WTI (June) $105.42 +$4.25, Brent (July) $109.26 +$3.54, Diff -$3.84 -71c
USNG (June) $2.96 +7c, UKNG (June) 128.6p +9.65p, TTF (June) €51.275 +€3.07

Oil price

Last week oil rose sharply whilst Trump was in China and Iran didn’t like the memo, WTI was up 10.5% and Brent 7.9%. US natural gas has crept over three dollars and in the UK it was up by 19.1% and TTF rose 15.2%. Today oil rose again but after an early gain of around three bucks has settled up by c.$1.50. 

Iran has attacked the UAE with drones today, successfully targeting the Emirates Barakah nuclear plant.

The rig count is belatedly joining the party, overall units were up 3 to 551 and in oil up 5 to 415. 

Sintana Energy

Sintana has announced that it proposes to complete a private placement pursuant to which it shall issue up to 49,565,690 new common shares of no par value in the Company at a price of C$0.41 per share (approximately 22.5 pence per share) to raise minimum aggregate gross proceeds of US$11.5 million (C$15.6 million, £8.6 million).

Key Highlights 

• Significant near-term catalysts over the next 24 months, with drilling activity including a fully carried three well drilling programme at Mopane (PEL 83) during 2026/2027 operated by TotalEnergies, a Chevron-operated exploration well on PEL 90 in late 2026/early 2027, and a carried basin-opening well on PEL 82 with Chevron as operator. In addition, ongoing seismic activity in Uruguay and Angola, farm-out activity across the portfolio and opportunities for portfolio expansion offer multiple wider value catalysts.
• The Company intends to use the net proceeds of the Fundraise, alongside existing balance sheet cash and expected 2026 cash proceeds from the Exxon settlement in Colombia and other available funds, to fund: (i) its share of the Chevron-operated Nabba-1 exploration well in PEL 90 on the neighbouring block to Mopane; (ii) the cash proportion of consideration for the closing of the acquisition of an interest in PEL 37 in the Walvis Basin; (iii) the cash proportion of consideration for the closing of the acquisition  of an interest in the KON-16 licence in the Angolan Kwanza basin, as well as the Company’s share of work programme costs on that block; and (iv) for general corporate purposes.
• Robert Bose and Eytan Uliel, CEO and President of the Company respectively, have indicated that they will subscribe for an aggregate amount of C$0.5 million in the Fundraise. 
• The Fundraise is being conducted as a placing on AIM and a listed issuer financing exemption (“LIFE”) offering in Canada.

Result

Sintana has announced that, further to its announcement of 15 May 2026 and this morning, the Company has conditionally raised gross proceeds of US$11.5 million through the Fundraise at a price of 22.5 pence per New Common Share on AIM and C$0.41 per New Common Share on the TSXV.

As a result of the Fundraise, the Company will issue 38,001,253 New Common Shares to certain institutional and other investors at the Issue Price, subject to satisfaction of all applicable closing conditions including the receipt of all applicable regulatory approvals.

The Issue Price represents a discount of 13.5 per cent. to the closing middle market price of 26 pence per Share on AIM on 14 May 2026, being the last business day prior to the announcement of the Fundraise.

The Fundraise is being conducted by way of the Placing and Subscription. Subject to satisfaction of all applicable closing conditions, the Placing will raise gross proceeds of US$10.8 million through the placing of 35,629,043 New Common Shares to certain institutional and other investors, and the Subscription will raise a further US$0.7 million in gross proceeds through the subscription of 2,372,210 New Common Shares by directors and certain qualified investors from Canada and Australia directly with the Company, in each case at the Issue Price. 

Pursuant to the Subscription, 826,105 Subscription Shares will be issued to each of Robert Bose, CEO of the Company, and Eytan Uliel, President of the Company, in each case in exchange for an investment of US$250,000.   

The New Common Shares will be issued fully paid and will rank pari passu in all respects with the Existing Common Shares.

Insiders of the Company subscribed for an aggregate of 1,652,210 New Common Shares pursuant to the Fundraise. Accordingly, the Fundraise constitutes a related party transaction under Multilateral Instrument 61-101 (“MI 61-101”). The Company is relying on the exemption from the formal valuation requirement set out in section 5.5(a) of MI 61-101 and the exemption from the minority approval requirement set out in section 5.7(1)(a) of MI 61-101, as neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the Fundraise, insofar as it involves insiders, exceeds 25 per cent. of the Company’s market capitalisation. The Fundraise remains subject to the approval of the TSXV.

Robert Bose, CEO of Sintana, said:
“I am delighted to announce that we have conditionally raised US$11.5 million and would like to thank our shareholders for their continued support and welcome new shareholders to the Company. Alongside our existing cash balances and the proceeds from the Exxon settlement in Colombia, this oversubscribed fundraise provides additional capital to pursue drilling on the Chevron-operated Nabba-1 exploration well in PEL 90, neighbouring Mopane, and the cash proportion of consideration for the closing of the acquisitions of interests in PEL 37 in the Walvis Basin and KON-16 in the Angolan Kwanza basin. In addition to these activities, Sintana has a significant amount of operational activity expected over 2026-2027, with three carried wells to be drilled by operator-elect TotalEnergies, a carried well on PEL 83, as well as seismic activities on OFF-1 and the potential for farm-outs across multiple blocks. Our approach is to build a portfolio with diversified exploration exposure, with minimised capital exposure, protected downside and asymmetric upside exposure. Following today’s Fundraise, I look forward to updating the market over the course of this period as we deliver on catalysts across the Sintana portfolio.

This fundraise, which has raised some $11.5m at 22.5p, a 13.5% discount has been significantly supported by new and existing shareholders and was, I understand, heavily oversubscribed. Indeed the company had the opportunity to raise more but felt that this amount, being totally sufficient to fully fund all the company’s demands over the next two years, is the correct call. 

Sintana has important projects in a number of geographies and this raise will mean that, as requested by shareholders, and fully supported here, there is a long term visibility across each and every one of them is funded for any possible call on partners. 

Starting in Namibia and with PEL 90, where operator Chevron has kicked off its programme with indications that the Nabba-1X exploration well will be drilled in 4Q 2026 and will be a net cost of c.$6-8m to Sintana. Given that this is about the only block in the substantial portfolio where Sintana are not carried it is wise to not go into that phase of the programme in a weak position. 

Elsewhere in Namibia Sintana has progressed well on the acquisition of PEL 37 and the deal which will be funded 50/50 cash and equity is expected to sign before long. The block, in the Walvis basin is adjacent to Sintana’s block PEL 82 and notable as BP has recently farmed-in and where Chevron is anticipating drilling next year.

As for PEL 83 which contains the huge Mopane discovery where Total have farmed-in, looks to be becoming very active and with rigs to be hired and where the market thinks that a FID might come as soon as 2028. Total are also moving swiftly to FID at Venus, thought to be planned for as soon as this summer and will generate yet more interest as it will be the first Namibian discovery to be brought onstream.

Elsewhere Sintana are close to completing at KON-16, onshore Angola and drilling is likely after the extensive seismic programme is analysed later this year.

And in Uruguay there is a great deal happening, in OFF-1 the 3D the early seismic results are expected in 4Q 26 with final data in 2Q 27. Over at OFF-3 there is a great deal of interest, whilst the farm-out process continues I would suggest that with nearby activity discussions have changed somewhat. With activity in both OFF-2 and Off-7 which sandwich the block seeig farm-in activity and Qatar Energy, Shell and Chevron involved there must be more interesting conversations going on. 

So, as a result of this raise the cash pile which was $8.2m, to be added to by the $6m due from Exxon this year will be further topped up, leading shareholders will be delighted that there is enough in the coffers for two years under pretty much any circumstances.

Add to that all the potential from the portfolio and others nearby will significantly add to the excitement, so anyway you slice and dice the exposure that Sintana has should be massively beneficial. My target price remains at 75p and the Bucket List is better for its inclusion.  

Eco (Atlantic) Oil & Gas

Eco has provided an update, further to the Company’s announcements on March 11, 2026 and April 29, 2026, regarding its proposed acquisition of JHI Associates Inc. by way of a court-approved plan of arrangement. 

Eco confirms that, following approval by JHI shareholders, JHI has successfully obtained on May 15, 2026 the final order approval (the “Final Order”) from the Ontario Superior Court of Justice (Commercial List) (the “Court”), approving the Arrangement as proposed.  At JHI’s annual and special meeting of shareholders held on May 12, 2026, 100% of the votes cast were in favour of the plan of Arrangement with Eco, further demonstrating an overwhelming alignment on the transaction. 

The only remaining conditions for final completion of the Arrangement (“Closing”) includes receipt of Falkland Islands Government (“FIG”) of five-year licence extension of the PL001 licence and Navitas Petroleum LP’s (via its subsidiary) operatorship; JHI to have a cash balance of US$1.0 million on completion of the Acquisition; and, required TSX-V and AIM approvals. 

On Closing, Eco expects to issue up to, in aggregate, 96,307,811 new Common Shares, to JHI shareholders who are entitled to convert them into Eco shares upon presenting their original JHI share certificate. Each JHI shareholder, in terms of a letter of transmittal containing instructions for surrendering JHI share certificates or DRS statements, may exchange such shares for Eco Common Shares to which they are entitled pursuant to the Arrangement. Unclaimed Common Shares will be held in trust for up to six (6) years after which every unclaimed share will be cancelled and deducted from the share register. Approximately 41.5 million (45%) of the Common Shares to be issued to JHI shareholders will be subject to lock-up arrangements spanning 18 months following completion. The remaining freely tradeable Common Shares will be held by more than 1,000 different shareholders. Details for JHI Shareholders on the exact mechanism to exchange their original shares certificate can be found on JHI’s website: www.jhiassociates.com. 

Following the obtaining of shareholder and court approval the final steps are now administrative, and Eco expects the transaction to close as soon as the requisite government approvals are received, subject to the satisfaction of customary closing conditions under the Arrangement agreement.

On completion of the transaction, Eco will hold 100% of the outstanding JHI shares and, in turn, a 35% participating interest in PL001 offshore of the Falkland Islands operated by Navitas Petroleum LP (via its subsidiary holding the remaining 65% interest) and a potential extension of JHI’s 17.5% WI in the Canje Block offshore Guyana subject to ongoing government negotiations and approval.

Gil Holzman, President and Chief Executive Officer of Eco Atlantic, commented:
“Completion of the JHI acquisition is in its final stages and we are delighted with the positive outcome in the important milestones, being the overwhelming 100% shareholders vote and approval of the Final Order. The governmental approvals are expected imminently, and our teams are working hard to close as soon as practically possible once we receive these approvals. We are working closely with Navitas on the planned exploration of the PL001 license offshore the Falkland Islands to ensure a seamless technical handover from the JHI team to Eco and for Navitas to operate the block. Additionally, JHI and Eco remain engaged with the Government of Guyana with respect to a potential extension or reissuance of JHI’s Canje block offshore, in parallel to Eco’s ongoing discussions with the Ministry on the terms of the Orinduik Block offshore.”

This is the last step in the JHI acquisition process and their side is complete, all it needs now is the Falkland Islands Government to approve the Navitas operatorship which really is a no-brainer and Eco will complete the deal. I expect action to be quite imminent and then Eco will have ticked all the boxes in its portfolio and be a non-operated carried partner in all its blocks.

With the portfolio now in such good shape I maintain my very positive stance and target price of 150p and of course its long term inhabitance of the Bucket List which has been highly profitable for those followers stays rock solid. 

Deltic Energy

Deltic has announced that it has repaid all amounts outstanding under the term loan facility entered into by the Company with RockRose Energy Limited on 30 June 2025.

Deltic has now drawn down the full  £2.9m available through the Company’s term loan facility entered into with NEO NEXT+ ENERGY UPSTREAM UK LIMITED (“NEO NEXT+) on 7 May 2026 in connection with the recommended cash acquisition of Deltic by NEO NEXT+ announced on the same day.

Nothing to add here, following last weeks deal this was inevitable. 

Europa Oil & Gas

Europa has announced, further to its announcement of 27 April 2026, that it has been notified by North Yorkshire Council (“NYC”) that the Local Planning Authority (“LPA”) has now issued its decision to refuse planning permission for the Cloughton gas appraisal well. This refusal is despite the recommendation made by the NYC’s own planning officers who, after rigorously analysing the planning application and the 13 independent experts whose separate reports all supported the application, advised the LPA to approve the application.

The Company is disappointed with the LPA’s decision and strongly disagrees with the basis of the refusal. Europa is now assessing its options with a view to appealing the decision and is confident that on appeal the planning permission will be approved.

It will come as no surprise that I remain shocked at this decision, not surprised of course as we have seen so many times already that local councillors, puffed up by their own Lilliputian power can decide against the recommendation of their own planning officer and the 13 independent experts who provided their reports. 

EOG will of course appeal the decision and with the likely outcome in favour should mean that this exceptional project will eventually go ahead to the benefit of locals who will secure low carbon gas sourced and produced locally rather than importing it from Norway, the USA or even Qatar…

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