WTI (Sep) $83.59 -87c, Brent (Sep) $89.03 -$1.71, Diff -$5.44 -84c.

USNG (Sep) $2.76 +4c, UKNG (Sep)* 142.07p -1.93p, TTF (Sep) €58.115 -€1.57.

*Denotes expiry of August contract.

Overview

The interim update in the 2026 Bucket List sees some changes, as always the list remains largely unchanged but today we have lost three companies and gained two, both of which have been telegraphed during the last quarter.

The three departures are self explanatory, two companies in Pharos and Union Jack have left as they are in the process of recommended bids, obviously should those bids not go ahead they will return.

Diversified Energy has also left as it has moved its primary listing to the NYSE which has meant that they no longer provide any IR to UK investors which is a shame. However I have always had a great deal of respect for Rusty and Brad and have followed them since they first arrived in London and are backed by a first rate Chairman in David Johnson.

The model took a while for most people to ‘get’, including me at first but its unique style, buying deemed to be end of life wells leading to a substantial acquisition trail has been very successful. The company has always been a high dividend payer and yields a more than handy 8.5% which I have put into total return calculations.

But the absence of any support to UK shareholders and the dismal IR offering means that it must leave the Bucket List, I wish them well and if you are still a UK based holder I can wholeheartedly recommend that you follow The Oak Bloke who is a fantastic analyst with great ideas and covers DEC.

So here is the updated list along with today’s prices and 6 month performance, I am starting with the two stocks which have joined since the February list.

Prospex Energy has been an exciting play ever since Tom Reynolds took over as CEO at the turn of the year. I have made no secret of the way he has gone about the rejuvenating of the company and has put shareholder communication at the heart of all he does and the portfolio gives an exceptional opportunity to gain exposure to the exciting European onshore gas plays in Spain, Italy and Poland. The company starts with an initial target price of 20p which given the huge potential is not overly demanding.

Star Energy has been on the radar screen for sometime as well and it went into the list effectively when it raised decent money back in the spring. This enabled the platform for growing the portfolio having exited from the Croatian geothermal investment and making way for production acquisitions primarily in short payback and high return capacity in-line with the company’s expertise. I rate the CEO, Ross Glover very highly and it is worth taking a look at my interview with him from earlier this year. Star has a new target price of 50p and with some highly supportive substantial shareholders is set very fair.

Core Finance CEO interview: Ross Glover, CEO of Star Energy

 

As for the rest of the list the stocks remain unchanged, below are the names in alphabetical order, I have used todays prices, noted performance since February and added target prices. 

Afentra 62p (TP 125p up from 100p) +37%. 

Arrow Exploration 27p (TP 40p) +92%.

Borders & Southern 11p (TP 50p) +41%.

Corcel 0.37p (TP 2p) +10%.

Eco Atlantic 57p (TP150p) +99%.

Genel Energy 50p (TP 100p) -12%.

Jadestone Energy 30p (TP 75p) +20%

Kistos 265p (TP 500p) +24%.

PetroTal Corp 25p (TP 75p) +14%.

Prospex Energy 3p (TP 20p) +13%.

Reabold Resources 75p (TP 500p) -37%.

Seascape Energy Asia 88p (TP 125p) +26%.

Serica Energy 235p (TP 400p) +21%.

Sintana Energy 20p (TP 75p) -23%.

Star Energy 23p (TP 50p) +125%.

Touchstone Exploration 7p (TP 30p) -23%.

Zephyr Energy 3.6p (TP 20p) +14%.

 

As usual the Bucket List is purely a group of some of the companies that I follow which I consider offer significant opportunity for successful investment. Initially to help when the commodities were at a low it offered up those companies that had good portfolios, top quality management and the ability to ride any financial squalls. 

But over the years I have added some companies that have, how you say a higher beta than others. Some selections over recent years have delivered, sometimes even before the anticipated corporate event and some are still at substantial discounts to target prices ahead of expected news. 

I still expect good news from Borders & Southern at Darwin where such a big target must be being looked over by the big boys and Zephyr is astonishingly cheap given the good news already coming from the Paradox Basin whilst Afentra has exciting wells due imminently and where I expect positive news across the portfolio before long. 

PetroTal has weathered the storm and looks well managed and building cash, a return to the dividend list could easily happen early next year while Sintana has incredible assets across several of the worlds best quality basins. Eco Atlantic are in the same boat and this year has been a cracking one as they have partnered up amazingly well across each of its chosen basins. 

For Arrow, who have had a fantastic time with the drill bit in Colombia this year I can see a significant building of production and of course cash flow and with that can step up the drilling programme even more, expect the TP to rise before long. We know that there are a number of companies involved in ongoing M&A activity at the moment so will wait for that to come through as Serica, Genel and Reabold await developments. 

Corcel have quietened down a bit after a racing start but to me look incredibly well poised in Angola with a big programme which is well financed and with highly supportive shareholders. Touchstone is also very well placed and with increasing gas prices from fixed price contracts and growth from the cracking Central Block deal. 

Expect good news from Jadestone who are really motoring particularly in Malaysia where recent drilling has been good and in Vietnam where I see real chances of momentum this year. And Seascape are also on the verge of converting with a number of key projects ready for action in the next 6-12 months. 

Finally for Kistos the good news from Balder the GLA and Oman to name but three looks exceptional and with its usual keen eye from the M&A opportunities the next few months will unlikely be quiet.