Oilman Jim's Letter - October 2, 2024

Predator Oil & Gas (PRD.L 1EM.F) announced the helium potential for its MOU-5 prospect at Guercif, Morocco. The potential conventional prospective gross recoverable gas resources for the primary reservoir target in MOU-5 were previously reported as being 5.916 trillion cubic feet (P50 upside case), thus potential gross estimates of in-place helium for the P50 upside case are, per the company, 104.31 billion cubic feet based on a global averaged scenario of 1.298% helium and 598.88 billion cubic feet for the P10 upside case based on a global averaged scenario of 4.066% helium…more

Touchstone Exploration (TXP.TSX TXP.L PBEGF PNW1.F) announced that the Cascadura-2ST1 and Cascadura-3ST1 wells have been completed with initial shut-in wellhead pressures building to 3,600 pounds per square inch and 2,665 pounds per square inch, respectively. The fluid column gradient observed in the tubing at Cascadura-2ST1 suggests a significant presence of natural gas, comparable to findings in the Cascadura-1ST1 well, reinforcing the companies geological models. Cascadura-3ST1 successfully flowed crude oil from the lower sheet 5 Herrera interval on September 17, 2024, followed by a test from the sheet 4 Herrera interval on September 26, 2024 confirming natural gas. Touchstone has successfully installed the flowline connecting the Cascadura C surface location to its natural gas facility, and hydrotesting of the line will commence shortly. Infrastructure also has been enhanced with the test separator at the Cascadura natural gas facility having been installed, and the riser at the Cascadura B site has been completed, optimizing operational capabilities. Also reported was a significant production increase at Balata East: since acquiring the field in June 2024, production has surged by nearly 300 percent from a targeted workover and optimization program…more

Petro Matad (MATD.L PRTDF HA3.F) announced that Heron-2, the first development well to be drilled on the Petro Matad operated Heron oil field in Block XX in the Tamsag Basin of eastern Mongolia, has reached total depth and wireline logging has been completed. The well reached a total depth of 2,908 metres seven days ahead of schedule and an oil zone of 18 metres gross thickness was encountered which wireline logging indicates is very likely the same stratigraphic unit as that successfully tested in the Heron-1 discovery well. Production casing has been run in preparation for a well testing programme…more

Buru Energy (BRU.ASX BRNGF) announced an update in relation to the transactions recently executed by the company with Sabre Energy. Following lengthy discussions, Sabre failed to meet their financial obligations under the Rafael Shallow farm-in agreement announced in August and both the Rafael Shallow and Ungani farm in agreements have been terminated. Alternative funding of A$3 million for the Rafael Shallow 1 well has been arranged with two entities associated with long-term Buru shareholders. They have entered into separate farm-in transactions with Buru to earn a total 25% interest in the Rafael Shallow 1 well which has been negotiated largely based on the same pro-rata farm-in terms as the previous farm-in agreement with Sabre. Additionally, Buru announced that it has completed a successful share placement at A$0.62 per share, which has raised a total of A$6.7 million before costs. The placement provides funding towards the commercialisation of the Rafael gas project, drilling of the Rafael Shallow 1 exploration well, and restarting of the Ungani Oilfield. Buru has now executed a contract with Silver City Drilling for the Rafael Shallow 1, their Rig 24 has mobilised and the company is preparing to commence drilling this month…more

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.