WTI (May) $101.38 -$1.50, Brent (June)* $103.97 -$3.25, Diff -$2.59 -$7.31
USNG (May) $2.88 -1c, UKNG (May) 122.63p -13.62p, TTF (May) €48.73 -€5.195
*Denotes expiry of the Brent May contract overnight.

Oil price

Oil has fallen again this morning as the market waits for tonight’s speech from President Trump about the war. No real clues as forecasting his actions have been fruitless in recent weeks. Last night his comments were that he could be finished in 2/3 weeks but whether that is via a negotiated solution or obliteration is anyones guess.

With the contract expiry Brent has lost a great deal of the recently built up premium to WTI but the backwardation persists, whatever happens in the war things won’t go back to ‘normal’ anytime soon. Indeed with yesterday seeing the end of a volatile month, and quarter the next ones will still be important to world economies.

BP

Meg O’Neill starts as BP CEO today and based on what I have heard she may be a welcome influence at the company. She has a head start given that BP is better placed that most majors with its asset placement and lower reliance on the Gulf but there is so much more to do. Shareholders should not expect a return to the buy back anytime soon, I suspect that paying down debt with the windfall might be first on her to-do list.

Arrow Exploration

Arrow has provided an update on the operational activity at the Mateguafa Attic field on the Tapir Block in the Llanos Basin of Colombia where Arrow holds a 50 percent beneficial interest.

Mateguafa 11 well

The Mateguafa 11 well (M-11) was spud March 9, 2026, and reached target depth March 15, 2026.  The M-11 well was drilled, on time and under budget, to a total measured depth of 11,455 MD feet (9,328 feet true vertical depth) and encountered multiple hydrocarbon-bearing intervals.

Arrow put the M-11 well on production March 22, 2026 in the Carbonera C7 formation (“C7”), which has approximately 18 feet of net oil pay (true vertical depth) at this location. The pay zone is a clean sandstone exhibiting an average porosity of 22% with high resistivities. An electric submersible pump (ESP) has been inserted in the well after perforating.

The M-11 well also encountered approximately 30 feet of net oil pay (true vertical depth) in the Carbonera C9 formation (“C9”).  Arrow plans to test this formation in future wells.

The well was put on production at a heavily restricted rate, 32/128 choke and 33 Hz pump frequency, of approximately 784 BOPD gross (392 BOPD net). The oil quality is 31.5° API and there is a 25% water cut (completion fluid and formation water).

The testing results indicate that the well is capable of higher rates, and the ultimate flow rate will be determined in the first few weeks of production.

Initial production results are not necessarily indicative of long-term performance or ultimate recovery.

Mateguafa HZ12 well

The Mateguafa HZ (M-HZ12) well was spud March 27, 2026, with expected production in  April.

Mateguafa Pad

The Mateguafa Pad currently has the following wells on production:

Mateguafa 11 well           784 BOPD gross (392 BOPD net)                 25% water cut                   C7 formation

Mateguafa 10 well           538 BOPD gross (269 BOPD net)                 45% water cut                   C7 formation

Mateguafa HZ9 well        1,386 BOPD gross (693 BOPD net)             50% water cut                   C9 formation

Mateguafa HZ7 well        2,016 BOPD gross (1,008 BOPD net)         36% water cut                   C9 formation

Mateguafa 6 well             250 BOPD gross (125 BOPD net)                 48% water cut                   C7 formation

Mateguafa 5 well             484 BOPD gross (242 BOPD net)                 82% water cut                   C9 formation

Forward Drilling Plans

After M-HZ12 the rig will move to the newly completed Icaco pad to drill an exploration well, which is expected to spud in May.

Production

Including the restricted production from the M-11 well, total corporate production is approximately 5,475 boe/d.

Cash Balance

As of the date of this press release, the Company’s estimated cash balance is US$13 million.  This reflects the increased activity drilling wells on the Mateguafa pad, completing the Icaco pad and initiating operating costs savings projects in the field. The Company continues to have no debt.

Tapir Extension

Arrow and its partner in the Tapir block remain in discussions with authorities on the extension of the Tapir block.  To date the dialog has been very constructive.  Arrow believes that all conditions required for the extension to be granted have been met and management remains very confident that the extension will be granted.  The Company will continue to update the market on developments as they occur.

Block COR-39

On March 20, 2026, the Company received confirmation from the Colombian regulators (the ANH) that its application to terminate the COR-39 E&P contract by mutual agreement has been approved. This eliminates a $12 million exploration commitment, at no penalty for the Company.

Marshall Abbott, CEO of Arrow commented:
“The continued success of the Mateguafa wells reinforces the materiality of the Mateguafa field to Arrow.  Arrow looks forward to the results of the new horizontal well, M- HZ12, on the Mateguafa pad.”

“After drilling and putting the M-HZ12 well on production, Arrow plans to move the rig to the newly finished Icaco pad.  The Icaco prospect has been developed by the Arrow team using both 2D seismic and the more recently shot 3D seismic program.  Management believes the Icaco prospect will also result in a material discovery for Arrow and we look forward to updating our shareholders on the progress at Icaco over the coming months.”

Another positive announcement from the fast becoming excellent performance at the Mateguafa Attic play today from Arrow. An update from the M-11 well shows that they ‘encountered hydrocarbon bearing intervals’ and that the well went on production on 22nd March from the C7 formation (18′ of pay) with an ESP inserted. 

They also encountered some 30′ of pay in the C9 formation which they plan to test in future wells. The oil is good quality, 31.5º API with a 25% water cut and is producing some 392 b/d net to Arrow on a restricted choke and is capable of  ‘materially higher rates’ which will ultimately be determined in the first few weeks of production. 

Meanwhile the Mateguafa M-HZ12 well spudded on the 27th March with production expected in April after which the rig will be off to the Icaco pad to drill the exploration well which is expected to spud in May. 

So, plenty of boxes ticked here, such as production steady at 5.475 b/d, cash of $13m and also that dialog has been ‘very constructive’ in the talks on the extension of the Tapir block in which the company believes has met all the conditions required and ‘that the extension will be granted’. 

I remain very positive on Arrow, with the Mateguafa attic play being so successful and with significant potential from the upcoming drilling at Icaco, my target price of 40p remains intact as does the position in the Bucket List.

I recently interviewed CEO Marshall Abbott, I attach this below in case you missed it and as it remains up to date.

Core Finance CEO interview: Marshall Abbott of Arrow Exploration

Prospex Energy

Prospex has announced that further to the announcement dated 24 March 2026, its wholly owned subsidiary PXEN Tatra Sp z.o.o. has been formally awarded the San onshore licence area in Poland.  The administrative process for the award of the Dunajec licence is ongoing, and Prospex will provide further updates in due course.

This first licence award is the next step in Prospex’s strategic expansion into a third European country. The San and Dunajec licences are located onshore in southern Poland in areas with proven gas production and associated infrastructure. With high prospectivity in the target geological horizons and limited activity since 2000, Prospex intends to use modern imaging, evaluation and development techniques to support resource discovery and development. The Company is currently gathering historic information on both licences to assist work programme planning.

Tom Reynolds, Prospex’s CEO, commented:
“We are delighted to have officially been granted the San licence, formalising our expansion into Poland and adding a third European jurisdiction to our investment portfolio. San and Dunjac are located in one of the most prolific gas regions in Poland and we are confident that our team’s knowledge and experience coupled with the benefit of modern exploration and development techniques will enable us to unlock strategic energy resources at a time of rising market demand in Europe. I look forward to providing further updates on work programmes and our plans to unlock the commercial potential of the licences.”

This news, coming fast on the heels of the announcement of the successful application for the licence is very good news. Particularly as the speedy confirmation from the Polish ministry demonstrates that they are giving a sign that the local regulators are highly supportive of the company. 

For shareholders, who now have a very good idea of how new CEO Tom Reynolds plans to take Prospex on in the future it is very encouraging. He is building the company as a European natural gas play at a time when it has never been needed more. 

It gives the message that the company has entered a new post code that is highly prospective, with 100% in a very supportive territory which has already showed that it can move fast in support of companies who wish to explore and develop potential ‘strategic energy resources’ in country which has a record as being a proven gas rich area. 

In a short space of time Tom Reynolds has addressed a number of areas that Prospex shareholders have wanted to see action for some time, he has a highly disciplined approach to funding and a creative attitude to financing portfolio development. So far so good, in a market where short term prospects are good this gives plenty of potential upside for the shares from these levels.

Deltic Energy

Lapsing of Scheme End of offer period

Further to the Company’s previous announcements, Deltic and Viaro Bidco today confirm that the recommended cash offer for the entire issued and to be issued ordinary share capital of Deltic is to lapse following 11.59 p.m. today.

The Acquisition was to be implemented by way of a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006 (the “Scheme”) which was approved by Deltic shareholders on 28 August 2025.

The Acquisition is conditional on various conditions that were set out in Part 3 (Conditions to the Scheme and the Acquisition) of the Scheme Document.

As stated in the Company’s previous announcements, Deltic and Viaro Bidco have been awaiting the consent of the North Sea Transition Authority (the “NSTA”), the UK regulator focused, among other areas, on oil and gas exploration and production activities in the UK’s North Sea, to a change in control of the North Sea exploration licences (the “Licences”) held by Deltic (the “Change in Control Consent”).  The Licences are the only material assets which Deltic owns and the consent of the NSTA is therefore considered to be of material significance to Viaro Bidco in the context of the Acquisition. 

Paragraph 1 of Part A of Part 3 (Conditions to the Scheme and the Acquisition) of the Scheme Document provided that the Acquisition is conditional upon the Scheme becoming unconditional and becoming Effective, subject to the Takeover Code (the “Code”), by not later than the long stop date by which the Scheme had to complete (the “Long Stop Date”).

Paragraph 3 of Part A of Part 3 of the Scheme Document, sets out conditions that relate to, among other things, regulatory clearances, including in paragraph 3.3 the condition that all necessary Authorisations for the proposed Acquisition to acquire any shares or other securities in, or control of, Deltic by any member of the Wider Viaro Group having been obtained from all necessary Third Parties. In this regard, the NSTA is considered to be a necessary Third Party (as defined in the Scheme Document) and the Change in Control Consent is considered to be a necessary Authorisation (as defined in the Scheme Document). 

Receipt of the Change in Control Consent remains outstanding and further given that the NSTA has not provided a hard stop deadline to make its decision, the Deltic Board has now concluded that it will not be received in the foreseeable future and that the ongoing delay and uncertainty has the potential to jeopardise the Deltic business.  This has resulted in the Deltic Board electing not to further extend the Long Stop Date which, following the announcement of 3 December 2025 therefore remains 11.59 p.m. on 31 March 2026 (the “Final Long Stop Date”).

Viaro Bidco has informed Deltic that it does not wish to waive the condition set out in in paragraph 3.3 of Part A of Part 3 of the Scheme Document which would have allowed it to proceed with the Acquisition without the Change of Control Consent.

Given that the condition set out in paragraph 3.3 of Part A of Part 3 of the Scheme Document will not be satisfied on or before the Final Long Stop Date, the condition in Paragraph 1 of Part A of Part 3 in relation to the Scheme becoming unconditional and becoming Effective, subject to the Code, by not later than the Long Stop Date will not be satisfied and the Scheme will lapse.

As of 1 April 2026, Deltic will no longer be considered to be in an “offer period” as defined in the Code and the requirement to make disclosures under Rule 8 of the Code will cease.

The Deltic Board will now consider all other options for the Company.  Deltic is funded for working capital purposes into the second half of 2026.

Capitalised terms used in this announcement (the “Announcement”) shall, unless otherwise defined, have the same meanings as set out in the Scheme Document published on 25 July 2025. All references to times in this Announcement are to London, United Kingdom times unless stated otherwise.

No great surprise here for Deltic who have been pushed from pillar to post by the bidder and the authorities, nothing they could do but sit and wait. I will comment further when I get a chance to catch up with the management and hear about their plans for the future.

I still believe that Deltic has a very valuable portfolio and one which must have significantly increased in value in recent weeks, accordingly this to me looks like good news for shareholders, more later.

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