ministry of Mines and Energy and Namcor Exploration and Production. The working interests in PEL 73 are now: ReconAfrica, operator, 70% working interest; BW Energy 20% working interest; and NAMCOR 10% working interest. Per Brian Reinsborough, President and CEO, the results of the Naingopo exploration well will be released shortly following third party analysis of the extensive evaluation program, which was undertaken after the completion of drilling operations on the well…more

Genel Energy (GENL.L GEGYF) issued a trading and operations update. Strong delivery performance at Tawke saw the company deliver full year free cash flow of $19 million and an improvement in the net cash position to $131 million. Working interest average production was 19,650 barrels of oil per day for the year, up from 12,410 barrels of oil per day in 2023. All production was sold into the domestic market at average of $35 per barrel. Total debt has been reduced from $248 million at the start of the year to a current $66 million. $107 million remains overdue from the Kurdistan Regional Government, reduced by amounts owed to the KRG which are currently around $50 million. Genel continues to work towards a plan for payment or settlement. The company states its objectives for the year include acquisition of new assets to add reserves and diversify cash generation, restart of exports to access international pricing, recovery of net amounts owed by the KRG, further progress towards drilling Toosan-1 and farm-out of Lagzira…more

Union Jack Oil (UJO.L UJOGF 1UJO.F) announced a positive update on the Moccasin 1-13 well, located in Pottawatomie County, Oklahoma, in which the company holds a 45% working interest. The well was drilled on budget to a target depth of 5,690 feet, electric logs have been acquired, several zones of interest and test intervals have been identified, and production casing has been run and cemented. Testing will begin on or around 3 February 2025. David Bramhill, Executive Chairman, also reported that Union Jack remains in a robust financial position having paid all major outgoings including drilling and completion costs for its current U.S. activities and continues to generate material revenues in the U.K. from Wressle, which are expected to be boosted by Keddington production where restart is expected in early 2025, plus the two Andrews wells discoveries in Oklahoma and the US mineral royalty portfolio that provides a constant rate of return of over 31% on the company’s investment. UJO will report further on evaluation and test results from Moccasin and completion results from the Taylor 1-16 well, which was drilled late 2024…more

Sunda Energy (SNDA.L GHA.F) announced that an environmental baseline survey has commenced in preparation for the drilling of the planned Chuditch-2 appraisal well, which is scheduled to be drilled in Q2 2025. The survey vessel is now on location and has commenced studies, consisting of extensive sampling of the marine environment. The survey is expected to be completed within 5 days and the results and analysis from the survey will be incorporated into the Environmental Impact Statement, which is currently under preparation as part of the approvals process for the drilling of the well…more

88 Energy (88E.ASX 88E.L EEENF POQ.F) announced a maiden internal prospective resource estimate for the Canning prospect of 283 million barrels of oil (net mean, unrisked) at Project Leonis in Alaska, where it holds a 100% working interest with a 16.67% State royalty. The combined internal gross mean prospective resource estimate across the Canning and USB prospects now is 798 million barrels of oil with a 664 million barrels net mean prospective resource to 88E. Planning is now underway for the Tiri-1 exploration well, which is currently scheduled for H1 2026, targeting both the Canning and USB prospects. 88 Energy's 100% working interest is said by the company to provide strong potential to secure a large proportionate carry on completion of the active farm-out process, ahead of any future drilling event. The project is located adjacent to the major pipeline system (TAPS) and the Dalton Highway, significantly enhancing any future development and commercialisation potential…more

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