Oilman Jim's Letter - May 18, 2025

This Company with a pre-money valuation of only C$3million is completing a C$2 million seed equity raise for the restart of the fully permitted Gold Road mine in Arizona, USA. The current low company valuation offers near-term potential for a significant re-rating from the production start, a public quotation, and an additional one million ounces of gold exploration upside. 

The cost to build Gold Road from scratch today would be close to $100 million and management plans to grow production to 20,000 ounces of gold per year in 2025/26, which in a strong gold price environment could lead to a US$40+ million annual profit/EBITDA in 2026. Management has a proven track record and plans to go public in Q1 2026. 

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Top End Energy (TEE.ASX) announced it has further expanded its lease holdings at the Serpentine Natural Hydrogen Project in Kansas. Total acreage has increased to more than 30,000 prospective infill acres adjacent to existing TEE leases and Koloma well sites in an emerging hot spot for natural hydrogen. The project area is in the heart of what the company describes as a globally significant land rush, driven by historical hydrogen observations and ongoing exploration by Koloma and HyTerra (HYT.ASX HYTLF 8TP0.F) in Marshall, Washington and Riley Counties. There is said to be a highly competitive leasing environment with landowners in the area receiving multiple offers to lease, underscoring the strategic value in the project area. With the critical mass of acreage now secured, Top End is advancing key pre-drill activities across multiple fronts to attract strategic development partners. Early discussions with potential partners are said to be already underway and the company believes successful execution of this strategy could unlock significant value for shareholders. HyTerra’s recent drilling results in Riley County are encouraging, with hydrogen concentrations of 96.1% confirming historical observations through modern, targeted exploration…more…more

Zephyr Energy (ZPHR.L ZPHRF VD5N.F) announced it has entered into an agreement with a US-based capital provider focused in the energy sector to fund growth in the company's non-operated asset portfolio in the Williston Basin in North Dakota and Montana. Under the terms of the agreement, Zephyr will be responsible for acquiring non-operated assets and the investor will make available up to $100 million to fund 100% of capital expenditures related to the drilling, completing and equipping of those non-operated assets. The investor may elect to participate in opportunities at its discretion, on a case-by-case basis, after conducting its own financial and technical verification and will earn a majority of the cash flows generated by its pro rata working interest in each well until an agreed upon initial hurdle rate is met. The agreement is for an initial term of six months…more

Grand Gulf Energy (GGE.ASX GRGUF) announced it has entered a non-binding memorandum of understanding with TSXV-listed potash developer Sage Potash (SAGE.V SGPTF) to explore technical and operational cooperation within an area of mutual interest. The agreement leverages the geographic and operational synergies between Grand Gulf’s Red Helium Project and Sage Potash’s Sage Plain Project, both located in close proximity within the Paradox Basin, Utah. Sage Potash owns potash rights and Grand Gulf controls helium and other commodity rights within the AMI. The MoU outlines a collaborative framework for the joint-funding of a proposed 3D seismic survey and the evaluation of joint infrastructure development, including the potential drilling of a new well to assess potash mineralisation and test for helium. The MoU between Grand Gulf and Sage Potash has the potential to significantly reduce the overall cost of exploration and development activities in the AMI. Grand Gulf’s Jesse-1A well is said to have unequivocally demonstrated the presence of helium within the Red Helium Project. A 3D seismic survey over a series of highly prospective helium features is crucial in de-risking future drill locations and establishing commercial helium flows…more

Corcel (CRCL.L CRCL.V RM4B.F) announced that it has conditionally acquired an additional 30% gross interest in its operated Block KON-16 in the Kwanza Basin, onshore Angola, from a joint venture partner of the block, subject to Governmental approval. Concurrently, Corcel also announced the signing of a binding heads of terms for a strategic alliance with Sintana Energy (SEI.V SEUSF), a transaction that secures $2,500,000 in exchange for a 5% net interest in Block KON-16. The result of these two transactions, upon completion, will increase Corcel's net interest in Block KON-16 from 49.5% to 71.5%. Corcel has entered into a strategic alliance with Sintana through a Joint Study and Bid Agreement, which targets further opportunities in onshore and offshore Angola and the transaction proceeds enable Corcel to accelerate and fund its 2025 seismic program in KON-16 leading to drilling an initial exploration well in KON-16 in 2026…more…more

Chariot (CHAR.L OIGLF C62.F) announced that Energean (ENOG.L EERGF 1YE.F) has returned its Moroccan offshore interests to Chariot by completing the transfer of their wholly owned subsidiary which holds 45% and 37.5% respectively in the Lixus Offshore and Rissana Offshore licences. Chariot is now operator and has a 75% working interest in each licence, with ONHYM retaining their 25% stake. The Anchois gas field is located in the Lixus Offshore licence where three wells have now been drilled. The Anchois-3 well was completed in September 2024 and while this well did not deliver the additional volumes required to enable an expansion of the initially planned Anchois development, multiple good quality gas bearing reservoirs were found in the main B sand appraisal interval. With operatorship restored, Chariot says it remains committed to progressing the licence work programmes and will collaborate with ONHYM to assess and adapt the Anchois development plan based on discovered resources, while continuing to assess the additional potential of the wider Lixus and Rissana licence areas…more…more

Blue Star Helium (BNL.ASX BSNLF) and Helium One Global (HE1.L HLOGF HE1.F) announced Jackson-2 flow test results and a gas analysis update. Jackson-2 flowed naturally during drilling and at total depth, and the flow rate since total depth has increased to over 250 thousand cubic feet per day. Projected stabilised flow rates are 300 thousand cubic feet per day to 400 thousand cubic feet per day constrained to optimise production, with a maximum potential rate of 500 thousand cubic feet per day. Early samples returned helium concentration of up to 1.22% (air-corrected) and 77.77% CO2. The companies have made the decision to drill the sixth well under the farm-in agreement at the State 9 location. Pad construction is currently underway, and they anticipate spudding the well next week.…more…more

Touchstone Exploration (TXP.TSX PBEGF TXP.L PNW1.F) announced that it successfully closed the acquisition from Shell (SHEL SHEL.L) of 100 percent of the share capital of Shell Trinidad Central Block Limited. The acquisition was completed for a cash consideration of approximately $28.4 million, subject to final closing adjustments. STCBL holds a 65 percent participating interest in the onshore Central block exploration and production licence in Trinidad, which includes four producing natural gas wells and a gas processing facility. The remaining 35 percent participating interest is held by state-owned Heritage Petroleum Company Limited. The Central block licence encompasses approximately 6,699 gross acres (4,354 net working interest acres). Touchstone says it will provide an updated corporate presentation and revised 2025 guidance as the integration of the acquired assets progresses…more…more

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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.

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