WTI (June) $98.07 +$2.65, Brent (July) $104.21 +$2.92, Diff -$6.14 +32c. 

USNG (June) $2.91 +15c, UKNG (June) 114.96p +6.96p, TTF ( June) €46.925 +€2.43.

Oil price

Oil is up the best part of four bucks this afternoon as markets think that with Iran pushing back on the US peace memo and apparently was miles away from the US stance. This looks bad for the war but it may come down to the China syndrome that I have been talking about recently. 

With President Trump meeting with the Chinese leader at the end of the week the war may be front and centre, China are affected in a number of ways and also would like it to end as well…

Pharos Energy

Pharos has provided the following Trading and Operations Update ahead of the Company’s annual general meeting (AGM) on 21 May 2026 at 2.00 p.m. (BST). The information contained herein has not been audited and may be subject to further review and amendment.

Katherine Roe, Chief Executive Officer, commented:

“It has been a busy start to the year for Pharos as we advance two ongoing multi-rig drilling campaigns in Vietnam and Egypt. Our six-well offshore program in Vietnam is almost complete, with five of the six wells successfully drilled, all on time and on budget. These are already contributing to production and reserves growth. In Egypt, we have commenced our six-well drilling campaign, leveraging improved fiscal terms to drive additional value.

“These fully-funded campaigns to grow production, coupled with our exposure to higher near-term oil prices, particularly in Vietnam, where we continue to receive a premium to Brent, are driving strong cash flow generation. We remain committed to monetising our high-impact exploration in Vietnam as the farm-out process continues, whilst also identifying value-accretive opportunities to add to our existing portfolio.

“Pharos remains well-positioned to unlock further growth and deliver value for shareholders. We thank shareholders and all our stakeholders for their continued support.”

This is another very solid update from Pharos bringing as it does a very good revenue number, boosted by current realisations particularly in Vietnam due to the premium to Brent pricing. With production of 5,561 boe/d easily within guidance and should the final Vietnam well come in as hoped, will see the rate at the top end of the 5.2-6.4m boe/d guidance.

That would make all the six funded wells in Vietnam successful and on production, making the campaign highly efficient and apart from the flow, also adds to revenue, cash generation and reserves. In Egypt the first of a six well programme is underway and this is also fully funded and the recently confirmed improved fiscal terms ‘drive additional value’. 

Both parts of the portfolio offer potential upside, further drilling in Egypt and of course the farm-out in Vietnam of blocks 125 & 126 is underway. Cash at the end of April is a healthy $31m and with the Egyptian Government promising repayment of all receivables Pharos should get the remaining $7m back this quarter.

 So, my 50p target price looks eminently achievable and with the shares up by some 35% over six months and a year alike I can still see plenty of upside in the short term as operational activity kicks in as well as longer term potential particularly in Vietnam. 

Highlights:

·      Group working interest production for the four months ended 30 April 2026 was 5,561 boepd net, in line with 2026 guidance of 5,200 – 6,400 boepd:

o  Vietnam 4,492 boepd. Vietnam 2026 production guidance 4,000 – 4,950 boepd net

o  Egypt 1,069 bopd. Egypt 2026 production guidance 1,200 – 1,450 bopd net

·      Vietnam:

o  Six-well offshore drilling programme commenced operations on 18 October 2025

o  Five out of six wells successfully finished drilling on time and budget; all currently producing in line with expectations and contributing to production and reserves. Drilling of the final appraisal well, CNV-5X, on track to complete by mid-year 2026:

§ TGT: All three infill wells were completed and put on stream by April 2026, with initial production rates of 1,700, 600 and 1,400 bopd gross and currently contributing c.2,800 bopd gross (830 bopd net), in line with overall pre-drill expectations. Appraisal well TGT-18X, the longest clastic well drilled in Vietnam, produced encouraging initial results of 2,000 bopd gross (600 bopd net), with further testing operations ongoing

§ CNV: The infill well completed in mid-March 2026 with an initial production rate of 700 bopd gross. The well continues to clean up and is now contributing 800 bopd gross (200 bopd net). Appraisal well CNV-5X, the longest basement well in Vietnam, commenced drilling on 15 March with completion expected by mid-year 2026

·      Egypt:

o  2026 six-well onshore drilling programme commenced, with two rigs expected to run in parallel

o  Rig is now on location to drill the first well, Silah 8-2, spudding imminently

·      Group revenue for January to April 2026 c.$49m

·      Cash balances as at 30 April 2026 c.$31m 

·      Realised oil prices:

o  Vietnam: ranged from $72/bbl in January to $126/bbl in April 2026, inclusive of premium. Vietnam premium to Brent of $5.78/bbl for TGT and $6.03/bbl for CNV in April

o  Egypt: ranged from $60/bbl in January to $114/bbl in April 2026, inclusive of discount. Egypt discount to Brent of $8/bbl for El Fayum and North Beni Suef combined in April

·      Egypt receivable balance as at 30 April c.$7m, having received $5.7m in the four months to 30 April 2026. Receivable days reduced from 184 days at year end 2025 to 120 days at 30 April 2026

·      Approximately 38% of the Group’s 2026 forecast entitlement production and c.17% of the Group’s first half 2027 forecast entitlement production hedged year-to-date, utilising a mix of zero-cost collars, fixed-price swaps, and put options. Our 2026 hedging portfolio secures an average floor price of c.$60/bbl, an average ceiling price of c.$79/bbl, and includes swap hedges at an average fixed price of c.$93/bbl for 2026

·      Group cash capital expenditure for 2026 remains on budget at c.$50m, of which $11m is for Egypt, and $39m is for Vietnam; this is heavily weighted to the first half of 2026

·      Discussions continue on Blocks 125 & 126 with potential farm-in partners. The Board continues to consider and review additional opportunities to expand on the current asset base that can build scale and generate additional returns for shareholders

Operational Review

Vietnam

In October 2025, Pharos commenced our six-well infill and appraisal drilling programme in Vietnam, the most significant investment into our Vietnamese assets since the initial development of the TGT and CNV fields. The programme included four TGT wells and two CNV wells and employed two drilling rigs, GunnLod and Thor, running in parallel.

The drilling programme on TGT was completed on time and on budget on 4 April 2026. Three infill wells were completed and put on stream in November, January, and April, with initial gross production rates of 1,700, 600, and 1,400 bopd. All three infill wells have now stabilised and are currently contributing c.2,800 bopd gross (830 bopd net) to Group production, in line with overall pre-drill expectations. The appraisal well TGT-18X, a technically challenging clastic well, was successfully drilled in February. Initial testing achieved flow rates above 2,000 boepd gross (600 boepd net). Testing operations continue with a few zones remaining to be perforated.

The drilling programme on CNV is expected to finish by mid-year, with the final appraisal well currently being drilled in the target reservoir. We look forward to updating the market on the results of this well in due course. The infill well 8P was completed in mid-March 2026 with an initial production rate of 700 bopd gross. The well continues to clean up and is contributing 800 bopd gross (200 bopd net).

Upon completion of the Vietnam infill drilling programme and the successes of both appraisal wells, TGT-18X and CNV-5X, we expect a c.20% growth in Vietnam production volumes, positioning us towards the higher range of the 2026 production guidance.

Egypt 

Pharos has commenced our 2026 six-well drilling programme in Egypt. The programme includes four El Fayum wells and two North Beni Suef wells. Two rigs will be employed, with the first rig recently mobilised to drill the first well, Silah 8-2, which is expected to spud imminently. Procurement of the second rig is ongoing. The wells are expected to be drilled back-to-back, and we will update the market on the results of this campaign as it progresses.

Upon successful completion of the whole programme, the six wells are expected to deliver an increase in Egyptian production by around c.20%.

Financial Review 

The realised oil prices for April 2026 YTD were $97.31/bbl in Vietnam and $85.07/bbl in Egypt. As a result of higher commodity prices, Group revenues YTD to April 2026 were c.$49m.

As at 5 May 2026, 38% of the Group’s 2026 forecast entitlement production was hedged year-to-date, utilising a mix of zero-cost collars, fixed-price swaps, and put options, leaving 62% of 2026 Group production unhedged. Our 2026 hedging portfolio includes swap hedges at an average fixed price of c.$93/bbl, and the collars secure an average floor price of c.$60/bbl and an average ceiling price of c.$79/bbl. Following recent geopolitical conflicts which began in February, the Group has decided to continue hedging to mitigate the risk of extreme volatility in Brent prices. As a result, the company placed further hedges for 2027, through which the company has hedged 17% of total forecast group entitlement production for 1H 2027, securing an average swap price of c.$79/bbl, together with collars securing floor and ceiling prices for the hedged volumes at c.$67/bbl and c.$85/bbl, respectively, leaving 83% of 1H 2027 Group production unhedged.

Payments in Egypt continue to be received monthly. Following recent public commitments from the Egyptian Minister of Petroleum and Mineral Resources, Karim Badawi, to settle all Egypt’s outstanding receivables to international partners in the oil and gas sector, Pharos expects to be current by mid-year, further strengthening the balance sheet.

Corcel

Corcel has provided an operational update, announce changes in management and launch its refreshed corporate branding and website.

Highlights:

  • KON-16 progressing toward drilling, with the pre-salt exploration well targeted within the next 12 months.
  • Farm-down discussions active with multiple potential strategic partners ahead of drilling.
  • New seismic confirms key Sirius and Canopus prospects and delivers a 227% increase in seismic coverage across the block.
  • PSTM (Pre Stack Time Migrated) seismic results expected end-July 2026, supporting further prospect maturation and partner review.
  • Leandro Schujmann appointed CFO, bringing significant Africa and Latin America energy finance experience.

KON-16: Operational Progress and Farm-Down Process

Following completion of the 326 line‑km 2D seismic acquisition programme in February 2026, the Company continues to advance the technical and operational workstreams required ahead of drilling the pre-salt exploration well in the onshore Kwanza basin on KON‑16.

Current work includes drilling engineering and well design, permitting and regulatory sequencing, long‑lead procurement planning and rig engagement discussions with prospective contractors.

These activities remain aligned with the Company’s internal schedule, supporting a planned drilling window within the next 12 months, subject to final approvals and partner alignment.

The Company continues to progress its farm‑down process and remains in active dialogue with multiple potential counterparties. The objective is to secure a strategic partner ahead of drilling the pre‑salt exploration well in the onshore Kwanza Basin.

Subsurface Update

Processing of the KON‑16 seismic dataset is being undertaken by DUG Technology Ltd, a global specialist in complex pre‑salt imaging in partnership with Striped-Horse, an upstream oil and gas consultancy providing strategic energy solutions in Angola and the UK. Processing commenced on 24th March 2026.

Key technical milestones:

  • Brute Stacks (initial seismic deliverables)

o  Confirms clear imaging of three previously high graded prospects. “Sirius”, a large pre-salt structure in the centre of KON-16 with an additional overlying post-salt target, and the geologically independent “Canopus” post-salt prospect.

o  Additional mapped prospectivity both in the deeper pre-salt and shallower post-salt, visible across the block.

  • Significant improvement in structural control

o  Recently acquired seismic represents 227% increase in seismic coverage over the block.

o  Multiple intersecting lines across the primary target, the Sirius prospect, materially enhancing definition and supporting well‑location selection.

  • PSTM (time) volume on track for delivery end‑July 2026

o  Expected to support prospect maturation and partner technical review

  • Final PSDM (depth) volumes expected later in 2026

Business Development

Corcel has continued to broaden its business development pipeline across Angola, Brazil and the wider Latin America region, with several producing and pre‑development opportunities now at advanced stages of technical and commercial review. Although no transaction has yet been finalised, several counterparties remain in active engagement, consistent with the longer lead times typical of the region.

The Company remains disciplined in its evaluation criteria, prioritising assets capable of delivering “near‑term” cash flow and strategic fit alongside its high-impact exploration portfolio in the onshore kwanza basin. With the strengthened balance sheet following the fundraises previously announced, Corcel is capitalised to execute on suitable acquisition opportunities as they mature.

Management Changes:

The Company announces the appointment of Leandro Schujmann as Chief Financial Officer.

Leandro brings over a decade of senior finance experience. He joins Corcel having worked at Prime Oil & Gas (now Meren Energy), where he ultimately served as CFO, managing a US$3 billion investment portfolio and leading financing processes exceeding US$4 billion. His experience across Latin America and Africa, including complex cross‑border financing structures, aligns with the Company’s operational footprint and growth plans.

Scott Kaintz stepped down as Chief Financial Officer on 31 March 2026 to pursue opportunities outside the Company. We are very grateful for Scott’s contribution during his time with the Company and wish him every success in his future endeavours.

Branding and Website:

Corcel has launched its refreshed corporate branding and new website, reflecting the Company’s continued evolution and improving accessibility to corporate information and investor materials.

The Company has also introduced a new Retail Investor Hub in partnership with Investor Meet Company, enabling direct communication with shareholders and interested parties.

Registration is available at:https://investormeet.corcelplc.com/register

Scott Gilbert, Corcel’s CEO, commented:

“Following the successful completion of our KON-16 seismic program and the further strengthening of our balance sheet in March, we continue to make strong progress across both our operational and strategic priorities. Our immediate focus remains on advancing KON-16 towards drilling, progressing farm-down discussions and continuing our evaluation of production acquisition opportunities that can complement our exploration-led growth strategy.

We would like to thank Scott Kaintz for his contribution to Corcel and wish him every success in the future. At the same time, we are delighted to welcome Leandro to the business. His financial, transactional and operational experience across both Latin America and Africa aligns strongly with our regional strategy.

The launch of our refreshed corporate identity and new digital platforms reflects the evolution of Corcel as we continue to build a larger, more operationally focused energy company with a clear strategy for long-term shareholder value creation.”

This is another very positive update from Corcel, it states that they are continuing with the processing of the 2D seismic data shot on KON-16 onshore Angola. This has confirmed clear imaging of both the Sirius and Canopus prospects with more information due to come out at the end of July.

I expect plenty of good news flow from Corcel in coming months, not just from the 2D data but also as the discussions with regard to farming-out of its 71.5% stake in KON-16 are very much active and that will I imagine provide funding for the upcoming exploration well on the block. 

Corcel is in a very strong position financially, it has had strong funding with recent raises at nil discount and backed by major league investors, in addition it is due $2m inbound from Sintana which gives serious flexibility. Apart from Angola, Corcel has plans for inorganic growth from possible production acquisitions in other areas such as Brazil or even other parts of South America.

I remain very confident that Corcel is an excellent investment even after the 28% rise in the last six months and 108% year on year it offers significant upside, my 2p target price and its place in the Bucket List shows that. 

Jersey Oil & Gas

Jersey has announced its audited financial results for the year ended 31 December 2025 and the date of its forthcoming Annual General Meeting.

Following the significant progress that has been made by the Company towards monetising the Greater Buchan Area, the last year has frustratingly seen momentum slowing as a result of the Government’s consultations on the future regulatory and fiscal direction of the UK North Sea.  Despite this, the Company remains well positioned as one of the leading UK listed small-cap oil and gas companies, with a high-quality development portfolio and the funding to deliver on its organic growth plans.

Buchan Development

The potential for the Buchan Horst (“Buchan”) development to drive long term shareholder value is well understood and securing sanction for this project represents a huge opportunity.  While the end of the Government consultations in late 2025 helped provide additional clarity on the framework within which future investment decisions can be assessed, it is clear that the industry as a whole is still digesting the outcomes.  Positive conclusions in respect of the protracted environmental and regulatory approval processes for the North Sea’s “Jackdaw” and “Rosebank” developments will inevitably help inform the optimal route forward for subsequent UK projects like Buchan.  Obtaining clarity from these processes and the likelihood of an earlier than planned implementation of the “Oil and Gas Price Mechanism”, the replacement regime for the Energy Profits Levy, will help influence the timeline and steps for taking the Buchan project towards sanction. 

Although various headwinds have buffeted the industry, the core strengths of our business remain unchanged:

§ Material resource base: With estimated gross resources of over 100 million barrels of oil equivalent (“MMboe”) in the Greater Buchan Area (“GBA”), underpinned by a carried 20% working interest in the Buchan development, the Company has the potential to generate substantial cash flow from its portfolio

§ “Hub and spoke” development plan: Unlocking the resource base involves the installation of a central processing facility for the area, with initial production from Buchan to be followed by the tieback of the other GBA feeder fields

§ Fully funded: The farm-out transactions completed with NEO Next+ (“NEO”) and Serica Energy (“Serica”) provide the funding for the Company’s 20% investment in the Buchan development, along with several milestone cash payments – to date this has totalled over $25 million in cash and capital expenditure carry payments

§ Strong industry partners: NEO and Serica are major, well-financed, UK North Sea oil and gas operators that provide strength and expertise to a high-quality joint venture partnership

§ Financial resilience: The Company continues to prudently manage the financial position of the business and maintain its resilience to the delayed sanction of the Buchan development, which has resulted from the regulatory and fiscal headwinds the industry has faced

The Buchan joint venture is continuing to screen and consider additional potential development solutions that have arisen as a result of the inevitable delay in investment decision-making caused by the Government consultations.

Strategic Focus

The Company’s vision is centred on successfully growing the business in a smart and sustainable way, developing important domestic energy resources and creating value for all stakeholders.  The organisation is “right sized” for the stage and scale of its current activities and maintains a nimble approach to advancing its key strategic objectives.

JOG remains sharply focused on unlocking the organic value of the GBA, combined with utilisation of its existing UK tax allowances of over $100 million through the pursuit of accretive asset acquisitions that bring cash flow, diversity and quality investment opportunities into the portfolio.  Such opportunities are thoroughly assessed in terms of their potential strategic fit, being mindful of the quality and unencumbered strengths of the existing portfolio.

Outlook

The Company is well positioned to continue pursuing its core objective of fully monetising the value of its GBA interests.  With total year-end cash reserves of £11 million, no debt and a current cash run rate of under £1.5 million per annum, the business is financially secure and funded for execution of the Buchan development programme.  This backdrop provides an attractive springboard from which to realise the full potential and ambitions of the business for delivering long-term shareholder value.

Annual General Meeting

The Company also announces that its 2025 Annual Report and Financial Statements together with the AGM Notice and associated Form of Proxy are now available on the Company’s website (www.jerseyoilandgas.com) and will be posted today to those shareholders who have elected to receive hardcopy shareholder communications from the Company.

The Company will hold its AGM in respect of its financial year ended 31 December 2025 on 9 June 2026 at 11.00 a.m. at the offices of Strand Hanson Limited, 26 Mount Row, London W1K 3SQ.

Andrew Benitz, Chief Executive Officer of JOG, commented:

“The message is beginning to land; as long as demand persists, the UK cannot sustain a strategy that relies on importing oil and gas while discouraging domestic North Sea production. The agreement on a more rational fiscal mechanism for taxing North Sea oil and gas production during periods of exceptionally high prices is a welcome and important step forward. However, delaying its introduction to 2030 will come too late for many in the basin. We believe that the straightforward step, which we understand the Government is actively considering, of bringing this mechanism forward would help reopen the UK North Sea and represent a major step towards unlocking the significant investment potential that our Buchan redevelopment project has to offer.”

I have always maintained that the Greater Buchan Area is of significant value to both JOG and of course the British economy. The CEO is correct in saying that the Government is actively considering the step of bringing forward the updated and more rational fiscal mechanism which would enable the GBA to proceed. 

However, as long as the current Secretary of State continues to go against best advice, including that of his own Chancellor and the majority of the voting public it has yet to go ahead. It is unequivocal that by importing other nations’ oil and gas by any means we are merely passing the net zero buck, trying to look virtuous yet at the same time costing our Exchequer billions in tax take and tens of thousands of high quality jobs in our unique industry. 

JOG will undoubtedly have its day, Buchan is a brilliant project, the company has blue chip partners and it is carried by them. Both partners are totally committed to the UK and have placed their bets accordingly, investors in Jersey Oil & Gas will indeed make a very good return on what is an incredible project capable of serious returns.

PetroTal Corp

I noted at the end of last week that a Non-Executive Director of PetroTal had bought shares for cash in the market, Gavin Wilson has now been joined by Felipe Arbelelaez and Chairman Mark McComiskey in adding to their holdings.

I don’t always comment on directors dealings but feel this is of some significance, there is a feeling of strength emanating from Peru and following last weeks figures directors, now clear to buy have voted with their cheque books…

And finally…

Last night in the Prem Spurs drew 1-1 with Leeds making for a nervous final two matches for them and the Hammers.

In the Championship play-off Millwall lost 0-2 to Hull who go through to play either the Saints or Boro who meet tonight ahead of the the big money final on Saturday 23rd May.

Don’t forget the big game in the Scottish Championship where Dunfermline take on Partick Thistle in the first leg of that tie.