Oilman Jim's Letter - 11 April 2024

PetroTal (TAL.V PTALF PTAL.L SER1.F) announced Q1 2024 operations and corporate updates, reporting a 23% increase in production, quarter over quarter, to 18,518 barrels of oil per day and unrestricted cash liquidity of $63 million at March 31, 2024. Production during the past 30 days has averaged around 20,500 barrels of oil per day. Currently, PetroTal is continuing with its 2024 development program and is drilling well 18H, which is expected to commence production in May 2024. Per Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, the company has achieved its strongest annual start to a year in PetroTal's history.

Longboat Energy (LBE.L 8YG.F) announced audited full year results to 31 December 2023. The cash balance was £3.7 million as at 31 December 2023 with no consolidated exploration finance facility borrowings due to the balances of Longboat JAPEX no longer forming part of the consolidated balance sheet. Loss for the period was £4.2 million. The company's strategy is to build Longboat into a full-cycle E&P company with Norway remaining the core area and a focus on SE Asia. The Lotus exploration well, where Longboat has a 15% retained and fully carried interest, is expected to spud in Q3. The well will be targeting analogous injectite sands to the sand encountered in Kveikje.

Hartshead Resources (HHR.AX) announced a further operational update for the UK Southern Gas Basin. The P2607 Joint Venture continues to work on the development of the Anning and Somerville Gas Fields assuming various possible fiscal scenarios. The JV is said to remain committed to progressing the project, subject to certainty regarding future fiscal policy and the 2024 JV budget remains in place. Hartshead therefore is continuing discussions on project finance, with discussions on infrastructure funding currently underway aimed at reducing upfront CAPEX and a dialogue is ongoing with various political stakeholders seeking clarity on the future fiscal regime.

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