WTI (Aug) $82.23 +74c, Brent (Sep) $89.22 +$1.12, Diff -$6.09 +48c.

USNG (Aug) $2.72 -19c, UKNG (Aug) 143.57p -0.82p, TTF (Aug) €59.535 -€0.33.

Oil price

Oil is up over a dollar this morning as despite appeals from negotiators neither side in the Gulf war appear to want to give. More action overnight, again from both sides but the news that the Iran-sponsored Houthi rebels in the Yemen have placed a maritime embargo on Saudi Arabia is frustrating in the extreme.

Iran has clearly seen quite how much oil can, and has been going through the Saudi pipeline and through the Bab – el Mandeb Strait via the Red Sea. The numbers are actually quite compelling, I noticed that the PIW recently stated that overall traffic through the BeM has increased from 4.5m b/d to some 7.1m b/d of which the Saudis have gone from 650/- b/d to around 3.4m b/d. 

This is and will increasingly be a material concern to Iran as it attempts to take control of the Strait of Hormuz and with a number of other by-passing measures being expedited, their stranglehold may become less effective as time passes.

The Ukraine has launched another seemingly successful attack on the Caspian pipeline oil terminal on the Russian Black sea coast which will further restrict supplies and feed through to costs rising and a tightening of the product market. Europe should be very frightened about its continued and rather alarming reliance on Russian gas which it seems to buy regardless of its sanctions with regard to Ukraine, one rule for us….

And the Baker Hughes rig count continues to rise, overall last week units were up by 7 to 586 and oil also increased by 7 to 452 units, respectively up 44 and 30 rigs year on year. 

And as the new British Prime Minister announces his cabinet the Energy Secretary is Miatta Fahnbulleh so the industry will have a new person to deal with. Whilst her own views on the North Sea don’t appear to be well known I think that talk from the Burnham camp ahead of the PM change has indicated that a pivot on policy is likely. It may not change new licences but Jackdaw, Rosebank and maybe even Buchan may get the go-ahead given that the new Chancellor will be in charge of tax policy where any revenues should be very welcome. Oh and for older readers does the phrase Mr Healey, Chancellor of the Exchequer also give them the heebie jeebies….?

Sintana Energy

Sintana has provided the following updates in relation to activities in Latin-America.

AREA OFF-1, offshore Uruguay: ANCAP, the Uruguayan state-owned energy company and regulator, has agreed to a suspension of the initial exploration subperiod of the AREA OFF-1 block, offshore Uruguay, for 1 year, such that the first exploration subperiod will now expire on 23 August 2027. The suspension was requested by Chevron Mexico Finance LLC, Sucursal Uruguay, operator of the block, in accordance with the provisions of the licence contract for AREA OFF-1, given the length of time taken for environmental authorisation of the AREA OFF-1 3D seismic acquisition campaign. As previously advised, following environmental authorisation being obtained in early 2026 an initial season of seismic acquisition was completed prior to the end of April 2026, with a second season scheduled to commence in Q4 2026. Acquisition, processing and interpretation of all of the planned 3D seismic data over the block is considered essential data necessary to making an optimal exploration well drilling decision.

Offshore Argentina: On 14 February 2025, Challenger Energy Group plc, a member of the Sintana group of companies, submitted an expression of interest for the award of an offshore hydrocarbon exploration permit under national jurisdiction in the North Argentine Basin (CAN – 200), in accordance with the provisions of Article 46 of Law No. 17,319 of the Argentine Republic. On 15 July 2026, Decree 590/2026 was published in the Official Gazette of the Argentine Republic, which instructs the National Secretariat of Energy to call for an International Public Tender based on Challenger Energy’s expression of interest, as a necessary precursor to the potential award of a permit. Challenger will proceed to participate in this process, in compliance with the provisions and timelines established by the Argentine law and authorities, and further updates will be provided as appropriate.

I have managed to have a long chat with the company this morning which has enlightened me about this situation in Uruguay and what is actually happening out there as well as what is happening in Argentina. 

Firstly, I certainly don’t see the situation in country to have been delayed at all, the extension for one year, until the end of August 2027 has been granted following a combination of factors that operator Chevron has had to work under recently. 

We know that the Environmental permits took longer than expected to be granted which then created a delay to the seismic operations which had to be split into two separate work periods because of the fishing season. 

Normally at the time of expiry and in applying for a renewal the operator would have to either commit to drilling a well or do further work and relinquish up to 50% of the licence. As one might expect, Chevron want to firstly be able to reprocess the first set of seismic data and secondly finish the second collection of data and start working on it. 

So, after all that, Chevron understandably would be better placed to make an informed decision with regard to a potential drilling programme and I suggest that given that decision will likely be made in late 2027, should they want to go ahead it could be planned for 2028 which according to my records is no change to the existing schedule. 

As for Argentina, the company has already intimated that they have an interest in the award of an offshore hydrocarbon exploration permit, (CAN – 200) under national jurisdiction in the North Argentine Basin which is out for tender.

It is clear that due to its location, it is adjacent to AREA OFF-1 and AREA OFF-4 in Uruguay it has some potential prospectivity and accordingly they have expressed that interest in the block. The Government is adjudicating that interest and I understand that if Sintana tender for it they may have a pre-emptive opportunity given the work that they have already done there. 

I remain of the view that Sintana has huge upside and with so much activity across its portfolio the potential is substantial. My target price is still 75p and the company will be among the most attractive stocks in the upcoming interim Bucket List publication, the upside will be achieved in due course make no mistake…

Genel Energy

This is just the publication of the documentation for the agreed takeover by Genel of Capricorn Energy, nothing new here, the bid is worth $4.74 in cash per share made up of $3.75 in cash plus a special dividend of 99 cents to be declared ‘prior to the effective date’. With no problems anticipated it is expected to complete in the second half of 2026′. 

On 2 July 2026, the boards of directors of Capricorn, Genel and Bidco announced that they had reached agreement regarding the terms and conditions of a recommended cash offer by Bidco for Capricorn pursuant to which Bidco will acquire the entire issued and to be issued ordinary share capital of Capricorn (the “Acquisition”). The Acquisition is to be effected by means of a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006 (the “Scheme”).

Under the terms of the Acquisition, each Capricorn Shareholder shall be entitled to receive, in aggregate:

  • US$4.74 in cash for each Capricorn Share held (the “Acquisition Value”).

The Acquisition Value comprises, for each Capricorn Share:

  • US$3.75 in cash (the “Acquisition Price”); and
  • a special dividend of US$0.99, which is intended and expected to be declared prior to the Effective Date (the “Permitted Dividend”).

Capitalised terms used in this announcement shall, unless otherwise defined, have the same meanings as set out in the Scheme Document (as defined below).

Publication of the Scheme Document

The Capricorn Directors are pleased to announce the publication of the scheme document in relation to the Acquisition (the “Scheme Document”) which, together with the associated Forms of Proxy and Form of Election, is today being posted by Capricorn to Capricorn Shareholders and, for information only, to holders of awards under the Capricorn Share Plans and persons with information rights.

The Scheme Document contains, amongst other things, a letter from the Chair of Capricorn, the full terms and conditions of the Scheme, the Scheme, an explanatory statement pursuant to section 897 of the Companies Act 2006, an expected timetable of principal events, notices of the Court Meeting and the General Meeting, and details of the actions to be taken by Scheme Shareholders entitled to vote at the Court Meeting and Capricorn Shareholders entitled to vote at the General Meeting in relation to the Acquisition.

The Scheme Document will be made available (subject to any applicable restrictions relating to persons in, or resident in, Restricted Jurisdictions) for inspection free of charge, on Capricorn’s website at https://www.capricornenergy.com/investors/ and on Bidco’s website at https://genelenergy.com/offer/ no later than 12 noon on the Business Day following the publication of the Scheme Document and will be available up to and including the end of the Offer Period. The contents of these websites are not incorporated into, and do not form part of, this announcement.

A copy of the Scheme Document has been submitted to the National Storage Mechanism and will shortly be available for inspection at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism.

Hard copies of the Scheme Document (or depending on Capricorn Shareholders’ communication preferences, a letter or email giving details of the websites where the Scheme Document may be accessed) and Forms of Proxy for the Court Meeting and the General Meeting are being sent to Capricorn Shareholders. If not already receiving hard copy documents, Capricorn Shareholders may request a hard copy of the Scheme Document by contacting Capricorn’s registrar, Equiniti, by writing to them at Highdown House, Yeoman Way, Worthing, West Sussex, United Kingdom, BN99 6DA or by calling them on +44 (0) 330 123 0027 during business hours (lines are open from 8.30 a.m. to 5.30 p.m., Monday to Friday (excluding public holidays in England and Wales)). Calls are charged at the standard geographical rate and will vary by provider. Calls outside the United Kingdom will be charged at the applicable international rate. Please note that Equiniti cannot provide any financial, legal or tax advice. Calls may be recorded and monitored for security and training purposes.

The Court Meeting and General Meeting

The Court Meeting and the General Meeting are to be held at the offices of Ashurst Perkins Coie UK LLP, London Fruit & Wool Exchange, 1 Duval Square, London E1 6PW on 18 August 2026. The Court Meeting is scheduled to commence at 12.00 p.m. and the General Meeting is scheduled to commence at 12.15 p.m. (or as soon thereafter as the Court Meeting has concluded, been adjourned or postponed). Notices of the Court Meeting and the General Meeting are set out in Parts 10 and 11, respectively, of the Scheme Document.

Action required

As further described in the Scheme Document, before the Court is asked to sanction the Scheme and in order for the Scheme to become Effective, the Scheme will require: (i) the approval of a majority in number representing 75 per cent. or more in value of votes cast by Scheme Shareholders present or represented and voting either in person or by proxy at the Court Meeting (or any adjournment thereof), which has been convened by an order of the Court; and (ii) the passing of the Resolution by the requisite majority of Capricorn Shareholders at the General Meeting (or any adjournment thereof). The Scheme is also subject to the satisfaction or (where applicable) waiver of the Conditions and further terms that are set out in the Scheme Document.

Any changes to the arrangements for the Court Meeting and the General Meeting will be communicated to the Scheme Shareholders and the Capricorn Shareholders before the relevant Meetings, by an announcement through a Regulatory Information Service.

It is important that, for the Court Meeting in particular, as many votes as possible are cast (whether in person or by proxy) in order for the Court to be satisfied that there is a fair representation of Scheme Shareholders’ opinion. Scheme Shareholders and Capricorn Shareholders are therefore strongly urged to complete, sign and return their Forms of Proxy or to appoint a proxy electronically either through the share portal service or Proxymity or through CREST as soon as possible and, in any event, by no later than 12.00 p.m. on 14 August 2026 in respect of the Court Meeting and 12.15 p.m. on 14 August 2026 in respect of the General Meeting in accordance with the instructions set out in the Scheme Document and the Forms of Proxy. Instructions in relation to voting and the completion of the Forms of Proxy are included in the Scheme Document. Scheme Shareholders and Capricorn Shareholders are also strongly encouraged to appoint the Chair of the meeting as their proxy.

A Foreign Exchange Facility is being made available to Scheme Shareholders pursuant to which they will be able to elect, subject to the terms and conditions of the facility, by making a valid Currency Election, to receive the Acquisition Price payable pursuant to the Scheme in Sterling rather than in US dollars in respect of all (but not part) of their holding of Scheme Shares.

Where a Scheme Shareholder has made a valid Currency Election, that Scheme Shareholder will receive the Acquisition Price payable pursuant to the Scheme in Sterling (after, if applicable, deduction of any transaction or dealing costs (including any taxes) associated with the currency conversion) in respect of all (but not part) of their holding of Scheme Shares at the Prevailing Market Exchange Rate.

Unless they make a valid Currency Election, each Scheme Shareholder who holds Scheme Shares in certificated or uncertificated form at the Scheme Record Time will receive the Acquisition Price payable pursuant to the Scheme in US dollars. If the Scheme Shareholder wishes to receive the cash consideration pursuant to the Acquisition Price in US dollars for all of the Scheme Shares that they hold at the Scheme Record Time, they SHOULD NOT make a Currency Election. Further information on making a Currency Election is contained in Part 8 (Notes on making a GBP Currency Election) of the Scheme Document.

Expected timetable of principal events

An expected timetable of principal events for the Scheme is set out in the Scheme Document and is also reproduced in the appendix to this announcement. Subject to obtaining the requisite approval of Scheme Shareholders at the Court Meeting and of Capricorn Shareholders at the General Meeting, the satisfaction or waiver (if capable of waiver) of the other Conditions set out in the Scheme Document and the sanction of the Scheme by the Court at the Sanction Hearing, the Scheme is currently expected to become Effective during the second half of 2026 (taking into account the expected timelines to satisfy the Regulatory Conditions listed in paragraphs 3.1 and 3.2 of Part 4 of the Scheme Document). Capricorn will make further announcements as appropriate with such announcements being available on Capricorn’s website at https://www.capricornenergy.com/investors/ and on Bidco’s website at https://genelenergy.com/offer/.

The dates and times given are indicative only and are based on Capricorn’s and Bidco’s current expectations and may be subject to change. If any of the expected dates and/or times set out in the expected timetable change, then Capricorn (or Bidco, as applicable) will give notice(s) of such changes in an announcement released through a Regulatory Information Service and by making such announcement available on Capricorn’s website at https://www.capricornenergy.com/investors/ and on Bidco’s website at https://genelenergy.com/offer/.

Prior to the Scheme becoming Effective, it is intended that applications will be made to the London Stock Exchange to cancel the admission to trading in Capricorn Shares on the Main Market, and to the Financial Conduct Authority to cancel the admission of the Capricorn Shares to the Official List, in each case with effect from or shortly following the Effective Date and that steps will be taken to re-register Capricorn as a private limited company. The last day of dealings in Capricorn Shares on the London Stock Exchange’s Main Market is expected to be the Business Day immediately prior to the Effective Date and no transfers shall be registered after 6.00 p.m. on that date.

Recommendation

The Capricorn Directors, who have been so advised by Canaccord Genuity as to the financial terms of the Acquisition, consider the terms of the Acquisition to be fair and reasonable. In providing its advice to Capricorn Directors, Canaccord Genuity has taken into account the commercial assessments of the Capricorn Directors. Canaccord Genuity is providing independent financial advice to the Capricorn Directors for the purposes of Rule 3 of the Code.

Accordingly, taking into account the factors set out in paragraph 3 of Part 1 of the Scheme Document, the Capricorn Directors believe that the terms of the Acquisition (including the Scheme) are in the best interests of Capricorn Shareholders as a whole and unanimously recommend that all Scheme Shareholders vote in favour of the Scheme at the Court Meeting and that all Capricorn Shareholders vote in favour of the resolution to be proposed at the General Meeting (or, in the event that the Acquisition is implemented by way of a Takeover Offer, to accept or procure acceptance of the Takeover Offer), as the Capricorn Directors who hold or are beneficially entitled to Capricorn Shares have undertaken to do in respect of their own beneficial holdings of Capricorn Shares.

Capricorn Shareholders should read carefully the whole of the Scheme Document (including any documents incorporated into the Scheme Document by reference), together with the accompanying Forms of Proxy, before deciding whether or not to vote, or procure a vote, in favour of the Scheme at the Court Meeting and the Resolution at the General Meeting. Each of these documents contains important information relating to the Acquisition. Any vote or decision in respect of, or other response to, the Acquisition or the Scheme (as applicable) should only be made on the basis of the information contained in the Scheme Document.

Jadestone Energy

Jadestone has announced that its trading statement for the six months ended 30 June 2026 will be published on 29 July 2026.  

A date for the diary as Jadestone will announce a trading statement next week, with so much positive news around in recent months I am looking forward to it.