WTI (Nov) $68.18 +51c, Brent (Nov) $71.98 +38c, Diff -$3.80 -13c
USNG (Nov) $2.91 +16c, UKNG (Nov)* 98.17p +7.17p, TTF (Nov)* €39.225 +€1.87
*Denotes expiry of the October contracts

Oil price

The same things pushing on the oil price continue, China is positive at least for the short term as the latest stimulus from Beijing is just that. With Israel attacking Houthi operations which are financed by Iran there is temptation enough for reprisals on the cards. 

Opec+ has said it will ‘crack down’ on member countries that aren’t following output cuts…

And as the month and the quarter ends and what comes with that is a shedload of company results which have to get in before the designated deadline…

Touchstone Exploration

Touchstone has provided an operational update.

Highlights

• Successful completion of our Cascadura C wells: the Cascadura-2ST1 and Cascadura-3ST1 wells were completed with initial shut-in wellhead pressures building to 3,600 psi and 2,665 psi, respectively.
• Gas presence indicated at Cascadura-2ST1: the fluid column gradient observed in the tubing at Cascadura-2ST1 suggests a significant presence of natural gas, comparable to findings in the Cascadura-1ST1 well, reinforcing our geological models.
• Crude Oil and Natural Gas at Cascadura-3ST1: Cascadura-3ST1 successfully flowed crude oil from the lower sheet 5 Herrera interval on September 17, 2024, followed by a test from the sheet 4 Herrera interval on September 26, 2024 confirming natural gas.
• Flowline installation: we have successfully installed the flowline connecting the Cascadura C surface location to our natural gas facility, and hydrotesting of the line will commence shortly.
• Cascadura infrastructure enhancements: the test separator at the Cascadura natural gas facility has been installed, and the riser at the Cascadura B site has been completed, optimizing our operational capabilities.
• Significant production increase at Balata East: since acquiring the field in June 2024, production has surged by nearly 300 percent from a targeted workover and optimization program.

Paul R. Baay, President and Chief Executive Officer, commented:
“The results from the Cascadura-2ST1 well test is highly promising, closely mirroring the responses we observed at the Cascadura-1ST1 well. We are eager to connect it to the completed pipeline and begin testing at our facility as soon as possible.

The discovery of crude oil during the initial test of the Cascadura-3ST1 well further underscores the potential within the Ortoire acreage. The encouraging results from this initial well test opens up new liquids possibilities on the block. The results of the second well test are particularly significant, confirming the presence of economic hydrocarbons on the east side of Fault C, areas that have not been previously booked as reserves. Initial findings suggest that the Cascadura structure hosts multiple hydrocarbon accumulations beyond previously defined boundaries.

Although the oil test at Cascadura has delayed the final tie-in of the wells on pad C, the insights gathered will be invaluable for our future drilling efforts in the area.

We are proactively establishing essential infrastructure at Cascadura to accelerate the development of upcoming wells, significantly reducing the time from drilling to production. A prime example of this efficiency is our ability to move the rig to the Cascadura B pad using our own road network, along with the risers already in place to facilitate successful development on the pad. We look forward to keeping our stakeholders informed as our operations progress.“ 

This is very good news from Touchstone and the Cascadura C wells having both flowed oil and gas, the 2 well flowed at 3,600 psi and the 1 well 2.665 psi and ‘highly promising’ whilst mirroring the observations at the 1 well. Oil was confirmed at the 3 well and CEO Paul Baay seems very confident of liquids possibilities on the block which is very good news. 

With the 2 well swiftly being made ready to connect to the pipeline and then ready for testing at the natural gas facility ‘as soon as possible’ it is an encouraging situation and along with the results of the second  well test, which in a really positive development confirmed the presence of economic hydrocarbons on the east side of the Fault C, which had not previously been booked as reserves. 

This means that the Cascadura structure may well hold ‘multiple hydrocarbon accumulations beyond previously defined boundaries’ a feat by any operational standard and total justification for the management, and by the by very useful for future drilling work. 

All in all things are looking very good at Touchstone, there have been one or two small delays but now with their own infrastructure in place and able to reduce time taken to move the rig over to the Cascadura B pad using the company’s own network and to have the risers already in place to facilitate successful development on the pad.

The shares have yet to make a significant move upwards which I do expect with a much higher Target Price being justified. There is much more in the portfolio including areas not yet approached at Ortoire and as I expected so much more to come from Touchstone.

Cascadura-2ST1

On September 8, 2024, the Cascadura-2ST1 well was successfully perforated across 115 feet of sheet 4 in the Herrera Formation, at depths between 6,142 to 6,294 feet. Following the perforation, wellhead pressure rapidly increased to 1,900 psi, and within the next 18 hours, it continued to build, reaching 3,600 psi. This increase in wellhead and bottom hole pressure indicates a substantial gaseous column within the tubing. Currently, the Cascadura-2ST1 well is shut in, awaiting connection to the newly constructed flowline.

Cascadura-3ST1

On September 15, 2024, the Cascadura-3ST1 well successfully perforated 40 feet of sheet 5 in the Herrera Formation, at depths between 7,248 and 7,294 feet. Sheet 5 was identified as a secondary exploration target. Following perforation, the wellhead pressure immediately climbed to 2,100 psi, and flowback testing commenced on September 17, 2024. The interval was flow tested using 3.5-inch tubing and a 10/64-inch choke. In the first hour we recovered 54 barrels of completion fluid, and the well continued to flow for 40 hours at restricted rates of approximately 300 to 400 bbls/d of 25-degree API crude oil, without any formation water, yielding a total of 538 barrels of oil during this period.

On the third day of testing, we observed a sudden shift in flowing pressures, leading to the well producing both oil and significant quantities of formation water, mud, and sand. This initial test marked a critical milestone as it was the first conducted in the lowest Herrera sand sheet encountered in the field to date, extending across the interpreted outermost structure fault, known as Fault C. While the initial flow test results were promising, indicating stable rates of clean oil, it appears that a lower water-bearing sand was breached into the wellbore, necessitating the plugging of this lower test. This testing phase represented our inaugural drilling results on the east side of Fault C, revealing the lowest structural location as the formation trends upward to the northeast.

On September 26, 2024, the service rig successfully completed the uphole section of the sheet 4 Herrera interval, the primary target of the wellbore. This interval was perforated across 36 feet at depths from 6,794 to 6,889 feet. Following perforation, the wellhead pressure rapidly reached 2,100 psi and subsequently built to 2,620 psi. The well was then opened on the same day using a 12/64-inch choke, resulting in a flow of dry natural gas for one hour at a flowing pressure of 2,400 psi, before being shut in for safety reasons. Due to the absence of natural gas testing equipment on site, we were unable to estimate the volume of natural gas produced. The current shut-in wellhead pressure is 2,665 psi. Future testing will be conducted as we integrate the well into the gas gathering system at the Cascadura natural gas facility. The results of the second well test confirmed the presence of hydrocarbons on the east side of Fault C, highlighting additional opportunities for future development in the area.

Cascadura Infrastructure

We are making substantial progress in connecting the Cascadura C surface location to our Cascadura natural gas facility. The flowline has been successfully installed along the designated right-of-way, and hydrotesting of the line is set to commence shortly. An additional natural gas separator has been installed at the facility, and the wellhead tie-in piping and valves have been fully welded. With well testing now complete, the final surface piping is ready to be transported to the site for installation. Additionally, the bridge over the Poole River is approximately 80 percent complete, with expected completion by the end of October. While the bridge is not necessary for the initial gas production, its completion will facilitate direct vehicle access across the Cascadura field, enhancing trucking and logistical operations in the area. This development will greatly improve our operational efficiency and support future growth.

To ensure the safety and integrity of our operations as we move forward, following the oil test at the Cascadura-3ST1 well, the final tie-in for the Cascadura-2ST1 and Cascadura-3ST1 wells will take place once the service rig has vacated the Cascadura C pad. We anticipate that first natural gas production from the Cascadura C pad will commence prior to the end of October 2024.

Balata East

Our operations team has been actively engaged at the Balata East field, located north of our Ortoire block, since we assumed control on June 1, 2024. After obtaining the necessary regulatory approvals for service rig operations, we initiated an optimization, workover, and recompletion program at the end of August. Following our initial workover efforts, we have successfully increased field production from 33 bbls/d in July to an estimated current rate of 125 bbls/d. We remain committed to identifying additional wells for optimization to further enhance production and maximize the field’s potential.

Production Volumes

In August 2024, we attained average net sales volumes of 5,125 boe/d comprised of:

• average net natural gas sales volumes of 23.3 MMcf/d (3,887 boe/d); and
• average net crude oil and natural gas liquid sales volumes of 1,238 bbls/d.

Challenger Energy Group

Challenger Energy (AIM: CEG), the Caribbean and Atlantic-margin focused oil and gas company, with oil production,  announces its Interim Results for the six months period to 30 June 2024.

The Interim Results and Chief Executive Officer’s commentary are set out in full below and are also available on the Company’s website https://www.cegplc.com/.

CHIEF EXECUTIVE OFFICER’S REPORT

Dear fellow Shareholders,

I am pleased to report to you on your Company’s activities during the first half of 2024.

Highlights during this period were that we entered into a transformational farmout to Chevron for our AREA OFF-1 block in Uruguay, our AREA OFF-3 block in Uruguay was formally awarded allowing value-adding technical work to commence, we made good progress with our business in Trinidad and Tobago, and we welcomed a strategic investment in our Company by specialist energy investment firm Charlestown Energy LLC, which included the appointment of Robert Bose to our Board. Further details on these highlights are provided below.

Uruguay – “doing what we said we would do”

Challenger Energy secured the AREA OFF-1 licence, offshore Uruguay, in May 2020. This was in the midst of the Covid-19 pandemic, when Uruguay was not yet on the global industry’s radar, and so at that time we were the sole licence holder in Uruguay. Since then, offshore Uruguay has emerged as a global exploration “hotspot”, following on from sizeable discoveries made by two supermajors (TotalEnergies and Shell) from exploration wells drilled in the conjugate margin offshore Namibia (and subsequently multiple additional discoveries there by GALP Energia). By the end of 2023 all Uruguayan offshore blocks had been licenced, with Challenger Energy holding two of the seven available blocks, and the other five blocks having been awarded to majors / NOC, including Shell and APA Corporation.

In parallel with the industry’s “discovery” of Uruguay, through the course of 2023 Challenger Energy undertook a technical work program for AREA OFF-1, the result of which was the identification of three primary prospects in the licence area. In aggregate, we delineated a robust prospect inventory of approximately 2 billion barrels (Pmean) and up to 5 billion barrels (P10), thus establishing that AREA OFF-1 is a world-class asset.

Based on this technical work, in 2023 we had also commenced a formal, adviser-led farmout process, with the objective of securing an industry “heavyweight” as partner for AREA OFF-1, who could provide the further expertise and capital needed to rapidly take the block forward to 3D seismic acquisition and, ultimately, exploration well drilling. The fruits of this process materialised during the period under review, when in March 2024 we announced a farmout agreement with Chevron. Under the terms of that agreement, Chevron will assume a 60% operating interest in AREA OFF-1, will pay the Company US$12.5 million cash as an entry fee, will carry 100% of the costs of an agreed accelerated 3D seismic acquisition on the block (up to a total net cash value to the Company of US$15 million), and thereafter, if the decision is made to proceed to drilling of an initial exploration well, will carry 50% of the Company’s share of costs associated with that well (up to a total net cash value to the Company of US$20 million).

Post period end, on 19 September 2024, the farm-out was approved by the board of directors of ANCAP (the Uruguayan regulatory agency with oversight of offshore licences). Following this approval, and in accordance with Uruguayan legal requirements, the process has progressed to its final stage, which consists of the farmout being notified to the Uruguayan Ministry of Industry, Energy and Mining, and at the same time the requisite Consortium Agreement between the Company and Chevron being submitted to the Uruguayan Ministry of Economy and Finance for registration. Once a 20-day notification period has elapsed and the Consortium Agreement is registered, we can move to finalising the farmout, which we now expect will be in the next 4-8 weeks.  Chevron will then immediately assume operatorship of AREA OFF-1, and we are already working closely with our new partner in anticipation of the transition, as well as assisting Chevron as they plan for upcoming activity on AREA OFF-1. We share a common goal with Chevron, which is to see a 3D seismic campaign commence in the next available shoot window (H1 2025), because it is this activity, and subsequent well drilling, which we believe will ultimately realise the considerable upside value we see in this asset.

Shareholders will also recall that during 2023 we made an application for another offshore exploration block in Uruguay, AREA OFF-3, then the country’s last available offshore acreage. In June 2023 we were awarded the block, on attractive terms. As with AREA OFF-1, the “size of the prize” that AREA OFF-3 offers is substantial: based on initial assessment, an estimated resource potential of up to 2 billion barrels and up to 5 trillion cubic feet gas (c. 1 billion barrels equivalent), from multiple exploration plays. But, unlike AREA OFF-1, the AREA OFF-3 block has not only existing 2D seismic coverage, but 3D seismic coverage as well, an advantage that will allow for an accelerated work program focused on 3D seismic reprocessing.

During the period under review, the AREA OFF-3 licence was formally signed (March 2024), and we immediately began the process of preparing for a technical work program, which has now commenced. Our strategy for AREA OFF-3 is to follow the same formula that produced a successful outcome for AREA OFF-1: first, undertake high quality technical work to establish the prospectivity of the block (we expect to conclude this over the coming 9 months), and second, with the benefit of that technical work, seek to bring in a partner via a farmout process (we expect to be able to commence a formal process around mid-2025).

In summary, therefore, insofar as our business in Uruguay is concerned, the first half of 2024 was truly transformational. We cemented our position as one of the largest acreage holders in Uruguay, with two high-quality assets. More importantly, we showed that we do what we promise to do – technically, through excellent work, commercially, in being able to reach a market-leading farmout for the AREA OFF-1 block, and strategically, in developing an enviable position that no other junior player was able to develop, in what has become a global exploration focus area.

Trinidad and Tobago – “focusing on the nuts and bolts”

In August 2020, the Company completed the acquisition of Columbus Energy Resources Plc, which gave us a portfolio of assets in Trinidad and Tobago and Suriname, including onshore oil fields in active production.

Our initial view in assuming ownership of these assets was that we would be able to generate organic growth in production from the existing fields. However, despite efforts ranging from application of efficient mature oilfield management practices and field improvements to enhanced oil recovery (EOR) initiatives, production growth as we had hoped for did not materialise, given the age and condition of the fields.

Therefore, during 2023, we switched our operational approach in Trinidad and Tobago – instead of seeking production growth, our focus became to achieve consistent and stable production and drive cost savings, with a simple objective: achieve at least cash-flow breakeven performance from those assets considered “core” (consisting of the Goudron and Inniss-Trinity fields in south-east Trinidad and the Icacos field in south-west Trinidad), whilst at the same time divesting or exiting from all those assets considered “non-core” (consisting of various other assets in central and south-west Trinidad, and an appraisal block in Suriname).

Through the first half of 2024 we executed on this revised approach. Specifically, during the period:

(i) we finalised all aspects of our exits from the non-core South Erin and Cory Moruga fields in Trinidad and the project in Suriname, and we began work on an arrangement to fully exit from the Bonasse licence (a non-producing field since the unsuccessful Saffron-2 well, but nonetheless with continuing liabilities, lease expenses and potential exposures, and with no corresponding upside; the specifics of this arrangement took shape post-period end and it was finalised in August 2024), and

(ii) we continued to focus on achieving baseline production and improving financial performance from the remaining “core” fields, with good results. 1H 2024 production from the Goudron, Inniss-Trinity and Icacos fields was stable (we averaged approximately 283 barrels of oil per day), revenue remained consistent versus the comparable period, and we were able to achieve meaningful reductions in the cost base of our Trinidadian operations. This meant that, in general terms, we saw a marked improvement in financial metrics – depending on monthly field activity levels the business was largely self-sustaining on a cash basis, thus meeting our core objective (in an accounting sense however, certain non-cash charges are included in the income statement).

Our HSE&S performance during the period under review remained as strong as ever, and we were once again awarded a two-year STOW-TT (“Safe to Work in Trinidad & Tobago”) certification. STOW certification is a specific Trinidadian certification for oil field operators that provides a standardised, independent system for certifying operators and contractors with respect to Health, Safety and Environmental delivery.

Thus overall, insofar as our Trinidad and Tobago business was concerned, the first half of 2024 could be described as a period of continuing improvement and progress.

Corporate

In April 2024 we entered into an agreement for an investment in the Company by Charlestown Energy Partners LLC (“Charlestown”). Charlestown agreed to invest £1.5 million, initially in the form of a loan, with that loan converting into shares in the Company on a pre-agreed basis (and at a premium price), once the Company completed (i) a share consolidation, and (ii) the AREA OFF-1 farmout to Chevron. The investment from Charlestown was finalised in May 2024, providing the Company with finance in the medium term until full completion of the AREA OFF-1 farmout to Chevron. The first of the requisite conditions – a share consolidation – was subsequently undertaken in August 2024. As noted, we expect the Chevron farmout will be fully completed in the next 4-8 weeks, at which time all conditions for conversion of the Charlestown investment into a shareholding will have been met.  Charlestown’s loan will then be extinguished, and  Charlestown will be issued with shares that will result in Charlestown holding an approximately 8.7% interest in the Company, thus becoming one of the Company’s largest shareholders.

Charlestown is a specialist energy investor that is associated with Charlestown Capital Advisors, a family office located in New York that was founded in 2005, and has been making investments globally in E&P since 2016. Of particular relevance to our Company, Charlestown is the cornerstone shareholder in Sintana Energy Inc (“Sintana”), a TSX-listed exploration company since 2019. Sintana maintains an indirect interest in a portfolio of exploration licenses in Namibia including in the emerging Orange Basin, where several multi-billion-barrel discoveries have been made by Shell, TotalEnergies and Galp Energia.  Given that we see potential parallel between what has happened in Namibia in recent years and what may happen in Uruguay in the coming years, we were very pleased to have been able to attract an investor such as Charlestown to Challenger Energy.

Consistent with the long-term, strategic nature of Charlestown’s investment in the Company, Mr. Robert Bose was also invited to join the Company’s Board, with that appointment taking effect in May 2024. Robert has been the Managing Member of Charlestown since 2016, having joined Charlestown Capital Advisors as a principal in 2014. Prior, he spent 17 years in the Global Investment Banking Group at the Bank of Nova Scotia, most recently as Managing Director and Head of the Power & Utilities Group, with a specifical focus on the energy and power sectors. Robert is currently also serving as Chief Executive Officer of Sintana, which as noted represents a significant holding in Charlestown’s current portfolio.  Robert’s addition to our Board is highly complementary, as it will give us the benefit of his experience, industry insights highly relevant to Challenger Energy’s position in Uruguay, and network.

Financial Review, Cash Position and Funding

The unaudited interim financial statements for the half year ended 30 June 2024 present details on the financial performance of the Company for the period. By way of added commentary, I would note that the nature of the Company’s primary business – high impact hydrocarbon exploration activities – means that a key financial indicator we focus on, and which is not always readily discernible from the financial statements, is net cash spend (or “overhead run-rate” or “burn” as it is sometimes also referred to).

In this regard, the Company’s net cash spend, after adjusting for various items such as licence expenses in Uruguay and purchase of property plant and equipment in Trinidad & Tobago, was in the order of $180,000 per month. This represents the basic costs of staying in business as a junior AIM-listed company – corporate expenses, salaries, listing costs, annual audit fees, etc. We believe that this level of “burn” compares favourably with similar AIM-listed entities, is consistent with the level of net cash spend in prior periods, and meets the Company’s stated objective of keeping its “burn” under $200,000 per month.

At balance sheet date the Company had approximately $1.8m of unrestricted cash (and approximately $0.8m of cash on restricted deposit in support of work program guarantees for various licences). During the period we sought to defer expenditure and minimise cash outflows as far as possible in anticipation of completion of the AREA OFF-1 farmout. As noted, once the farmout of AREA OFF-1 is completed, Challenger Energy will receive a cash $12.5 million payment, along with Chevron being required to carry our share of certain future work programme costs. Therefore, subject to completion of the AREA OFF-1 farmout, the Company expects it will have the cash needed to fund all planned activities for the foreseeable future, without the need for additional capital.

Strategic Direction

In our most recent Annual Report, I said I believed that the outlook for our Company over the coming period is as strong as it has ever been. My belief in this regard has not changed, and indeed, as each day passes, I become increasingly excited about what might be achieved from our early entry into Uruguay. What was initially no more than “option value” has now crystallised into an opportunity for substantial value-creation.

Thus, in the next 12 months, we expect that we will see Chevron rapidly take the AREA OFF-1 project forward, first with 3D seismic acquisition that could see new data for AREA OFF-1 available as soon as the middle of 2025, leading shortly after that to a decision on exploration well drilling. At the same time, our technical work program for AREA OFF-3 is underway, primarily involving reprocessing of legacy 2D and 3D seismic, but also including a number of other work streams similar to those we found leveraging for the AREA OFF-1 farmout strategy. As noted, we will be looking to replicate our AREA OFF-1 farmout success for AREA OFF-3, with a process that we expect will commence by mid-2025, and with the goal being to secure a partner for AREA OFF-3 during 2025/early 2026, and exploration well drilling thereafter.

Meanwhile, in Trinidad and Tobago the focus is to continue the good work of the last year in terms of maintaining current production, driving improved financial performance, and disposing of or exiting from any remaining non-core assets. At the same time, with the benefit of the improving operating position we have been able to achieve, we can also begin to consider the right way forward for the Trinidadian business over the longer-term: growing it into one that is profitable and cash-flow generative and/or reducing our exposure and potentially monetising our position.

Overall, the first half of 2024 has been truly transformational for our Company, during which time we solidified much of the hard work over the past several years, produced an outstanding result on our AREA OFF-1 farmout ambitions, and clearly laid the foundations on which we hope considerable shareholder value will be built over the coming years. As a significant shareholder myself I am fully aligned with all shareholders, and can assure you, my fellow owners of the Company, that everyone on the Challenger Energy team is laser-focused on delivering our objectives. 

Eytan Uliel

Chief Executive OfficerChallenger Energy (AIM: CEG), the Atlantic margin focused energy company is pleased to be participating in the World Energies Summit taking place on 1st – 2nd October 2024 in London. Eytan Uliel, Chief Executive Officer, will be speaking on the “Global E&P Hotspots: The Americas” panel, where he’ll discuss the Company’s key assets in Uruguay, and the outlook for exploration in the region more broadly. This will take place at 4:30pm -5:30pm on 1st October 2024.He will be speaking alongside ANCAP (Uruguay’s national oil company and sector regulator) President Alejandro Stipanicic, and Oil & Gas Corporation of Newfoundland and Labrador Chief Executive Officer, Jim Keating, amongst other key players.

I have put in today the full statement from CEO Eytan Uliel as well as the notice of the World Energies Summit at which he is speaking tomorrow. If you can get to this event I would strongly advise you do so, there are many excellent speakers on the podium and I’m sure that it would add to what I have hopefully been banging on about for some time.

CEG is one of the stocks that look like they could add significant value due to not one but two potentially explosive assets in the portfolio. In his detailed report above, the farm-out to Chevron of AREA OFF-1 is analysed in some detail but with exciting short term potential that will put Challenger in a very strong position and working with one of the genuine super-majors. 

Moving to AREA OFF-3, CEG are underway with a significant technical work programme in particular reprocessing the legacy 2D and 3D seismic as well as working on similar work streams that worked for them in the farmout of AREA OFF-1. I expect that an AREA OFF-3 farm-out process will commence by mid-2025, with the goal being to secure a partner for AREA OFF-3 during 2025/early 2026, and exploration well drilling thereafter.

To me Challenger looks poised for significant growth and should be starting very soon and phased over several years which should therefore build the company into something highly successful. Management is top notch and this success profile is down to the careful hunting for acreage and settling on Uruguay was the work of genius… 

Petrofac

Petrofac today issues its financial results for the six months ended 30 June 2024.

OPERATIONAL AND FINANCIAL PERFORMANCE:

• Group business performance first half EBIT loss of US$(106) million
• First half free cash outflow of US$36 million, net debt of US$622 million and gross liquidity of US$164 million
• Group backlog US$8.0 billion, with strong order intake in Asset Solutions of US$0.9 billion in the first half of the year
• In-principle agreement with certain key stakeholders on the framework for a comprehensive Financial Restructure

Tareq Kawash, Petrofac’s Group Chief Executive, commented:
“The first half of 2024 was another challenging period for Petrofac, set against the backdrop of a restructuring process which aims to put the business in a stronger financial position.  While this has impacted the Group’s performance during the first half, our new projects are performing well, and we continue to make progress in closing our legacy contracts in E&C. The markets we operate in remain robust and we have secured a good level of new order intake in Asset Solutions.

As announced last week, we are moving forward with a financial restructuring that will enable us to look to the future. The Board is grateful for the support of our stakeholders during this period and remains focused on delivering the best possible outcome for Petrofac and capitalise on the opportunities ahead of us. I am particularly proud of the continued dedication and commitment of our people and thank them for their ongoing and relentless focus on our customers at this important time.”

I’m not going to look into these numbers quite yet, there is much water yet to flow under the bridge and at present no idea about share structure etc. 

Seascape Energy

Seascape Energy, an E&P company focused on Southeast Asia, is pleased to announce its unaudited interim results for the six-month period to 30 June 2024.

Nick Ingrassia, CEO of Seascape, commented:
“The first half of 2024 has been a period of considerable change for the Company culminating in a strategic pivot to refocus the business on Southeast Asia. This transitional period is reflected in our interim results.

Looking forward, we are excited about the opportunity to use our competitive advantages in the region, including an experienced team with excellent long-term relationships, to grow and diversify our portfolio.

We remain focused on delivering several significant value inflection points in the near-term as we seek to grow the business under our refreshed and reinvigorated brand for the benefit of all our stakeholders.”

There is nothing to see in the Seascape numbers that bear any resemblance to the company’s future, I have given my views strongly in recent weeks that the company is at the beginning of a hugely exciting future in South East Asia.

Whilst the two deals on the table are both imminent and not quite completed, the outlook is still hugely bright and Seascape is a must have stock in any energy portfolio at the moment.

Tower Resources

Tower has announced its Interim Results for the six months ended 30 June 2024. 

Key Highlights including Post-Reporting Period Events

• 30 September 2024: Cameroon – farm-out proposal received
• Receipt of a proposal to finance the NJOM-3 well via farm-out of a minority interest in the PSC to a substantial upstream company with existing production, which the Company is in the process of reviewing.
• August 2024: Namibia – technical update in respect of the Company’s PEL 96 license
• Extension of the Initial Exploration Period of PEL 96 to 31 October 2024 and invitation to apply to enter the First Renewal Period of PEL 96, for a period of 2-3 further years.
• Agreement to defer the Company’s commitment to acquire 1,000 square kilometres (“km2“) of new 3D seismic data to the First Renewal Period.
• Continuing work on the evaluation of large stratigraphic and structural leads and prospects.
• Plan to reprocess the previously acquired 2D seismic data over large areas of the license.
• February 2024: Cameroon – Extension of the First Exploration Period of the Thali PSC to 4 February 2025

Other Highlights and Post-Reporting period Events

• 13 August 2024 – Issue of 71.4 million 5-year warrants at a strike price of 0.018p per share in lieu of Directors fees to Ms Stacey Kivel in respect of the period July-September 2024;
• 1 July 2024 – Issue of 357.1 million 5-year warrants at a strike price of 0.018p per share in lieu of £30,000 (in aggregate) of Directors fees in respect of the period July-September 2024;
• June 2024 – A subscription for 1,195,652,174 new ordinary shares at 0.0115p per share to raise £137,500 (gross) by the Company’s Chairman and CEO, Jeremy Asher and another investor;
• May 2024 – Borr Drilling Limited (“Borr”) advised it had extended the commitment of the Norve jack-up rig to BW Energy to October 2024. Tower advised it was continuing to work with Borr on timing;
• February 2024 – Annual award of 5-year share options over 1,182,000,000 new ordinary shares under the Long Term Incentive Plan (“LTIP”), at an exercise price of 0.018p per share, vesting in three equal tranches over 12, 24 and 36 months;
• February 2024 – The Company received notice that the third of its appeals to the First-Tier Tax Tribunal had been successful, resulting in a release of the remaining VAT provision and the receipt of remaining receivables;
• February 2024 – The Company reached an agreement for the repayment of the outstanding balance owed to EECP, in accordance with the terms of the Investment Deed announced on 16 January 2023 (the “Investment Deed”). In addition, the Company also announced a Subscription to raise £600,000 via the issue of 3,333,333,333 shares at a price of 0.018 pence per share;
• February 2024 – Share issuance in accordance with the terms of the Investment Deed with EECP, of 396,825,397 shares at a price of 0.021p per share for a settlement amount of US$105,000 which had been prepaid by EECP;
• January 2024 – Issue of 350.9 million 5-year warrants at a strike price of 0.03p per share in lieu of £60,000 (in aggregate) of Directors fees in respect of the period January-June 2024, to conserve the Company’s working capital;
• January 2024 – Share issuance in accordance with the terms of the Investment Deed with EECP of 440,567,445 shares at a price of 0.0225p per share for a settlement amount of US$125,000 which had been prepaid by EECP.

Again not much to add but the perseverance shown by Jeremy Asher and team is to be credited and I hope that I will share some time with him next week at Africa Oil Week.

KeyFacts Energy Industry Directory: Malcy's Blog