Oilman Jim's Letter - June 26, 2024

Copper is up 70%

Discover the Zonia Advantage

• Up to 4x faster to revenues vs. typical mines

• 1-Billion lbs+ of Copper in global copper inventory 

• Low cost heap-leaching & SX-EW to produce 99.99% pure copper in cathodes

• 70% increase in value of copper over the last 5 years with copper testing $5/lb

LEARN MORE

(OTC: WCUFF | TSX.V: WCU)

Starting with the oil company news (upcoming drills follow), Africa Oil (AOI.TSX AOIFF AFZ.F) announced that it has reached an agreement with BTG Pactual Oil & Gas to consolidate their respective shareholdings in Prime Oil & Gas. This will provide Africa Oil shareholders with significant free cash flows and enable the company to commit to an enhanced total shareholder returns model within a robust and clearly defined financial framework, supported by producing assets in Nigeria, and shareholders will continue to benefit from funded, high value growth opportunities, including the Venus oil project in the Orange Basin, offshore Namibia. The enlarged Africa Oil, with greater scale and financial resources, will be better positioned to deliver further growth beyond its existing portfolio, supported by a new cornerstone shareholder with a proven track record of creating value in the global oil and gas industry. A 100% increase in working interest proved plus probable reserves and production is expected in return for  BTG receiving approximately 35% of the shares in the enlarged Africa Oil. Accretion in free cash flow per share for Africa Oil shareholders in the 2025 – 2029 period is expected to be more than 100%.

Melbana Energy (MAY.ASX MEOAF), a 30% interest holder in and operator of Block 9 PSC onshore Cuba, announced an operational update for Alameda-3. Flow testing has now commenced for the Alameda reservoir, over a perforated interval of 3272-3450m measured depth. The commencement of flow testing at Alameda follows a recent flow test on the Marti reservoir, which was penetrated in the Alameda-3 well over the interval 3642-3880m measured depth. The objective is to determine oil quality and flow rates for the Alameda reservoir and gain a broader understanding of the geological formations at depth. The reservoir will be tested as a single zone with perforations covering the lower section which is interpreted to contain the highest porosity and productivity interval as indicated by wireline logs. Flow testing is planned to take up to 5 days and further updates will be issued as the testing proceeds.

Petro Matad (MATD.L PRTDF HA3.F) announced a proposed capital raising of up to $8.5 million gross by way of a placing and a subscription by a director and shareholder for new shares at a price of 2p per share. A separate offer to raise a further c.$0.5 million before expenses will provide existing retail shareholders in the UK with an opportunity to participate. The net proceeds of the capital raising will primarily be used to complete and put Heron-1 on production, drill, complete Heron-2 and put on production, drill the Gobi-Bear 1 exploration well and develop renewable energy projects. Mike Buck, Chief Executive, has indicated his intention to subscribe for new shares representing approximately $100,000 at the placing price pursuant to the subscription. Petrovis, the company's largest shareholder, has indicated its intention to subscribe for new shares representing approximately $1 million, again at the placing price pursuant to the subscription.

Royal Helium (RHC.V RHCCF RD31.F) reported that helium trailer sales took place last week from Royal’s Steveville helium purification facility, located near Brooks, Alberta. The company continues to ramp up production at the facility towards nameplate capacity of 15 million cubic feet of raw gas per day. The plant is designed to be fully automated and self-powered such that once at steady state, the operation can quickly turn toward positive cash flow with very low operating expense. The company also announced the granting of 5,000,000 incentive stock options to a consultant. The options are exercisable at a price of $0.085 per share, vest evenly over a term of six months and, subject to earlier expiration provisions, expire in three years.

Chariot (CHAR.L OIGLF C62.F) announced it has signed a heads of terms agreement with Vivo Energy regarding future natural gas offtake from the Loukos Onshore licence in Morocco. The aim of the agreement is to set out the next steps for implementing a gas to industry business through, on one side, commercialisation of domestic gas and, on the other, the creation of a midstream compressed natural gas partnership to supply Morocco's growing industrial energy needs. Chariot is operator of Loukos (in which it holds a 75% interest) and having recently completed its first drilling campaign on the licence is now planning flow test operations at the OBA-1 well. Loukos contains further gas resources in existing undeveloped gas discoveries and an attractive exploration portfolio which together offer additional production potential. Data gathered from the drilling campaign and recently reprocessed 2D and 3D seismic are now being integrated to update the understanding of this resource potential. Chariot intends to sell initial volumes of up to 3 million cubic feet of gas per day to the midstream CNG business under a long-term gas sales agreement from potential future production from Loukos. Additionally, Vivo Energy intends to design, fund, construct and operate a CNG plant and virtual distribution network to transport natural gas from a number of sources, to existing and new industrial customers in Morocco. This midstream CNG business would be operated through a special purpose vehicle in which Chariot can participate in up to a 49% interest.

Bluejay Mining (JAY.L BLLYF S5WA.F) announced it has reached agreement with the major shareholder of White Flame Energy to purchase the company in two tranches. Subject to acceptances from the balance of the White Flame vendors, Bluejay will initially acquire up to 51% of the issued share capital of White Flame and will be granted a 3 year option to acquire the remaining 49% on the same terms. The consideration for the acquisition of 51% of the issued share capital of White Flame is £1,402,500, payable in Bluejay shares, valuing the total issued share capital of White Flame at £2,750,000. Bluejay acquires three granted exploration and exploitation licences adjacent to the Pulsar Helium (PLSR.V PSRHF Y3K.F)Tunu project covering 8,429 km2, which are said to be highly prospective for helium and white hydrogen as well as all industrial gases, natural gas and liquid hydrocarbons. The basin has anomalous helium and white hydrogen occurrences, as well as working liquid-rich hydrocarbon reservoirs with potential resources estimated by management to have in excess of 2.4 to 8.1 billion barrels of oil equivalent in place.

Now, the upcoming drills (these are where the big money is made)

Companies and drills of interest - funding confirmed

Reconnaissance Energy Africa (RECO.V RECAF 0XD.F)

PEL73 exploration wells, Namibia: 90% RECO interest. Estimated first spud date: June 2024. Resource estimate: 3.1 BBO prospective. Chance of success: not yet communicated.

Predator Oil & Gas (PRD.L 1EM.F)

MOU-5 exploration well, Morocco: 75% PRD interest. Estimated spud date: Q3 2024. Resource estimate: not yet communicated. Chance of success: not yet communicated.

Chariot (CHAR.L OIGLF C62.F)

Lixus and Rissana appraisal wells, offshore Morocco: 30% and 37.5% CHAR interests. Estimated spud date: Q3 2024. Resource estimate: 1 TCF+. Chance of success: not yet communicated.

Deltic Energy (DELT.L 7RC0.F)

Selene exploration well, UK North Sea: 25% DELT interest. Estimated spud date: Q3 2024. Resource estimate: 318 BCF gross P50 prospective. Chance of success: 70%.

HyTerra (HYT.ASX HYTLF)

Nemaha Ridge helium and hydrogen exploration wells, Kansas: 100% HYT interest. Estimated spud date: Q3 2024. Resource estimate: P50 net unrisked prospective hydrogen resource of 100 BCF and helium of 0.5 BCF. Chance of success: not yet communicated.

Sintana Energy (SEI.V SEUSF)

PEL83 exploration wells, offshore Namibia: 4.9% SEI interest. Estimated spud date: Q4 2024. Resource estimate: not yet communicated. Chance of success: not yet communicated.

Aminex (AEX.L AEXFF)

Chikumbi-1 exploration and appraisal well, Tanzania: 25% AEX interest. Estimated spud date: 2024. Resource estimate: not yet communicated. Chance of success: not yet communicated.

Eco (Atlantic) Oil & Gas (EOG.V ECO.L ECAOF EOI.F)

Block 3B/4B exploration wells, offshore South Africa: 6.25% ECO interest. Estimated spud date: 2024. Resource estimate: 4 BBOE total unrisked gross P50 prospective. Chance of success: 15% - 39% (prospects).

The Parkmead Group (PMG.L)

Skerryvore exploration well, UK North Sea: 50% PMG interest. Estimated spud date: early 2025. Resource estimate: Pmean STOIIP of 43 mmbbls (first prospect), 98 mmbls (second prospect) and 566 mmbbls (third prospect). Chance of success: 47% (first prospect).

3D Energi (TDO.ASX)

VIC/P79 and T/49P exploration wells, offshore Otway Basin, Australia: 20% TDO interest. Estimated spud date: early 2025. Resource estimate: 12 TCF gross prospective. Chance of success: not yet communicated.

Companies and drills of potential interest - funding not yet confirmed

Tower Resources (TRP.L TWRFF ULF1.F)

NJOM-3 well, Cameroon: 100% TRP interest. Estimated spud date: 2024. Resource estimate: 35.4 MMBO mean recoverable. Chance of success: development contingency probability of 80% on first phase.

Empyrean Energy (EME.L E1E.F)

Topaz exploration well, offshore China: 100% EME interest (reducing to 49% on CNOOC back-in). Estimated spud date: 2024. Resource estimate: 506 MMBO mean in place potential. Chance of success: 30%.

Upland Resources (UPL.L 2UZ.F)

Block SK334 exploration well, Sarawak: 45% UPL interest. Estimated spud date: 2024. Resource estimate: not yet communicated. Chance of success: not yet communicated.

Baron Oil (BOIL.L GHA.F)

Chuditch-2 appraisal well, offshore Timor-Leste: 60% BOIL interest. Estimated spud date: late 2024. Resource estimate: 1.16 TCF Pmean gross contingent. Chance of success: 52%.

Pharos Energy (PHAR.L SOCLF)

Block 125 exploration well, offshore Vietnam: 100% PHAR interest. Estimated spud date: 2024/5. Resource estimate: 13.328 BBO mean prospective. Chance of success: not yet communicated.

Finder Energy (FDR.ASX)

Whitsun exploration well, UK North Sea: 60% FDR interest. Estimated spud date: 2024/5. Resource estimate: 150 MMBO Pmean gross. Chance of success: 26%.

Europa Oil & Gas (EOG.L EGN.F)

EG-08 exploration well, offshore Equatorial Guinea: 34.32% EOG economic interest. Estimated spud date: 2025. Resource estimate: 1.4 TCF prospective. Chance of success: not yet communicated.

Longboat Energy (LBE.L 8YG.F)

Block 2A exploration well, offshore Sarawak. 52.5% LBE interest. Estimated spud date: 2025. Resource estimate: not yet communicated. Chance of success: not yet communicated.

88 Energy (88E.ASX EEENF 88E.L POQ.F)

PEL 93 exploration well, onshore Namibia: 20% 88E interest. Estimated spud date: H2 2025. Resource estimate: not yet communicated. Chance of success: not yet communicated.

Challenger Energy (CEG.L BSHPF)

AREA OFF-1 Uruguay exploration well (subject to results of 3D seismic): 40% CEG interest. Estimated spud date: 2027. Resource estimate: not yet communicated. Chance of success: not yet communicated.

Complete information and more regarding the above companies and their drills is provided in the international Private Letter. In my experience, upcoming drills are the best plays to trade and we have seen gains of up to 750% this year. Subscribers pay £1,140/US$1,440 a year for the international Private Letter on Substack, but I’m trying something new here with a pay what you want offer. Name your price

Subscribe to the International Letter