WTI $115.07 n/c (Market shut*), Brent $121.67 +$2.24, Diff -$6.60 +$2.24*

UKNG 192.0p +35.0p, TTF €93.70 +€6.93 (both now July contracts)

Oil price

With the US closed for Memorial Day as you can see prices were all over the place, that will be added to today as the July Brent contract expires tonight.

Overall both WTI and Brent are better today as the EU announce a fairly modest deal to sanction Russian oil. Time forbids today but I will add more tomorrow.

Gulfsands Petroleum

Gulfsands has released an RNS Announcing publication of the 2021 Annual Report and AGM Notice are now published on the Gulfsands website.


Confirmed by Competent Persons Report undertaken by Independent Consulting Firm Oilfield Production Consultants, originally in 2019 and updated annually to ensure no material changes.
+20 years resource life and potential to produce over 50,000 boepd from existing discoveries.
Prospective portfolio takes the potential production of the field above 100,000 boepd.
2C Contingent Resources in Yousefieh, Khurbet East and Al Khairat fields (2P Reserves if it were not for force
majeure) as at 31 December 2021 of 76.4 million boe (net to Gulfsands). This is a decrease in 2C resources compared to 80.1 million boe in the 2020 Annual Report, as a result of production during 2021.
Combined unrisked, mid-case Prospective Resource of 546 million boe & risked, Prospective Resources of 134 million boe (both net to Gulfsands).
Combined unrisked, mid-case Prospective Resource of 546 million boe & risked, Prospective Resources of 134 million boe (both net to Gulfsands).
Economic Evaluations undertaken as part of the OPC reviews indicate a central range of EMV of Block 26 (Prospective and Contingent Resources), of $1 billion to $1.5 billion, prior to taking into account above-ground risks.
The Quality of the Block 26 Assets Confirmed by Independent Review, updated in 2021

Re-entry Planning Continues at Pace
Impact of Covid-19
The Covid-19 pandemic continued to be a major issue affecting the UK during the year.
Our priorities have remained the same throughout; protect our people and ensure business continuity.
The team’s resilience and adaptability ensured the team could continue to deliver our strategic objectives effectively.
While the rollout of vaccines has abated restrictions and guidance, we remain very mindful of the challenges it continues to pose for our business. We are taking all reasonable precautions to manage these risks.
CPR work included preparation, review and validation of a Full Field Development Plan of the Yousefieh, Khurbet East and Al Khairat fields, which is ready to implement when circumstances allow.
CPR confirmed nine drill-ready prospects which could be targeted during an intensive drilling programme when circumstances allow.
Potential development plans, as reviewed and confirmed by the CPR, illustrate production levels of around 50,000 boepd from existing discoveries and over 100,000 boepd from a full block development incorporating potential exploration upside.
Regional technical, finance and administrative team remains in place to implement re-entry plan as soon as viable.
Strategic Advisory Board established to assist Board and Management with complex political, legal and strategic
aspects of re-entry.

Gulfsands issued their Annual Report yesterday. I know that a lot of work has been done by the Gulfsands team to clean up its portfolio and it appears that this is now complete.  All non-core assets have been exited, with the elimination of related liabilities and, with the support of their Major Shareholders, they not only remain funded in the medium term but also have a clear pathway to equitising the debt they have provided.  This means that Gulfsands have avoided the threat of a debt overhang that so many small-cap oil and gas companies suffer from.

This clean balance sheet means that Gulfsands now has a solid platform to press ahead with their ambitions in Syria, when circumstances allow, and in the broader MENA region.

Their world class Block 26 in Syria remains Gulfsands’ core asset and it is clear that the team are ready to return when sanctions lift and that they are doing all they can to try and work with the international community to be part of an acceptable solution that can help get that country back on its feet.  As I previously reported (on 29th April 2022), that the oil and gas industry is the only industry that has the potential scale to make such an impact, generating billions of dollars (according to that interview with Gulfsands Managing Director John Bell, up to $20 billion per annum is possible) which, if properly channelled, can make a significant impact on the lives of ordinary Syrians.  Not only that but it can reduce reliance on aid and build self-sufficiency.

I have also noticed that Gulfsands has clearly invested significant time and efforts into its approach to ESG, with particular accent on sustainability,  something I applaud with all the companies I follow. I wish Gulfsands well in building upon this solid platform and those shareholders that are still invested in the Group are along for an exciting journey ahead.


Petrofac, a leading provider of services to the global energy industry, has been selected by i3 Energy to provide well engineering, well operations and well operator services for its UK North Sea licence areas.

The new three-year contract follows the multi-year provision of well operator and project management services, resulting in the successful delivery of three fast tracked appraisal wells for i3 in 2019 on their Liberator and Serenity fields in the North Sea.

The first work planned under this new contract is the project to drill a fast-track appraisal well in the Serenity field later this year. Petrofac will be well operator and main contractor for the design and execution as well as for all services including Stena Don drill rig, vessels, helicopters and well services.

This latest long-term UK contract builds on Petrofac’s tier one well engineering experience and follows recent major contract awards in Australia, Africa, and the Gulf of Mexico.

Nick Shorten, Chief Operating Officer for Petrofac’s Asset Solutions business said:

“I’m delighted that our world-leading wells expertise is supporting i3 Energy in the development of their existing North Sea discoveries to safely, efficiently and quickly maximise economic recovery. We are proud of our unique skillset which, having helped i3 to discover Serenity in 2019, will now be supporting its progress toward field development.”

More good news for Petrofac yesterday and as I expect, will see more work across its geographies this year, and more importantly, next year.