Oilman Jim's Letter - 1 May 2024

PANR.L PTHRF 88E.AX EEENF 88E.L PRD.L TXP.TO PBEGF TXP.L TRIN.L TRXEF

Pantheon Resources (PANR.L PTHRF P3K.F) announced an updated Independent Expert Report by Lee Keeling & Associates covering the Alkaid horizon within its Ahpun Field over which it has a 100% working interest. Estimated base case possible reserves are 5 million barrels and 27 billion cubic feet of recoverable natural gas at the Alkaid horizon, in addition to contingent resources totalling 74 million barrels of marketable liquids and 396 billion cubic feet of recoverable natural gas. Estimated high case contingent resources total 123 million barrels and 634 billion cubic feet. Attribution of reserves in the immediate vicinity of the Alkaid-2 well and economic modelling of the overall Alkaid horizon estimate real rates of return in excess of 20%, supporting Pantheon's previous assessment that the Alkaid-2 long term production test demonstrated the commerciality of the Alkaid horizon in Ahpun. As always, these Pantheon announcements are of relevance to 88 Energy (88E.AX EEENF 88E.L POQ.F) too.

Predator Oil & Gas (PRD.L 1EM.F) announced that Petroleum Agreement Amendment #4 has been ratified and that preparations for the Sandjet rigless testing programme can now be progressed as planned. Also awaited is news regarding MOU-5, which was expected to be drilled between 1 April and 31 May 2024.

Touchstone Exploration (TXP.TO PBEGF TXP.L PNW1.F) announced a recommended all share offer pursuant to which it will acquire the entire issued and to be issued ordinary share capital of Trinity Exploration & Production (TRIN.L TRXEF 3BE.F). Under the terms of the acquisition, Trinity shareholders will be entitled to receive 1.5 new Touchstone shares for each Trinity share, resulting in them owning approximately 19.9 per cent. of the share capital of the combined group. Based upon Touchstone's closing share price of 41.25 pence as of 30 April 2024, the acquisition represents an implied value of 61.9 pence per Trinity share (approximately US$0.77 per Trinity share), a premium of approximately 71.9 per cent. to the closing price of 36 pence on 30 April 2024. With a broader shareholder base and more shares in issue, Touchstone believes that shareholders will benefit from the larger size and increased liquidity of the combined group and will be able to trade their Touchstone Shares on both AIM and TSX.

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.