Oilman Jim's Letter - October 9, 2024

PetroTal (TAL.TSX PTAL.L PTALF SER1.F) announced an operational and financial update. Q3 production averaged 15,160 barrels of oil per day, a 39% increase on Q3 2023 and 2024 annual production is on track to meet the top end of guidance range. Total cash was $133 million as of September 30, 2024, an 18% increase on Q3 2023, and well 20H has achieved initial production rates of over 5,300 barrels of oil per day. This well was jointly completed in both the Upper and Main Vivian sand units. PetroTal commenced drilling well 21H at Bretaña on September 25, 2024 and it is expected to be completed by mid-November at a total cost of $14 million. Following 21H, PetroTal plans to drill and complete wells 22H and 23H, before releasing the rig in Q1 2025. Regarding the block 131 (CESPA) acquisition, the President of Peru signed a Supreme Decree allowing for the amendment of the hydrocarbon exploration and production license for this block and upon renewal of an investment certificate from the Peruvian tax authority, expected within the next 30 business days, the transaction is expected to close…more

Petro Matad (MATD.L PRTDF HA3.F) announced an update on activities in its Block XX production sharing contract area in eastern Mongolia. The Ministry of Industry and Mineral Resources and the Ministry of Construction and Urban Development have approved the company's proposal to reclassify oil production well pads such that they do not require construction permitting and the former has issued instructions to start production. Construction of long-term production facilities at Heron-1 has thus commenced and production startup during October is expected. Commercial details for the cooperation agreement between the company and the operator of Block XIX facilities have been provided and are in line with expectations. Preparations to test the Heron-2 well are underway with results expected in early November. Now that construction permitting is not required, the company is progressing plans to be ready to bring the well onstream in November in the event of a good test. The Gobi Bear-1 exploration well has been drilled and logged. Casing has now been run to bottom and the well will be suspended pending further evaluation prior to likely well testing…more

Helix Exploration (HEX.L) announced an operational update on the Clink #1 well at the Ingomar Dome project. Precision Drilling’s rig 704 has commenced mobilisation to site where re-entry work is expected to begin shortly. Once mobilisation and rig-up is completed, it is expected to take approximately 7 - 10 days to case over the problematic Mowry shale and run a wiper trip to total depth. Following a successful re-entry, the company will evaluate the option to deepen the well and explore for helium and hydrogen in the lower-Cambrian and fractured pre-Cambrian basement, or to move directly on to wireline and flow-testing of helium and hydrogen gas-shows already identified in the Amsden, Charles, and Flathead formations. The company says it will keep the market informed as work progresses…more

ADX Energy (ADX.ASX ADXRF GHU.F) announced that the Lichtenberg-1 gas exploration well had reached a depth of 1,288 metres measured depth in 8 ½ inch hole. The well is expected to take approximately 30 days to drill to total depth of approximately 2,900 metres measured depth. If successful, detailed logging, casing and suspension of the well will take approximately a further 10 days. The first Oligocene gas reservoirs are expected from around 2,000 metres measured depth, with the main primary target reservoir expected from approximately 2,500 metres measured depth. The planned well total depth is approximately 2,900 metres measured depth. The next drilling operations report will be provided on 15 October 2024. ADX is operator and holds a 100% economic interest in the MND investment area, which will reduce to 50% upon the completion of MND’s farm in obligations. ADX has a 100% economic interest in the remainder of the ADX-AT-I licence including other gas exploration prospects (OHO and ZAM) as well as the GMU geothermal / oil and gas energy prospect…more

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