Oilman Jim's Letter - August 13, 2024

Helix Exploration (HEX.L) announced that drilling of the Clink #1 well on the Ingomar Dome project area in Montana has commenced. The well will test the stacked reservoir targets in the Amsden, Charles, Flathead Formations and fractured pre-Cambrian basement. Historic drilling has identified nitrogen-rich gas in the Amsden, Charles and Flathead formations that has never been assayed for helium. Drilling will take 3-4 weeks to complete, followed by wireline logging and extended flow tests. This is the first well in a two-well Q3 drilling programme with the second well to be drilled to appraise contingent helium resources at the Rudyard project. If successful, the Clink #1 well will be used as a future production well, reducing time and cost to move towards first gas production anticipated before the end of 2025…more

D3 Energy (D3E.ASX ) announced an update from its multi-well production testing program at ER315 located in the Free State, South Africa. RBD03 flowed gas at an average flow rate of 147 thousand cubic feet per day over a 16-day period. The flow rate is almost double the previous flow rate measured with previous testing equipment and what the company described as world class helium concentrations of 5.1% were measured after 7-days of sustained production. Following a reservoir pressure build up period, testing will commence at the recently drilled and tested RBD10 borehole utilising new equipment to see if comparable production rate increases are observed. RBD03 is a legacy gold exploration borehole drilled within the area of ER315 in 1983. With very low drilling and completion costs, combined with record worldwide helium prices and natural gas shortages in South Africa, the project is said to be shaping up as an extremely exciting and robust first up opportunity right out of the gate. The company will proceed with re-testing the RBD10 well with new equipment before commencing drilling at RBD12. Results of the program will inform key decisions regarding the design of further testing programs, well interference and spacing, and planning for the submission of a production right application to the South African authorities…more

Mining Minerals & Metals, to be re-named Georgina Energy, (GEX.L) announced a Mt Winter EPA155 update. The company has received a formal invitation from the Central Land Council to attend an on-ground meeting with the traditional Aboriginal landowners on 11 September 2024 in Alice Springs for the purposes of approving negotiations leading to the granting of the EPA155 application. The company will outline its plans and ultimate goals of delivering a positive outcome to the indigenous community and delivering low-risk projects in Australia for the development of natural gas, hydrogen and helium projects through its well re-development programme. Should the traditional landowners consent, the company will expedite its commitments under the farm-in agreement to earn its initial 75% interest. The EPA155 Mt Winter prospect is said to host unrisked 2U prospective recoverable resources of around 148 billion cubic feet of  helium, around 135 billion cubic feet of  hydrogen and around 1.22 trillion cubic feet equivalent of hydrocarbons. Georgina also holds 100% of the working interest in the Hussar prospect, which is said to host unrisked 2U prospective recoverable resources of around 155 billion cubic feet of helium, around 173 billion cubic feet of hydrogen and around 1.75 trillion cubic feet equivalent of hydrocarbons. Per the company, Hussar is considered by independent consultants to be one of the most potentially lucrative resource basins in the Asia Pacific region due to its significant helium, hydrogen, oil & natural gas potential…more

Global Petroleum (GBP.L) announced a PEL94 license update. Following recent activity in the Walvis Basin, offshore Namibia, the company has seen increased interest in the data room for PEL94 from various parties. As a result, Global has entered into early commercial discussions with a potential operating partner for a farm-in agreement. Global believes a farm-in, if successfully concluded, could be transformational for the business, with a strategic partner potentially enabling the exploitation of the licence’s estimated 2,747 million barrels of oil unrisked net best estimate (P50) prospective resources. The company says it is hopeful in reaching a mutually beneficial agreement with the partner in due course following further due diligence and negotiations…more

Gran Tierra Energy (GTE GTE.TSX GTE.L G1P0.F) announced it has made another oil discovery with the Charapa-B6 well on the Charapa Block in Ecuador. What is described as a significant find is located just west of the recently discovered Arawana-J1 and Bocachico Norte-J1 wells, further underscoring the potential of this highly prospective region. The Charapa-B6 well marks the company’s third oil discovery in 2024 and its fifth in Ecuador since Gran Tierra resumed its exploration campaign after disruptions caused by the pandemic. The company has run production casing, cemented and perforated the Hollin oil zone and begun production testing at Charapa-B6; the rig has been moved to drill the Charapa-B7 exploration well which was spud on August 9, 2024…more

Sunda Energy (SNDA.L) announced it has entered into an exclusivity agreement with Pacific LNG Operations enabling a period of mutual due diligence relating to a potential strategic investment into the Chuditch PSC project that would fund the planned field appraisal well. It is anticipated that such investment, should it occur, would be through an equity issuance in a Sunda subsidiary company and not at the Sunda Energy plc level. The agreement contains carve-outs for several other potential funding partners, some of whose involvement may be complementary in supporting the project, not only through the appraisal well but also in future development of gas in the asset. Discussions with the other parties continue during the period of the exclusivity agreement. Meanwhile, operational planning has continued and negotiations to secure the use of an identified drilling rig are ongoing, as are procurement processes for other essential drilling equipment and services. As a result of the detailed planning, in particular the current scheduling of the targeted drilling rig, the company still expects, subject to financing being in place, to drill the Chuditch-2 appraisal well in early 2025…more

Pantheon Resources (PANR.L PTHRF P3K.F) announced that it has executed a contract to secure the use of the Nabors 105AC rig to drill the Megrez-1 well in Q4 2024. The company is familiar with the rig, having used it in previous drilling campaigns. Site works for construction of a gravel pad along the west side of the Dalton Highway are expected to commence in September and upon completion of these works the drill rig will be mobilised. The Megrez-1 well is estimated to have a 69% geological chance of success and will target the topset sands in the Ahpun East project area which Pantheon estimates to contain a 2U prospective resource of 609 million barrels of marketable liquids and 3.3 trillion cubic feet of natural gas. The Ahpun East topsets are significantly shallower than the Ahpun western topsets drilled previously and per Jay Cheatham, CEO, the company believes this to be one of the most impactful onshore exploration well being drilled anywhere in the world during 2024…more

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