WTI (Nov) $92.87 +$2.45, Brent (Dec) $102.31 +$4.15, Diff -$9.44 +$1.70.
USNG (Nov) $2.97 -6c, UKNG (Nov) 180.15p -4.35p, TTF (Nov) €71.705 -€1.18.
Oil price
After yesterday’s rise, which came from antagonism between the US and Iran, no surprise there then, today all has changed. It wasn’t the reports of more Gulf supplies that did it but demands from all over for the release of inventories which came out of the blue this morning. As I write WTI is down $3.56 and Brent off $2.40.
It started with the US seeking release of diesel stocks from France and Germany, some reports had up to 120m barrels which is only a few months of winter demand. There have also been talks between Macron and the US and Canada for a concerted release of crude oil stocks I understand and the US potential diesel export ban is still being mooted.
Eco (Atlantic) Oil & Gas
Eco has announced that on 1 October 2026, it received formal Ministerial approval from the Honourable Minister of Industries, Mines and Energy of Namibia for the transfer and assignment, relating to the Company’s previously announced farm down of a 60% Participating interest, in all three of its Petroleum Exploration Licenses offshore Namibia to BP Namibia Energy Ltd, a wholly owned subsidiary of BP Exploration Operating Company Limited.
Further to the announcement on 13 April 2026 regarding the Farmout Agreement (“FOA”) (the “Agreement”), Eco, through its wholly owned subsidiaries: Azinam Group Limited, Eco Oil & Gas Namibia (Proprietary) Limited (“Eco Namibia”) and Eco Oil & Gas Services (Proprietary) Limited (“Eco Services”) have agreed to farm out an aggregate of 60% of its Participating Interest, transferring Operatorship to BP in respect of Block 2012A PEL97 (“Cooper License”), Blocks 2111B and 2211A PEL99 (“Guy License”) and Blocks 2211B and 2311A PEL100 (“Tamar License”) (the “Transaction“). The Ministerial approval represents the final governmental consent required under Section 11 of Namibia’s Petroleum (Exploration and Production) Act for the transfer and assignment of a 60% Participating Interest in PELs 97, 99 & 100 from Eco to BP. Following receipt of this final Ministerial approval, the parties are now completing the remaining closing deliverables, and completion is expected shortly. A further announcement will be made on completion.
The Transaction enables the Joint Venture (“JV”) to embark on a comprehensive exploration work program, and the Company to substantially reduce its funding exposure while retaining material upside exposure to the licenses and introduces a major international operator to progress the Blocks’ exploration activities. Eco intends to use the cash proceeds of the Transaction to support the Company’s ongoing growth through exploration and appraisal activities across its Atlantic Margin portfolio and for general working capital purposes.
Transaction Highlights:
• | A one-time cash consideration of US$2.7 million to be received by Eco on completion. | |
• | Eco will retain a 25% participating interest in PEL97, PEL99, and PEL100 (“Eco’s 25% Retained PI“). | |
• | BP to carry 100% of Eco’s 25% Retained PI as well as Eco’s proportionate share of the NAMCOR (10%) and the Local Partners (5%) participating interests across PEL97, PEL99 and PEL100 during the current exploration phase. | |
• | The proposed exploration work program approved by the government, includes; completing seismic reprocessing on PEL97 and acquiring at least 3,000km2 of new 3D Seismic data on PEL99 and PEL100. | |
• | If BP and partners elect to enter the Second Renewal Period of the license term in 2028 and commit to drilling an exploration well, Eco will have the option to either: | |
| i. | exercise a Put Option to transfer an additional 10% PI to BP in exchange for a full carry on Eco’s remaining 15% PI subject to a cap of US$21 million net to Eco for each well on each of the licenses (PEL97, PEL99, and PEL100); or |
| ii. | elect to retain its 25% PI of the costs associated with such drilling of a well during the Second Renewal Period. |
• | The maximum aggregate Carry consideration payable by BP in respect of each Put Option (should all Put Options namely on PEL97, PEL99, and PEL100 be exercised) is US$63 million with a cap of US$21 million per Put Option. | |
• | Eco can elect to retain its 25% paying interest and/or to farm out to other potential partners (subject to such partners meeting technical and financial qualifications) | |
• | The Transaction constitutes an arm’s length transaction for purposes of TSXV policies. No finder’s fees are payable in connection with the Transaction. No insiders of the Company have any interest in the Transaction. | |
Gil Holzman, President and Chief Executive Officer of Eco Atlantic, commented:
“Securing final regulatory approval for the farm down of our Namibian portfolio to BP is a significant milestone for Eco and brings us towards completing this landmark transaction.
“We are grateful to Her Excellency the President of the Republic of Namibia and the Namibian authorities, particularly the Ministry of Industries, Mines and Energy and the Upstream Petroleum Unit, for their efficient, professional and collaborative approach, which enabled the approval process to progress within the anticipated timeframe. We also thank BP, NAMCOR and our local partners for their continued cooperation and support throughout the process.
“With final regulatory approval now secured, we will complete the remaining closing formalities as swiftly as possible and look forward to moving full steam ahead with BP, NAMCOR and our local partners into the next phase of exploration across these highly prospective Walvis Basin licences.
“With our significant South Africa and Namibia transactions now successfully progressed, our focus turns to delivering the remaining key milestones across the portfolio, including finalising our PSA negotiations in Guyana and completing the JHI acquisition announced earlier this year.”
Further good news today from Eco Atlantic as they announce regulatory approval for the farm-down of the Namibian portfolio to BP, ‘a significant milestone for Eco’ indeed and it brings the company closer to completing the ‘landmark’ transaction.
As always Eco are not letting the grass grow under their feet and across the portfolio their is much already underway this year already. But with the promise of delivery of the remaining milestones in both Guyana, where they are finalising the PSA negotiations, and of course completing the JHI acquisition, shareholders can see that Eco is delivering across the board.
Given what I have written above I can see continued significant progress at Eco and there is much more in the pipeline. Whilst the shares have drifted back a little recently this only makes for an opportunity to add to holdings. A key member of the Bucket List, my belief in Eco for a long time remains and at 41p and with my target price of 150p this is an opportunity to share in some of the best post codes in the energy industry at the moment.
Genel Energy
On 2 July 2026, the board of directors of each of Genel Energy No.9 Limited (Bidco) and the Company announced that they had reached agreement on the terms of a recommended acquisition by Bidco of the entire issued and to be issued share capital of the Company (the Genel Offer). Following the announcement of a competing offer for the Company by DNO Bidco AS on 1 September 2026 (as revised on 17 September 2026) (the DNO Offer), Genel approached the Company with an increased proposal and on 25 September 2026, an announcement was made regarding an increased offer from Bidco to acquire the entire issued and to be issued share capital of the Company (the Increased Genel Offer) which has been recommended by the Capricorn Board. On 28 September 2026, DNO ASA and DNO Bidco AS released an announcement stating that the terms of the DNO Offer were final and would not be increased. DNO also confirmed that it would not elect to implement its offer by means of a contractual offer.
Capitalised terms used and not defined in this document have the meanings given to them in the scheme document published by the Company in connection with the Genel Offer on 21 July 2026 (the Scheme Document).
Update on Court Meeting and General Meeting
The resolutions proposed at the Court Meeting and General Meeting held on 18 August 2026 to approve the Genel Offer received the support of in excess of 99 per cent. of the Capricorn Shares voted (whether in person or by proxy).
The Company confirms that it is not required to convene a further Court Meeting or General Meeting in relation to the Increased Genel Offer. Further updates in relation to the timetable for the Acquisition will be provided in due course, including by way of a supplementary letter to Capricorn Shareholders.
Update on Genel and Bidco Regulatory Conditions
As previously announced by Genel and Bidco, the Egyptian Merger Condition has been satisfied, leaving the Egyptian Condition as the only outstanding regulatory condition. Significant progress has already been made towards satisfying the Egyptian Condition and Capricorn (in co-operation with Genel and Bidco) continues to engage in constructive discussions with the Egyptian Government. In light of this positive engagement, Genel and Bidco continue to expect that the Egyptian Condition will be satisfied in such time as to enable the Scheme to become Effective during the fourth quarter of 2026.
This looks to be a highly satisfactory update, it confirms that DNO are not making a contractual offer and therefore Genel don’t need to convene any further Court or General Meetings and so the Egyptian Condition is the only outstanding regulatory action needed.
The company now expect that to be satisfied in time for the Scheme to become effective ‘during the fourth quarter of 2026’.
And finally…
This is a very big weekend of sport across the globe with F1, top horse-racing in Paris, rugby and some rubbish footy.
The best is undoubtedly the racing at Longchamp where there is a great card tomorrow with 3 Group 2’s and 2 Group 1’s whilst on Sunday there are 6 Group 1’s with obviously the Arc De Triomphe being one of the best races in the year.
The F1 circus has the Bahrain GP which owing to the Gulf war was postponed in March and is being held this weekend at the Sepang IC in Kuala Lumpur. Bad times though, quali is at 0900 tomorrow and the race is at 0800 on Sunday.
Rugby Union continues with Bath v the Chiefs tonight and tomorrow the Saints are at the Bears, the Cherry Whites host the Quins, the Tigers go to the Red Bulls and on Sunday Sarries host Sale.
So as for footy the Nations League goes on and on, tonight Ukraine take on Northern Ireland and tomorrow Croatia host England B at 17:00 and Scotland are away to North Macedonia at 19:45, I wonder if the new manager might get his first goal..Sunday sees Wales hosting Denmark at 19:45.
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