Oilman Jim's Letter - September 18, 2024

Pantheon Resources (PANR.L PTHRF P3K.F) announced the appointment of Philip Patman, Jr. as chief financial officer and the impending resignation of Justin Hondris as director of finance and corporate development, who will remain with the company in a UK based role. This results from the decision to consolidate core management in the Houston office and prepare for a potential US listing, which is part of the strategy to monetize the discovered resources in Alaska through initial development of the Ahpun field to achieve cashflow self-sufficiency in order to fund the full field development including the Kodiak field. Pantheon owns a 100% working interest in both of these fields, which contain independently evaluated recoverable contingent resources of c. 1.6 billion barrels of ANS crude and 6.7 trillion cubic feet of natural gas in close proximity to pipeline and transportation infrastructure on Alaska's North Slope…more

88 Energy (88E.ASX 88E.L EEENF POQ.F), Pantheon’s Alaska neighbour, reported a further, independently certified contingent resource estimate of 73 million barrels of hydrocarbon liquids and 43 billion cubic feet of gas, a net, unrisked best estimate for the SMD-B and SFS reservoirs in Project Phoenix, where the company owns a ~74.3% net working interest. The resources at SMD-B and SFS were independently validated by ERCE, a recognised authority in petroleum and resource auditing. Per, Ashley Gilbert, Managing Director, 88E is now focused on planning an extended period horizontal flow test of the SMD reservoir, utilising the existing Franklin Bluffs gravel pad infrastructure. Simultaneously, the company is in discussions with its joint venture partner regarding the next stage of advancement of the project, which may include Burgundy carrying 88 Energy's share of the anticipated 2025/26 work program in exchange for a further working interest in Project Phoenix. Additionally, the company will initiate a formal farm-out process in Q4 2024 to ensure the next phase of Project Phoenix's activities is well-funded as the company continues to mature and de-risk the project towards a future potential commercialisation event…more

Desert Mountain Energy (DME.V DMEHF QM01.F) announced that the separation of commercial volumes of helium from a complex natural gas stream has been achieved. The processing plant has been recirculating and enriching helium with the end product going into an end user’s tube trailer. Current production revenue is now expected to cover the overall corporate G&A and the company anticipates a gradual rise in sales volumes and revenue, with a current emphasis on well workovers and reducing the overall small percentage of produced water. The geological team continues to review downhole data to determine the most viable wells for increased helium production and are also examining regional data to enhance the understanding of geological controls and pinpoint locations with the potential for higher helium grades…more

Predator Oil & Gas (PRD.L 1EM.F) announced an update. The MOU-3 sandjet rigless testing programme is being extended, Zenith Energy of Aberdeen has been appointed to provide well engineering support for Morocco and the geological model for the helium potential of the 187 km2 MOU-5 structure has been completed by Scorpion Geoscience. Potential helium resources estimates will be published this month. Drilling of the much delayed MOU-5 well will now evaluate potential both for helium and a gas-to-power project adjacent to the Maghreb gas pipeline. MOU-5 is said to be a conventional well that does not require the same specialist Rharb Basin drilling experience and expertise that was necessary to complete the 2021 and 2023 drilling programmes…more

ADX Energy (ADX.ASX ADXRF GHU.F) announced that the Anshof-2A side track oil appraisal well located in the ADX-AT-II licence in Upper Austria has encountered a 6.5-metre net vertical oil column. The well has reached a measured total depth of 2,195 metres and took approximately 10 days to drill and evaluate. ADX is the operator and has a 60% economic interest in the well. Based on electric line logs and pressure data recovered, the well has encountered high quality Eocene sandstone reservoirs between 1586.5 metres and 1599 metres. Anshof-2A is currently being cased and cemented for suspension as a production well and will be completed with the installation of production tubing and a rod pump in early October. It will then be tied-in to the Anshof permanent production facility…more

Helium One Global (HE1.L HLOGF HE1.F) announced an update. The company has now submitted a comprehensive mining licence application to the Ministry of Minerals and Mining Commission for the southern Rukwa helium project which encompasses the Itumbula, Tai and southern prospective areas for commercial development. The licence application is said to incorporate a detailed feasibility study incorporating detailed subsurface modelling and a commercial development plan. An accompanying ESIA study is awaiting approval from the National Environment Management Council. Meanwhile, the company’s partnership with Blue Star Helium (BNL.ASX BSNLF) is progressing as it works towards completion of the acquisition which will result in Helium One owning a 50% stake in the Galactica-Pegasus project in Colorado. Once the acquisition is completed, the partnership will move ahead to the commencement of the Q4 drilling campaign on the Galactica-Pegasus development…more…more

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