WTI (May) $85.43 +28c, Brent (June) $89.35 +43c, Diff -$3.92 +22c
USNG (May) $1.84 -2c, UKNG (May) 63.2p -0.45p, TTF (May) €25.895 +€0.32

Oil price

No surprise to see the Opec JMMC leaving the quotas unchanged, they even said that the May meeting was probably unnecessary so next stop the full Ministerial jolly in June. 

Every member of the Fed that you have ever heard of and a few that you haven’t are speaking this week, yesterday the boss, Jerome Powell started by speaking at Stanford and it was the same old, same old as he insisted on inflation falling more before rate cuts. Also Bostic the Hawk said that things were not that good, one 25bp cut and in the 4th quarter was the best chance. 8 more speakers this week. 

The EIA inventory stats were mixed, crude built by more than expected, up 3.210m barrels but as is the case at the moment products counted for more as gasoline drew 4.256m b’s worsening the product shortage worldwide. 

Diversified Energy Company

Diversified is proud to release its fifth annual Sustainability Report, “Priorities & Performance,” highlighting the Company’s sustainability actions and achievements in 2023. Diversified continues to implement innovate strategies to manage mature producing assets while also promoting technological improvement in all aspects of its business. The report details Diversified’s life-cycle stewardship model and commitment to being a solutions-driven operator by responsibly producing lower-carbon energy.  

Key highlights include:

• Reduced methane intensity by 33% year-over-year to 0.8 MT CO2e per MMcfe; a 50% reduction as compared to 2020 baseline (1.6 MT CO2e per MMcfe) and projected to be below U.S. Inflation Reduction Act-established methane fee threshold
• Achievement surpasses 2026 target for a 30% reduction in methane intensity and accomplishes the 2030 50% reduction target seven years ahead of schedule
• Conducted ~246,000 voluntary emission detection surveys; maintaining ~98% no-leak rate company-wide on surveyed assets
• Retired record 404 wells, including Diversified-owned and third-party assets, with majority managed and completed by DEC’s full-service asset retirement company, Next LVL Energy
• Achieved second year of Oil and Gas Methane Partnership 2.0 (OGMP) Gold Standard
• Contributed over $1 billion to state GDPs through employment and operations
• Strengthened community outreach efforts include $2.1 million in grants, programs, and community support
• Provided education assistance through over 50 university scholarships and paid internship opportunities
• Increased employee programs such as new family adoption policy, mental health webinars, and unconscious bias training
• Expanded Board’s gender diversity to  over 40% female, with 75% of Board Committees chaired by females
• Enhanced discussion and analysis of Task Force on Climate-Related Financial Disclosures (TCFD)

Commenting on the report, CEO Rusty Hutson, Jr. said:
“Diversified Energy continues to tackle the need for energy reliability, affordability, and sustainability head-on through our differentiated and proven stewardship model. Our strength lies in our people, who together make up the extraordinary OneDEC culture. By providing solutions to reduce emissions, increase the efficiency of our wells, and safely produce energy for our communities before responsibly retiring them, Diversified is well-positioned to play a lead role in the energy transition today and into the future. The 2023 Sustainability Report provides our stakeholders with a clear understanding of our commitment to sustainability, the stewardship of our assets, and to the dedicated efforts of our employees. We are proud to be the Right Company at the Right Time that is laser-focused on delivering pace-setting environmental performance and social responsibility – all while providing critical and affordable energy that drives our modern world.”

I make no apology for publishing this sustainability report extract as in my view its very existence in the detail it is offered is a major reason for wanting to invest in DEC and its corporate culture. CEO Rusty Hutson and members of the team from the top to the bottom have made it their business to be accountable in these areas and accordingly their commitment is substantial and permanent.

In an area where it is easy for outsiders to lob unattributed and substantially incorrect information into the mix I am glad that the company has nailed its colours to the mast and delivered a top notch, best in class Sustainability report that works now and will stand the test of time. Oh and it’s laser-focused too which does no harm… 

View the 2023 Sustainability Report online at div.energy/sustainability/

Union Jack Oil- The British are coming…*

Union Jack has announced that the Company’s Ordinary Shares have been approved to trade on the OTCQB Venture Market in the United States of America and will commence trading at market open today under the ticker UJOGF.

The Company believes that dual trading on the AIM Market of the London Stock Exchange and the OTCQB will provide enhanced investor benefits, which include an uncomplicated trading access for investors based in the USA and increased liquidity due to a broader geographic pool of potential investors.

The ability to trade in the Company’s existing Ordinary Shares on AIM will not be affected by having the OTCQB facility and no new Ordinary Shares have been issued.  Union Jack will continue to make announcements and disclosures to the London Stock Exchange through the Regulatory News Service and has no Sarbanes-Oxley or USA Securities and Exchange Commission  reporting requirements.

The OTCQB is recognised as an Established Public Market by the SEC and is a leading market for USA and international companies in the development stage.  To be eligible, companies must be current in their financial reporting, pass a minimum bid price test and undergo an annual company verification and management certification process.  As a verified market with efficient access to USA investors, OTCQB helps dynamic companies build shareholder value with a goal of enhancing liquidity and achieving a fair valuation.

Harbor Access (web: harbor-access.com), an established North American based Investor Relations Group has been appointed to represent Union Jack, to assist with increasing visibility and facilitating a better understanding of the Company throughout the USA financial markets.

The Company would like to thank the team at the International Corporate Services of OTC Markets, both sides of the Atlantic for their assistance, and B. Riley Financial Inc, a respected corporate securities firm that acted as Sponsor for the Company’s application to commence trading on the OTCQB.

David Bramhill, Executive Chairman of Union Jack, commented:
“Obtaining a trading facility on the OTCQB is another important step forward and a new chapter in Union Jack’s commitment to increasing its profile in the USA, especially at a time where we are actively conducting an ongoing drilling program in Oklahoma and building a quality portfolio of cash generative Mineral Royalties focused on the Permian Basin, Texas and Bakken Shale, North Dakota.

“Our expansion and diversification in the USA complements our already cash generative and profitable hydrocarbon production and development business in the UK and we look forward to material growth over the next year and beyond.”

Jonathan Paterson, Founder of Harbor-Access IR, commented: 
“We are very pleased to be working with the Union Jack team.  The Company is well positioned, with proven producing assets in the UK and an impressive Mineral Royalties portfolio and drilling campaign within the USA, which will resonate with North American investors leading to a successful IR program.”

Jonathan Dickson, VP of International Corporate Services at OTC Markets, commented:
“We are delighted to welcome Union Jack to the OTCQB Venture Market.  With its primary listing remaining on London’s AIM, the OTCQB’s cross-trading facility will allow Union Jack to broaden its horizons and provide investors in the USA with the ability to access the Company’s Ordinary Shares in US dollars and during USA market hours.”

UJO has arrived in the USA all guns blazing, they have invested in a number of exciting geographically spread oil and gas regions with a preliminary success rate that validates that decision and with a great deal yet to come. Indeed the Andrews well that is drilling right now would, on success prove to be a game-changer for Union Jack and prove up a very sound investment. 

With that result imminent, and I wish them good fortune,  it should be noted that this portfolio of energy assets could be very rewarding to the company and given what the asset base looked like before this should be of significant bonus to shareholders.  

Along with Harbor-Access the company is likely to prove an interesting investment for US investors and I would bet that Union Jack will stack up very well against domestic players. Given how serious they are about this series of investments I can see a great deal of upside to an already cheap share.

* Apologies to Paul Revere…

Angus Energy

First Quarter 2024 Production and Operations Update

• Production for the Quarter was 6.92 mm therms of natural gas and 11,717 bbls of condensate
• Estimated revenues of £4.86m for the Quarter

Gas volumes produced and sold from the Saltfleetby Field equalled 6.92 mm therms in aggregate for the months of January, February and March 2024 combined, compared to 7.35 mm therms produced and sold in the fourth quarter 2023. First quarter production equates to an average of 2.30 mm therms per month (2.45 mm therms per month in the fourth quarter 2023), as against hedged volumes of 1.5 mm therms per month for the quarter. Operational efficiency was 92% for the first quarter (87% operational efficiency for the fourth quarter 2023). Gas condensate (liquid) production averaged 128 bbl/day. 

The quarter included a planned major service on the ‘A’ compressor whilst a top-end major service was also carried out on the ‘A’ engine as a parallel activity. A planned intervention was also made on the ‘B’ engine with all cylinder heads on the engine changed out as part of an engine reliability improvement plan. Dual compressor operation was reinstated on the 20th March.

At the Brockham Oil Field, site work has commenced in preparation for rig arrival early in Q2 to reinstate production from the Brockham 2Y well. 

Angus is delivering good production from Saltfleetby and despite fairly serious planned maintenance still bettered 4Q 2023 giving good revenue forecasts into the bargain. Angus looks well set and remarkably good value at this price.

Ithaca Energy

On 21 March 2024, the Board of Ithaca Energy plc announced its third interim dividend of $134 million, representing $0.1321 per ordinary share. The third interim dividend will be paid on 17 April 2024 to shareholders on the share register on 2 April 2024.

As previously announced, the dividend is payable in cash in Sterling to holders of the ordinary shares. Sterling dividends will be converted from US dollars at an average of the mid-point of the market exchange rate over the three dealing dates on 27 March, 28 March and 2 April 2024 (£1 = US$1.2603). Accordingly, the amount of the sterling dividend payable in cash on 17 April 2024 will be 10.4814 pence per share.

I wrote on Ithaca briefly last week and whilst the results themselves disappointed slightly the longer term looks promising and I love the idea of the Eni deal, if it gets done that is. Yielding a historic 15% and over 20% for this year it could be a real winner in both capital and income categories, FYB. 

i3 Energy

i3 announces a 1st Qtr 2024 dividend totalling £3.084 million and confirms the following:

• Dividend: 0.2565 pence/share
• Ex-Dividend Date: 11 April 2024
• Record Date: 12 April 2024
• Payment date: 3 May 2024

Payment to shareholders holding their shares on the TSX will be made in Canadian dollars using the exchange rate from the Bank of England at close on the Dividend announcement date, 4 April 2024.

Following recent figures the divvi has been announced and shareholders should be pleased, the shares have started to perform but probably have the 13% yield to support them.

KeyFacts Energy Industry Directory: Malcy's Blog