WTI (Aug) $99.50 -$8.93, Brent (Sept) $102.77 -$10.73, Diff -$3.27 -$1.80

USNG (Aug) $5.73 +7c, UKNG (Aug) 265.0p -37.0p, TTF (Aug) €161.65 -€9.85.

Oil price

A big fall yesterday as the markets went into risk-off mode which started with the Fed and continued when the dollar rose on rate rises. But the loudest alarm bell sounded yesterday when the two year treasury yield rose above the ten year, itself a leading indicator.

The Norwegian strike was stopped PDQ and that ceased the concern of large quantities of gas being shut-in just when it wasnt needed. Also bad news came from China where large Covid testing moves returned, nope the vaccine doesn’t work there.

Finally despite computer glitches and Independence Day we had the retail gasoline prices overnight and it showed that 10 cents came off the price this week as well as in the last month. It still puts the overall price at $4.771 which is still $1.649 up on this time last year.

Touchstone Exploration

Touchstone has provided a further update on the status of the Cascadura Environmental Impact Assessment (“EIA”) in support of an application for a Certificate of Environmental Clearance, which must be approved by the Trinidad and Tobago Environmental Management Authority (“EMA”) to conduct development operations within the Cascadura area in the Company’s Ortoire block. Touchstone has an 80 percent operating working interest in Ortoire block, with Heritage Petroleum Company Limited holding the remaining 20 percent working interest.

Further to the Company’s announcement on June 27, 2022, and in accordance with the EMA’s regulated review process, Touchstone continues to engage with the EMA and respond to its queries to support the Cascadura area EIA application.

The Company received an initial EIA Review and Assessment Report (“RAR”) from the EMA on May 5, 2022 and responded to the requests raised on May 15, 2022. Following receipt of a second RAR on June 24, 2022, Touchstone has submitted a partial response and will be meeting with the EMA to clarify the remaining aspects to ensure that the queries are addressed by the Company. Touchstone will provide further feedback to the EMA as appropriate following this meeting. The EMA has noted that a determination will be made within thirty working days of receiving a complete response to the second RAR.

The EIA application was initially submitted on December 23, 2021 and pursuant to applicable legislation was to be determined by the EMA within 80 working days, unless extended while the EMA seeks further information or clarifications. The latest RAR represents the second extended date from the EMA beyond the original 80 working days review period.

As noted in the Company’s announcement on June 27, 2022, the forecasted onstream date of the Cascadura facility will be established by the timing of receipt of the approved EIA application, and the Company will update stakeholders as appropriate.

This seems to be a small delay to the Cascadura facility whilst the company provides the data needed for the approval of the application. Accordingly I see no reason to change my incredibly positive stance on TXP as the newsflow from the company expected in the next few months should be transformational to the company. 

Angus Energy

Angus announced yesterday afternoon that the Company’s main 8 kilometre export line to Theddlethorpe’s National Grid Entry point has now been purged of nitrogen and pressured up to 60 barg with grid specification gas.  Nitrogen is used for its inert properties to prevent corrosion within a pipeline during periods of shut in.  Removal of nitrogen is one necessary preliminary step to being able to flow our own natural gas forward into the national transmission system.

With all hydrotesting and the bulk of nitrogen (leak and integrity) testing complete, we will now proceed to test skids individually for communication with the central computer system and function testing of all control elements.

Further good news from Angus here and whilst I am no expert on skid testing I think that the company is still on target for first gas very soon. 


Getech, has secured $2.15 million of new contracts. These include geoscience data sales and product renewals and extensions for the Group’s groundbreaking Globe knowledge base, which models the earth’s evolution over the last 400 million years.

The transactions include a $0.9 million multi-product sale to a global critical minerals company. This is Getech’s largest contract to date in the critical minerals sector.

The products sold provide access to Getech’s large and innovative portfolio of proprietary geoscience data. The Globe knowledge base synthesises this data into a ‘digital twin’ of the Earth – modelling geologic, climatic, and oceanographic systems to provide unique insight into the processes that locate and concentrate energy and critical mineral resources, which are essential to the delivery of a sustainable and secure energy transition.

Approximately 56% of these new sales are expected to translate to revenue in 2022. This places Getech on track with market expectations for double digit annual revenue growth. The balance drives Getech’s orderbook, which is now at a record high, providing a strong foundation to deliver multi-year diversified growth.

Getech’s Chief Executive Officer, Dr Jonathan Copus, commented:

“While companies and governments continue to expand their investment in new sources of energy and minerals, today’s new sales announcement – and the record size of Getech’s orderbook – provide further evidence of how demand for our products continues to grow in our target markets of transitional petroleum, critical minerals, storage, geothermal and hydrogen.

In addition to driving near-term revenue, we use our products and capabilities to help us establish strategic partnerships through which we are building our own portfolio of low carbon investments, with our first green hydrogen hub developments making good progress in Inverness and Shoreham.

Getech’s products and our ambition to establish at least 500MW of geoenergy and green hydrogen assets by 2030, place us at the heart of the energy transition and are part of the solution to the world’s energy security challenge. This positions Getech well to deliver a step change in shareholder value.”

This is clearly further good news for Getech, hot on the heels of the previous contract and showing just how well the company are doing in terms of growing in its markets such as those of transitional petroleum, critical minerals, storage, geothermal and hydrogen.

United Oil & Gas

United Oil & Gas has announced an update on the  ASV-1X exploration well in the Abu Sennan licence, onshore Egypt.

The ASV-1X well was drilled safely and under-budget to a total depth of 3,496 metres. It encountered both primary and secondary reservoirs, and as announced on 30 May 2022 a comprehensive testing programme was initiated. The testing programme is still underway, but after over a week of testing with a sucker rod pump installed, no hydrocarbons have yet been recovered. The Operator and partners will continue to review the test results and potential future options and costs before a final decision is made on the forward plan for the well.

Data gathered from this well has further improved our understanding of the subsurface in the Abu Sennan licence. Evidence for the migration of hydrocarbons observed in the ASV-1X structure has helped de-risk this element of the petroleum system in this area of the licence and will assist in optimising future well targets.

The 2022 Abu Sennan drilling campaign is continuing with the AJ-14 development well, with the announcement of the spud on 21 June 2022.  Two further wells are planned for this year, including an ASH development well, and the ASF-1X exploration well. The ASF-1X well is located in the south-west of the Abu Sennan licence, approximately 30km away from the ASV-1X well, and the prospectivity of ASF-1X well is not impacted by the results of the ASV-1X well.

United holds a 22% working interest in the Licence, which is operated by Kuwait Energy Egypt.

Brian Larkin, CEO commented:

“While the failure to flow hydrocarbons from ASV-1X to date is not encouraging, the data gathered from the well test and drilling results will feed into optimising future drilling targets across the licence.

“We are now continuing with our active and fully funded Egypt drilling programme, with the  AJ-14 development well which spud end-June and have two more wells to drill before we complete the 2022 drilling programme, including the ASF-1X exploration well targeting mean recoverable reserves of approx. 8 mmboe gross.  We look forward to updating the market on the progress of our 2022 operations and extensive drilling programme as it progresses.”

The law of the sod can hit all of us at any time and the week after my chat with the UOG CEO and a day after I wrote up the company in glowing terms they deliver a dry hole…

But the bottom line of the comments from yesterday remain, the company has a wide and diverse portfolio which gives excitement for the longer term and more importantly will not be held up by one disappointing well in Egypt. 

And finally…

Putney’s own Cameron Norrie delivered victory yesterday and is now in the Men’s Semi Final where he meets Djoko tomorrow….

England’s win against India, reported yesterday will be the template for future games going forward according to captain Ben Stokes, it will make the series against South Africa later this summer very exciting indeed.

And watching on TV last night Andrew Flintoff’s Field of Dreams made me really interested in how he gets on with this interesting bunch of youngsters.