Oilman Jim's Letter - March 1, 2025

Buy gold in the ground for $14 an ounce

• 2 million ounce gold resource in Finland - low cost open pit operation

• 80,000 ounces/year gold production resuming in June

• Public listing planned for October

• Largest gold plant in Europe fully built and ready to start 

• Strategic partner announced this week investing C$15m

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BP (BP.L BP) announced it will cut its renewable energy investments and instead focus on increasing oil and gas production, following pressure from investors unhappy its profits and share price have been lower than its rivals. The company will increase its investments in oil and gas by about 20% to $10 billion a year, while decreasing previously planned funding for renewables by more than $5 billion. Shell (SHEL SHEL.L) and Equinor (EQNR.OL EQNR) have also scaled back plans to invest in green energy, with US President Donald Trump's comments encouraging investment in fossil fuels. Murray Auchincloss, BP's chief executive, said the energy giant had gone too far, too fast in the transition away from fossil fuels and that its faith in green energy was misplaced. BP shareholders want it to make money, not climate policy. In the five years since former chief executive Bernard Looney first unveiled his strategy, shareholders have received total returns including dividends of 36%. In contrast, shareholders in rivals Shell and Exxon (XOM) have seen returns of 82% and 160% respectively. The company may also now consider moving its main stock market listing to the US where oil and gas companies command higher valuations.

Galp (GALP.LS GLPEF), holding 80% and operator, together with partners NAMCOR and Custos, holding 10% each, have successfully drilled, cored and logged the Mopane-3X well (Well #5) in PEL83, offshore Namibia, which was spudded on January 2, 2025. Sintana Energy (SEI.V SEUSF) holds an indirect 4.9% interest through its 49% effective interest in Custos. Mopane-3X, located at an 18 kilometre distance from the first Mopane-1X well, targeted two stacked prospects, AVO-10 & AVO-13, and a deeper sand, in the southeast region of the Mopane complex, at c.1,200 metres water depth. Preliminary data confirm light oil and gas-condensate significant columns across AVO-10, and light oil columns on AVO-13 and on the deeper sand, in high-quality sandstones. The reservoirs log measures confirm good porosities, high pressures and high permeabilities. Initial fluid samples show low oil viscosity and minimum CO2 and H2S concentrations. Samples were sent for lab testing. Mopane-3X higher-than-estimated pressures and preliminary results unlock further exploration & appraisal opportunities in the southeast region of Mopane. All acquired data will be integrated into the reservoir model and support the planning of potential further activities. The proprietary 3D development seismic acquisition campaign is on track to be completed in the Q1 2025, with processing of the information acquired to follow…more

Pantheon Resources (PANR.L PTHRF P3K.F) announced the accelerated appointment of Max Easley as CEO, the migration of David Hobbs back to the role of Non-Executive Chairman and the upsize of the convertible bond to $35 million. The bonds have a coupon of 5.0% per annum, with an initial conversion price of $0.8675 subject to adjustments and will be repaid on the third anniversary. $12.25 million will be used to fund repayment of existing bonds, with the balance of $22.75 million used towards working capital, expenses and G&A. Sounds like a new group is in charge here now.

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Union Jack Oil (UJO.L UJOGF 1UJO.F) announced a positive update on the testing of the Moccasin 1-13 well, located in Pottawatomie County, Oklahoma. Union Jack holds a 45% working interest in this well with the operator, Reach Oil & Gas, holding the remaining 55% working interest. Moccasin has been declared a commercial discovery, having been drilled to a total depth of 5,690 feet to test a dip and fault closed structure, mapped from 3D seismic, downthrown on the west side of the Wilzetta fault. Several intervals were highlighted on electric logs as hydrocarbon bearing following evaluation. The primary target was perforated, tested and confirmed as a significant oil producer with no formation water present. Initial oil flows and log interpretation indicate excellent reservoir permeability with oil recovery rates of over 40% to be expected. Light oil with minimal associated gas was recovered and the installation of permanent production facilities has commenced. Moccasin drill and completion costs have already been funded from UJO's cash resources. Early indications suggest that Moccasin could provide material cash-flow going forward…more

Top End Energy (TEE.ASX) announced that it has expanded its lease holdings at the Serpentine Natural Hydrogen Project in Kansas. The focus is on securing highly prospective infill acreage adjacent to existing leases and Koloma exploration activity. The project is said by the company to be located at the heart of a globally significant land rush, driven by historical hydrogen observations, recent Koloma exploration activity and an upcoming drilling program by HyTerra (HYT.ASX HYTLF 8TP0.F). Landowners in the area are receiving multiple offers to lease, underscoring the strategic value in the project and TEE’s early competitive advantage. The company is targeting 30,000 acres in Q2 2025, quickly closing in on the critical mass of lease holdings required for exploration and development, with an aggressive leasing strategy and the hiring of additional land services. The company currently holds the exclusive right to explore for and produce hydrogen and helium from 25,000 acres across a highly sought-after play fairway. This expansion strengthens TEE’s position near current exploration efforts, including wells drilled in 2024, an ongoing seismic program and recently permitted well sites. The newly secured leases also enable a more cohesive approach to future drilling, infrastructure placement, and operational planning. TEE is progressing its pre-drill strategy with specialised technical appointments and prioritising well site selection in preparation for operational filings and the submission of drill permit applications…more…more

Georgina Energy (GEX.L) announced publication of the scoping study of Hussar completed by Duncan Seddon & Associates. The study confirms the potential for a commercial gas field development at Hussar, capable of producing helium, hydrogen, LNG, and argon with strong financials: a 40 million standard cubic feet per day raw gas flow scenario generates an internal rate of return of 27.3% and a net present value of $1.64 billion at a 10% discount rate. Pre-tax profits are estimated between $7.3 million to $208 million per annum, depending on production rates and gas prices. The company says it has in place a non-exclusive memorandum of understanding to facilitate the sale of helium, hydrogen and natural gas. At a minimum, states Georgina, the scoping study confirms that the development of a gas field at the Hussar Prospect to produce liquid helium, hydrogen, LNG and argon is a commercially viable option.

Own a stake in Alaska’s oil reserves.

• Estimated 300 million barrels of recoverable reserves

• Royalty-based model reducing operational risks

• Projected 25+ years of reliable, high-margin royalty income

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Read the Offering information carefully before investing. It contains details of the issuer’s business, risks, charges, expenses, and other information, which should be considered before investing. Obtain a Form C and Offering Memorandum at invest.klondikeroyalties.com.

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.