WTI (July) $60.79 -15c, Brent (Aug)* $62.78 -$1.12, Diff -$1.99 -$1.22.

USNG (July) $3.45 -7c, UKNG (July) 79.36p -2.16p, TTF (July) €36.7 -€0.375.

*Denotes expiry of July Brent contract.

Oil price

Oil is up two dollars today after Opec decided to add 411/- b/d to its production, of course what were you expecting…? And the rig count fell again, overall by 3 to 563 and in oil by 4 to 466.

Kistos

Kistos has announced that on 29 May 2025 its Norwegian subsidiary, Kistos Energy (Norway) AS, notified Nordic Trustee AS of the cancellation of all of its outstanding Kistos Energy (Norway) AS hybrid callable bonds 2023/2083 (ISIN: NO0012867326) (the “Bonds”) with an aggregate nominal amount of USD 15,000,000. The Bonds will be cancelled on 2 June 2025 with the record date being 28 May 2025.

In accordance with the terms of the Bonds, the holders of the Bonds immediately prior to such cancellation (the “Relevant Bondholders”) shall be eligible to be allocated and receive up to 2,400,000 class C warrants exercisable into new Kistos ordinary shares at a price of 385 pence each (the “Class C Warrants”) pursuant to the warrant instrument constituted by Kistos on 22 May 2023 (the “Warrant Instrument”). In addition, up to 1,900,000 of the class B warrants exercisable into new Kistos ordinary shares at a price of 385 pence each (the “Class B Warrants”) issued by Kistos pursuant to the Warrant Instrument will be cancelled if Kistos allots any Class C Warrants.

Under the terms of the Warrant Instrument:

·           each Relevant Bondholder who delivers a valid notice in writing to Kistos prior to 30 June 2025 shall be allocated and receive a share of 2,400,000 Class C Warrants that corresponds to its pro rata share of the cancelled Bonds;

·           Kistos shall allot and issue any Class C Warrants for which it receives a valid written notice within 30 calendar days of 30 June 2025;

·           if Kistos allots any Class C Warrants, Kistos shall, by issuing a cancellation notice to the holders of Class B Warrants, cancel such number of Class B Warrants (“X”), calculated as follows:

X =       1,900,000        x          number of Class C Warrants issued by Kistos

                                                                                    2,400,000

·           the relevant number of Class B Warrants shall be cancelled on and with immediate effect from the effective date of the issue of the Class C Warrants, and any certificate for such cancelled Class B Warrants shall be void with immediate effect at such time.

An eminently sensible piece of housekeeping by Kistos as it cancels the remaining $15 million of the original $45 million hybrid bonds.  In return, the bondholders get an incentive, which in this case is to be allocated warrants which are exercisable into new Kistos shares at a price of 385p each. 

It is clear that this is technically a modest dilution but I don’t think it is anything to get steamed up about especially as Kistos would have to get there from the current 151p which would be a fantastic run. No, yet again Andrew Austin has the best interests of shareholders at heart, after all he is one of them and he is protecting them here as he tidies up the balance sheet.

I am confident that this is the beginning of another good time for Kistos shareholders, the dawn of the Balder development means the portfolio is growing fast and I am genuinely hearing more positive talks from the UK regime that may mean that things begin to move over here.

Sunda Energy

Sunda has announced its audited financial results for the year ended 31 December 2024.

Operational Highlights for 2024

·      Farm-in completed with TIMOR GAP, increasing their working interest from 25% to 40%, resulting in TIMOR GAP being responsible for 20% of PSC costs.

·      Memorandum of Understanding signed with MPRM and TIMOR GAP, setting the framework for joint evaluation of a development concept for gas resources on Chuditch.

·      Application for two offshore licence areas in the Philippines, which sit in an area that the Sunda team knows well and where there is potential for vast energy resources.

·      UK Licence P2478 relinquished with all commitments having been fulfilled.

Post-period end developments

·      Entered into further farm-in agreement with TIMOR GAP, assigning them an additional 30% working interest resulting in their interest increasing to 70% on completion. Expected to close in June 2025.

·      Completed an Environmental Baseline Survey in the area of the planned Chuditch well, with results integrated into the Environmental Impact Statement and the Environmental Management Plan.

Financial Highlights for 2024

·      Cash Reserves at 31 December 2024 were £3.20m (31 December 2023: £3.76m).

·      Loss after taxation of £2.05m (2023: £1.71m).

·      Completed a Placing, Subscription and WRAP Retail Offer of new ordinary shares at 0.05p to raise £3.26 million (gross) in February 2024.

Post-period end developments

·      Issuance of convertible loan notes to three institutional investors raising up to US$9.0 million to fund Sunda’s share of the PSC costs.

Commenting on the results, Gerry Aherne, Non-Executive Chairman, said:

“2024 was a year of tremendous change for the Company. With significant changes to the Board, management and direction, it made sense to change the name. Sunda Energy Plc is now a company truly focused on SE Asia, and in particular gas projects in that region. The Company has built on its exciting and valuable asset in Timor-Leste, putting together a highly experienced operating team and evaluating a pipeline of material new venture opportunities across the region.

“I extend my thanks to all stakeholders of the Company, including my fellow directors, our dedicated and hard-working employees and consultants, and our Timorese joint venture and government partners, for their strong support of the Company’s efforts.”

Having recently met the Sunda management I was impressed with the asset in Timor-Leste and will be getting to grips with their plans and policies, in the meantime I will be watching this space….. 

Jadestone Energy

Jadestone has announced the appointment of Thomas Mitchell (Mitch) Little as Chief Executive Officer  effective 1 June 2025.

Mr. Little has relocated to Jadestone’s head office in Singapore. Mr. Little will be responsible for the delivery of Jadestone’s existing strategy, with the Group aiming to become the leading upstream independent in the Asia-Pacific region through both organic and inorganic growth.

Mr. Little has over 30 years of experience in the upstream oil and gas industry, the majority of which was with Marathon Oil Company  from 1987 to 2020 in various technical, supervisory and senior management positions.

Prior to leaving Marathon, Mr. Little was Executive Vice President: Operations, where he held full responsibility for all of Marathon’s operations and development activities across US unconventional and international operations, including health and safety and global supply chain functions. He was also a member of Marathon’s Executive Committee. His technical assignments included roles in operations, reservoir management and drilling throughout the U.S., offshore Norway, West Africa, North Africa, and Indonesia. He has a Bachelor of Science in Petroleum Engineering from the University of Wyoming.

Mr. Little also brings to Jadestone relevant industry expertise in his current role as Board Director of Helix Energy Solutions, a NYSE-listed international offshore energy services company that specializes in maximizing the output of existing oil and gas fields. 

I very much look forward to meeting Mr Little as he will surely be getting out on the road to meet shareholders and the analyst fraternity but probably not until he has met the staff and learnt the strategy/devised a new one…

Dr. Adel Chaouch, Executive Chairman of Jadestone, commented:

“We are very pleased that Mitch is joining Jadestone as CEO. He brings significant upstream operational and management experience from over three decades in the oil and gas industry with Marathon.

His in-depth operational and technical knowledge across many jurisdictions, particularly in mature asset management, will be of particular benefit to Jadestone, as we seek to maximize the value of our existing operated positions in Australia, Indonesia and Malaysia and pursue further growth in these core areas. On behalf of everyone at Jadestone, we welcome Mitch to the business, and I look forward to working with him to execute our strategic aim to be the leading upstream independent in the Asia-Pacific region.”

T. Mitch Little, Chief Executive Officer of Jadestone, commented: 

“Jadestone has a very attractive platform of operated upstream positions in the Asia-Pacific region. This dynamic region will be at the forefront of global energy demand growth for the foreseeable future, and I’m confident that Jadestone is well positioned to contribute meaningfully to meeting the region’s oil and gas demand growth in a safe and responsible manner.

I’m excited to relocate to the region and honoured to be joining the company at this stage of its development, as we work together to deliver on Jadestone’s compelling strategy.”

Tower Resources

Tower Resources plc (AIM: TRP), the Africa-focused energy company, announces its preliminary results for the 12 months ended 31 December 2024.

Highlights

·   Cameroon

o  The extension of the First Exploration Period of the Thali production-sharing contract to 4th February 2025, in accordance with the Company’s PSC and the Cameroon Petroleum Code, and with the approval of the President of the Republic of Cameroon, was formally notified to the Company in February 2024.

o  Further to the Rig contract announced on 18 December 2023, Borr Drilling Limited advised that extensions to the prior drilling programme for the Norve jack-up rig to BW Energy would make it impossible for the Norve to drill the NJOM-3 well during 2024, and a further extension of the First Exploration Period was therefore requested.

o  The Company’s farm-out process made substantial progress and an offer was received and announced for $15 million of financing for the Thali PSC work programme in October 2024.

o  Discussions also continued with African banks regarding a short-term facility to enable earlier production from the NJOM-3 well.

·   Namibia

o  The Namibian Ministry of Mines and Energy agreed the extension of the Initial Exploration Period of PEL 96 to 31 October 2024 and invited the Company to apply to enter the First Renewal Period of PEL 96, for a period of 2-3 further years.

The remaining work commitment for the Initial Exploration Period was substantially complete and the Ministry of Mines and Energy had also agreed to defer the Company’s commitment to acquire 1,000 square kilometres of new 3D seismic data to the First Renewal Period.

An update on the evaluation of large stratigraphic and structural leads and prospects was provided together with plans to reprocess the previously acquired 2D seismic data over areas of the license both in the remainder of the Initial Exploration Period and in the First Renewal Period.

·   Corporate

o  Pursuant to the investment deed to Energy Exploration Capital Partners, LLC (“EEPC”), announced in January 2023, additional tranches of share issues were made during 2024, raising an additional $230k at an issue price of between 0.021p and 0.0225p per share.

o  The Company reached an agreement for the repayment of the outstanding balance owed to EECP in February 2024, in accordance with the terms of the investment deed. In addition, the Company also announced a Subscription to raise £600,000 via the issue of 3,333,333,333 shares at a price of 0.018p per share.

o  A Subscription arranged with the Company’s Chairman and CEO, Jeremy Asher, for 1,195,652,174 ordinary shares at a share price of 0.0115p per share to raise £137,500, was announced in June 2024.

o  The appointment of Ms Stacey Kivel as independent Non-Executive Director was announced in August 2024. Ms Kivel joined the Remuneration and Audit Committees and agreed to chair the Remuneration Committee.

o  A Placing of 4,401,851,851 shares, via a two-tranche subscription agreement, to raise £1,188,500 at a price of 0.027p per share, was announced in October 2024.

o  A Subscription for 1,018,518,519 ordinary shares at a share price of 0.027p per share to raise £275,000 was announced in November 2024.

o  Cash balance at year-end of $284.1k (2023: $20.6k).

o  2023 full-year net administrative costs, excluding share-based payment charges, of $608k (2023: $702k).

Post-Reporting Period Events

10 January 2025: Transformational farm-out agreements executed with Prime Global Energies Limited (“Prime”) for minority, non-operated interests in the Company’s Thali license, offshore Cameroon, and PEL96 offshore Namibia.

Tower agreed to farm-out a 42.5% non-operated interest in the Thali license to Prime in exchange for a US$15,000,000 cash contribution towards the Thali work programme and drilling of the NJOM-3 well in 2025, and further terms as set out in the announcement. In addition, Prime has also agreed to farm-in to PEL96, offshore Namibia, for a 25% non-operated interest. The Company’s shareholder Pegasus Petroleum Limited (“Pegasus”, a company owned by the Asher Family Trust, of which the Company’s Chairman Jeremy Asher is the lifetime beneficiary) agreed to modify certain agreements between Pegasus and Tower and also to subscribe to further shares in Tower, as set out in the announcement. As a result of these arrangements, the Company received cash proceeds of $937,500 in cash immediately and will receive a further $3,437,500 cash following completion of the two farm-out agreements.

22 January 2025: A broker to the Company exercised rights over 271,018,518 Ordinary shares comprised of 271,018,518 Warrants at an exercise price of 0.027p per share and at an exercise cost of £73,175.

7 March 2025: Tower Resources (Namibia) Limited agreed to purchase an additional 5% interest in the PEL96 license offshore Namibia from its local partner, ZM Fourteen Investment (Pty) Ltd for a cash consideration on completion of $375k.

At the same time, the Company noted that Tower Resources Cameroon SA has submitted the TRCSA-Prime farm-out agreement documentation and the request for a year’s further extension of the First Exploration Period of the Thali license to the Cameroon Minister of Mines, Industry and Technological Development for approvals.

26 March 2025:  The Company announced that it had agreed an unsecured fixed-price convertible bridge loan of £500,000 with Prime Resources Limited with a term of up to 12 months, and convertible into ordinary shares at a fixed conversion price of 0.05588 pence per share if not prepaid earlier. Prime Resources Limited is a Gibraltar-registered private investment company and is not related to the Company’s prospective farm-in partner Prime Global Energies Limited.

9 April 2025:  The Company announced that it had made an annual award of 1,540,000,000 Restricted Shares to directors, employees and consultants under its Long-Term Incentive Plan (LTIP).

At long last Tower are on the move in more ways than one, all credit to Jeremy Asher as he brings Tower to reality in Cameroon and Namibia and is now actually in a fashionable post code…

And finally…

England came from behind to beat the WIndies in the 2nd ODI yesterday and with only one match left in the three match series are 2-0 up with the last game at The Oval tomorrow.

In Barcelona Piastri beat Lando with LeClerc back in third, Max deliberately crashed into George and finished in 10th after a ten point penalty.