WTI (May) $99.08 +$2.51, Brent (June) $99.36 +$4.16, Diff -$28c
USNG (May) $2.63 -2c, UKNG (May) 114.99p -11.7p, TTF (May) €45.58 -€1.45

Oil price

Oil has fallen this morning, yesterday it rallied after the peace talks disintegrated in a barrage of irreconcilable differences which seemed terminal but that was yesterday. Today oil has fallen, both blends are $99 after word on the street seems to suggest that talks are being potentially revived for next weekend. 

Whilst the Strait of Hormuz is apparently a red line for the US, the Iranians may be softening their stance on uranium enrichment, but that would need the US to give in to some sort of  compromise that would leave Iran with some sort of stockpile…

BP’s first figures under Meg, a better presentation already as BP seems to be shedding its old fashioned position of entitlement and adopting a more realistic stance… But the numbers are all over the place, obviously they expect ‘exceptional trading results’ it must be like taking candy from a baby in these markets so maybe they can hack away at the huge debt mountain built up by previous profligate CEO’s. Also the next figures will see better news on refining margins but a fall in equity production. 

PetroTal

PetroTal has provided the following operational and financial updates. All amounts are in US dollars unless stated otherwise.

Key Highlights

• Group production averaged 14,907 barrels of oil per day (“bopd”) in Q1 2026, down 2% QoQ;
• Total cash of $128.1 million as of March 31, 2026 ($104.2 million unrestricted), compared to $139.1 million at YE25.

Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented:
“I am pleased to report that PetroTal delivered a strong start to 2026, with average production in the first quarter of approximately 15,000 barrels of oil per day, slightly ahead of our internal expectations. This performance has allowed us to maintain $128.1 million of total cash, which has been further supported by a constructive commodity price environment, with our sale prices averaging approximately $90.00 per barrel in March 2026.

Looking ahead, our focus over the next six months is on advancing our development program at Bretana. We are in the final stages of securing a contract with a third-party drilling contractor and expect to mobilize a rig to the field in the coming months, with drilling activities targeted to resume by October.

We look forward to providing a more comprehensive update when we report our full first quarter 2026 financial results on May 7.”

This is a good preliminary look at the Q1 data and the production number is very healthy with nearly 15/- b/d being achieved at a realisation of c.$90 in March leading to a cash balance of $128.1m only slightly down on the year end number of $139.1m.

The company also gives some more details of the upcoming development programme at Bretana, they are close to securing a contract with a third-party drilling contractor ‘and expect to mobilise a rig to the field in the coming months’ with drilling expected to resume ‘by October’. 

The company acknowledge that it has been ‘supported by a constructive commodity price environment’ and taking a look at the forward strip, the price of crude oil at least for some months supports this position.

The results on May 7th should supply more information but I remain convinced that PetroTal, with its rejuvenated team, is looking upbeat and positive and it should be remembered in possession of a world class asset which is particularly valuable given its current NPV. 

Q1 2026 Production and Operations Update

PetroTal’s group production averaged 14,907 bopd in Q1 2026, including 14,490 bopd from the Bretana field (Block 95; PetroTal 100% WI) and 417 bopd from the Los Angeles field (Block 131; PetroTal 100% WI). As disclosed previously, Bretana field production remains constrained by water reinjection capacity, which currently stands at approximately 170,000 bwpd. PetroTal’s 2026 guidance includes planned downtime to replace production tubing in three producing horizontal wells; the Company is considering undertaking these tubing replacements in Q2 2026, prior to the expected arrival of the drilling rig in Q3 2026.

Cash and Liquidity Update

PetroTal ended Q1 2026 with a total cash position of $128.1 million, of which approximately $104.2 million was unrestricted. This compares to unrestricted cash of $139.1 million at the end of Q4 2025 and $113.6 million at the end of Q1 2025.

As of March 31, 2026, PetroTal’s unaudited trade and other payables and trade receivables were approximately $51.5 million and $86.5 million, respectively (versus comparable values of $60.4 million and $62.1 million as of December 31, 2025, respectively).

As of April 1, 2026, the Company maintains hedges on approximately 0.9 million barrels over the remainder of 2026. Consistent with prior disclosure, the costless collars have an average Brent floor price of $60.00/bbl and a ceiling of $80.50/bbl, with a cap of $100.50/bbl. As of April 10, PetroTal’s production hedges had a fair value of negative $8.6 million.

Corporate Presentation Update

The Company has updated its Corporate Presentation, available for download or viewing at https://petrotalcorp.com/investors/

Q1 2026 Webcast on May 7, 2026

PetroTal’s management team will host a webcast to discuss Q1 2026 results on May 7, 2026 at 9am CT (Houston) and 3pm BST (London). Please see the link below to register.

https://brrmedia.news/PTAL_Q1_26

Beacon Energy

Beacon has announced that, following the completion of its strategic investment in LNEnergy in March 2026, Stewart MacDonald, Beacon’s CEO, will join the board of directors of LNEnergy.

The Company also confirms that LNE IOM Limited, in which the Company holds a 49 per cent shareholding, has acquired additional shares in LNEnergy through a rights offering conducted by LNEnergy to raise up to £780,000.

Given the full participation of other LNEnergy shareholders in the rights offering, LNE IOM Limited’s shareholding in LNEnergy remains approximately 48 per cent. Under the terms of the transaction agreed with Reabold (as announced on 7 October 2025 and as set out in the Admission Document of 17 February 2026), Beacon’s shareholding in LNE IOM Limited will increase to 100 per cent following the satisfaction of certain conditions, including the award of the Production Concession, expected mid 2026 (the “Second Acquisition” as defined in the Admission Document).

LNEnergy will use the proceeds of the rights offering to progress the Colle Santo project and satisfy working capital. LNEnergy is advancing preparations to undertake well integrity tests on the two existing Colle Santo wells which is expected to commence in May 2026. It is also anticipated that LNEnergy will complete FEED on the Colle Santo project during Q2 2026.

In addition, in light of recent commodity price volatility, the Company has published an updated corporate presentation on its website which includes free cash flow projections at a range of European gas prices, prepared by RPS Energy Limited.

The Colle Santo project provides investors with significant exposure to European gas prices. Based on Beacon’s 42.3% indirect economic interest in the project (assuming the Second Acquisition is completed), RPS Energy Limited calculate an NPV10 of €37.6m (at €40/MWh) and €52.9m (at €50/MWh), compared with €26.6m as outlined in the CPR dated December 2025, which used a price of ~€30/MWh. These figures highlight the value that could be unlocked as we progress towards production.

Stewart MacDonald, Chief Executive Officer of Beacon Energy, commented:
“Joining the board of LNEnergy marks an important step as we move towards a Final Investment Decision later this year, and I look forward to working closely with the LNEnergy team to deliver the Colle Santo project.

The strong take up in the rights offering by the other LNEnergy shareholders demonstrates their confidence in the Colle Santo project and ensures we are well funded for the next phase of activity.

With well integrity tests commencing in May and FEED completion targeted for Q2 2026, we have a clear and active pipeline of milestones ahead, and we look forward to keeping shareholders updated on our progress.”

Not much to add here, the deal looks very smart to me given how positive I am on the economics of the European gas market, where prices are thought to be structurally higher for some time to come. Beacon remains one to watch in this part of the portfolio. 

Sunda Energy

Sunda has confirmed that, further to the announcement on 8 April 2026 of the conditional acquisition of Matahio Energy NZ Limited and its subsidiary companies that own and operate 100% of a group of production and exploration permits in New Zealand, the Company has paid the initial deposit to the seller, Matahio Ventures Pte. Limited, in the amount of US$1.5 million.

Sunda is further pleased to inform that the Company has submitted to the New Zealand government authorities the application for consent for the change of control of the operating companies of the production and exploration permits, in line with the requirements set out in the Crown Minerals Act of New Zealand.

Nothing to add, the deal is proceeding according to plan.

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