Oilman Jim's Letter - July 8, 2024

88 Energy (88E.ASX 88E.L EEENF POQ.F) announced commencement of the 2D seismic data acquisition program for PEL 93. The program has been designed to acquire approximately 200-line kilometres of 2D seismic data. PEL 93 covers 18,500 square kilometres of sub-surface within the Owambo Basin in Namibia and 88 Energy holds a 20% non-operated working interest, with an option to earn up to a 45% interest via additional staged farm-in activities. Polaris Natural Resources Development was awarded the contract and mobilised vibroseis units and recording equipment to location late June 2024. Polaris expects to complete the program in Q3 2024, with data processing anticipated to be finalised in Q4 2024. Results will be integrated with existing historical exploration data to refine current prospect interpretation. The outcome of this program will be the quantification of the size of the prospective resource through a certified estimate, as well as the identification of future potential drilling locations. An exploration renaissance is said by 88E to be underway in the region, with Reconnaissance Energy Africa (see below) spudding yesterday the first of its four planned wells as part of an initial exploration drilling campaign in PEL 73 and PEL 01…more

Reconnaissance Energy Africa (RECO.V RECAF 0XD.F) announced the spudding of the Naingopo exploration well on PEL 73, onshore northeast Namibia. The well is anticipated to reach total depth of 3,800 metres (12,500 feet) and take 90 days to drill. This is said to be a significant play opening well which may unlock a total potential resource of over 3.1 billion barrels of oil or 18 trillion cubic feet of natural gas based on the most recent prospective resource report prepared by Netherland, Sewell & Associates. The well is expected to test multiple reservoir intervals and is targeting 163 million barrels of unrisked prospective oil resources or 843 billion cubic feet of unrisked prospective natural gas resources, net to ReconAfrica. In the past month, the company has received proceeds of approximately C$1.9 million from the exercise of warrants. With a recent share price of C$1.75 , the company has potential proceeds of approximately C$35 million from in the money share purchase warrants…more

Deltic Energy (DELT.L 7RC0.F) announced that it has accepted one of the two licences that were provisionally awarded by the North Sea Transition Authority in Tranche 3 of the UK's 33rd Offshore Licensing Round. Licence P2672 is located immediately to the west of the West Sole gas field, covers blocks 47/5e, 47/10c and 48/6c and contains the Pharos and Teviot discoveries.  Deltic's preliminary evaluation, completed as part of the application process, has resulted in an updated understanding of the structural setting, which suggests that the Pharos discovery and the Blackadder prospect are in fact a single Leman Sandstone structure. Preliminary volumetrics estimate P50 prospective resources of 165 billion cubic feet of gas for Blackadder/Pharos and 17 billion cubic feet of gas for Teviot. The initial 3 year Phase A work programme commitments for the licence are focused on the reprocessing of legacy 3D seismic data to improve reservoir imaging and refine the structural model in order to further de-risk the Blackadder structure at nominal cost. Per Graham Swindells, Deltic CEO, the Blackadder project has many analogous attributes to the Selene prospect (drill upcoming) where the reworking of legacy datasets has unearthed a potential missed pay opportunity of material scale. Blackadder's location, in close proximity to existing infrastructure that requires new third party gas to defer decommissioning, should enhance its value in a mature basin where new licences are likely to become increasingly scarce. Over the coming year the company will progress its work on the legacy data in preparation for farm-out, in anticipation of drilling an appraisal well on Blackadder in due course…more

Grand Gulf Energy (GGE.ASX GRGUF) announced the execution of a gas sales and processing agreement with Green Natural Gas, new owners of the advanced Lisbon Helium Processing Plant located 20 miles north and connected by pipeline to the Red Helium project. In the event of a successful commercial gas flow, the agreement facilitates near-immediate monetization of the company’s Red Helium project with minimal CAPEX. The agreement continues a relationship with a proven helium refining facility with extensive helium processing and marketing experience. Key terms include an industry standard revenue split in favour of the producer as well as standard tariffs for gathering, compression and processing, including access to the helium liquefaction train and associated premium grade helium markets and prices. The agreement is said to represent recognition from Green Natural Gas of the significant potential of the Red Helium project and the technical merits of the proposed near term development activities including the Jesse-3 and Earp-1 up-dip twins of historical wells with proven gas and reservoir. The project is targeting a gross prospective resource of 12.7 billion cubic feet and the agreement provides line of sight to monetisation of success with minimal time in a burgeoning helium market…more

Now, all the potentially transformational upcoming drills, plus all the essential information about them. I have been publishing this privately each week for over five years now, expanding it to cover public companies trading in all the English speaking markets: Australia, Canada, the United Kingdom and the United States. There are always exciting and profitable opportunities available. Endless opportunities in fact, since new drills come along all the time. The secret is getting in to the right ones at the right time. Accurate and informed information is key. Upcoming drills are the best plays to trade and we have seen gains of up to 750% this year. It is valuable information and has different values to different people, so pay what you want, just click here

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