WTI (Oct) 96.05 +$3.02, Brent (Nov) $101.21 +$3.29, Diff -$5.16 +27c.

USNG (Oct) $2.82 -10c, UKNG (Oct) 199.21p +2.78p, TTF (Oct) €79.90 +€0.985.

Oil price

Oil is sharply better again after still more attacks in the Gulf. These included Iran attacking 10 US ships after they had 5 tankers destroyed themselves and the Houthis continued to attack installations in Saudi Arabia. 

Worse is speculation from Washington that they are planning for the war to go on until January 2029 when President Trump leaves office. The API stats were mixed again but showed a big draw in gasoline, today’s EIA numbers will be interesting but I keep stressing that product prices are what to watch the most. 

Corcel

Corcel has announced a series of significant corporate and operational milestones at its operated Block KON-16 in the onshore Kwanza Basin, Angola.

Corcel has received final Angolan Government approval for the acquisition by its subsidiary Atlas Petroleum Exploration Worldwide Limited (“APEX”) of an additional 30% participating interest in KON-16 from Intank Global DMCC (“Intank”).

Corcel has also executed a definitive share purchase agreement with Sintana Energy Inc.  for Sintana to acquire an indirect 5% participating interest in KON-16 for aggregate consideration of US$2.5 million.  Following completion of the transactions with Intank and Sintana, Corcel’s net interest in KON-16 will increase from 49.5% to 71.5%.

In parallel, the Company continues to progress preparations for its targeted high-impact exploration drilling campaign in 2027.  Recent milestones include receipt of the final pre-stack time migrated (“PSTM”) seismic volume, completion of the geomechanical programme and the appointment of NRG Well Management (“NRG”) for detailed drilling engineering and well design.

Highlights

·      Angolan Government approval received for the transfer of Intank’s 30% participating interest in KON-16 to APEX, increasing its participating interest ownership to 85% and, following completion of the Sintana transaction, increasing Corcel’s net interest in KON-16 from 49.5% to 71.5%;

·      Definitive SPA executed with Sintana in respect of the sale of an indirect 5% participating interest in KON-16;

·      Aggregate consideration of US$2.5 million payable by Sintana, of which US$0.5 million has already been received by Corcel and is now non-refundable, with a further US$2.0 million payable upon completion, which is expected imminently;

·      Final PSTM seismic volume received from the recently completed 326 line-km 2D seismic programme, supporting ongoing prospect maturation and well-location selection;

·      Geomechanical programme completed, providing the technical basis for detailed drilling engineering and well design;

·      NRG appointed for the next phase of drilling engineering and well design for the KON-16 exploration campaign; and

·      Corcel is targeting a high-impact exploration drilling campaign in 2027.

Government Approval and Consolidation of KON-16

As announced on 14 May 2025, APEX agreed to acquire an additional 30% participating interest in KON-16 from Intank for cash consideration of US$0.5 million (of which US$0.1 million has already been paid) , increasing APEX’s participating interest in the block from 55% to 85%. The acquisition was conditional upon receipt of the requisite Angolan Government approval, which has now been received.

Executive Decree No. 425/26 of the Ministry of Mineral Resources, Petroleum and Gas formally authorises the transfer of Intank’s 30% participating interest under the KON-16 Risk Service Contract to APEX. The approval represents a significant milestone for Corcel, securing the key governmental authorisation required for the consolidation of APEX’s operated and controlling position in KON-16.

Under the terms of the acquisition announced in May 2025, Intank will also receive a future 5% overriding royalty interest (“ORRI”) on the 30% interest acquired by the Company, limited to the first development area of KON-16 in the event of a commercial discovery.

Definitive SPA with Sintana 

Following the binding heads of terms announced on 14 May 2025, Corcel has now executed the SPA with Sintana for its acquisition of an indirect 5% participating interest in KON-16 for aggregate consideration of US$2.5 million.

Under the agreement, Corcel will grant Sintana a net profit interest (“NPI”) in KON-16, whereby, following first oil, Sintana will receive 2.5% of net proceeds actually received by Corcel in respect of KON-16 until aggregate payments of US$50 million have been made to Sintana, after which the NPI will reduce to 1.5%. Prior to first oil, no net profit interest will accrue or be payable.

Sintana previously paid an initial US$0.5 million pursuant to the heads of terms announced in May 2025. Upon execution of the SPA, that payment became non-refundable. The remaining US$2.0 million will be payable in cash at completion, which is expected imminently, subject to the satisfaction or waiver of the remaining conditions precedent under the SPA. The Company will provide further updates in due course.

KON-16 Operational Update

In parallel with these corporate and regulatory milestones, Corcel continues to advance the technical and operational work required to move KON-16 towards exploration drilling.

The Company has now received the final PSTM seismic volume from the 326 line-km 2D seismic programme acquired over KON-16. The PSTM dataset materially enhances imaging and structural definition across the block and is being incorporated into the Company’s ongoing prospect maturation, well-location selection and partner technical-review processes.

The seismic programme has confirmed prospectivity at both deeper pre-salt and shallower post-salt levels across KON-16. The Sirius prospect, a large central pre-salt structure with an additional overlying post-salt target, and the geologically independent Canopus post-salt prospect, remain the Company’s principal high-graded prospects for drilling.

Corcel has also completed the geomechanical programme required to support detailed well engineering and drilling design.  This work includes pre-drill pore-pressure and fracture-gradient prediction, casing-design inputs, drilling-fluid and mud-programme optimisation and well-control planning.

Following completion of this programme, Corcel has appointed NRG to undertake the next phase of drilling engineering and well design for KON-16. NRG is an experienced well engineering and project management company providing services across the full lifecycle of exploration, appraisal, development and production, with recent analogous experience in Gabon, Tanzania, South Africa and Ghana.

NRG will progress detailed engineering for the proposed exploration campaign, including well architecture, the drilling programme, casing and drilling-fluid design, well-control requirements, operational procedures, cost and schedule estimates, and the engineering basis for long-lead procurement, permitting and rig engagement.

The appointment marks an important transition from subsurface maturation to execution planning, integrating the completed PSTM interpretation and geomechanical outputs into a drill-ready well plan.

In parallel, scouting of access routes to potential drilling locations and planning for road-access construction are continuing, supporting preparation for the drilling campaign.

Corcel is targeting commencement of exploration drilling operations at KON-16 during 2027, subject to final technical selection, applicable approvals, funding, rig availability and partner alignment. The Company will continue to progress its farm-down process alongside the technical, engineering, permitting and operational preparations for drilling.

Scott Gilbert, Chief Executive Officer of Corcel, commented: 

“The receipt of Angolan Government approval for the transfer of Intank’s 30% participating interest is an important milestone for Corcel, consolidating APEX’s operated position in KON-16 at 85%. I would like to thank MIREMPET, ANPG and all parties involved for their continued engagement and support throughout this process.

“Execution of the definitive SPA with Sintana formalises the strategic transaction we announced in May 2025, providing additional non-dilutive funding and further strengthening our cash position as we continue to advance KON-16.

“These corporate milestones are being matched by continued operational progress. Receipt of the final PSTM seismic volume, completion of the geomechanical programme and the appointment of NRG for detailed well engineering and design mark an important transition for KON-16 from subsurface maturation into execution planning.

“Our focus is now on well-location selection and progressing the engineering, procurement and rig-engagement work required to deliver a high-impact exploration drilling campaign in 2027.”

Corcel has ticked a number of boxes with this all encompassing announcement in which the company details the KON-16 interests consolidation, the Sintana transaction as well as an operational update from the block.

Box number one is the approval for the acquisition from Intank of 30% of KON-16, the next is the confirmation of the deal with Sintana who are buying a 5% PI for $2.5m of which the remaining $2m is due on completion, expected soon. This will leave Corcel with a net interest in the block of 71.5% and clears up the deal process.

On the operational front, and ‘in parallel’, the company continues to ‘progress preparations for its targeted high-impact exploration drilling campaign in 2027’. So far they have passed a number of key milestones which include ‘receipt of the final pre-stack time migrated seismic volume, completion of the geomechanical programme and the appointment of NRG Well Management for detailed drilling engineering and well design’.

So far so good and the operational progress continues as the company mark the transition for KON-16 from subsurface maturation into execution planning. This will involve well-location selection, procurement and the necessary rig-engagement process and of course high-grading portfolio prospects. 

The shares are up 3.5% at 0.42p this morning and the market will be cheered by this substantial progress across many fronts. The company is well financed following non-dilutive funding and this next tranche will add to that balance sheet strength. I have liked Corcel right from the start and it has been a prominent member of the Bucket since then and my target price of 2p is not demanding., Corcel has plenty of upside from here. 

Sintana Energy

Sintana has announced the entry into definitive agreements for the acquisition of an interest in the Block KON-16 in the onshore Kwanza Basin, Angola, first announced on 14 May 2025.

The agreements comprise a share purchase agreement (the “SPA”) and a shareholders’ agreement (the “Shareholders Agreement”) relating to Corcel KON-16 Limited (“CorKon”), the Corcel Plc group company which will hold an 85% participating interest in Block KON-16. The agreements provide for Sintana’s acquisition of an indirect 5% participating interest in Block KON-16, through the purchase of shares in CorKon, and establish the governance, funding and transfer arrangements applicable to CorKon following Completion.

In addition to the 5% indirect participating interest, the agreements also provide for Sintana to receive a net profit interest of 2.5% of Corcel’s net proceeds from Block KON-16 after first oil until aggregate payments of US$50 million have been made, reducing to 1.5% thereafter.

Completion of the transaction remains conditional upon governmental, regulatory and third-party approvals, including those required in Angola, as well as applicable AIM and TSX Venture Exchange requirements. These are expected to be finalized prior to year-end 2026. Aggregate consideration for the acquisition is US$2.5 million, comprising a US$500,000 initial payment previously paid to Corcel, and a US$2.0 million cash balance payable at completion.

Corcel has also provided an operational update in relation to Block KON-16, the highlights of which are:

o Final PSTM seismic volumes for recently acquired 2D has been received. This dataset materially enhances imaging and structural definition across the block and is being incorporated into the ongoing prospect maturation, well-location selection and partner technical-review processes;

o A geomechanical program has been completed, providing the technical basis for detailed drilling engineering and well design;

o NRG has been appointed for the next phase of engineering and well design for the Block KON-16 exploration drilling campaign; and

o Corcel has confirmed it is targeting drilling of a pre-salt exploration well on Block KON-16 in 2027, subject to final technical selection, approvals, financing, rig availability and partner alignment.

Robert Bose, Chief Executive Officer of Sintana Energy, said: 

“We are very pleased to reach this milestone with our partners at Corcel. The continuing progress and emergence of the opportunity on KON-16 positions us to realise on this offshore-scaled resource with an onshore cost. We look forward to providing further updates over the coming quarters.“

Nothing new here from Sintana as the company has detailed the deal with Corcel in previous announcements and also addressed it in both the Capital Markets event and in recently updated presentations.

Sintana is quietly getting on with the job delivering on what is a fantastic portfolio of assets in some of the best post codes in world energy. Angola is hot right now, both onshore and offshore as is Namibia and of course Uruguay where M&A activity is rife in nearby blocks. 

The shares are finally starting to pick up, at 23p they are up over 8% today, +12% on the month but still well short of my 75p target price which is by no means optimistic. 

United Oil & Gas

United has announce the appointment of NRG Well Management to undertake a drilling rig and long-lead availability study.

Highlights:

·      Supporting the Farm-out Process: Provides current market-based operational planning data to inform the Company’s ongoing farm-out discussions.

•     Advances Drilling Readiness: NRG engaged to assess rig availability, market day rates, and procurement schedules, establishing key enablers for potential drilling.

·      Targeting High-Impact Prospects: Focused on capability for drilling the Colibri prospect (406 MMbo² mean prospective resources) and potential follow-on drilling at the Thunderball lead (603 MMbo² mean prospective resources).

The study advances operational planning for a potential future exploration drilling programme on the Company’s Walton-Morant Licence, offshore Jamaica, which contains over 7 billion¹ barrels of prospective resource potential. NRG will engage directly with international rig contractors and supply chain vendors to evaluate:

·    Rig Availability: Direct market engagement to assess rig suitability, availability, indicative commercial rates, and mobilisation factors for offshore drilling rigs.

·    Dual-Target Suitability: Technical capability for Colibri (c. 750m water depth) with additional assessment for deep-water drilling at Thunderball (c. 1,900m water depth).

·    Long-Lead Equipment & Critical Well Services: Assessment of key long-lead drilling equipment and critical well service packages, and indicative procurement timelines.

·    Logistics Network & Supply Chain: Screening of regional supply chain and logistics support infrastructure across the Gulf of Mexico, Guyana, Suriname and Trinidad, alongside Jamaican port readiness.

NRG Well Management is a leading provider of international well engineering and project management services, with a focus on delivering safe and efficient operations across the full life cycle of exploration, appraisal, development, production, and decommissioned wells.

The commissioning of this study is a forward-planning and market assessment review and does not constitute a commitment, at this time, by United to drill a well. Any potential future drilling programme would be subject to, amongst other matters, the receipt of all necessary regulatory approvals from the Government of Jamaica and execution of commercial agreements.

The Company expects the study to be completed in the coming weeks and will update the market on its findings in due course. Furthermore, a summary of the Company’s Walton-Morant licence prospect and lead portfolio, including Colibri and Thunderball, is provided in the appendix to this RNS.

Donal Meehan, Chief Operating Officer, commented:

“This drilling study marks an important step in our operational planning to advance the Walton-Morant Licence towards a potential future drilling programme. It will provide a current, market-based assessment of rig suitability, availability, commercial conditions, and the long-lead items required to drill Colibri and Thunderball or similar targets.

Colibri and Thunderball represent substantial exploration opportunities within the Licence, with a combined potential of over 1 billion barrels3 of mean prospective resources out of the 7 billion barrels1 of prospective resources identified on the licence to date.

By undertaking this study now, we are positioning the Company for operational readiness ahead of future drilling, whilst providing valuable information to support our on-going work as we push to conclude the Jamaican farm-out process. We look forward to updating the market with the study results in the coming weeks.”

So, United announce another study at Walton-Morant as they move somewhat slowly towards a potential drilling programme and of course a possible farm-out. The words ‘long-lead’ give a clue and whilst the prospect is still potentially huge and would be a game-changer for UOG it is just that, still some way off.

Sunda Energy

Sunda has announced that, following the recent amendments to the AIM Rules for Companies, it intends to utilise the Capital Access Window in connection with a potential capital raising.

The Capital Access Window provides AIM companies with a mechanism to implement a voluntary, temporary pause in trading in their securities in connection with a potential capital raising and to make it easier for companies to reach a broader range of investors during a fundraise.

The Company will enter a Capital Access Window with effect from 7.30 a.m. today and, accordingly, trading in the ordinary shares of 0.1 pence each in the capital of the Company will be temporarily suspended, until a further announcement is made detailing the results of the Proposed Fundraising.

The results are of no interest to Sunda right now so we note that they have announced a Capital Access Window for another raise. The CAW is becoming quite trendy as companies can chat about a raise with advisors and potential investors whilst the shares are suspended and all parties are taken over the Chinese Wall and the shares can’t go down if/when there are any leaks in the process…

And finally…

The 3rd and final test against Pakistan got underway yesterday and Pakistan were inserted by England and were all out for 133, that would have been much less if Donald Duckett hadn’t dropped two sitters at 1st slip. Today England are 312.6 as I write, a lead of 179.

The Champions League saw both Liverpool and the Gooners win away at Athletico and Napoli whilst at home in the Haribo Cup Chelsea beat Leeds 6-3. Tonight in the CL the Red Devils host Sabah.

And would you believe it, in the US the NFL starts, The New England Patriots are at the Seattle Seahawks who won the Superbowl last year, more tomorrow.