Oilman Jim's Letter - 20 May 2024

Chariot (CHAR.L OIGLF) announced the spud of the OBA-1 well on the Dartois prospect in the Loukos licence, onshore Morocco. The Dartois target has best estimate recoverable prospective resources of 12 billion cubic feet of gas. This is an independent prospect targeting a different trapping style to the Gaufrette prospect drilled by the RZK-1. Success could potentially unlock a trend of prospects with combined best estimate recoverable prospective resources of 20 billion cubic feet and results will be announced on completion of drilling.

Union Jack Oil (UJO.L UJOGF) announced audited results for the year ended 31 December 2023. Wressle continues to deliver following a workover, installation of a down hole pump and other site upgrades. The latest competent person's report upgrades reserves by 263% and an application has been submitted for the drilling of two back-to-back Wressle development wells plus the Penistone Flags gas monetisation. Acquisition of United States mineral royalties and drilling activity in Oklahoma has commenced and further drilling and development is planned during 2024 to encompass both sides of the Atlantic following the Andrews 1-17 well in Oklahoma being declared a commercial discovery. The company recorded a gross profit for the year of £3,298,844 and a net profit of £859,089, with basic earnings per share of 0.79 pence. A dividend of 0.25 pence per share has been declared. The board is of the opinion that within the Wressle development there remains significant material upside which will support the company with revenues for at least another decade. Progress at West Newton also is upcoming. This is said to hold resources comparable to those usually reported offshore. In the US, discussions are at an advanced stage with Reach in respect of materially expanding the company’s activities over the coming months and beyond.

Serica Energy (SQZ.L SQZZF) announced that it has received final approval from the NSTA to develop the 100% owned and operated Belinda field. The field will be tied back to the Triton FPSO following drilling of the development well which is scheduled to take place in the first half of 2025. The Belinda well is the 5th well in Serica’s Triton area drilling campaign, which commenced in April this year using the COSLInnovator drilling rig. All are designed to enhance production via the Triton FPSO. Proven and probable reserves in the Belinda field are estimated at about 5 million barrels of oil equivalent (80% oil) and production is scheduled to commence in 1Q2026 following the tie-back work to the Triton FPSO.

HyTerra (HYT.AX HYTLF) announced that new leasing has significantly increased the Nemaha Project. 3,113 net acres have been leased in areas geologically contiguous to the Sue Duroche 2 well, which has published occurrences of up to 92% hydrogen and 3% helium. Current net exploration lease acreage has increased from 9,607 to 12,720 acres and HyTerra plans to continue leasing high-priority acreage and drill two exploration wells commencing in Q3’24. The leases are in Wabaunsee County, Kansas, and are covered by the airborne geophysical survey acquired by HyTerra in 2023 and existing seismic data. HyTerra’s datasets are said to link the new leases with the existing leases near the Sue Duroche 2 well and provide promising subsurface definition of the geology and the prospectivity of white hydrogen and helium.

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