Oilman Jim's Letter - 23 April 2024

Falcon Oil & Gas (FO.V FOG.L FAC.F) announced that the Beetaloo joint venture has signed a binding agreement for a long-term gas sales agreement to supply the Northern Territory Government with 14.6 PJ (13.8 BCF) per annum from the proposed Shenandoah South Pilot Project for an initial term of nine years, with a buyer’s option to extend for a further six-and-a-half years. Gas will be delivered to the APA-owned Amadeus Gas Pipeline on a take-or-pay basis at a market-competitive gas price, escalating at 100% of the Consumer Price Index. The buyer’s extension option is at a slightly discounted price. The Beetaloo joint venture is targeting FID on the proposed 40 TJ (38,000 MCF) per day upstream drilling program in mid-2024, subject to securing funding and key regulatory and stakeholder approvals. First gas flow is planned for H1 2026. Falcon holds a 5% working interest in the 51,200-acre area that will include the wells required to deliver the proposed Pilot Project volumes.

88 Energy (88E.AX EEENF 88E.L POQ.F) announced that it proposes to raise up to A$9.8 million (approximately £5.23 million) pursuant to a placing of new ordinary shares at a price of A$0.003 (equivalent to £0.0016), a discount of 40% to the closing price of the company's shares on the Australian Securities Exchange on 22 April 2024. The net proceeds of the placing, together with the company's existing cash reserves, will provide sufficient capital to fund completing post-well testing and analysis at Hickory-1, securing a contingent resource for the SFS and SMD reservoirs, commencing a formal farm-out process to attract a new partner to fund the next stage of appraisal and development, completion of a 2D seismic program at PEL 93, Namibia, generation of a maiden prospective resource report and other studies associated with the Owambo Basin and securing a farm-out partner at Project Leonis to fund a future exploration well to test the proven producing Upper Schrader Bluff reservoir and continue further studies and analysis. Following completion of the proposed placing, the company says it will have sufficient cash to fund its ongoing working capital requirements and general and administrative overheads for at least 12 months.

Helix Exploration (HEX.L) announced that it has executed a binding contract with Treasure State Drilling for the provision of their Cardwell KB-150 D1D drilling rig and equipment for the company's Q3 2024 appraisal drilling campaign at the Ingomar Dome project. The rig is well known to management, having previously drilled wells for CEO Bo Sears, and is rated to 8,000ft with sufficient capacity and equipment to fulfil project requirements, Crucially, it is available for drilling in Q3 2024.

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