Oilman Jim's Letter - September 3, 2024

Invictus Energy (IVZ.ASX IVCTF) announced that following completion of the interpretation of the CB23 Seismic Survey data and a review of prospectivity in the Zimbabwe eastern Cabora Bassa basin, eight key prospects have been defined in the company’s Exclusive Prospecting Orders 1848 and 1849, totalling 2.9 trillion cubic feet of gas and 184 million barrels of condensate on a gross mean unrisked basis. The company will focus its next exploration drilling campaign, initially targeting the Musuma prospect estimated to contain 1.17 trillion cubic feet, on further appraisal drilling in the Mukuyu gas field. The interpretation of the 2023 2D (CB23) seismic survey data identified multiple prospects with high potential gas volumes at multiple stratigraphic levels. The targets’ relatively shallow depths and, in some cases, stacked prospective intervals can be tested with simple vertical wells. Based on the company’s 80% share in the Cabora Bassa project, Invictus’ net share of this prospective resource would equate to 2.3 trillion cubic feet and 147 million barrels of condensate and the company will conduct a further evaluation of the Basin Margin play to select additional prospects for a future drilling campaign…more

Falcon Oil & Gas (FO.V FOG.L FAC.F) announced that it plans to change its corporate name to “Beetaloo Resources Corp.” and consolidate its share capital on the basis of up to 250 pre-consolidation common shares for one post-consolidation common share, subject to shareholder and regulatory approvals. Falcon wishes to proceed with the consolidation in order to pursue a listing on a US stock exchange during H1 2025, which is expected to expand awareness among US based investors and potentially provide the company with additional sources of capital. In conjunction with the consolidation, Falcon plans to complete the name change in order to align the company’s name with its strategic focus on appraisal and development activities in the Beetaloo Sub-basin, Northern Territory, Australia. Falcon currently has 1,109,141,512 issued and outstanding common shares, which would reduce to 4,436,566 common shares on the basis of a 250 to one consolidation…more

Conrad Asia Energy (CRD.ASX 3MD.F) announced that it has signed a binding gas sales agreement for the sale of natural gas from the Mako gas field with Sembcorp. The agreement is for gas from the Mako gas field (in which Conrad has a 76.5% interest, Empyrean Energy (EME.L E1E.F) has an 8.5% interest and Coro Energy has a 15% interest) and is said to be an important next step in the commercialisation of the Mako field, the largest undeveloped gas field in the West Natuna Sea. With this gas sales agreement and the gas sold under a separate domestic market obligation gas sales agreement with PGN, Indonesia’s largest gas company, all of Mako’s current gas contingent resources have been committed to gas buyers, which marks a significant milestone on the path to a final investment decision for the 376 billion cubic feet Mako project targeted for Q4 2024…more

TAG Oil (TAO.V TAOIF TOP.F) announced interim results. As at March 31, 2024, the company had C$7.7 million in cash and cash equivalents, C$7.3 million in working capital and no debt. TAG says it made significant progress at the BED4-T100 horizontal well, targeting the unconventional Abu Roash “F” reservoir in the Badr Oil Field, Western Desert, Egypt. Following flow back operations in April, the T100 well was cleaned out with coiled-tubing and a jet pumping artificial lift system was installed to establish stable flow from the well. Intermittent oil production continued to produce oil and unload fracture fluid and is being shipped to nearby processing facilities. Construction of an oil delivery station at the General Petroleum Corporation Abu Sennan receiving facility is ongoing and should be completed in due course. Gross field production from when the jet pump was installed on June 21, 2024, through to the end of July 2024 (online for ~25 days over this period) averaged 373 barrels per day of fluid (~256 barrels per day of oil). Total oil produced from the T100 well to date is over 12,000 barrels. Planning of TAG’s next horizontal well is in progress and will incorporate learnings and information that were obtained in drilling, completing, and producing the T100 well. Plans are also being developed to resume production from the BED 1-7 vertical well. The company says progress is also being made on potential strategic partnerships and acquisition opportunities in Egypt. These efforts aim to drive growth in multiple zones, including the ARF reservoir, to expand TAG Oil’s footprint in the Western Desert. Additionally, TAG is exploring other potential strategic acquisition opportunities in the broader Middle East and North Africa region, targeting both conventional and unconventional oil and gas potential…more

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