Oilman Jim's Letter - 9 April 2024

Union Jack Oil (UJO.L UJOGF 1UJ0.F) announced a drilling update for the Andrews 1-17. The main objective for this well, the Hunton Limestone, is confirmed to be present and was penetrated at approximately 4,200 feet, showing high porosity and elevated gas readings, with good reservoir quality being interpreted on the wireline logs. The Dan D2 drilling rig has now been demobilised and completion and production testing of the Andrews 1-17 well is scheduled to commence within the next 14 days. Drilling and completion costs have already been paid for from the company's cash resources.

Trillion Energy International (TCF.CN TRLEF Z62.F) announced an operational update for the SASB gas field. The company is starting the SASB revitalization project now as all relevant equipment and supplies for the start of the operations arrive mid-April 2024. A total of 49 metres of new gas pay will be perforated in Guluc-2, South Akcakoca-2, West Akcakoca-1 and Akcakoca-3 prior to the installation of the artificial gas lift. Previously, the SASB artificial lift program consisted of PCP pumps, ESP pumps and velocity strings. That has now changed to predominantly velocity strings and a pump to prevent future water loading.

Helix Exploration (HEX.L) announced the admission of its ordinary shares to trading on the AIM market of the London Stock Exchange. The 10p per share placing was oversubscribed with demand over £22 million and raised gross proceeds of £7.5 million. Net proceeds of the fundraise will be used to fund scoping studies and appraisal drilling at the Ingomar helium project in Montana, United States. An anticlinal closure has been mapped at surface over 16,512 acres with P50 gross unrisked prospective helium resources of 2.3 billion cubic feet. Historic drilling has identified gas in all target horizons in a stacked reservoir system. Ingomar Dome is ready to drill with no further geological work required ahead of drilling and Helix is now fully funded from proceeds of the IPO to drill, log and test an appraisal well.

Noble Helium (NHE.AX NBHEF) announced that its plans to monetise the helium potential of its North Rukwa Project in Tanzania have received a boost with Mbelele’s shallow, free gas cap zone showing commercial production potential. Per the company, review and analysis of mud-gas readings obtained during the drilling of Mbelele-1 indicate helium readings significantly above background from around 75m to 125m. Furthermore, recently completed reservoir modelling demonstrates the potential for commercial flow rates from this part of the Mbelele structure. Laboratory results have previously confirmed high helium concentrations up to 2.46%. The next step is to perform a low-cost test on Mbelele-1’s shallow section, where downhole samples using the Modular Dynamic Tester could not previously be acquired. Results, they say, will inform both early commercialisation opportunities and future, deeper, potentially richer targets.

Star Energy (STAR.L K1P3.F) announced the closing of a new €25 million secured facility to support its transition strategy into geothermal energy and enable continued investment in the oil and gas business utilising its existing cash flows. The company says this is an important milestone, allowing Star Energy to use cashflows from its existing oil and gas business to optimise near-term conventional production (with quick pay-backs) and deliver its transition strategy, developing and monetising Star’s geothermal business in both the UK and Croatia.

Pantheon Resources (PANR.L PTHRF P3K.F) announced results of the updated Independent Expert Report by Netherland Sewell & Associates, which includes approximately 43,000 acres of the leases on which the Company was the successful bidder in December 2023, located on its 100% owned Kodiak Field on the North Slope of Alaska. NSAI's best estimates of Kodiak's contingent recoverable resources now sum to 1.2 billion barrels of marketable liquids (oil, condensate and natural gas liquids) and 5.4 trillion cubic feet of gas, which will be important as additional support for a proposed agreement with Alaska Gasline Development Corp to bring gas to south-central Alaska markets.

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