WTI (Aug) $82.49 +$3.54, Brent (Sep) $88.10 +$3.87, Diff -$5.61 +33c.

USNG (Aug) $2.91 +5c, UKNG (Aug) 144.39p +9.38p, TTF (Aug) €59.865 +€3.72.

Oil price

At one stage this morning Brent crude was over $90 as overnight there were more strikes from both sides in the Middle East conflict. The US were retaliating after three servicemen were killed and one is still missing after Iranian attacks on Jordan and Iraq.

The USA has still to decide whether to attack more strategic targets, so far they have avoided key oil, power and nuclear infrastructure (which remain after being ‘obliterated’ last time). Should the rhetoric intensify, which certainly appears to be the case from Iran overnight there is only one direction for oil and gas prices.

Despite all this the US negotiators have left the door open albeit with little optimism, this week will tell us a great deal but I for one, am not holding my breath. Whilst oil prices are high, (WTI was up 11% last week and Brent up 12%), gas prices are higher still as LNG shipments are down and with the heatwave keeping aircon usage up demand is high. 

Also this is the traditional season for reinjecting gas into storage for the winter, that’s not happening at the moment so as with depleting strategic oil inventories, which will also need restocking, problems are mounting. Odds on a cold winter anyone…?

Jadestone Energy

Jadestone has announced that the second well in the 2026 Malaysia infill drilling campaign has been successfully drilled and brought online at 2,800 bopd. This follows the positive outcome of the first well in the programme, announced on 24 June 2026, which achieved a peak production rate of ~3,200 bopd.  

The second well in the 2026 campaign, EBA-07ST1, was drilled ~13% below budget with a 930-metre horizontal reservoir section at a total measured depth of 5,473 metres. As an extended reach well, it is the longest drilled to date on the East Belumut field (Jadestone 60% interest), exceeding the length of the first well in the 2026 campaign by 600 metres. Furthermore, with a 4.1 ERD ratio[1] the well set a new Malaysia record in extreme reach drilling, further demonstrating Jadestone’s in-house drilling capability.

As previously announced, the encouraging results of the first two wells in the 2026 drilling programme resulted in a decision to drill the third contingent well. Drilling and completion activities on the third well have recently been concluded, with results to be reported in due course.

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

“Following on from the excellent results of the first well in the 2026 East Belumut campaign, the second well has delivered a similarly positive outcome. It sets a new record for extended reach drilling across all basins in Malaysia, a very impressive milestone by our drilling team. In aggregate, the first two wells have increased production from the field by over 150% (an increase of ~6,000 bopd) – further validating our proven capability to unlock reserves, and create value in existing fields, by identifying and executing on opportunities bypassed by previous operators. We look forward to updating the market on the third well in the near future.”

Another very good drilling performance from Jadestone, the second well in the Malaysia infill drilling campaign has been completed and brought online at 2,800 b/d adding to the 3,200 b/d from the first well. The third well has already been drilled and completed and results are expected in due course. 

The company is proving to have excellent operational ability, this was the longest extended reach well  (as measured by the ERD ratio) ever drilled in Malaysia with a 930-metre horizontal reservoir section at a total measured depth of 5,473 metres.

In addition to this, the well came in some 13% below budget, the financial and operational performance was excellent and is undoubtedly what resonates well with the regulators and can only increase Jadestone’s standing in the country hopefully bringing positive implications for future opportunity access. 

These points are crucial as the company continues to validate its investment and also the faith invested in it by local Governments and regulators, this is exactly the kind of activity where Jadestone excels, it sees significant upside in existing fields that have been ignored by others and thus creating value in the process.

Jadestone is really kicking in performance wise and it is truly justified after a series of excellent drilling results combined with operational performance success at Akatara and of course such good progress made in Vietnam. 

Jadestone has been a strong performer in the Bucket List and with the interim review imminent will undoubtedly keep its thoroughly deserved place. The shares are up 6% today, 13% on 1 month, 25% on 6 months and 61% Year on year, my target price of 75p now looks highly achievable and with plenty of positives across the portfolio the company looks in great shape. 

Gulf Keystone Petroleum

Gulf Keystone has announced that it has temporarily shut-in production operations as a safety precaution due to the developing regional security environment. The Company’s approach is in line with other international oil companies operating in the region. The Company’s assets have not been impacted and latest gross production from the Shaikan Field was above 45,000 bopd.

The Company is closely monitoring the situation and will provide further updates as appropriate.

Nothing to add here, as I have frequently mentioned in the blog recently there was always a chance that the optimistic tone set recently by the market was a touch premature. As a result, hopefully on a temporary basis, Shaikan is shut-in but the oil ain’t going anywhere and the field will before long be back in production…

And finally…

The World Cup was won by Spain who beat ten man Argentina 1-0 in extra time despite the familiar provocative and unpleasant tactics employed…

Ryan Fox from New Zealand won the Open Championship at 10 under with Cameron Young, -9 and Sam Burns, -8 taking the places.

And in the final ODI in the series England beat India in an exciting, high scoring match to win the series 2-1.

Kimi won the Grand Prix at Spa and has never really looked in any danger of being caught, even now it seems that the race is for the place money this year.

In the rugby Nations Cup the wins were fairly obvious, the All Blacks beat a disappointing Ireland, Les Bleus beat the Cherry Blossoms, the Wallabies beat Italy, Scotland beat Fiji, Wales couldn’t get a point off the Springboks and England beat the Pumas in a see-saw match where the ref tried hard to overrule the video ref to no avail, hard luck Angus.