WTI (July) $64.98 -31c, Brent (Aug) $66.87 -17c, Diff -$1.89 +14c.
USNG (July) $3.53 -11c, UKNG (July) 81.5p -1.21p, TTF (July) €35.155 -€0.035

Oil price

Oil is up over a dollar this morning as the talks between the USA and China end in London and the teams of negotiators head home for hopeful Presidential approval. Apparently a ‘framework agreement’ which goes back to the May Geneva agreement is the basis of the deal, we shall wait and see….

As we wait for the EIA inventory stats I note that in the API data, whilst crude drew  by some 370/- barrels, both gasoline (+2.969m) and distillates (+3.712m) showed a slightly out of kilter for this time of year. This afternoon with its refinery run number might shed light on that. 

Reabold Resources

Reabold has today announced its audited financial results for the year ended 31 December 2024 and the Annual Report is publicly available at www.reabold.com/investors/reports-presentations/.

2024 Highlights

• SPA signed to acquire 20.4% of the shares in Rathlin Energy (UK) Limited (“Rathlin”). Acquisition completed in January 2025, taking Reabold’s shareholding in Rathlin to 79.8% and its economic interest in West Newton to 69.9%.
• Cash and cash equivalents up 15% at £6.2 million as at 31 December 2024, compared with £5.4 million as at 31 December 2023.
• Final tranche cash proceeds of £4.4 million for the sale of Corallian, received from Shell in January 2024.
• Increased interest in LNEnergy Limited (“LNEnergy”) by 3.1% in 2024 taking interest to 29.2% at December 31, 2024. LNEnergy is the manager and owner of LNEnergy S.R.L., the Italian company which has applied for the Colle Santo gas field concession, a highly material gas resource with an estimated 65Bcf of 2P reserves1. In May 2025, Reabold increased its interest in LNEnergy to 45.1% via the conversion of £500,000 of loan notes.
• Execution of a non-binding Heads of Agreement between Gunvor International B.V. (“Gunvor”) and LNEnergy for the purchase of Liquified Natural Gas (“LNG”) by Gunvor from LNEnergy from the Colle Santo gas field. 
• Agreement provides for a potential prepayment for a portion of the first five years of deliveries to help fund the development.
• At West Newton, a Gas Export Feasibility study completed by independent energy consultants, CNG Services Limited, concluded that as a precursor to the intended West Newton full field development, an initial single well development and gas export plan can accelerate production and cash flow whilst requiring limited capital expenditure, giving the joint venture (“JV”) partnership the ability to drill future wells out of cash flow. See Review of Operations section below for further details.
• The single well development plan benefits from early cash generation with the ability to drill future wells out of cash flow. Following drilling and testing of this horizontal well, first gas is expected after 18 months with an associated development capex estimated to be c.£12 million.
• The North Sea Transition Authority (“NSTA”) approved a revised work programme for PEDL 183 onshore UK, which contains the West Newton field. The JV partnership for PEDL 183 is expected to approve a forward plan, which will initially consist of the re-entry and recompletion of the West Newton A-2 well in order to establish sustained gas flow. The JV partnership believes this is a low risk and low cost approach to derisk the project.

1. RPS estimate, September 2022

Reabold has been working very hard in this period but very much behind the scenes, we can see that in their two key projects they have increased their stakes quite substantially whilst also retaining the strong cash balance. At the year end cash and cash equivalents were up 15% at £6.2 million compared with £5.4 million as at 31 December 2023.

Colle Santo has the potential to be a game changer for Reabold and with demand for transition gas in Central Europe Colle Santo will eventually deliver a substantial dividend to Reabold and its shareholders. By executing a Heads of Agreement with Gunvor International for the purchase of LNG from the field, LNEnergy, by potentially receiving prepayment may be aided in the process of funding the development.

At West Newton, another potentially exciting onshore development, Reabold has continued to add to its stake and together now has a total economic interest of 69.9%. It is planned that via a low risk, low cost approach to de-risking the project, a single well development plan, which benefits from early cash generation to drill future wells out of cash flow.

So, Reabold with a cash balance of c.£6.2m as at the year end, is remarkably good value as today it has a market cap of some £5m, add that to these potentially huge value I consider that there is a great opportunity in backing the company at this level.  

Petrofac

Petrofac has been selected by ADNOC Gas to undertake an Engineering, Procurement and Construction Management Services (EPCM) contract for a US$1.2 billion project to expand its gas production facilities on Das Island.

As part of the overall Rich Gas Development (RGD) Programme, Petrofac will provide EPCM services and oversee procurement and construction contracts to build a new inlet facility, two new gas dehydration and compression trains, each with a capacity of 420 million standard cubic feet per day (MMSCFD), and associated infrastructure. Petrofac will also upgrade existing facilities to increase the site’s capacity for collecting and transporting raw natural gas. These upgrades will significantly increase gas processing capacity to meet rising customer demand.

Petrofac’s Group Chief Executive, Tareq Kawash, said:
“We are delighted to have been entrusted by ADNOC Gas, one of our longest-standing customers, to undertake this contract in our home market of the UAE. We look forward to working together to safely and sustainably increase the gas processing capacity at Das Island.”

Chief Operating Officer of Petrofac’s Engineering & Construction division, Elie Lahoud said:
“We are proud to support ADNOC Gas with the continued development of its major offshore asset. Through our long-standing partnership, we have demonstrated our commitment to predictable, high-quality delivery and look forward to contributing further to ADNOC’s support of the UAE’s energy goals.”

This is what Petrofac does best and a contract of this size can only help in its regeneration. But it was not the inability to win contracts like this that have put the company where it is now, from being a giant of the sector on a world wide basis it has needed financial reconstruction which have nearly destroyed this wonderful company. If it does come out of the bond debacle then it will be its operational excellence that leads it out…

Located 160 kilometres north-west of mainland UAE, the Das Island facility has been operational since 1977, and is the third longest LNG operation still in production globally. With a liquefaction capacity of six million metric tons per annum (MMtpa), it remains a key component of the nation’s LNG export strategy.

Original article   l   KeyFacts Energy Industry Directory: Malcy's Blog