Oilman Jim's Letter - August 21, 2024

Chariot (CHAR.L OIGLF C62.F) announced that the Stena Forth drillship has arrived on location and drilling operations have commenced on the Anchois East well in the Lixus licence, offshore Morocco. Drilling and flow testing operations are expected to take approximately two months, with Chariot expected to be fully carried for the anticipated costs of the drilling campaign. This is a multi-objective well with distinct operational phases: an initial pilot hole will be drilled with the main objective to evaluate the potential of the Anchois Footwall prospect, located in an undrilled fault block to the east of the main field, which has a 2U prospective resource estimate of 170 billion cubic feet in the main O sand target; a side-track will then be drilled to intersect and further evaluate the discovered gas sands in the Anchois field, with a current 2C contingent resource estimate of 637 billion cubic feet; the deeper Anchois North Flank prospect will then be drilled, which has an additional 2U prospective resource estimate of 213 billion cubic feet and which will also de-risk the nearby Anchois South Flank prospect with a 2U prospective resource estimate of 372 billion cubic feet. Well flow testing will then be performed on selected encountered gas sands to evaluate reservoir and productivity, following which the well will be suspended to enable it to be used as a potential future producer…more

Gran Tierra Energy (GTE GTE.TSX GTE.L G1P0.F) and i3 Energy (I3E.L ITEEF ITE.TSX I32.F) announced they have reached agreement on the terms of a recommended and final cash and share offer by Gran Tierra for i3 Energy pursuant to which Gran Tierra will acquire the entire issued and to be issued share capital of i3 Energy. Under the terms of the acquisition, each i3 Energy shareholder will receive one new Gran Tierra share for every 207 i3 Energy shares, 10.43 pence cash per i3 Energy share and a cash dividend of 0.2565 pence per i3 Energy share in lieu of the ordinary dividend in respect of the three month period ending 30 September 2024. Following completion of the acquisition, i3 Energy shareholders will own up to 16.5% of Gran Tierra, which will then hold approximately 1.4 million net acres in Colombia, 138 thousand net acres in Ecuador and 584 thousand net acres in Canada including 298 thousand net acres in Central Alberta, 102 thousand net acres in Wapiti/Elmworth, 50 thousand net acres in Simonette, and 69 thousand net acres in North Alberta (Clearwater)…more

Kistos (KIST.L KSTOF LU0.F) announced that it and TotalEnergies (TTE), as joint venture partners, have been offered seven new blocks or part blocks in the Greater Laggan area, West of Shetlands offshore UK. On completion of the licencing round, Kistos will hold a 33.3% working interest in all of the acreage, with TotalEnergies assuming operator status. The blocks lie within an area where the JV partners already produce oil and gas from the Laggan, Tormore, Glenlivet and Edradour fields and the award of these blocks, which include the previously identified Ballechin exploration prospect, supports the JV partners' efforts to identify opportunities to extend the life of existing infrastructure and maximise economic output…more

Grand Gulf Energy (GGE.ASX GRGUF) announced it has received firm commitments to raise A$1.0 million before costs through a placement of 250 million fully paid ordinary shares to professional and sophisticated investors at an issue price of A$0.004. Each participant in the placement will be offered 1 free attaching option (exercisable at A$0.012 each on or before the date that is 3 years from the date of issue) for every 4 placement shares issued. The company will also undertake a 1 for 8 pro-rata non-renounceable rights issue to raise up to approximately another A$1.0 million before costs on the same terms as the placement. Funds raised will be utilised primarily to fund progression of Grand Gulf’s Red Helium project, business development and general working capital…more

Union Jack Oil (UJO.L UJOGF 1UJO.F) announced an update and confirmed that, following completion and testing, the Andrews 2-17 well has been declared a commercial discovery. The company’s first Oklahoma well, Andrews 1-17, was placed on restricted and periodic test production during late May 2024 and has produced 6,460 barrels with a gravity of approximately 46 degrees API and 382 thousand cubic feet of gas. It remains under test production using a pump jack while the optimum flow rate is being determined. Works to connect a gas pipeline to the Andrews 1-17 have recently been completed and gas has been sold to market. Andrews 2-17 is now on test production and free flowing 46 degrees API gravity oil with no water, producing naturally due to a gas expansion drive. Since being placed on restricted and periodic test production from 7 August 2024, the Andrews 2-17 well has produced 544 barrels of oil and 1.895 million cubic feet of gas. First oil and gas is already being sold to market. Under test conditions, production rates of 184 barrels of oil and 320 thousand cubic feet of gas per day have been recorded. Union Jack has also farmed-in to Reach’s Taylor well (45%), Moccasin well (45%), Wilzetta Diana-1 Footwall Fold drilling project (75%), Rogers secondary recovery project (45%) and East Shawnee 3D seismic acquisition programme (37.5%) so there should be a significant further flow of news…more

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