WTI (Oct) $81.23 -13c, Brent (Oct) $87.84 -74c, Diff -$5.61 -61c.

USNG (Sep) $2.84 +6c, UKNG (Sep) 159.71p +2.21p, TTF (Oct) €65.315 +€0.82.

Oil price

The EIA stats last night were as has been lately somewhat mixed, refinery runs at 97.4% stayed high just up 0.2% on the week although analysts still had a small draw in… Crude oil was flat against a 600/- build guessed at but again products were the feature.

As I have been saying recently stocks continued to draw, gasoline was down 2.536m barrels almost in line with the whisper of -3.2m and distillates also drew, by 2.228m b’s much higher than the -459/- guesstimate.

Jadestone Energy

Jadestone has reported its unaudited condensed consolidated interim financial statements, as at and for the six-month period ended 30 June 2026. 

Management will be hosting a webcast at 9:00 a.m. UK time today, details of which can be found in the announcement below.

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

“With the first half of 2026 now in the rear-view mirror, I am pleased with the progress we’ve made on bolstering the foundations of our underlying business. We have enhanced the financial strength of the platform through our debt refinancing, delivered material progress on our key Vietnam growth project, and delivered a very successful infill drilling program offshore Malaysia.

More broadly, we are beginning to see signs of the hard work our teams are doing to instill operational excellence across the operated portfolio. While I recognize we need to demonstrate sustainable long-term performance before declaring full success, it’s encouraging to see that our collective focus is beginning to translate into a stronger and more resilient business. Most notably, we are seeing meaningful improvements in operating performance at Montara. We have also delivered the Malaysia drilling program more than 20% below budget, while setting drilling records in the process. Both examples provide concrete evidence of the operational standards we are working to embed across the entire business. 

Notwithstanding the positive momentum in the business, our performance in the first half was affected by two key external events, a delayed production restart at CWLH following the dry dock maintenance campaign, and the impact of Cyclone Narelle on our operated Stag field. These events, combined with the sale of our Thailand assets in April 2025, represent the bulk of the period-on-period production decline in the first half. We now have defined plans in place to reinstate production at both CWLH and Stag.

Looking ahead, we remain focused on maintaining our positive operational momentum while progressing the next phase of growth. In Vietnam, we remain on track to take final investment decision on the Nam Du/U Minh development by the end of 2026, with the farm-out process progressing to final negotiations with a select short list of interested counterparties.”

This is a good set of results and very much in line with my expectations, certainly with the key operational and financial metrics released in the July trading statement and of course the guidance delivered then is unchanged in today’s release.

The key area is the focus on Vietnam where all is looking good, perhaps even better than I had been expecting. With the FDP approved and the GSPA signed for the Nam Du/U Minh development the company is confident that the FID will be completed ‘by the end of 2026’ which is highly positive. 

Finally on Vietnam there is good news on the farm-out negotiations where talks are progressing well and are headed towards final negotiations ‘with a select short list of top quality interested counter parties’. On the analysts call CEO Mitch Little was confident that these talks are going very well. 

The company has also reiterated the the timelines around resumption of production for Stag and CWLH, both of which are currently shut in. They  still expect Stag to be back online in Q2 2027, with CWLH expected back online around the end of Q3 this year.

The company are clearly in a strong position and the strategic aims have already seen a lot of successful delivery so far this year, for example the oversubscribed debt refinancing led to a $195m raise which paid off the RBL and leaves the balance sheet very strong. 

With the significant progress in Vietnam in my view ahead of schedule and the highly successful infill programme offshore Malaysia operationally Jadestone is well placed indeed the drilling there set records in ERD wells and production is good and all below budget.

The company is in a very good place, CEO Mitch Little has clearly injected serious resilience into the business and it is worth noting the meaningful improvements at Montara in particular. My target price of 75p is fully achievable, the shares have been performing well and their position in the Bucket List is assured. 

H1 2026 Operational Summary

l Continued excellent safety and environmental performance, with Group[1] operations achieving an aggregate 13.6 million manhours lost-time injury free.

l The three well infill campaign on the PM323 PSC offshore Malaysia was delivered safely and successfully, increasing field production by over three times the rates seen immediately prior to commencement of drilling operations. The campaign was delivered more than 20% below budget and set a record for the ERD ratio[2] of any well drilled across all basins in Malaysia.

l The Vietnam Government approved the Field Development Plan (“FDP”) for the Nam Du/U Minh gas discoveries offshore Vietnam in March 2026, with signing of the Gas Sales and Purchase Agreement (“GSPA”) in April 2026. Subsequently, ~32 mmboe of gross 2P reserves were booked for the initial phase of the project.

l Production of 15,282 boepd (H1 2025: 20,368 boepd), with first half production impacted by unplanned downtime at the Stag field due to the impact of Cyclone Narelle and planned maintenance activities associated with the CWLH FPSO dry dock and subsequent delays in reconnecting the FPSO and restarting production.

H1 2026 Financial Summary

l In March 2026, the Group successfully completed a US$200.0 million senior secured bond issue with maturity in 2031 and a coupon of 12%. The proceeds of the bond were partly used to repay the Group’s reserve-based lending (“RBL”) facility.

l Revenue before hedging increased 13% to US$261.1 million (H1 2025: US$231.0 million). Following the inclusion of a US$27.1 million hedging charge (H1 2025: US$2.7 million), revenue after hedging was US$234.0 million, an increase of 3% (H1 2025: US$228.3 million).

l Adjusted unit operating costs[3] of US$37.64/boe (H1 2025: US$26.25/boe), with the period-on-period increase explained by lower production during the period and higher costs related to repair and maintenance activity at Stag and CWLH and increases in fuel costs due to higher oil prices.

l Adjusted EBITDAX3 of US$101.6 million (H1 2025: US$100.6 million).

l H1 2026 loss after tax of US$4.8 million (H1 2025: profit after tax of US$37.6 million), primarily driven by higher production costs period-on-period, of which ~40% is explained by non-cash inventory charges, offsetting a small increase in revenue.

l Net cash generated from operating activities (post working capital and tax) in H1 2026 was US$97.2 million (H1 2025: US$53.8 million).

l As of 30 June 2026, the Group had hedges covering ~1.0 mmbbls of oil production over the six-months ending 31 December 2026, at an average Dated Brent price of US$72.21/bbl (excluding premiums). Post period end, a further 0.3 mmbbls were hedged for the first quarter of 2027 at US$80.60/bbl.

l Net debt3 at 30 June 2026 of US$25.7 million reflected cash balances of US$174.3 million of cash (incl. restricted cash) and debt of US$200.0 million.

Guidance and Outlook

l All guidance metrics unchanged from July 2026 trading statement:

¡    Production 16,000-18,000 boepd.

¡    Operating costs of US$260-300 million[4].

¡    Capital expenditure of US$50-80 million[5].

¡    2025-2027 free cash flow (pre-debt servicing) of US$200-240 million[6].

l The Group’s recommended FPSO EPCI contractor for the Nam Du/U Minh development has been approved by Petrovietnam. The Group has also submitted to Petrovietnam a recommended EPCI contractor for the Nam Du/U Minh field facilities.

l The Group continues to progress its plans to reinstate production from the Stag field. A replacement CALM buoy has been secured and is undergoing final due diligence inspection and engineering work. Deployment to the field is expected during Q1 2027, when minor modifications to the existing mooring system will be executed prior to hook up and restart of production, which is expected during Q2 2027. The Group’s business interruption insurance cover for the current Stag shut-in runs to May 2027.

l At CWLH, resumption of production is still targeted for around the end of Q3 2026 following execution of planned remedial works to repair one of the field’s subsea riser’s J-tube.

Sintana Energy

Sintana Energy Inc. (TSX-V: SEI, AIM: SEI, OTCQX: SEUSF) announces that it has filed its interim financial statements for the three months ended 30 June and the accompanying Management’s Discussion and Analysis (“MD&A”).The interim financial statements and accompanying MD&A for the three months ended 30 June 2026 are available on the Canadian System for Electronic Document Analysis and Retrieval (“SEDAR+”) at www.sedarplus.ca and on Sintana’s website at https://sintanaenergy.com

No comment needed here as results are as expected and recent news has fully updated shareholders on the activity in the portfolio. If anything changes following discussions with the company I will revert. Meanwhile my target price of 75p is strongly intact and Sintana is a very strong member of the Bucket List.

Arrow Exploration Corp

Arrow has announced the filing of its Interim Condensed (unaudited) Consolidated Financial Statements and Management’s Discussion and Analysis (“MD&A”) for the three months ended June 30, 2026, which are available on SEDAR (www.sedar.com) and will also be available shortly on Arrow’s website at www.arrowexploration.ca.

Q2 2026 Highlights:

·    Recorded $34.2 million of total oil and natural gas revenue, net of royalties, representing a 116% increase when compared to the same period in 2025 (Q2 2025: $15.9 million).

·    Average corporate production of 4,902 boe/d representing a 30% increase when compared to the same period in 2025 (Q2 2025: 3,768 boe/d).

·   Adjusted EBITDA(1) of $25.1 million, a 300% increase when compared to the same period in 2025 (Q2 2025: $6.3 million). 

·    Realized corporate operating netbacks(1) of $63.42/boe. 

·    Cash position of $28.5 million at the end of Q2 2026 and no debt.

·    Q2 2026 operating cashflows of $15.7 million.

·   Drilled one successful exploration well and two additional development wells in the Icaco field (IC) and one horizontal development well in the Mateguafa Attic field in the Tapir block

·    Net income of $10.4 million (Q2 2025: loss of 0.9 million)

(1)Non-IFRS measures – see “Non-IFRS Measures” section below 

Post Period End Highlights:

·    Drilled two development wells, and spudded a third, at the Icaco field

·    Completed the acquisition of the Thorsby field in Alberta, Canada adding production, proved reserves and additional upside opportunities for development drilling (please refer to press release dated August 13, 2026 for more details).

·    Recompleted two Carrizales Norte wells to increase production

Tapir Extension

The Company continues constructive engagement with authorities regarding the Tapir block extension and believes it is well positioned to secure the extension based on satisfaction all of the relevant requirements.   Arrow will keep the market updated on progress with its license extension discussions in future releases.

Marshall Abbott, CEO of Arrow Exploration Corp., commented:

“The second quarter of 2026 has been very productive for Arrow, our best quarter yet. The discovery of the Icaco field has resulted in the beginning of a large development plan. The multi-formation discovery will result in additional reserves and drilling inventory for Arrow.  We are excited by the Icaco discovery; it has become a major production platform with a material impact on the Company.”  

“Arrow significantly increased revenue and EBITDA while sustaining increased production, which, along with a robust balance sheet, supports the ongoing capital program. The focus for the remainder of 2026 will be to drill additional wells at the Icaco pad, and numerous well recompletions to improve productivity in our currently most prolific fields.”

There is nothing to add to today’s 2Q numbers, with very good operational performance and excellent realisations it is indeed a record quarter and in-line with my expectations. Icaco will continue to be the gift that keeps on giving as production rises and a drilling programme which will excite shareholders.

Recent M&A activity broadens the portfolio at incredibly attractive rates and the company has the flexibility in the drilling programme in Canada as well which is very promising. My 40p target price is looking increasingly conservative and with the company presenting in London soon I will take that opportunity to review that target.

Rockhopper Exploration

Further to the Company’s announcement on 24 August 2026, Rockhopper Exploration plc (AIM: RKH), the oil and gas company with key interests in the North Falkland Basin, is pleased to announce its intention to raise approximately US$180 million (approximately £132.4 million), before expenses via a placing of New Ordinary Shares at an issue price (the “Issue Price”) of 70 pence per New Ordinary Share (the “Placing”) alongside an open offer of New Ordinary Shares at the Issue Price to raise up to approximately US$20 million (c. £14.4 million) (the “Open Offer”) (together, the “Capital Raising”).

The Issue Price represents a discount of approximately 4.9 per cent. to the volume-weighted average price of 73.5781 pence per Existing Ordinary Share for the 30-day period ended 21 August 2026.

Canaccord Genuity Limited (“Canaccord”) and Peel Hunt LLP (“Peel Hunt”) are acting as joint bookrunners in relation to the Placing (the “Joint Bookrunners”). The Placing is subject to the terms and conditions set out in the Appendix to this Announcement and is expected to remain open no later than 7:00 a.m. BST on the 28 August 2026, however this remains subject to change at the discretion of the Joint Bookrunners (in consultation with the Company).

Members of the public are not entitled to participate in the Placing.

Sam Moody, CEO of Rockhopper Exploration plc, said:

“This proposed Capital Raising ensures Rockhopper can participate in the acquisition of its pro-rata share of the OSX-1 and associated work in preparation for the consequential accelerated development of the central development area. We are delighted with the indications of interest from existing and potential new investors.

“I would like to remind investors that the Company is in a great position today. Not least I would highlight that we are on track for First Oil from Sea Lion in Q1 2028 with development drilling expected to commence early next year. The new NSAI report published on 26 August 2026 shows a $788m increase to our NPV10 for our 2P+2C barrels and we are planning for further exploration drilling in the basin with some material exploration prospects also re-confirmed in our latest NSAI report. I look forward to keeping shareholders updated as we deliver these catalysts.”

Nothing to add today to the articles that I have written in recent days, this funding for the second FPSO will be fully supported by shareholders and new investors and so it should be, as CEO Sam Moody says ‘the company is in a great position today’ with which I concur, what’s not to like?

And finally…

The second test starts at Lords today, unsurprisingly in the hottest summer since ’76 the day has dawned with the rain lashing down but we are forever optimists…