WTI (Dec) $89.08 +$1.17, Brent (Dec) $96.96 +$1.27, Diff -$7.88 +10c. 

USNG (Nov) $5.82 +22c, UKNG (Dec) 340.6p +11.36p, TTF (Dec) €145.91 +€14.46.

Oil price

Oil rallied again yesterday as for the first time for ages the US GDP data beat the whisper. At 2.6% for the 3rd quarter it was 0.2% up on the scribblers expectations and gave some thoughts for the Fed ahead of its meeting next week.

On the downside China reported more Covid cases as, and they are fully aware, they haven’t beaten this by any means yet. Accordingly the fact that the IMF has downgraded its GDP forecast to 3.2%, a 27% fall comes as no surprise but given that these over financed self-important international quangos are rarely right or even close the darkest hour may have even passed by…

Sunday sees the final run-off in the Brazilian elections and after last time the supporters of Lula are not predicting a huge win but keeping their heads down in the face of a Bolsonaro tirade in recent weeks.

Union Jack Oil

Union Jack has announced that it has purchased a total of 200,000 of its ordinary shares of 5 pence each in the capital of the Company through the Company’s Broker, SP Angel Corporate Finance LLP, as follows.

Date of purchase

27 October 2022

Number of Shares purchased


Highest price paid per Share

31.65 pence

Lowest price paid per Share

30.94 pence

Volume weighted average price paid per Share

31.295 pence

The Company intends to hold these Shares in Treasury.

Including Shares which have been purchased but not yet settled, to date the Company has purchased 200,000 Shares in Treasury.

Following the above purchase, the Company holds 200,000 of its Shares in Treasury and has 112,865,896 Shares in issue (including Shares held in Treasury).  Therefore, the total voting rights in the Company will be 112,665,896 (excluding Shares held in Treasury).  This number represents the total voting rights in the Company and may be used by shareholders as the denominator for the calculations by which they can determine if they are required to notify their interest in, or a change to their interest in the Company under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.

I do not normally write about buy-backs in the market but as this is the first one I thought I would drop it in so that readers can see how the mechanics of it will work, but I won’t be noting each transaction. 

This is confirmation, if any were needed that UJO is in a very strong financial situation and that the board is determined to make consistent and meaningful distributions to shareholders. When it is appropriate it should be reflected in the share price.

San Leon Energy

San Leon notes the announcement made on 27 October 2022 by Decklar Resources Inc.  in Canada.  San Leon has a 11% shareholding in Decklar Petroleum Limited, the local subsidiary of Decklar operating in Nigeria, and has also made a US$5.5 million loan to DPL, via 10% per annum unsecured subordinated loan notes

Part of the text of Decklar’s announcement is set out below:

“Calgary, Alberta — Decklar Resources Inc. is pleased to announce that it has recommenced loading crude oil into trucks at the Oza Oil Field in Nigeria.

Delivery of Crude Oil

Decklar and its co-venturer Millenium Oil & Gas Company Limited are pleased to announce that the required permits have been obtained and loading of crude oil into trucks has recommenced at the Oza Oil Field. The crude will be trucked to a crude processing and sales terminal in Nigeria with which the Company has entered into an agreement. As previously announced, the agreement with the company that owns the crude processing and sales facilities provides for an initial delivery of 10,000 bbls. The parties are also in advanced discussions to increase  the initial sales quantity to 30,000 bbls and to possibly agree a minimum monthly quantity of barrels of Oza Oil Field crude to be sold.”

Further good news from San Leon and this will make the process swifter, safer and thus generate more revenue, another box ticked. 

Angus Energy

Angus has announced that the side-track of SF-07 programme began today with testing of blow-out preventers in advance of spudding the well.  The Company will supply regular photographic coverage supported by graphics of the progress of the drilling programme on its social media platforms with a 12 hour delay.  This will allow any material change to the programme to be properly communicated by RNS ahead of the updates.

This being a side track rather than a new well, the Company expects to be running equipment in hole to a depth of 1300m reasonably swiftly over the weekend and it is above this depth, at around 1150m that a whipstock (essentially a wedge allowing the hole to be drilled at an angle to the vertical) will be set and the 9 5/8″ window will be milled through the casing and cement.

Early next week directional drilling begins in earnest in 8.5” bore at a low angle to the vertical to a total depth of around 2,560m (TD) which should terminate about 1m into the target reservoir.  The speed of drilling the first section (8.5” section) is likely to vary during this element of the programme, but an estimate of 8-10 days is not unreasonable.

Thereafter the drilling will be nearly horizontal and slower for a further 300-400 m.  The total programme, including clean up of the well, is expected to last some 35 days.  The Company may be able to advise success in the actual drilling activity after approximately 30 days but a further 10 days would be required to begin to have confidence as to likely production rates.  However few drilling programmes follow predicted timetables closely and investors should expect variance.

Production from the existing wells continues at previously advised rates at Saltfleetby excepting a four hour planned maintenance shutdown yesterday for a software upgrade.

This obv speaks for itself.

United Oil & Gas

United Oil & Gas announce an update on the drilling of the ASH-4 development well in the Abu Sennan licence, onshore Egypt. United holds a 22% non-operating interest in the Abu Sennan licence, which is operated by Kuwait Energy Egypt.


–       Net pay of 20 metres interpreted in the targeted Alam El Bueib (“AEB”) reservoir

–       The well is expected to reach TD in the coming days, after which it will be tested and completed

ASH-4 Well

The ASH-4 development well, which spudded on 10 September, reached a depth of 3,956 metres MD on 24 October, in line with the pre-drill schedule and under budget. The well was drilled as a step-out development well into the ASH field. Initial logs have been acquired through the primary AEB reservoir target, with net pay estimated at 20 metres.

The well is expected to reach TD in the coming days, after which it will be tested and completed. It is then expected to be immediately brought onstream through the existing ASH facilities. On completion, the ST-1 rig is planned to move to the ASW-1X location (previously named ASF-1X) to commence the drilling of this high-impact exploration well, targeting c. 8 mmbbls gross recoverable resources.

United Chief Executive Officer, Brian Larkin commented:

“The ASH-4 well result marks a successful return to drilling on a prolific area of the Abu Sennan licence.  Based on the initial petrophysical interpretation we expect that this well will deliver a material increase to current production levels. The updated technical information from this well, and the three other producing ASH wells coupled with the reprocessed seismic, is expected to further enhance our understanding of the field which will support the optimisation of the recovery of the material reserves and value. This provides further encouragement for the forthcoming exploration well and the remainder of our 2022 work programme.”

Life gets back to normal for UOG with this successful well at ASH-4 which exhibits excellent net pay and should add good production and be brought on very soon. Perhaps more important is that the result is in line with previous ASH wells which explains the confidence of the CEO.

UOG has fallen recently after the disappointment at the AJ-14 well which perhaps somewhat overdid the underperformance in recent months and the shares have indeed halved from the high earlier in the year. With this news I would strongly expect the shares to retrace that fall and don’t consider that a doubling back to 3.5p is out of the question. 

CEO Brian Larkin has kindly agreed to come on my CEO interview next month so watch this space…

IGas Energy 

IGas is shocked and disappointed that the UK Government has now formally announced another moratorium on fracking in England through the release of a Written Ministerial Statement (WMS) at the height of an energy and cost of living crises.

The full text of the WMS can be read here:


Chris Hopkinson, Interim Executive Chairman, said:

“Literally a few weeks ago this Government lifted the moratorium paving the way for the timely development of shale in the UK providing jobs, tax revenue, energy security and significant community benefits in the middle of an energy crisis – all totally compatible with net zero.

IGas has a significant recoverable gas resource in the Gainsborough Trough. Following interpretation of the cores taken across the 500m Shale horizon at Springs Road, drilled in 2019, we have estimated that there is 630 Bcf of gas in place per square mile, and if applied to our entire acreage in the East Midlands, this would equate to 270 Tcf of high quality natural gas. At expected recovery rates, this would equate to satisfying up to 19 years of the UK’s gas demand giving this country both energy security for years to come as well as providing billions of pounds of investment into the East Midlands and the creation of thousands of skilled jobs.

One of the cross-industry benefits of lifting the moratorium on fracking is the potential to level the playing field across all sectors, particularly in the streamlining of regulatory processes. This could promote growth and help make post-Brexit Britain the place to do business.  But now, another government U-turn risks driving investment away.

Shale could quickly provide cheaper gas to the UK, supporting strategic industries such as the UK steel industry and the emerging blue hydrogen economy, selling gas at a guaranteed contracted price well below European prices.  Instead, we will now be tied into expensive imports of LNG for years to come at a time when other European countries are looking at domestic shale as part of their answer to high gas prices and energy security.

IGas, its partners, and investors have invested significant sums in the development of shale gas both before the 2019 moratorium and again during this political debacle. On both occasions these investments were made in the belief that we were unlocking a strategically important resource and providing energy security for the UK.  We continue to believe and assert that fracking for shale gas can and will be done safely and in an environmentally responsible manner.  In light of the Government’s totally unwarranted U-turn and, in the interest of our shareholders, we reserve the right to pursue any legal process available to us to recover the losses that we have incurred.”

Suing the Government, now that’s a good way of getting in with the authorities…

And finally…

Bad weather down under has already ruined the T20 World Cup  and today it took its biggest scalp in the England v Australia game. Afghanistan v Ireland also went west. Yesterday in Group 2 South Africa beat the Bangers, India beat the Netherlands and most interestingly the Zimmers beat Pakistan.

This weekend’s footy includes the Foxes hosting the Noisy Neighbours, the Cherries entertain Spurs, Wolves are at the Bees, Chelsea go to the Seagulls, the Eagles host the Saints, the Magpies entertain the Magpies, the Toffees go to the Cottagers and Liverpool welcome Leeds today.

Tomorrow the Gooners host the Forest and the Hammers go to the Theatre of Dreams.

It is the F1 Mexican GP in Mexico City and later today Red Bull learn of their punishment for cheating.

Finally in Rugby Union Scotland host Australia.