WTI (Oct) $64.05 -47c, Brent (Nov) 67.95 -52c, Diff -$3.90 -5c
USNG (Oct) $3.10 u/c, UKNG (Oct) 79.9p -0.15p, TTF (Oct) €32.545 -€0.065

Oil price

Oil is unchanged this morning after the Fed surprised no one by voting 11-1 to cut rates by 25bp’s. The EIA inventory stats showed a mixed bag, as we end the driving season and head towards distillates time of year things change around but the draws were still significant as was the distillate number. 

Sound Energy

Sound has announced its unaudited half-year report for the six months ended 30 June 2025.

HIGHLIGHTS

Development of the Moroccan Tendrara Production Concession   

• Phase 1 Micro LNG (”mLNG”) project (”Phase 1”):

o  Change of main contract of the mLNG project from vendor financing contract to a traditional Engineering, Procurement and Construction (EPC) contract
o  Post-period end the Operator, Mana Energy, on behalf of the consortium has finalised a $25 million debt facility from a local bank to fund the above-mentioned change in contract. Sound’s share of the facility is $5 million
o  First gas expected by year-end 2025

• Phase 2 Gas (pipeline) development (”Phase 2”)

o  The Operator has commissioned an update of the Front-End Engineering & Design (FEED) study and selection of EPC contractor

Energy Transition Business Development

• Formation of HyMaroc Ltd, a Company established to explore for Natural Hydrogen and Helium in Morocco
• A binding agreement to create a joint venture Company to produce and sell renewable energy via access to the medium voltage grid in Morocco

Exploration

• Exploration licences are all in the process of extension and renewal

Graham Lyon, Executive Chairman said:
”The Company is now on the cusp of first revenue generation with Tendrara gas production and a funded second phase project development awaiting FID. It has two funded exploration wells to be drilled and has begun diversification with two exciting new ventures. I would like to thank the Ministries in Morocco and National Office of Hydrocarbons and Mines (ONHYM) our state partner, for their continued co-operation and increased support. I appreciate the proactive approach of Mana Energy to enhance the value at Tendrara. Finally, a thank you to our staff who have continued to drive the Company forward and expand our portfolio opportunity set, and to all our shareholders for their continuing support of the Company and its objectives.”

Graham Lyon is building something positive here at Sound and the excitement ahead of fully funded exploration wells and of course ‘first revenue generation with Tendrara gas production and a funded second phase project development awaiting FID’.

But these are interims and only containing historic data with nothing new since the period end, and having said that the market has yet to appreciate the potential upside at Sound.

Buccaneer Energy

Buccaneer has announced that it has signed a contract with BitGo, the digital asset infrastructure company. BitGo will serve as the Buccaneers’ official custodian through its regulated entity BitGo Trust Company, Inc. The partnership will also include trading support through BitGo’s OTC platform, offering seamless access to liquidity.

As noted in the Company’s announcement on 19 August 2025, as part of the future Fouke area development in Pine Mills, the Company proposes to monetise its expected gas production from the development wells by partnering with a Bitcoin miner to power a Bitcoin mining operation. In preparation for the potential future receipt of revenues in Bitcoin from this activity, the Company is establishing procedures and processes to handle, store, and trade in Bitcoin. The contract with BitGo is an important step in this process.

The implementation of a successful strategy to monetise this gas is subject to a number of further steps including the drilling result from the new development wells. This includes entering into an agreement with a Bitcoin miner on suitable terms and further assessment of potential sites for a future operation.

Paul Welch, Buccaneer Energy’s Chief Executive Officer, said:
“We are delighted to conclude this agreement with BitGo ahead of our planned participation in a Bitcoin mining operation, as we believe they are the best partner to work with in this business. This is just one of many things we are doing in preparation for drilling at Fouke, with the next action being the staking of the next development location, scheduled for the end of this week. We look forward to updating the market as we progress.”

To be honest my knowledge of the workings of a bitcoin mine is what could at best be described as rudimentary but I am able to determine how important they are going to be in the future as modelling of the economics of these wells and in due course field economics.

I also like that BitGo are going to be an active partner including trading support through its  OTC platform, ‘offering seamless access to liquidity’. They will also offer trading support and various other services which gives significant support to Buccaneer. 

Since his reappearance on the energy scene Paul Welch has picked up a serious basket case and is making very decent progress with it both operationally and financially. Rome wasn’t built in a day and I’m being cautious as BUCE makes its moves but I would wager that he can make it work and it should reward the patient investor, one for the radar screens no doubt.

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