Oilman Jim's Letter - September 22, 2024

One further chance today for Advanced Market Knowledge, in which I set out how the micro-cap markets actually work - and exactly how you can profit from them. It’s guaranteed to open your eyes, no matter how long you’ve been in the markets and no matter how much you think you know. It’s also possible to receive the Private Letter complimentary for the next month. Subscribe at the end of this email (it’s a pay what you want offer) and prepare for a highly profitable rest of the year

Companies issuing interesting news last week

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

For companies, an opportunity today that may develop into one of the largest gas fields in Oklahoma, with a major gas transmission line to South Louisiana running through the lease block. It’s a company maker with 400 BCF potential and 3 bailout zones mitigate the deep well test cost. An Oklahoma-based drilling contractor is willing to take 20% of the project. Contact me for details

Union Jack Oil (UJO.L UJOGF 1UJ0.F) announced that planning consent has been received from North Lincolnshire Council for the further development of the Wressle well site. The approved works will include extending the existing site to accommodate the drilling of two new wells, construction of gas processing facilities and an underground gas pipeline to connect Wressle to the local gas distribution network. The Wressle field is located in onshore licences PEDL180 and PEDL182, situated on the western margin of the Humber Basin, North Lincolnshire and Union Jack holds a 40% interest. Planning consent will both increase oil production and monetise the associated gas from the field, resulting in zero routine flaring at site…more

SDX Energy (SDX.L SDXEF 3KX.F) announced successful completion of the merging and reprocessing of more than 650 square kilometres of 3D seismic data, which is said to have increased the company's confidence in the earlier-presented 47 billion cubic feet gas play. SDX plans to drill a stratigraphic well in Q4 2024 which, if successful, will help to develop a drilling campaign for the play in early 2025. Meanwhile, SDX is in discussions with its partner, the Moroccan state, to tie-in a stranded gas well in the near-term, generating additional revenue. Existence of other stranded gas wells in the Rharb basin may give rise to a broader project to connect multiple wells, subject to agreement. The company says it has received two draft term sheets for structured financing, backed by future gas revenues, to fund the planned drilling campaign in Q4 2024 and is also in advanced negotiations with two international companies for a deeper partnership in accelerating SDX's gas exploration and production activities in Morocco…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

Petro Matad (MATD.L PRTDF HA3.F) announced an operational update on the Heron-1 oil discovery well and anticipated oil production start-up. The company has proposed that Heron-1 will be put onstream through temporary facilities so that production is not further delayed by slow moving bureaucracy and the Mineral Resources and Petroleum Authority of Mongolia has formally agreed to this proposal, with production start-up on Heron-1 now anticipated during October. The temporary facilities will be positioned on the well site to allow construction of the long-term facilities to go ahead in parallel with production operations once the construction permit has been obtained. The company has given notice to its chosen contractor to install the temporary facilities and the work is anticipated to be completed within two to three weeks. Meanwhile, Heron 2 drilling operations are proceeding smoothly andi Gobi Bear-1 is soon to spud…more

Helix Exploration (HEX.L) announced an operational update on the Clink #1 well at the Ingomar Dome Project where shows of helium and hydrogen gas from the Amsden, Charles, and Flathead sandstone formations have been encountered. The company has executed a contract with Precision Drilling for the use of Rig 704 and mobilisation will commence the week starting 30 September 2024 with re-entry targeted to commence in the first two weeks of October 2024. Rig 704 is rated to drill to 15,000 feet, allowing Helix to assess opportunities to deepen the well. Re-entry, wireline and completion is expected to take around two-weeks with flow testing to follow a successful completion. Additionally, the company has secured a further 1,074 acres of leases at its Rudyard project in northern Montana. Leases were secured via direct negotiation with a landowner and brings the total landholding at Rudyard to approximately 6,674 acres. Helix is targeting to mobilise the Treasure State Drilling Cardwell KB-150 D1D rig for appraisal drilling at Rudyard in late-October 2024…more

There’s one further chance today for Advanced Market Knowledge, in which I set out how the micro-cap markets actually work - and exactly how you can profit from them. It’s guaranteed to open your eyes, no matter how long you’ve been in the markets and no matter how much you think you know. It’s also possible to receive the Private Letter complimentary for the next month. Subscribe here (it’s a pay what you want offer) and prepare for a highly profitable rest of the year - you can make a lot of money with this information

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