WTI (Oct) $64.52 +$1.22, Brent (Nov) $68.47 +$1.03, Diff -$3.95 -19c
USNG (Oct) $3.10 +6c, UKNG (Oct) 80.05p +1.4p, TTF (Oct) €32.61 +€0.885

Oil price

Oil is unchanged today ahead of the EIA inventory stats later, last night the API reported a draw of 3.42m barrels of crude against a whisper of-1.6m. Let’s wait for the more accurate stats later, any ratification of a big draw……

The buzz around the sector was the perceived loss of credibility as the IEA, long a champion of renewables against fossil fuels, surprised the market suggesting that the world needs to spend some $540bn a year looking for oil & gas just to maintain current output. 

Quite a U-turn then as the organisation walks away from the ‘no investment needed’ message hitherto according to Javier Blas that needs strong annual spending to sustain production.

Art Berman, the legendary commentator said that they had been ‘too busy chasing hare-brained net zero ideas to pay attention to its Mission Statement’ and desperately seeks relevance by announcing that oil and gas fields deplete-maybe faster than it thought.

So Fatih Birol and his team are reaping the rewards of years of being taken in by the renewables lobby, can’t say I’m surprised of course, just imagine what Ashley Kelty is thinking about it all, a long way ahead of the game he was…

Diversified Energy Company

Diversified Energy Company PLC (LSE: DEC; NYSE: DEC) (“Diversified” or the “Company“), an independent energy company focused on natural gas and liquids production, transportation, marketing and well retirement, today announces the pricing of the previously announced underwritten public offering (the “Secondary Offering”) by certain funds or entities managed by an affiliate of EIG (“EIG”), an entity managed by FS/EIG Advisor, LLC and certain entities managed by FS/KKR Advisor, LLC (collectively, the “Selling Stockholders”) of 5,713,353 ordinary shares, nominal (par) value £0.20 per share (the “ordinary shares”), at a public offering price of $13.75 per share. In addition, the Selling Stockholders have granted the underwriters a 30-day option to purchase up to an additional 857,002 ordinary shares at the public offering price, less underwriting discount.

The Secondary Offering consists entirely of ordinary shares to be sold by the Selling Stockholders. The Selling Stockholders will receive all of the net proceeds from the Secondary Offering. Diversified is not offering any ordinary shares in the Secondary Offering and will not receive any proceeds from the sale of ordinary shares in the Secondary Offering. The Secondary Offering is expected to settle on September 18, 2025, subject to customary closing conditions.

The Diversified Employee Benefit Trust, which is operated through a third-party trustee, has indicated an interest to participate and purchase from the underwriters 750,000 of the ordinary shares being sold in this Secondary Offering (the “EBT Purchase Shares”) at a price per ordinary share equal to the public offering price (the “EBT Transaction”) being a total consideration of $10,312,500. The initial sellers of the EBT Purchase Shares are certain funds or entities managed by an affiliate of EIG, and EIG is an associate of Diversified director, Randy Wade. Accordingly, the EBT Transaction constitutes a related party transaction under UKLR 8.2.1. The EBT Purchase Shares were originally issued by the Company as consideration for the acquisition of Maverick Natural Resources, LLC, which closed on March 14, 2025. The board of directors of the Company (the “Board”) confirms that it considers that the EBT Transaction is fair and reasonable as far as shareholders of Diversified are concerned and that the Board has been so advised by Stifel Nicolaus Europe Limited as sponsor to Diversified in connection with the EBT Transaction.

Mizuho and Raymond James are acting as joint book-running managers and representatives of the underwriters for the Secondary Offering. Citigroup is also acting as a joint book-running manager for the Secondary Offering.

A shelf registration statement relating to the resale of these securities was filed with the U.S. Securities and Exchange Commission (the “SEC“) on May 16, 2025 and became effective upon filing. Copies of the registration statement can be accessed through the SEC’s website free of charge at www.sec.gov. A preliminary prospectus supplement and an accompanying prospectus relating to and describing the terms of the Secondary Offering were filed with the SEC and are available free of charge by visiting EDGAR on the SEC’s website at www.sec.gov. When available, copies of the final prospectus supplement and the accompanying prospectus related to the Secondary Offering can be accessed through the SEC’s website free of charge at www.sec.gov or obtained free of charge from any of the joint book-running managers for the Secondary Offering: Mizuho Securities USA LLC, Attention: Equity Capital Markets Desk, at 1271 Avenue of the Americas, New York, NY 10020, or by email at US-ECM@mizuhogroup.com, Raymond James & Associates, Inc., at 880 Carillon Parkway, St. Petersburg, Florida 33716, Attention: Equity Syndicate, by calling toll-free at 1-800-248-8863, or emailing at prospectus@raymondjames.com, or Citigroup, c/o Broadridge Financial Solutions, at 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at 1-800-831-9146.

This announcement does not constitute an offer to sell or the solicitation of an offer to buy our ordinary shares nor shall there be any sale of securities, and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.

Dividend Exchange Rate

Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) announced on May 12, 2025 a dividend in respect of the first quarter ended March 31, 2025 in the amount of 29 cents per share (the “Q1 2025 Dividend”.)  The Company will pay the Q1 2025 Dividend on September 30, 2025, to those shareholders on the register on August 29, 2025.

The Company announces that shareholders who have elected to receive their dividends in GBP sterling will receive an equivalent dividend payment of 21.321 pence per share, based on the September 12, 2025 exchange rate of GBP 0.73520=US $1.00.

Neither of these announcements need comment from me but I include them for detail and important income data.

Prospex Energy

Prospex wishes to inform shareholders that it has been advised by the operator of the Viura field, HEYCO Energia Iberia S.L, that the resumption of production following the completion of the workover of the Viura‑1B well, in the Viura gas field in northern Spain, has been delayed owing to an unforeseen event during the well testing.

During the well tests performed last month with wireline downhole pressure monitoring, a failure in the pressure control equipment required the safe and controlled cutting of the associated cable while still inside the well.  This has resulted in a wireline logging tool and its cable being left inside the tubing.  The required equipment to retrieve the tool and the cable had to be mobilised from Aberdeen, UK, with gas production not being able to proceed safely until the cable either has been removed or its location is known to be secured below the safety valve in the well.  Operations to remove the tool and the cable commenced on Tuesday 16 September 2025.  At this time, the timing of the resumption of production is unknown.

Prospex owns 7.24% of the Viura field through its ownership of 7.5% of HEYCO Energy Iberia S.L. (“HEI” or the “Operator”).  Prospex is accruing 14.47% of the production income from the Viura gas field until payback of its capital investment (expected to be ≈£8 million) plus the accrued 10% p.a. interest thereon.

Mark Routh, Prospex’s CEO, commented:
“This is a very unfortunate setback in re-instating production from this prolific gas field.  Safety of production operations is paramount and the Operator is working as quickly as it can to resume gas production from the field at stable and sustainable rates, but this has to be done safely.  Until the logging equipment that remains in the hole can be removed or safely located and secured downhole, gas production can not resume.  I look forward to updating shareholders when the Operator has brought the Viura gas field safely back into continuous production from the Viura-1B well.”

So just as I go and say in the blog ‘I rather like the company and feel that the poor share price doesn’t accurately reflect its prospects’ then HEYCO drops the tool bag down the well and it’s time to go fishing.

I remain happy that Mark Routh and team are doing a great job, after all this wasn’t their fault and the operator is working hard to catch up, a moderately small ticket for Prospex so I think that my long term enthusiasm remains undimmed.

Arrow Exploration Corp

Apparently there was a small error in some editions of the blog yesterday so I am reissuing the interview with Marshall Abbott just in case.

Core Finance CEO interview: Marshall Abbott of Arrow Exploration

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