Oilman Jim's Letter - July 19, 2024

Carnarvon Energy (CVN.ASX CVONF CJB.F) announced an update on its Dorado Phase 1 liquids development, offshore Western Australia, owned 80% by operator Santos (STO.ASX STOSF STS1.F), 10% by OPIC Australia and 10% by Carnarvon. The production rate has been optimised, allowing the joint venture to reduce the sizing of the floating production offtake and storage vessel, wellhead platform and other facilities, and phase the timing of wells, reducing overall capital expenditure. Phasing the development wells and reducing the number of wells required prior to first oil allows the joint venture to further reduce the up-front capital expenditure prior to first oil, considerably improving the project’s economics and reducing the time to first oil. Carnarvon now anticipates that overall capital expenditure prior to first oil will be below previous guidance of ~$2 billion gross and expects that the company, with its strong balance sheet, the $90m development cost carry and optionality for a prospective debt facility, will be fully funded for its share of development costs…more

Union Jack Oil (UJO.L UJOGF 1UJO.F) announced a positive drilling update in respect of the Andrews 2-17 well, located in Seminole County, Oklahoma, in which Union Jack holds a 45% working interest. The well was drilled to a total depth of 4,850 feet and the Hunton Limestone was penetrated at approximately 4,180 feet measured depth, showing elevated gas readings and good oil and gas shows. Completion and production testing is scheduled to commence within the next 14 days…more

Invictus Energy (IVZ.ASX IVCTF) announced an update on operations at its 80% owned SG 4571 licence in Zimbabwe’s Cabora Bassa Basin. The licence, containing the Mukuyu discovery, has been renewed for a further 3 year term. This third period runs to June 2027 and the company plans to undertake a comprehensive work program including 3D seismic acquisition and additional exploration/appraisal drilling. Invictus is able to apply for a production special grant licence at any stage…more

Enwell Energy (ENW.L RGPMF RHN.F) announced an update on its operational activities in Ukraine in respect of its Mekhediviska-Golotvshinska, Svyrydivske and Vasyschevskoye gas and condensate fields and its Svystunivsko-Chervonolutskyi exploration licence. Production operations are continuing at the Mekhediviska-Golotvshinska and Svyrydivske fields and currently the aggregate production rate is approximately 2,000 barrels of oil equivalent per day. Field operations are said to be continuing relatively normally. Suspension orders have been cancelled at the Vasyschevskoye field and the Svystunivsko-Chervonolutskyi exploration licence area and the company is now preparing to resume production operations at the Vasyschevskoye and is planning further development activities at Svystunivsko-Chervonolutskyi. At 30 June 2024, Enwell's cash resources were approximately $93.7 million, more than the company’s current market capitalisation.

These are opinions only of the individual author. The contents of this piece do not contain investment advice and the information provided is for educational purposes only and no discussions constitute an offer to sell or the solicitation of an offer to buy any securities of any company. All content is purely subjective and you should do your own due diligence. No representation, warranty or undertaking, express or implied, as to the accuracy, reliability, completeness or reasonableness of the information contained in the piece is made. Any assumptions, opinions and estimates expressed in the piece constitute judgments of the author as of the date thereof and are subject to change without notice. Any projections contained in the information are based on a number of assumptions and there can be no guarantee that any projected outcomes will be achieved. No liability is accepted for any direct, consequential or other loss arising from reliance on the contents of this piece.  The author is not acting as your financial, legal, accounting, tax or other adviser or in any fiduciary capacity.