WTI (Dec) $61.05 +7c, Brent (Jan)* $64.89 +12c, Diff -$3.84
USNG (Dec) $4.27 +3c, UKNG (Dec) 83.19p +1.43p, TTF (Dec) €32.2 +€0.525
*Denotes December contract expired yesterday

Oil price

Oil has fallen about a buck today as the Opec agreement has been seen to be unhelpful to an over supplied current market despite the pause that they announced.

Serica Energy

Serica is pleased to announce that it has reached agreement with Finder Energy for a 40% interest in the P2530 Licence (‘P2530’ or ‘Licence’), for an initial consideration of c.£500,000 (c.$650,000). The Licence is currently held by Finder Energy (60% operated interest) and Dana Petroleum (40% interest).

P2530 contains the Wagtail oil discovery and the low-risk Marsh and Bancroft exploration prospects. The addition of the stake in Wagtail adds an operator estimated c.8 MMbbls of net 2C Contingent Resources to the Serica portfolio, enhancing the Company’s already attractive organic growth opportunity set.

Wagtail is situated north-west of the Triton FPSO and the North Sea Transition Authority  has recently agreed an extension to the current licence phase to 31 August 2026. During the extension period, development engineering feasibility studies will be carried out to confirm its potential integration into the Triton FPSO and to provide comfort that such a tie-back can be economically developed. The P2530 joint venture will then be in a position to decide whether to move onto the next licence phase and commit to drill an appraisal well, or relinquish the licence with no further commitments by 31 August 2026.

Completion of the farm-in is subject to NSTA approval and other required consents.

This is ultimately a low-cost growth option for Serica, giving, as it does, the put and the call on the potential in the P2530, which includes the Wagtail oil discovery and the low-risk Marsh and Bancroft exploration prospects.

Wagtail contains estimated c.8 mmbbls or nearly 10% of net 2C Contingent resources to the Serica portfolio which would add to the organic growth opportunity set. And with Serica having plenty of organic growth options from BKR to West of Shetland they can pick and choose from the multiple options available.

Over the next few months they will evaluate their feasibility studies not least to the possible integration with the Triton FPSO which must frighten the life out of us all.Whilst the company has had well documented problems with it they must be confident that they will be resolved…

So, no big bananas here, a modest, low-cost opportunity and one of many that Serica is looking at, after all they have many in the pipeline and the deal today could unlock a lot of cashflow and with resultant share price appreciation.

Sintana Energy

As provided for in regulatory news and press releases by each of Sintana Energy, Inc. and Challenger Energy Group plc earlier today, we have reached another milestone associated with our proposed all-share acquisition of Challenger. A Scheme Document in relation to a Scheme of Arrangement which details the elements and substance of the acquisition was published and sent to Challenger shareholders today. It is available at https://sintanaenergy.com/investor/business-combination-disclosure/.

Since the announcement on October 9th, the prescriptions associated with takeover laws in the United Kingdom have limited our ability to communicate with you beyond what is published in relevant regulatory announcements and documentation associated with the transaction. We understand that the lack of direct and proactive communications, together with a sense of our absence, have caused concerns and frustrations for many of you.

This letter is intended to provide you with some insights and clarity, to acknowledge your frustrations and concerns, and to be the first step in more communications going forward.

Transaction Rationale

At the highest level, the acquisition is underpinned by three key drivers – diversification, exposure to another emerging, high-impact geography, and the opportunity to expand one of our most-important relationships.

On diversification – together we have been fortunate enough to experience in Namibia the confluence of right time, right place and right exposure. This is rare particularly when it comes to deep-water, frontier exploration. Our experience there has provided a level of progress and promise that has been truly remarkable. We have exposure to a best-in-class portfolio and commercial partnerships in-country that are strong and vibrant. However, as in any other environment there remain many risks and uncertainties, particularly at this early stage of development. Diversification becomes more important with progress particularly when you are otherwise singularly exposed to one environment.

On Uruguay – in early 2022, none of Uruguay’s seven offshore licenses had been awarded. By the end of Q2 2024 they had all been. Today participants in those licenses include Shell, Apache, YPF and Chevron, together with Challenger who has interests in two of the seven offshore licenses. This licensing activity subsequent to the discoveries at Graff and Venus, and contemporaneous to the balance of progress in the Orange Basin in Namibia speaks to the potential of the South Atlantic conjugate margin on the South American side. The acquisition of Challenger brings us exposure to what has the geologic and commercial potential to deliver results similar to those we have had in Namibia. It is early, it is frontier – however the outcomes could be big and the activity is increasing. These were the circumstances that brought us to Namibia.

On an expanded partnership with Chevron – we have been fortunate in participating in Chevron’s return to Namibia via its entry into PEL 90 in October 2022. Our in-country platform with them has since expanded through their entry into PEL 82 – evidence not only of the quality of our portfolio but of the vitality of that relationship. The acquisition of Challenger expands the aperture of our partnership across the Atlantic to Uruguay on the other side of the conjugate margin where Chevron also operates and partially carries Challenger’s 40% retained interest on OFF-1. This brings to the combined entity an expanded horizon to develop and enhance our partnership and relationship with Chevron as they look to increase their activities in global exploration including in the South Atlantic conjugate margin.

Having an opportunity in one transaction to diversify, to preserve carried exposure to the upsides of high-impact frontier exploration, and to also deepen an existing partnership with a super major is truly unique.

The timing has principally been driven by a confluence of factors including each company’s ability to navigate and complete the complex and intensive efforts associated with the acquisition of an AIM-listed company in the United Kingdom and the concurrent process to list for Sintana on the AIM which is scheduled to be completed by the end of Q4 2025

Management of Conflicts

Given the obvious potential concerns around conflicts of interest the board of Sintana took a pro-active and rigorous approach to ensuring full independence in the assessment and adjudication of the acquisition that was additionally guided by oversight and participation from both UK and Canadian external counsel.

A special committee was formed immediately upon it becoming clear that a conversation regarding a potential combination was possible. This committee, comprised of disinterested directors, was chaired by Keith, our Executive Chairman. Robert was specifically excluded from deliberations of the special committee and did not participate in negotiations of material terms. Pareto Securities AS was hired to provide advice to the special committee on the proposed terms of the acquisition and provided a fairness opinion in connection therewith. The proposed acquisition was recommended to the board and it received unanimous approval from the voting directors which did not include Robert who was recused from voting due to various conflicts. This process was again guided and included full participation of external UK and Canadian counsel to Sintana.

Interests of Charlestown and Robert Bose

Charlestown currently holds approximately 21MM shares of Sintana representing approximately 5.7% of the outstanding share count today. Additionally, Robert personally holds another approximately 1.5MM shares and options/restricted share units amounting to approximately 5MM shares at exercise prices ranging from C$0.11 and C$1.23. The total dollar value of these positions is in the area of C$15MM based on the closing price of Sintana’s common shares on October 31, 2025.

Further as part of the proposed application for admission to trading of Sintana’s common shares on the AIM, Charlestown has committed a US$4MM working capital facility that the combined company can use to support any liquidity requirements. There is no equity component to this facility. The facility, together with the value of the equity positions, results in total exposure of over C$20MM

Charlestown also currently holds 9MM shares of Challenger with a value of approximately US$1.9MM and approximately 2MM warrants in Challenger with an exercise price of GBP0.10. Robert additionally holds approximately 1.5MM options struck at exercise prices ranging from GBP0.08 to GBP0.24. The total implied value of these positions is approximately US$2.2MM, roughly a tenth of the size of Charlestown’s exposure to Sintana.

Save as outlined here, neither Charlestown nor Robert hold any other securities or interests in any other securities positions in either Sintana or Challenger.

Absence of a Shareholder Vote by Sintana Shareholders

Canadian securities regulatory rules and requirements, including those associated with Multilateral Instrument 61-101, speak to the circumstances under which a shareholder vote is required. A detailed analysis of the transaction in light of the prescriptions of MI 61-101 was conducted by counsel and submitted to the relevant Canadian securities regulators. We continue to progress through the Canadian review process.

While we understand and have heard clearly your concerns and frustrations, please rest assured that the prospect of these were identified early and the transaction process was developed to fully adhere to all relevant regulatory requirements but more substantially to ensure that all elements were executed to fully protect the process and our shareholders. We remain steadfast in our belief in the merits and benefits of this combination to Sintana, and by extension to our fellow shareholders.

We hope these insights into the background, context and management of the acquisition provide some assistance in addressing the concerns and issues raised. Prospectively, we are at your disposal to answer further questions or address any concerns – please do remit any you have to our communications team (details below) or via our website investor links. We will follow-up and find the best forum to ensure we are able to effectively communicate with you and ensure we remain onside the relevant securities regulatory requirements.

On behalf of Sintana Energy Inc.,

Keith Spickelmier, Executive Chairman                                               
Robert Bose, Chief Executive Officer

Sintana has discovered the nuances of the UK takeover code and has gamely tried to circumvent it with statement here that answers some of the questions that shareholders are not allowed to ask. Also interviews with key management are only permitted with a ‘guardian’ present which stultifies conversation and provides no meaningful debate. 

My own view for what it’s worth is that the combination makes a great deal of sense and that shareholders of both companies will benefit from the combined entity. I will write more when I can…..

Jadestone Energy

Jadestone is hosting a sell-side analyst visit to Indonesia early this week, including a tour of the Akatara gas processing facility. We’re looking forward to showcasing our Indonesian operations and our excellent people to analysts.

As you would have noticed yesterday I’m on this trip with a group of analysts and I will write up the detailed comments on my return. But we spent today at the Akatara gas processing facility. I have seen many of these plants before but this is the most modern, up-to-date piece of kit and was built in record time. 

The people here are indeed excellent, showing expertise and dedication and a great camaraderie and team spirit. I would like to think that Jadestone can find another opportunity like this which would fire up the value something rotten, more later.

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