WTI (May) $69.92 +72c, Brent (May) $74.03 +24c, Diff -$4.11 -3c.

USNG (May)* $3.93 +3c, UKNG (Apr) 98.16p -0.59p, TTF (Apr) €40.75 -€0.4.

Oil price

Oil is flat on the day and heading for another up week, albeit modest. Current panic is about tariffs on motor vehicles, this is ahead of next week’s panic about the April 1st tariff deadline day and of course ‘Liberation Day’ on April 2nd panic which is also the Venezuelan tariff panic day.

Diversified Energy Company

Diversified has announced that it has successfully placed $300 million of new senior secured notes. The new notes are due to mature in April 2029 and will pay a fixed coupon of 9.75% per annum, payable semi-annually in arrears.

The net proceeds from the senior secured notes will be used for repayment of existing debt and for general corporate purposes. The new class of debt provides increased liquidity, which currently stands at approximately $440 million inclusive of the proceeds of the note offering, is leverage-neutral, and will enhance cash flow, allowing flexibility for continued investment in high rate of return opportunities.

DNB Markets, a part of DNB Bank ASA, acted as Manager and Bookrunner in the bond offering.

An expected update from DEC who have added this piece to the company’s debt structure and it will be used to pay down existing debt and for ‘general corporate purposes’ and will enhance cash flow. 

United Oil & Gas

United yesterday announced that it has secured an early two-year extension to the Walton Morant licence offshore Jamaica, now valid until 31 January 2028, where it holds a 100% working interest.

The Company would like to formally acknowledge and thank the government and people of Jamaica for the continued support of oil and gas exploration in Jamaica. The extension provides UOG with the security required to advance discussions with farm-in partners and progress technical work, reinforcing the significant exploration potential of this licence.

Farm-Out Process and Partner Interest

With the extended tenure confirmed, United have re-engaged with selected parties who had previously expressed interest before the farm-out process was suspended in December 2024, as well as new interest from additional groups. At present, multiple companies are under Non-Disclosure Agreements (NDAs) and actively reviewing data as part of the farm-out process.

Further updates on the farm-out process and technical progress will be provided as appropriate.

Brian Larkin, CEO of United Oil & Gas, commented:

“The Walton Morant Licence presents a compelling frontier exploration opportunity for investors, offering exposure to a world-class frontier basin with multi-billion-barrel potential. Securing this early licence extension until 31 January 2028, is crucial to progressing our work programme, and ensuring stability and regulatory certainty sought by potential farm-in partners. We appreciate the support of the government and people of Jamaica  in advancing exploration efforts in Jamaica.

With multiple parties now under NDA and re-engagement with previously interested parties, we are well-positioned to secure the right strategic partner to help unlock this asset’s potential. Our current work programme is designed to further de-risk the licence, and with returning sentiment to high-impact frontier exploration opportunities, the Walton Morant Licence stands out as an exceptional investment case.”

This early extension is vital for UOG for whom the licence is pretty crucial given the state of the portfolio right now. The good news is that it seems that with the longer term certainty now offered there are ‘multiple parties’ in the data room and anything can happen. UOG needs some success here which would indeed make a very high impact statement.

And finally…

In what is one of the dullest weekends of the year in sport all we can look forward to are the  FA Cup quarter finals, in which the Cottagers host the Eagles, the Forest go to the Seagulls, the Invincibles welcome Villa and the Noisy Neighbours go to the Cherries.

At Doncaster it’s the Lincoln which only portends the end of the jumping season, just Aintree to come…

More fun over the pond though…

Last night was the opening day of the new baseball season. There are several things to look out for this year including the return of Shohei Ohtani (as a pitcher), the development of Paul Skenes in Pittsburgh and the astonishing overall talent of the Dodgers roster as they aim to go back-to-back and win the championship again in 2025. Roki Sasaki should be a rookie of the year candidate. Elsewhere, Bobby Witt Jr in Kansas is a star and there will be a battle for supremacy in New York with a fun looking Mets roster and the Yankees hoping to return to the World Series after falling short against LA last year.