Oilman Jim's Letter - November 7, 2024

Reconnaissance Energy Africa (RECO.V RECAF 0XD.F) announced dual-listing on the Namibian Stock Exchange, the renewal of Petroleum Exploration Licence 001 onshore Botswana and an operational update with respect to its exploration activities on Petroleum Exploration Licence 073 onshore Namibia. Following the completion of logging and casing operations and the planned switch to a 10,000 pounds per square inch blowout preventer on the Naingopo exploration well, the company required additional time to replace a hose on the choke manifold. Drilling recommenced in mid-October and is currently drilling ahead at 3,500 metres (11,500 feet). RECO expects to complete drilling operations towards its target depth of 3,800 metres (12,500 feet) and will disclose results following analysis of logging and any obtained oil or natural gas samples. Road construction activities relating to the Kambundu exploration well (Prospect P) are nearing completion and well site construction is well advanced. The company anticipates moving to the Kambundu exploration well following analysis of the results of the Naingopo exploration well. RECO is also progressing its planned 3D seismic survey on PEL 73, where it will acquire 500 kilometres of 3D seismic data over the prospective Kavango Rift Basin play. Acquisition of this survey is expected to occur in mid-2025…more

Challenger Energy (CEG.L BSHPF) announced an update for its AREA OFF-3 block, offshore Uruguay. The company has entered into a licence agreement to secure access to historic 3D seismic data over AREA OFF-3 for the purposes of reprocessing. This is underway, and Challenger expects preliminary outputs prior to year end, with the work expected to be fully completed in Q2, 2025. 3D seismic reprocessing work will be supplemented with a range of other seismic workflows including amplitude variation with offset, which was utilised successfully on AREA OFF-1. The objective of this work is to mature the available data set for AREA OFF-3 in an accelerated time frame, sufficient to enable a robust prospect inventory to be mapped and for potential drill locations to be identified, in support of a formal farmout process which the company is targeting to commence in mid-2025…more

Pulsar Helium (PLSR.V PLSR.L PSRHF Y3K.F) announced an operational update on the Topaz project in Minnesota. With the recent upgrades to site access, roadways, and drill pad setup, the company is on track to deepen the Jetstream #1 well by approximately 500 metres to reach the anticipated full height of the helium reservoir. The drill pad is said to be fully prepared and ready to accept the drilling rig and ancillary equipment which is anticipated to begin arriving to site during the first week of December…more

Longhorn Exploration (LEX.V) announced that it has closed its acquisition of PureWave Hydrogen, a private company that holds five natural hydrogen lease agreements in Kansas covering approximately 829.20 acres. Per Anthony Zelen, LEX CEO, the acquisition brings increased acreage, a knowledgeable and competent technical team, and a pipeline of potential transactions. The company is focused on the acquisition, exploration and development of natural (white) hydrogen assets.

Empyrean Energy (EME.L E1E.F) announced that it has conditionally raised £1.12 million before costs through direct subscriptions and a placing of 1,120,500,000 new shares at a price of 0.1 pence. A retail offer to raise up to £250,000 on the same terms has commenced and is expected to close within three days of its launch. Funds raised will be used for the company's general working capital purposes and, if appropriate, to drill the Wilson prospect. Empyrean says it is in advanced discussions to acquire an option to participate in this conventional oil exploration project which is situated close to existing infrastructure in the Cooper Basin in South West Queensland, Australia, adjacent to several producing oil fields. The Wilson prospect is being prepared for near term drilling once final surveys are complete and permits granted. The prospect has been mapped with a combination of 2D and 3D seismic and has estimated prospective oil in place in the range of 8.7 million barrels of oil equivalent to 37.4million barrels of oil equivalent with a mean of 21.3 million barrels of oil equivalent. Nearby fields are said to have recovery factors up to 50 per cent. The  proposed acquisition of the option will allow Empyrean to earn a minimum 40 per cent working Interest in the permit by paying two thirds of the gross cost of drilling an exploration well, estimated at approximately A$2.8 million gross. The joint venture partners are in negotiations on a drilling contract and the remaining funding for the well…more

Touchstone Exploration (TXP.TSX PBEGF TXP.L PNW1.F) announced execution of an exploration and production licence for the Rio Claro block. Touchstone, through a subsidiary, holds an 80 percent operating working interest in the licence while the National Gas Company of Trinidad and Tobago retains the remaining 20 percent. Like Touchstone's Charuma, Cipero and Ortoire licences, the Rio Claro Licence initially has a six-year exploration term, with the possibility of a 19 year extension for areas where commercial discoveries are approved. Located adjacent to the company's Ortoire block, the Rio Claro acreage surrounds the recently acquired Balata East field, marking an extension of Touchstone's exploration and development focus within the Herrera Formation fairway. Proprietary seismic data highlights several promising Herrera Formation anomalies, which extend from the Ortoire block into the Rio Claro acreage, situated in structurally favorable up-dip positions. Touchstone's Cascadura-3ST1 discovery within the Ortoire block appears to extend into the Rio Claro block. Seismic interpretation further reveals that both the Royston anomaly in the Herrera Formation and the Kraken anomaly in the Cretaceous Formation extend into the Rio Claro acreage. With existing sales infrastructure at Ortoire and Balata East, any future discoveries of liquid hydrocarbons or natural gas within the Rio Claro block can be seamlessly integrated into production…more

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