WTI (Nov) $89.44 +1c, Brent (Dec) $100.58 +26c, Diff -$11.14 +25c.

USNG (Nov) $3.11 +4c, UKNG (Nov) 190.5p +1.5p, TTF (Nov) €77.13 +€1.535.

Oil price

Oil has bounced a little today, WTI is up by 70 cents and Brent by $1.19. Whilst the supply assumptions are still plausible, as the Saudis are paying for the shipping, the military options are also very live. The Houthis have made missile attacks on Saudi Arabia again, this time targeting airports which won’t go unpunished…

Meanwhile sales of strategic reserves of both crude and diesel continue, odd, should you believe that there is so much oil in the system then maybe just draw product stocks, no?

The API stats saw a draw of 2.09m barrels and gasoline drew by 1.37m, ironically distillates built by 461/- b’s and notably the SPR drew by 800/- barrels. The EIA numbers later today will be more detailed as usual. 

And the EIA also announced retail gasoline prices, last week both gasoline and diesel prices fell, by 11.1 cents and 18.3c respectively but at $4.354 and $6.199 per gallon it’s still highly inflated. 

Beacon Energy

Further to the Company’s announcement on 6 March 2026 and Interim Results announcement on 30 September 2026, Beacon Energy announces that the long stop date for the Second Acquisition of 6 October 2026 has passed without an extension having been agreed with Reabold Resources.

Whilst the Share Purchase Agreement remains in full force and effect, the long stop date of 6 October 2026 has passed, which provides Beacon and Reabold with an option, should either party choose to exercise it, to withdraw from the Second Acquisition. Neither party has served such notice.

Background

On 6 March 2026, Beacon Energy completed the acquisition of an indirect interest of approximately 24 per cent. in LNEnergy Limited. 

Under the Second Acquisition, Beacon Energy would acquire a further indirect interest of approximately 24 per cent. in LNEnergy, taking its indirect interest to approximately 48 per cent. (equivalent to an indirect interest of approximately 43.2 per cent. in the Colle Santo Asset). Completion of the Second Acquisition is conditional, amongst other things, on the award of the Production Concession for the Colle Santo Asset to LNEnergy Srl (“LNEnergy Italy”), a 90 per cent. owned subsidiary of LNEnergy.

If the Second Acquisition does not complete:

(i) Beacon Energy and Reabold will each retain an indirect interest of approximately 24 per cent. in LNEnergy, with each party responsible for funding its pro rata share of future costs;

(ii) no further Consideration Shares will be issued to Reabold;

(iii) the second tranche of the Cash Consideration of £153,200 will not be paid to Reabold; and

(iv) the Earn Out payable to Reabold will be reduced proportionately. 

Stewart MacDonald, Chief Executive Officer of Beacon Energy, commented:

“The long stop date has passed without agreement on an extension, although the SPA remains in full force and effect.

“Our focus remains on the successful delivery of the Colle Santo project. As outlined in the Company’s recent Interim Results announcement, LNEnergy continues to progress the Colle Santo project with well testing operations anticipated to commence in the coming weeks.”

My comments are similar to those below on Reabold who can still complete the deal and go ahead with the investment as planned. All options are open and Beacon, who have not yet spent much on the project, are likely to remain viewing it as a very profitable investment as European gas prices remain very strong.

Reabold Resources

Reabold Resources plc, the investing company focused on developing strategic gas projects for European energy security, notes the announcement made by Beacon Energy PLC (“Beacon”) today providing an update on the LNEnergy transaction.

The full Beacon announcement can be viewed here:

https://www.londonstockexchange.com/news-article/BCE/transaction-update/17823412

It looks to me like the agreement is very much still in place and will likely complete when the CP’s are satisfied. With no reason to extend it during this phase I expect once this happens the deal will complete on the same terms as before. Both sides are able to terminate the deal should the need arise. 

With so much going on at West Newton, where important operating activity is imminent, Reabold shareholders have a great deal to look forward to and Colle Santo is still very much on the agenda. Reabold is therefore well placed and I continue to believe that a rerating of the shares is likely when the market appreciates the upside and my target price of 500p is perfectly achievable. 

Rockhopper Exploration

Rockhopper has announced that, further to its announcement of 24 August 2026 regarding the acquisition of the OSX-1 floating production, storage and offloading vessel for use in the accelerated development of the Central Development Area at Sea Lion, it has entered into an agreement to acquire its 35 per cent. pro rata participating interest in the OSX-1 FPSO. 

Pursuant to the Subscription Agreement, Rockhopper has agreed to subscribe for US$44.0 million of ordinary shares in a newly incorporated special purpose vehicle (the “SPV”) that owns the OSX-1 FPSO. The subscription will be funded from the Company’s existing cash resources. This subscription amount reflects the Company’s 35 per cent. share of the previously disclosed aggregate acquisition cost of the OSX-1 FPSO, estimated at approximately US$125 million.

The SPV is a newly incorporated private company whose sole asset is the OSX-1 FPSO, and it has no material trading history or other business activities. Rockhopper is expected to incur net holding costs, attributable to Rockhopper’s 35 per cent. pro rata participating interest, of approximately US$1.4 million per annum.

Nothing unexpected here, the deal is as I expected when announced and RKH has the wherewithal to pay having raised plenty of moulah from the recent raise. The accelerated development of the CDA at Sea Lion continues and I look forward to significant progress and soon. 

And finally…

The Nations League finished this tranche of matches last night with England beating the Czech Republic 3-0 at Wembley with Captain Kane making new records. Apart from the Spain game it was a good few games and that could have been better.

Scotland lost again, 1-2 to Slovenia and the new coach has his work cut out, the BBC said that it was a ‘turkey of a performance’ and that they were outfought and not good enough, ouch…

Northern Ireland were the stars of the show, unbeaten in all their games and they didn’t concede a goal.

And as for Wales it was not so good, they lost 3/4 and have some hard work to qualify for the Euros.