Oilman Jim's Letter - 10 April 2024

Helium One Global (HE1.L HLOGF 9KE.F) announced a Rukwa project update. The Itumbula West-1 extended well test remains on track for early Q3 2024, an environmental and social impact assessment study has commenced as part of the mining licence conversion process, a production facilities management company has been appointed to commence a design study for a helium production plant at Rukwa, the company is continuing to work with the Tanzanian Government and the Mining Commission to move the Rukwa project towards commercialisation, and the company's technical team is being expanded and strengthened in order to progress the Phase III work programme.

Chariot (CHAR.L OIGLF C62.F) announced that following receipt of all necessary Moroccan governmental and regulatory approvals, the partnership agreements with Energean (ENOG.L EERGF 1YE.F) have now fully completed. Energean now holds 45% and 37.5% of the respective interests in, and is operator of, the Lixus and Rissana licences, offshore Morocco. Chariot retains 30% and 37.5% of the respective interests in these licences, with ONHYM maintaining a 25% stake in each. Chariot has now received the US$10 million upfront cash consideration from Energean. In addition, a rig contract has been signed with Stena Drilling for the use of its Stena Forth drill ship for the Anchois-East appraisal and development well and an optional well, located within the Lixus licence. This drilling and testing campaign will be conducted in Q3 2024 which will further appraise the existing gas sands, including flow testing, and target undrilled prospective resources to look to increase the Anchois gas development to over 1 trillion cubic feet.

Touchstone Exploration (TXP.TO PBEGF TXP.L PNW1.F) announced an operational update. The Cascadura-3ST1 delineation well was drilled to a total depth of 8,252 feet and open-hole logs plus drilling data indicated a total sand thickness of approximately 900 feet in the targeted Herrera Formation. The well has been cased and production testing is scheduled to commence in the third quarter of 2024 directly into the Cascadura natural gas facility. The CO-374 development well on the company’s CO-1 block was drilled to a total depth of 5,684 feet, with openhole logs and drilling data indicating a sand thickness of approximately 400 feet in the Forest Formation and approximately 300 feet in the Cruse Formation. The well has been cased for crude oil production and will be completed once the CO-375 development well has been drilled and the rig is moved from the location. The latter well was spud on April 3, 2024 and is targeted to be drilled to a total depth of 6,500 feet. Average net sales volumes for Touchstone were 7,015 barrels of oil equivalent in the first quarter of 2024.

Finally, Predator Oil & Gas (PRD.L 1EM.F) announced its financial statements for the year ended 31 December 2023. The interesting and relevant part is this statement by Paul Griffiths, Executive Chairman: “Like many listed companies of our size we are extremely disappointed with the over-regulated London public markets and their poor appreciation of the value of businesses and opportunities that several companies have created and further developed. Many of our shareholders, including the executive directors, seek to re-set the valuation of our assets through means other than the intra-day share price. This will be the top priority for 2024 and will focus on entities that understand the true value of natural resources in oil and gas commodity sector, as has been proven cyclically time and time again and which continues to support the global economy and is the catalyst for promoting viable economic growth.” They’re looking for a buyer.

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