Oil price, Kistos, Reabold, Afentra, Southern. And finally.

WTI (Oct) $101.39 +$1.34, Brent (Nov) $105.68 +$1.07, Diff -$4.29 -27c.

USNG (Oct) $2.90 +7c, UKNG (Oct) 203.99p -5.37p, TTF (Oct) €82.13 -€1.965.

Oil price

Oil is up again today, WTI continues to outperform Brent and is up $2.84 as I write, Brent is up by less, $2.13 as the market weighs the recent military might exhibited by the Houthi rebels who have attacked widely across Saudi Arabia in recent days. 

With the Bab el-Mandeb strait under pressure focus moves to the Hormuz but reports say that there were only 10 transits over the weekend against 14 previously, hardly the stuff of getting prices down…

Kistos

Kistos has announced its unaudited interim results for the six months ended 30 June 2026. The results are included below and copies are available at www.kistosplc.com.

Financial Highlights

·      Pro-forma EBITDA^2,3 was approximately $205 million including a $51 million contribution from Blocks 3&4 and Block 9, Oman, and reflecting the full benefit of strong commodity prices with the Group fully unhedged.

·      Cash and near cash⁴ of $259 million which includes $128 million of unrestricted cash, $95 million in escrow for Oman acquisition and a $36 million near cash Norwegian tax rebate expected to be received in December 2026.

·      Adjusted net debt² at period end: $23 million (30 June 2025: $86 million).

6 months ended 30 June 2026

1. Total production rate includes gas, oil and natural gas liquids and is rounded to nearest 100 barrels of oil equivalent per day, with sales and production volumes converted to estimated barrels of oil equivalent (boe) using the conversion factors set out in Appendix C to the Interim Financial Statements.

2. Non-IFRS measure. See note 2.2.1 to the Interim Financial Statements for definition and reconciliation to the nearest equivalent IFRS measure.

3. Pro forma numbers are defined as Group results as if the Oman Block 3&4 and Block 9 acquisitions had completed on 1 January 2026, based on draft financial information provided by the seller.

4. Cash and near cash is non-IFRS measure.

Andrew Austin, Executive Chairman of Kistos, commented:

“We generated significant cash in the first half of 2026, supported by strong operational performance across our asset portfolio, keeping us on track to meet our full-year pro forma production guidance of 19,000 – 21,000 boepd. With the Group fully unhedged, we captured the full benefit of strong prices during the period. The sanctioning of the Balder Next New Wells project in June 2026 marks an important milestone for Kistos, delivering a reserves replacement ratio of 120% across our existing asset base and further strengthening our 2P reserves base, which – together with our new interests in Oman – has more than doubled over the past year.

We remain focused on realising organic growth opportunities across our assets, including further development of the Balder area and, following the transition of operatorship of the Greater Laggan Area to Serica Energy, the potential to extract near-term value from infill drilling and further third-party tiebacks to the Shetland Gas Plant, alongside the enhanced terms recently secured under Block 9 EPSA in Oman.

Kistos remains disciplined in its approach to growth. We continue to see a range of value-accretive M&A opportunities across our core geographies, and we believe our track record and ability to execute transactions make us an attractive counterparty. As we evaluate opportunities across the value chain, we remain centred on maintaining financial strength and operational reliability.”

These two announcements, the interims above and the Oman completion below, show that Kistos is in fine form on all fronts, production was 11.8/- boe/d in the period but much more importantly is over 20/- boe/d now, 20.8/- boe/d on a pro-forma basis. 

With Oman Blocks 3 & 4 now completed and Block 9 imminent, the surge in production means a huge increase in revenue particularly as the deals are backdated to January 2025 which means that gives significant upside especially as Kistos is unhedged, more on that later. 

And there is plenty of activity elsewhere in the portfolio, at Balder the Phase VI drilling campaign is underway and Balder Next has been sanctioned whilst the transition of the operatorship to Serica at the GLA gives Kistos ‘the potential to extract near-term value from infill drilling and further third-party tiebacks to the Shetland gas plant’.

Sundry other factors are also pluses, the gas storage assets in the UK are a strategic benefit to the company, whilst it seems that the Government are ignoring the views of Centrica with regards to storage at Rough which will be lost, maybe permanently due to their political intransigence Kistos’ assets will come into their own. Also whilst we wait for final approvals from Block 9 in Oman it is worth noting the recently enhanced terms that Kistos recently secured.

Kistos is, as I said in a formidable position, with production and the 2P reserves base also having doubled over the last year and with the strategy to remain totally unhedged giving the appropriate risk profile for an E&P company the returns will be substantial. And whilst the company will continue with organic growth I’m sure that the M&A team are continually looking at potential for inorganic growth as well. 

The shares have performed well, at 343p the shares are up over 4% today, they have risen 15% on the month, +20% on 6 months and have gained nearly 100% year on year. But this is just not enough, I can see, with the benefit of all the above gains that my target price of 500p is potentially conservative.

Kistos has a Capital Markets event for analysts next month which I shall attend and having spoken to Andrew Austin this morning I am going to put an interview in the can around then. In the meantime investors should see Kistos as a solid Bucket List member and with significant upside potential in the share price.

Completion of Oman Blocks 3 & 4

Kistos announces that it has completed the acquisition of Blocks 3 & 4 from Mitsui E&P Middle East B.V. This follows the announcement made on 7 September 2026 regarding the receipt of Royal Decree from the Sultanate of Oman, representing the formal transfer of legal ownership to Kistos.

The terms of the transaction are unchanged from the announcement made on 9 December 2025, which was agreed on a portfolio basis for Blocks 3 & 4 and Block 9 together, subject to customary completion adjustments from the effective date of 1 January 2025 that apply across the portfolio as a whole. The acquisition of Block 9 continues to progress on a separate timeline owing to its EPSA framework and is expected to complete in H2 2026, as previously guided.

Together, Blocks 3 & 4 and Block 9 add 25.6 mmboe of 2P reserves at an acquisition value of approximately $5.80 per boe, with net production guided at 9,000-10,000 boepd at the time of the initial announcement. As disclosed in the Company’s H1 2026 Trading Statement, the assets generated aggregate EBITDA of approximately $51 million for the six months ended 30 June 2026, calculated as if both acquisitions had completed on 1 January 2026 and reported on a combined basis consistent with the acquisition of the blocks as a single package. This figure is unaudited and based on draft results provided by Mitsui.

Andrew Austin, Executive Chairman of Kistos, commented:

“Today marks a significant milestone for Kistos as we formally establish our presence in the Middle East with the completion of Blocks 3 & 4. We look forward to working closely with our experienced licence partners to pursue the material investment opportunities to increase production and enhance long-term value. With our Omani platform now in place, we are equally focused on the timely completion of Block 9, which will further strengthen our position in the region.”

Afentra

Afentra has announced its half year results for the six months ended 30 June 2026.

H1 2026 Summary

Key Highlights

–           Block 3/05 Drilling:

o         Pacassa SW successful oil discovery; revised completion plan being finalised;

o         Impala-2 expected to be second well in drilling programme

–           Strategic Review: Afentra to pursue next phase of growth as an independent E&P company

–           Refinancing: cost of capital reduced with completion of $125m Gunvor prepayment facility

–           Equity Raise: completed heavily oversubscribed $40m placing and £2m retail offer at 67p/share

–           Etu Acquisition: expected to complete in Q3 2026, increasing equity interests in Blocks 3/05 & 3/05A

–           Kwanza Onshore: eFTG survey completed; KON4 licence awarded

–           Net Average Production: 5,777 bopd in H1 2026; averaging 6,236 bopd during July/August 20261

–           Crude Oil Sales & Revenue:

o         two liftings totalling ~1.0 mmbbls at an average $91.3/bbl, generating $91.0 million

o         post-period lifting of 452,024 bbls in July at $84.1/bbl, generating $38.0 million

–           Financial Position: Cash of $97.4 million, Net cash of $28.4 million at 30 June 2026

Financial Highlights (As at and for six months ended 30 June 2026)

–           Revenue of $91.0 million2

–           Cash resources of $97.4 million

–           Total debt of $70 million

–           Net cash of $28.4 million3

–           Adjusted EBITDAX of $41.9 million

–           Company financial position strengthened significantly with new $125m debt facility and $40m equity raise

o         Gunvor prepayment facility put in place at significantly reduced cost of debt and trading costs; $70 million drawn with additional availability of $30 million in 2026 and $25 million in 2027

o         Heavily oversubscribed equity fundraising of $40 million completed at 67 pence per share, together with additional £2.0 million WRAP Retail Offer

–           Crude Oil Sales

o         Two liftings of 997,252 bbls at average price of $91.3/bbl sold, generating revenue of $91.0 million

o         Post-period lifting of 452,024 bbls completed in July at an average $84.1/bbl, generating revenue of $38.0 million

o         Two additional liftings of ~450,000 bbls each anticipated in the remainder of 2026

–           Hedging activity continued during the period and post period-end, resulting in approximately 49% of 2026 remaining forecast sales being hedged through a combination of puts and collars, with floor prices ranging from $60–85/bbl and collar caps ranging from $77.5–117.6/bbl; for 2027, approximately 24% of forecast sales are currently hedged, with floor prices of $70/bbl and collar caps ranging from $82–103/bbl4

–           Post period-end, a cash call of ~$28 million was issued and paid in July, bringing JV funding broadly in line with the expected H1 budget 

Operational and Corporate Highlights

Strategic Review

–           Following the comprehensive strategic review announced in March 2026, the Board determined, after considering a number of strategic options, including offers for the company, that pursuing Afentra’s next phase of growth as an independent E&P company offers the greatest opportunity to maximise shareholder value.

Reserves & Resources

–           Independent year-end 2025 assessment confirmed net 2P WI reserves of 31.9 mmbo and in January Afentra announced a fourfold increase in 2C working interest contingent resources to 87.3 mmboe across Blocks 3/05, 3/05A and 3/24, based on both independent and management assessments.

Block 3/05 and Block 3/05A

–           Pacassa SW: well was spudded in April as the first well in the two-well drilling programme, drilling progressed through the period. Post period end, the well reached total Measured Depth of 5,381 metres, encountering a 217m gross oil-bearing reservoir section with 136 metres of net oil pay; the well encountered significant losses in the reservoir section indicating high permeability from fractures as well as a level of depletion; the interpreted oil-water contact is consistent with that encountered in the main Pacassa field. Completion operations encountered challenges resulting in a failed packer restricting access to the wellbore. The joint venture is progressing plans to sidetrack the well to bypass the obstruction and enable the completion equipment to be run. Consideration is currently being given to either continuing to complete Pacassa SW or moving the rig to Impala-2 while the necessary planning and equipment mobilisation are completed. The commercial arrangements previously agreed with Sonangol mean that the Company has no exposure to the incremental costs arising from these additional Pacassa SW operations.

–           Impala-1: post period-end, the well was successfully returned to production following a well intervention, testing at up to approximately 4,700 bopd and subsequently producing at approximately 3,000 bopd before being shut in to accommodate preparations for Impala-2.

–           Impala-2: is expected to be the second well in the two-well drilling programme, with preparations advanced and timing subject to finalisation of the Pacassa SW completion plan. The well is targeting initial production of approximately 4,000 bopd. A further update will be provided once the drilling sequence is confirmed.

–           Gross average production: for the period of 19,379 bopd (net: Block 3/05 5,688 bopd; Block 3/05A 90 bopd). Production reflected downtime associated with the positioning of the Borr Grid drilling unit over the Pacassa platform and a planned shutdown of the gas compression system to improve gas distribution. Post period-end, gross production averaged 20,897 bopd during July and August 2026 (net: Block 3/05 6,156 bopd; Block 3/05A 80 bopd).

–           The multi-year redevelopment plan: remains on track, underpinning increased reserves recovery and production growth.

o         Water injection averaged ~45,000 bwpd in the period, with rates of up to 70,000 bwpd achieved and a target of ~100,000 bwpd in H2 2026. Post period-end, water injection averaged approximately 56,000 bwpd during July and August 2026.

o         Infrastructure upgrades progressed across key platforms, with work completed at Pambi and ongoing at Cobo and Palanca. Palanca FSO works were completed and formal recertification received for a further five-year period.

o         Well intervention activities, including slickline, electric line and acid stimulation activities, have continued successfully across the asset.

–           Hydraulic workovers: Preparations for the hydraulic workover programme continued, with execution planned for early 2027.

Block 3/24

–           Activities in support of the GPQ development progressed. Post period end, Afentra safely completed its first operated offshore campaign, inspecting four GPQ subsea wellheads using a low-cost ROV operation.

Onshore Kwanza basin

–           Acquisition of eFTG geophysical survey data was completed across all licensed areas, with initial results being interpreted and integrated with existing datasets to support prospect maturation and future work programme planning.

–           Post period-end, initial eFTG interpretation continued across KON4, KON15 and KON19; identifying a number of post-salt leads. A contract has been awarded for a 300 km 2D seismic acquisition on KON15, this is expected to commence in September 2026. In KON4, the leads identified are adjacent to the previously produced Quenguela Norte field and consideration is being given to the acquisition of a focused 2D seismic programme around Quenguela Norte in H1 2027.

Portfolio expansion

–           The KON4 licence was formally awarded and signed.

–           Under the Etu transaction Afentra will acquire an additional 3.33% in Block 3/05 and 3.66% in Block 3/05A, following the decision by Sonangol to participate alongside Afentra and M&P, with completion expected in Q3 2026.

Near-Term Catalysts

–          Completion of the Pacassa SW well

–          Commencement of Impala-2 drilling

–          Completion of the Etu transaction expected Q3 2026

–          Operational update on the redevelopment of the KON4 Quenguela Norte field

–          Update on the assessment of the exploration potential across the Kwanza Onshore portfolio

–          Commencement of the Block 3/05 hydraulic workover programme planned for early 2027

Paul McDade, Chief Executive Officer, Afentra plc commented:

“The first half of 2026 has been a period of significant strategic and financial delivery, marking our transition into the execution phase of our organic growth strategy with the first drilling in Block 3/05 in over a decade. The successful refinancing through our new $125 million Gunvor facility has reduced our cost of debt and trading costs, while providing the financial flexibility to support our ongoing investment programme.  Combined with our strong underlying cash generation and the oversubscribed equity fundraising of over $40 million, this has materially strengthened our balance sheet and capital structure.

The successful Pacassa SW oil discovery provides clear proof of concept for our offshore Angolan portfolio, supporting our view that the wider Pacassa SW area has the potential to contain up to 70 mmbo of gross recoverable resources. While completion operations encountered an obstruction that will require a sidetrack to bring the well onstream, our existing commercial agreement ensures we have no financial exposure to these additional costs. Preparations for the Impala-2 development well continue, with the timing and drilling sequence currently being finalised.

Onshore, our high-resolution eFTG programme is already yielding results, which, alongside the upcoming seismic work, will allow us to progress the redevelopment of the Quenguela Norte field and define a broad portfolio of exploration prospectivity over the next six to 12 months. Looking forward, the completion of Pacassa SW, the drilling of Impala-2, the anticipated completion of the Etu acquisition and the commencement of onshore 2D seismic acquisition provide an active period with multiple near-term catalysts. We now have multiple pathways across our offshore and onshore portfolio to deliver the material production and reserves growth we have been building towards, and we look forward to updating shareholders on our progress.”

Interims from Afentra which are in line with expectations and historic in nature, a lot of the beef has been post period end with the strategic review, raise and reduction of the debt costs and of course a highly successful well result at Pacassa. The slight problem with completion is of little significance and not a financial drag, moving to Impala is way more important. 

There is much to come from Afentra which is why it is one of my most highly rated expectations and my recently raised target price of 125p reflects this. The realisations as a result of the war in the gulf make for a meaningful contribution and mean that the company is now soundly financed and with a robust balance sheet. 

 Reabold Resources

Reabold has released this video regarding progress at West Newton following last week’s announcement of imminent preparatory work at the project. At the time I wrote this ‘I particularly like that the operator is assessing the feasibility of c0-locating data centre infrastructure at the site. This involvement could really open up access to capital for Reabold, perhaps something that some in the market may have overlooked’. 

In today’s video the two CEO’s go into detail about the data centre options which readers will know from the above and my other posts, potentially adds a new market for the company. For those data centre operators, sites like this have added value as they can locate their project almost on-site which effectively cut out the need to go on the grid which can be a major problem given grid capacity limitations.

You can download the Reabold video here: Download Link

Southern Energy Corp

Southern has announced that the Company has successfully drilled and cased the Terrible Creek 21-2 #2 Cotton Valley vertical well in the Williamsburg Field.  The drilling rig was released on September 10, 2026.  The Well was drilled to a total depth of approximately 18,825 feet and encountered numerous prospective sands in the Sligo, Hosston, and Cotton Valley formations. The Company will begin completion and testing operations in the Cotton Valley formation, with test results to follow once available.

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

“We are very pleased with the operational performance on our first Cotton Valley well in the Williamsburg field. The well was drilled safely, on budget and from spud date to total depth in less than 22 days, making it one of the fastest wells in the area to reach depths greater than 18,500 feet. We identified several efficiencies that we expect to apply to future wells to further optimize drill times and capital costs. We are now planning the completion and testing operations and look forward to sharing those results.”

This actually looks like a very interesting result from Southern, it has come in safely and on budget but most remarkably less than the expected 25-30 days in less than 22 in the end.

It would be wrong to assume that as it finished early it was disappointing, the fact that it has been announced indicates that it will go to testing with some interest. Expect completions to start in a few weeks and results towards the end of September or early October.

Southern remains very much a favoured stock with a valuable portfolio ready to serve the huge increase in demand that I expect from its fantastic asset base in the USA. 

And finally…

In the Prem last night Leeds soundly beat the Magpies 4-1, the table shows a not unusual early season look about it…

Tonight the Haribo Cup is back with all the big teams in the mix, a good London derby sees the Hammers host the Cottagers, the Gooners go to the Tractor Boys and Spurs are at Fortress Anfield.