WTI (Sep) $83.20 +$1.07, Brent (Oct) $88.91 +$1.19, Diff -$5.71 +12c.

USNG (Sep) $2.77 -2c, UKNG (Sep) 148.64p -2.23p, TTF (Sep) €60.545 -€0.78.

Oil price

Oil is unchanged today, nothing much has changed as disputes about the Strait of Hormuz and the Bab el-Mandeb rage on. 6 people were killed by the Houthi rebels after they attacked a cargo ship and a Saudi tanker whilst the US attacked a Panamanian flagged vessel. 

The API stats showed a big build in crude oil of 9.072m against the whisper of a draw of 500/- b’s, products all drew, obviously…

Southern Energy Corp

Southern has announced that, further to the announcement of the Joint Venture Wellbore Participation Agreement with a strategic partner on May 26, 2026, the Company has spudded the Terrible Creek 21-2 #2 Cotton Valley test well in the Williamsburg Field on August 11, 2026. This is the first of two farm-out commitment wells planned for drilling this year whereby Southern will pay roughly 50% of the gross drill and completion costs of US$3.9 million per well, corresponding to 50% working interest. The Company expects the well to be drilled to a planned total depth of approximately 19,000 feet. Completion and testing operations are expected to commence after the drilling rig has been moved off site.

Ian Atkinson, President and Chief Executive Officer of Southern, commented:

“We are thrilled to break ground on the Cotton Valley test well at Williamsburg, marking an exciting next step in unlocking value across our core assets. Executing this farm-out allows us to efficiently evaluate high-impact prospective targets while maintaining disciplined capital allocation.  Given the recent success of competitor drilling offsetting our acreage, we expect success at Williamsburg to initiate growth in the oil and liquids weighting at Southern.”

This is important news from Southern as they spud the highly important Cotton Valley test well and has been enabled due to the smart JV that the company announced back in May. As an important contributor to the oil and liquids share of the company’s hydrocarbon production it will be highly valuable to the mix. 

I continue to view Southern as an important play in the sector and as it has a good mix in the gas/liquids ratio, feel that the company has all bases covered. The portfolio has significant upside and will surely play an important part in the upcoming demand spike in power demand and it has a geographical advantage as well. 

Appointment of Automated Market Maker

Southern has engaged ICP Securities Inc. (“ICP”) to provide automated market making services, including the use of its proprietary algorithm, ICP Premium® in compliance with the policies and guidelines of the TSX Venture Exchange and other applicable laws.

ICP will be paid a monthly fee of C$7,500, plus applicable taxes. The agreement between the Company and ICP is effective from August 10, 2026, and will continue for four (4) months (the “Initial Term”) and shall be automatically renewed for subsequent one (1) month terms (each month called an “Additional Term”) unless either party provides at least thirty (30) days written notice prior to the end of the Initial Term or an Additional Term, as applicable. There are no performance factors contained in the agreement and no stock options or other compensation in connection with the engagement. ICP and its clients may acquire an interest in the securities of the Company in the future.

ICP is an arm’s length party to the Company. ICP’s market making activity will be primarily to correct temporary imbalances in the supply and demand of the Company’s shares. ICP will be responsible for the costs it incurs in buying and selling the Company’s shares, and no third party will be providing funds or securities for the market making activities.

Ian Atkinson, President and Chief Executive Officer of Southern, further commented:

“As Southern continues to advance its business plan to grow production and cash flow and to expand its shareholder base, we believe it is important that our market presence reflects the underlying progress being made by the Company. We have engaged ICP to take a proactive step to support trading for shareholders, improve quote quality, and help mitigate temporary imbalances in the supply and demand of our shares. This is part of our broader commitment to improving transparency, liquidity, and long-term value creation for Southern shareholders.”

Buccaneer Energy

Buccaneer has announced its expansion into European onshore gas business and a technical partnership, together with a placing, subscription and fee conversion to realise working capital for the Company totaling £425,000 to fund the Company’s initial technical and commercial work programme in the region. 

The Capital Raise is being undertaken by way of a placing and subscription for a total of 3,190,000,000 new ordinary shares of 0.01p each in the Company at a price of 0.01 pence per new Ordinary Share, together with the issue of warrants over 3,190,000,000 new Ordinary Shares.  Certain of the directors of the Company intend to take part in the Subscription, as detailed below.  In addition, certain service providers to the Company have agreed that fees due can be paid in new Ordinary Shares, with a resultant working capital benefit to the Company (“the Fee Conversion”).

The Company is also pleased to announce the appointment of Allenby Capital Limited as the Company’s Nominated Adviser and Joint Broker with immediate effect. 

Highlights

·      Capital Raise to realise £460,000 to fund expansion into European onshore gas alongside continued US development.

·      European technical partnership established with Orion Resources Ltd, led by internationally recognised geologist Roberto Bencini.

·      More than 300 European onshore gas opportunities screened, with an initial shortlist now being progressed.

·      Initial target portfolio of up to three low-cost entry projects, with combined potential of 250 BCF (P50), c.US$500 million NPV10 and c.US$28 million annual cash flow.

·      Texas operations continue generating strong cash flow, with approximately 135 bopd production, reserves increased by 0.4MMbbl and Fouke waterflood on track for Q4 2026.

·      Board targeting growth into mid-sized E&P company producing 5,000 boepd over the next 3 to 5 years.

·      The Capital Raise, before expenses, consists of £125,000 from the Placing, £194,000 from the Subscription and £141,000 from the Fee Conversion.

European Growth Strategy

Over the past two years, Buccaneer has transformed its Texas operations into a growing cash-generative production business through a disciplined programme of operational improvements, cost reductions and targeted acquisitions. The Board now believes the Company is well positioned to build on that platform through expansion into selected European onshore gas opportunities, while continuing to grow its US operations.

Recent changes in the European energy market, including the cessation of Russian gas flows and disruption to global LNG supply, have fundamentally reshaped the sector, driving European gas prices materially higher while elevating energy security to a strategic policy priority across much of the continent. Combined with an improving regulatory backdrop in a number of jurisdictions, the Board believes these changes have created a compelling opportunity for technically led companies to pursue conventional onshore gas developments capable of generating attractive long-term returns.

Accordingly, Buccaneer intends to utilise the majority of the Capital Raise proceeds to establish an initial European work programme focused on identifying and securing attractive conventional onshore gas opportunities. Working alongside Orion Resources Ltd (“Orion”), the Company’s technical team has already reviewed more than 300 opportunities across Europe, from which an initial shortlist of projects in Italy, Czech Republic and Turkey is now being progressed. The Board is initially targeting a portfolio of up to three low-cost entry projects, with combined potential of approximately 250 BCF (P50), an estimated NPV10 value of c.US$500 million and potential annual cash flows of c.US$28 million per year, subject to further technical and commercial evaluation.

European Technical Partnership

To support this strategy, Buccaneer has entered into an agreement with Orion, which is led by internationally recognised petroleum geologist Roberto Bencini, to identify, evaluate and develop conventional onshore gas opportunities across Europe.

Mr. Bencini brings over 40 years’ international experience in petroleum geology, exploration strategy, subsurface evaluation and resource development. Together with his multi-disciplinary team of experienced geoscientists, Orion will provide integrated technical expertise to help identify opportunities, optimise decision-making, reduce exploration risk, and maximise value as Buccaneer builds its European portfolio.

The European initiative has been led by Buccaneer’s Non-Executive Chairman, Dr Stephen Staley, who is also a director of Orion. Dr Staley has founded and led several London-listed oil and gas companies, including Independent Resources plc, Upland Resources Ltd and Fastnet Oil & Gas Ltd. He was also a consultant to and non-executive director of Cove Energy Ltd, which discovered over 50 TCF of gas offshore of Mozambique, prior to its £1.2 billion acquisition by PTTEP in 2012. The Board believes the combination of Roberto Bencini’s technical expertise, Orion’s multidisciplinary capability, and Dr Staley’s commercial and capital markets experience provides Buccaneer with a highly experienced team to pursue its European growth strategy.

Existing US Operations

Buccaneer’s Texas operations continue to increase reserves and generate positive net cash flow at current oil prices, as outlined in the Company’s operational update announced on 13 July 2026. Average net production is currently approximately 135 bopd and June 2026 is expected to have generated approximately US$200,000 positive net cash flow. The Company continues to comfortably service interest on its legacy debt obligations while reducing outstanding debt and strengthening its financial position.

Since 1 January 2026, the Company’s reserves have increased by approximately 0.4 million barrels, contributing to an increase in total NPV10 by US$2.1 million to approximately US$11.7 million. 

The Fouke waterflood project continues to progress, with formation of the waterflood unit underway and start-up expected during the fourth quarter of 2026. The Board believes the waterflood has the potential to double primary recovery volumes which, if successful, would increase the total remaining recoverable Fouke volumes to over 500,000 barrels (gross) and generate additional positive net cash flows.

In addition, the Board intends to apply some of the net proceeds of the Capital Raise towards expanding its Organic Oil Recovery programme field-wide at Pine Mills. Following the success of its pilot project which added 15 bopd, the Board believes that expanding the programme field-wide at Pine Mills has the potential to increase production by 20% to 30% (25-45 bopd net) and therefore bring additional positive net cash flows.

The Board continues to target growth into a mid-sized E&P company producing approximately 5,000 boepd in the next three to five years. 

Paul Welch, Chief Executive Officer of Buccaneer Energy, commented:

“This marks the beginning of an exciting new chapter for Buccaneer. The financial benefits of the Capital Raise will allow us to pursue opportunities in the European gas market that we believe have the potential to deliver significant returns.

Recent changes in the European energy market have created a compelling backdrop for conventional onshore gas development. Higher gas prices, a renewed focus on energy security and a more supportive regulatory environment in a number of jurisdictions have reopened opportunities that, until recently, had been largely inaccessible.

The team at Orion, led by Roberto Bencini, has spent many years identifying and evaluating opportunities across Europe and brings decades of regional geological expertise and technical capability. Having already screened more than 200 opportunities, this work has already established a strong technical pipeline from which the Board believes it can build a high-quality European portfolio.

Together, Orion’s technical expertise, Roberto Bencini’s regional knowledge and Steve Staley’s extensive experience in the international oil and gas sector provide Buccaneer with a highly experienced team to identify, evaluate and develop high-quality European opportunities capable of materially increasing the scale of the Company. 

We believe this combination of a cash-generative US production business and a disciplined, technically-led European growth strategy provides Buccaneer with an exciting opportunity to create significant long-term value for shareholders, and I look forward to updating the market on our progress.”

This is an interesting move by Buccaneer as CEO Paul Welch has decided that the best way to gain the scale that I have always thought he needed is to add another leg to the story and that is by, in partnership with Orion Resources move into onshore gas opportunities in Europe.

The announcement is of a placing, subscription and fee conversion exercise to realise working capital of £425/- at a price of 0.01p. The partnership with Orion brings them technical work on three potential low-cost  entry projects in Italy, the Czech Republic and Turkey for a combined potential of 250 BCF (P50) , c.$500m of NPV10 and c.$28m of annual cash flow. 

The deal brings a ‘top-notch’ technical team led by Roberto Bencini and Buccaneer Chairman the highly experienced Steve Staley. They are keeping the business in the US which contributes meaningfully and actually pays the bills but as I have commented a number of times recently is an area where M&A opportunities are quite rare and never cheap. 

Buccaneer says that it has screened over 200 opportunities and narrowed the choice down to a handful which they are now going to ‘aggressively pursue’. They are late-stage exploration, early-stage appraisal type of operations that can be brought into production in the near to mid-term. 

Readers know that I have in recent years undergone some sort of Damascene moment which I strongly believe that Europe offers significant potential and most importantly has led to making planning and policy decisions that encourage profitable and increasingly timely development. 

Accordingly and with all the pre-screening work done, the transactional funding for the permits achieved, the chance exists for Buccaneer to add a potential second leg to the business, watch this space…

And finally…

With next to no meaningful sport around at the moment thoughts turn to the heavens, at 7 ish tonight one can observe an almost total eclipse of the sun…

Not so good if you are a Grouse who never forget the date, The Glorious 12th as it is known and when the season starts…