Oilman Jim's Letter - 2 April 2024

88 Energy (88E.AX EEENF 88E.L POQ.F) announced that flow testing of the Upper SFS reservoir has confirmed a light oil discovery at Hickory-1. The test produced at a relatively modest “peak gauge flow rate of over 70 barrels of oil per day,” however, the rates were achieved from a low volume frac over a small 20 feet vertical interval and are in line with expectations and the results observed from other reservoirs on the adjacent Pantheon Resources (PANR.L PTHRF P3K.F) acreage (88E Managing Director, Ashley Gilbert, specifically points out that production rates in long horizontal production wells are typically multiples of 6 to 12 times higher than tested in vertical wells). 88 Energy will now seek an Independent Contingent Resource declaration for both the Upper SFS and Lower SFS reservoirs based on the flow of hydrocarbons to surface. Meanwhile, flow testing operations will transition to testing the shallower SMD-B reservoir over the next few days.

Desert Mountain Energy (DME.V DMEHF QM01.F) announced it has successfully installed the necessary physical equipment for the helium processing plant in New Mexico, achieving its initial objective of becoming a fully vertically integrated helium company. DME is still performing maintenance on initially selected wells to increase the overall throughput of the plant and the geologic team has identified wells for short-term and long-term production boosts. The company continues negotiations with a specific end-user for the natural gas portion of the product stream at the end of the current contract and DME continues to receive interest from end-users for processed helium. Additionally, it is collaborating with a private company and national laboratories for CO2 capture and processing, the goal being to cost-effectively produce food-grade CO2 for potential commercial sale.

HyTerra (HYT.AX HYTLF) announced it is undertaking a capital raising of approximately A$6.1 million before costs. Shares are to be issued at A$0.018 per share and funds raised will be used to execute a multi-well exploration drilling program and pursue growth activities along the Nemaha Ridge, Kansas, United States. The multi-well exploration drilling campaign is planned to begin in Q3 2024 and HyTerra is exploring for hydrogen and helium. Its land covers over 9,600 acres and is 100% owned and operated. Hydrogen and helium occurrences have been recovered previously from well bores within these leases.

Orcadian Energy (ORCA.L 9J1.F) announced the completion of a farm-out of an 81.25% interest in licence P2244, which contains the Pilot field, to Ping Petroleum UK. Ping has been appointed operator and Orcadian will retain an 18.75% fully carried interest in the licence. The carry will apply to all pre-first offload expenditure up to a cap which will be based upon the field development plan budget, as submitted to NSTA, inclusive of contingencies and will be repaid by a combination of a reduced revenue interest of 10% and any cash tax benefits enjoyed by Ping related to the carry expenditure. On repayment of the carry the revenue interest will revert to 18.75%. Orcadian will now receive a US$100,000 cash payment and reimbursement of certain past costs capped at £250,000, plus a US$3 million payment on FDP approval.

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