Oilman Jim's Letter - November 17, 2024

Pantheon Resources (PANR.L PTHRF P3K.F) announced the spudding of the Megrez-1 well to explore the eastern topsets in the Ahpun field. Megrez-1 will target three topset horizons, which the company estimates to contain an aggregate 2U prospective resource of 609 million barrels of oil, condensate and natural gas liquids and 3.3 trillion cubic feet of natural gas. Per the company, there are few, if any, onshore wells targeting what is estimated to be more than 1 billion barrels of oil equivalent of 2U prospective resource anywhere in the world during this year. Initial results from the well will be announced when drilling operations are complete. Pantheon says it was greatly encouraged by the supportive words made by President-elect Trump and the Governor of Alaska last week with respect to their intentions for progressing the proposed Alaska natural gas pipeline, which is Phase 1 of the Alaska LNG project…more

Arrow Exploration (AXL.V CSTPF AXL.L C1JT.F) announced an operational update. CNB HZ-6 is now on production having cleaned up at an initial rate of 2,250 barrels of oil per day (1,125 net to Arrow) and CNB HZ-6 is currently flowing at a rate exceeding 1,900 barrels of oil per day gross (960 net to Arrow) with a 31% water cut. The water disposal facility at the CNB pad began operating on November 2, 2024, allowing Arrow to increase pump rates and production. CNB HZ-7 was spud on October 22, 2024. Once complete, the rig will move to drill the Alberta Llanos prospect (formerly known as Baquiano-1). Current net corporate production is over 5,305 barrels of oil equivalent per day, inclusive of CNB HZ-6, with the company's cash position exceeding $18 million on November 1, 2024…more

Helix Exploration (HEX.L) announced the completion of drilling at the Darwin #1 well. A total depth of 5,488 feet was reached in 12 days of drilling. There are said to have been significant helium gas-shows in multiple horizons with up to 1,312 parts per million in drilling mud. Over 330 feet of potential gross pay was reported, including formations not tested in historic drilling, and targets were hit high to prognosis, indicating a larger anticline structure than previously modelled. The company will now proceed with wireline logging at Darwin #1 to identify reservoir zones for perforation and testing. Meanwhile, testing remains ongoing at Clink #1 with results from first gas analysis to be announced shortly…more

Zephyr Energy (ZPHR.L ZPHRF VD5N.F) announced an operations update for the State 36-2R LNW-CC well in the Paradox Basin, Utah. Preparations for the commencement of drilling operations to extend the lateral on the well are at an advanced stage. Surface operations on the pad will begin as soon as possible, with the company expecting full drilling operations to commence early in the first quarter of 2025, subject to rig availability and weather conditions. The existing well was drilled to 10,200 feet, including 130 feet of completed reservoir interval in the short horizontal section of the well. The extended lateral will be drilled horizontally from the existing wellbore and is expected to target an additional 5,500 feet of the Cane Creek reservoir.  The cost of the operation is expected to be around $7 million and an asset level investment from an industry investor is expected to fund 100% of the expected costs required to drill, complete and test the extended lateral. Per Zephyr, no equity or warrants will be issued as part of the transaction and the investor will not receive any future interest or option in the Paradox project other than the working interest in the well. Additionally, Canaccord Genuity has been appointed as the company's joint broker with immediate effect…more

First Helium (HELI.V FHELF 2MC.F) announced that it has completed its field survey activities and selected the surface location for its Leduc anomaly test well planned for drilling this winter. The well location has been selected based on evaluation of recently acquired proprietary 3D seismic data where the company has identified an anomaly in the Leduc Formation which it believes to be prospective for oil. To date, HELI has drilled two successful Leduc oil wells at Worsley, including the 1-30 and 4-29 Leduc oil pool discoveries, which together have produced more than 113,000 barrels of light oil, generating in excess of $13 million in revenue and $8 million in cash flow. Completion of the recent financing will allow the company to proceed with a number of operations this winter, which include testing the large 3D seismic anomaly targeting Leduc oil, and completing the previously drilled Blue Ridge horizontal well targeting helium-enriched natural gas…more

Helium One Global (HE1.L HLOGF HE1.F) and Blue Star Helium (BNL.ASX BSNLF) announced an update on the Galactica-Pegasus project in Las Animas County, Colorado. Helium One completed a farm-in agreement with Blue Star on 4 November 2024. The Colorado Energy and Carbon Management Commission has approved permits to drill five additional helium development wells at the Galactica/Pegasus project and the five additional wells, together with the State 16 well which is suspended ahead of tie-in to production, are expected to form part of the initial gas gathering into the Galactica helium production facility. Drilling is planned to start Q4 2024…more…more

New Zealand Energy (NZ.V NZERF) announced that the Tariki-5 well drilling operations suspended in late October 2024 will resume on Monday, November 18, 2024. The new wellbore will be designated Tariki-5A and has a target location based predominantly upon additional control points gained from drilling the primary Tariki-5 well. The well data and the planned location are said to have been extensively reviewed and endorsed by external experts. Management expects that all production facilities will be on schedule and ready to commence production soon after completion of the well. The previously announced private placement offering is expected to close on or before November 20, 2024.

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