WTI (Oct) $87.06 +13c, Brent (Oct) $94.39 +61c, Diff -$7.33 +38c.

USNG (Sep) $2.77 +4c, UKNG (Sep) 162.05p -0.53p, TTF (Oct) €65.83 -€0.225.

Oil price

Oil is off a couple of bucks today which after last week’s gains of $4.66 for WTI and $5.87 for Brent have pared prices back a bit. This is because it is D-Day, when Scott Bessent reveals ‘the end game’ of Donald Trump’s new economic war against Iran. The price fall is because markets think that military action is now off the table and doubt quite how effective the US action might be, a press conference is scheduled for this evening. 

For Iran they have just reiterated that they will ensure that no oil flows through either the Strait of Hormuz and by proxy the Red Sea with the Houthi rebels. Actually there is virtually nothing getting past either them or the Sherman’s with reports saying that transits through have been in single figures every day in the last week through Hormuz. 

Zephyr Energy

Zephyr has provide an update on current activity on its project in the Paradox Basin, Utah, U.S.

Highlights:

·    Zephyr’s board of directors has elected to fund additional engineering and well work to prepare for a higher production rate during the initial phase of the project’s development.

o  This is supported by the Board’s confidence that the necessary regulatory approvals needed for up-rating the operating pressures of Enbridge-operated 16-inch pipeline will be obtained; and

o  Zephyr’s additional work is progressing in parallel with the Enbridge-led regulatory approval process, and will be funded out of the Company’s existing cash resources.

·    Engineering work is underway to design a modular gas processing system with up to 15 million standard cubic feet of gas per day (mmscf/d) of production capacity.  Gas will be initially supplied by the State 36-2 LNW-CC-R well (the “State 36-2R”) and the Federal 28-11 well.

o  Expense related to “well work” (or “workovers”) involves preparations to allow for existing wells to return to production in a timely manner.

·    Zephyr has also high-graded new well locations for follow-on drilling. Locations and permitting details will be announced as and when well planning efforts are finalised. Plans for the tie in of the State 16-2 well will be detailed after first gas is achieved.

·    Enbridge’s operation to excavate and visually inspect four short sections of the existing 16-inch pipeline is ongoing, with no concerns or safety issues noted to date.

Colin Harrington, Zephyr’s Chief Executive, said: 

“The successful completion of the Enbridge in-line inspection provided the Board with confidence that the up-rating of operating pressures required for the pipeline to accept Zephyr’s increasing gas volumes will not result in any further operational hurdles.

“The Board has also gained confidence that the Enbridge-led regulatory approval process will conclude in a satisfactory manner.  The Board has therefore approved an allocation of funding for additional engineering (related to gas processing) and well work operations, with a goal to increase initial processing capacity up to 15 mmscf/d – a significant increase over earlier base case estimates of 5 mmscf/d. This work will be fully funded from the Company’s existing cash resources.

“Initial gas volumes would be provided by the State 36-2R and the Federal 28-11 wells, with additional production from new and existing wells to follow as cash flow, planning and regulatory approvals allow.

“Our aim is to progress operational work in parallel with the Enbridge-led regulatory approval process, in order to expedite the timing for first gas and commercial production.  While the timeline for Enbridge’s approval process remains pending, Zephyr’s goal is to be prepared to deliver first gas and commercial production as soon as possible once approvals are secured.

“The Company also continues to progress both the potential farm-out and the proposed US$15 million commodity purchase agreement (as announced on 27 July 2026). Further updates will be provided in due course.”

Another positive update from the Paradox basin for Zephyr shareholders, the board are funding additional engineering and well work ‘to prepare for a higher production rate during the initial phase of the project’s development’.

This assumes that regulatory approvals will be obtained and confidence must be high as work is progressing in parallel with the approval process and this funding is coming from existing cash reserves. ‘Initial gas volumes would be provided by the State 36-2R and the Federal 28-11 wells, with additional production from new and existing wells to follow as cash flow, planning and regulatory approvals allow’. 

Overall I like the confidence in the up-rating of the new wells and confidence in the approval process and with the goal is to increase initial processing capacity up to 15 mmscf/d – a significant increase over earlier base case estimates of 5 mmscf/d –  the upside is substantial. 

So, the company is kicking on with scaling up the Paradox Basin development and the Enbridge work which has contributed to this expansion, will, all being well, enhance the metrics of the project. With the company continuing to ‘progress both the potential farm-out and the proposed $15m commodity purchase agreement’ as previously announced I remain highly confident that my 20p target price and inclusion in the Bucket List is fully intact. 

Tower Resources

Tower has provided an update on the approval process in respect of the farm-out transactions with Prime Global Energies Limited in Cameroon and Namibia, announced on 10 January 2025.

Tower is also pleased to announce a subscription of 2,363,636,363 ordinary shares of 0.001p each to raise £325,000 at a price of 0.01375p per Subscription Share, being at a discount of approximately 8% to the closing bid price of the Company’s shares on 21 August 2026.

License and Farmout Approval Update

In Namibia, all parties have now executed the deeds of assignment in respect of the PEL 96 farm-out to Prime, except for the Minister of Mines, Industries and Energy (“MIME”). The original documents are currently with the Upstream Petroleum Unit (“UPU”), being checked before return to MIME for signature and stamping. This is a necessary formality and is not expected to take long. 

The Company’s partner Prime has waived the requirement for a formal completion meeting in London and has told the Company that it will remit the initial closing payment of approximately $625,000 as soon as it is satisfied that the deed of assignment has been executed and stamped by MIME. Further funds will follow after the submission of formal statements as provided for under the farm-out agreement. 

In Cameroon, as previously explained, the Company’s file containing the formal request of the Prime Minister for execution of its approvals, which Tower understands was already approved by the President while he was in Geneva last month, is now in the Office of the Presidency awaiting execution. The President himself returned to Yaounde yesterday, so the Company expects matters to continue to move forward in the near future.

Subscription

In these circumstances, the Board considers it prudent to raise a modest amount of additional working capital, since even if both farm-out agreements are completed in the course of this month or next month as we hope, the Company could still be waiting several more weeks for the substantial further funding that those agreements will provide us.

The Company has agreed to issue the broker, Axis Capital Markets Limited, warrants over 59,090,909 new ordinary shares for arranging the Subscription (“Broker Warrants”). The period of the Broker Warrants will be three years at a strike price of 0.0275p per share (representing a premium of 100% to the Subscription Price).

Share Capital following the Subscription

The Subscription Shares will rank pari passu with the Company’s existing shares. Application has been made for the Subscription Shares to be admitted to trading on AIM and It is expected that Admission of the Subscription Shares will become effective and that dealings will commence at 8.00 a.m. on or around 28 August 2026.

Following admission of the Subscription Shares, the Company’s enlarged issued share capital will comprise 45,163,962,786 Ordinary Shares of 0.001p each with voting rights in the Company. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in the interest in, the share capital of the Company under the FCA’s Disclosure and Transparency Rules.

Warrants and Options in Issue

Following the issue of the Broker Warrants, the total number of warrants in issue is 1,775,918,668, equating to 3.9% of the Company’s enlarged share capital assuming full exercise of all warrants, options and restricted shares.

Tower Resources Chairman & CEO, Jeremy Asher, commented:

“We are grateful to the team at Namibia’s UPU and MIME for continuing to follow up our documentation so that we can complete our farm-out to Prime as soon as possible. We are also delighted that the President has returned to Cameroon, and we are looking forward to developments there as the President institutes the reforms he proposed after last year’s elections.

“We are as eager as our shareholders to push forward with our work programmes on both PEL 96 and the Thali NJOM-3 well, and we remain confident of the outcomes. This small subscription allows us to continue with work in the meantime, and so to mitigate the impact of the time taken for completion. We will update investors when we have more concrete news in respect of each license.”

I’m not going to add much today, readers can just go back to each of my previous comments as Tower have made progress, albeit very slow progress in Namibia but I remain convinced that the prize is within its grasp and this raise enables them to continue to carry on working on their current projects. 

The help from Prime, and albeit slowly from UPU, has meant that approvals should be imminent and the documents will be with MIME soon for signature and stamping. As I have oft repeated, Tower shareholders have been a patient bunch, twas ever thus here and I do believe that they will be rewarded soon and not have to wait until heaven…

Rockhopper Exploration

Rockhopper has noted the update published this morning by the operator Navitas Petroleum LP, which holds its interests in the NFB through its indirect subsidiary Navitas Petroleum Development and Production Ltd, on Sea Lion development progress.

Additional FPSO

As previously disclosed in May this year, Navitas was investigating accelerating the development of subsequent phases of the Sea Lion development beyond phase 1 of the Northern Development Area (“NDA Phase 1”). Accordingly, Navitas (through a subsidiary) signed a Memorandum of Understanding (“MOU”) for an additional FPSO. Navitas estimates this could increase Sea Lion production capacity by a further 125,000 bopd (43,750 bopd net to Rockhopper) and accelerate subsequent production phases when compared to current plans.

Navitas has today provided an update that it has (through a subsidiary) exercised an option to acquire the second FPSO, named the OSX-1, and the completion of the acquisition is expected during the coming month. The aggregate cost of acquiring the OSX-1 (excluding the anticipated upgrade costs) is approximately US$125 million. Navitas will initially be the sole owner through an incorporated special purpose vehicle and will bear 100% of the related costs until Rockhopper funds its share. Rockhopper is currently in discussions with Navitas about how the OSX-1 will be formally incorporated into its existing Sea Lion joint venture agreements.

Whilst the development of the NDA Phase 1 remains on track for first oil in Q1 2028, the plan set out by Navitas is for the OSX-1 to be used to develop the resources in the Central Development Area (“CDA”) of the Sea Lion field, thereby accelerating production of these barrels. The CDA work programme is expected to include the drilling of 20 wells in CDA Phase 1 and 18 wells in CDA Phase 2, for a total of 38 wells. Navitas intends to submit the CDA Development Plan to the Falkland Islands Government for approval and to make a Final Investment Decision (“FID”) in respect thereof in the first half of 2028. Navitas is targeting production from the development of CDA Phase 1 by the end of 2030.

Navitas Updated Independent Reserves and Resource Report

Navitas has today also provided an updated reserves and resources report prepared on its behalf by Netherland, Sewell & Associates Inc (NSAI), which incorporates the accelerated development plan for the CDA following the purchase of the OSX-1 (the “Updated Navitas NSAI Report”).

As set out in Navitas’s announcement this morning, the Updated Navitas NSAI Report, which uses long term Brent crude oil price of $76/bbl, shows the discounted cash flow attributable to Navitas increase approximately 39% when compared to the previous Navitas NSAI Report dated February 2026.

Rockhopper anticipates publishing a new NSAI report net to its 35% shortly which the Board believes is likely to show a similar proportionate increase in its own post tax NPV10 from the current estimate of US$2.2bn.

The Updated Navitas 2026 NSAI Report will be made available on Navitas’ website shortly.

Falklands Exploration

Navitas is considering various options for exploration activity during the upcoming drilling campaign for the NDA Phase 1. This may include an oil exploration well in the licence covering the Sea Lion discovery area and may also include the deepening of a development well to target the Gwendoline exploration prospect.

Progress in Development of the NDA Phase 1 of Sea Lion

Navitas reports other progress on the Sea Lion NDA Phase 1 development as follows:

·      Development works in the Falkland Islands are progressing to plan and, at this stage, are focused on: (i) preparing the quay and the shore base that will serve the Project; (ii) constructing accommodation; and (iii) carrying out additional infrastructure works in preparation for the arrival of the drilling rig in the Falklands and commencement of drilling in early 2027.

•    The manufacture of the long-lead items including flexible flowlines, wellheads, and subsea Xmas trees is continuing. 

•    The Aoka Mizu FPSO has been disconnected from the field it previously served and is on route to a shipyard in Southeast Asia, with its arrival expected in early September 2026.

Rockhopper’s Intention to Undertake an Equity Capital Raising

The purchase of the OSX-1, as noted above, will be undertaken by an SPV 100% owned by Navitas LP. Navitas and Rockhopper are discussing the optimal arrangement for how the acquisition of the FPSO might be structured between the parties. However, while these talks are ongoing, it is clear Rockhopper requires funding to be in place in order to take-up its pro rata ownership of the vessel (35%) and meet any associated pre-FID costs.

The Company has received strong indications of interest from existing shareholders and potential new investors to support the Company in the acquisition of its pro rata share of the OSX-1 and to fully participate in the consequential accelerated development of the CDA. Accordingly, the Company is actively considering a placing of new ordinary shares to new and existing investors.

Following the updates to the AIM Rules for Companies announced earlier this month, the Company has decided to utilise a Capital Access Window. This is a voluntary pause to the trading of a company’s shares to make it easier for companies to reach a broader range of investors during a fundraise. From 7:45 a.m. BST today, the Company’s shares will enter a Capital Access Window until a further announcement is made detailing the results of the Placing.

In addition to the Placing, the Company is actively considering an open offer to all existing shareholders (the “Open Offer” and, together with the Placing, the “Capital Raising”), providing them with the opportunity to invest in the Company on the same economic terms as those investing in the Placing.

This announcement does not constitute an offer of securities in any jurisdiction. The Capital Raising, if implemented, will be the subject of further announcements, including the full terms and conditions of the Placing and Open Offer, respectively. Further announcements will be made as and when appropriate.

Samuel Moody, Chief Executive Officer of Rockhopper, commented:

“Today’s update from Navitas reflects its continued commitment to developing and accelerating Sea Lion, and the consequential significant enhancement of the Project’s value. We are working alongside Navitas to ascertain the optimal structure for Sea Lion’s participation in OSX-1 and are planning a Capital Raising to secure the required financing. We have already received positive indications of support for this financing and we look forward to updating the market in due course as appropriate.” 

This is more good news for Rockhopper as confidence from Navitas has meant that they want to power ahead with a second FPSO for Sea Lion in order to develop the CDA in which they will drill up to 38 wells.

This adds to the programme at the NDA and will bring another 125/- b/d and more importantly more quickly. The CPR that Navitas has commissioned reflects this optimism with a 39% increase in the DCF attributable to to them compared to the previous report. RKH have also commissioned their own report from NSAI which will form the basis for its share.

Inevitably this means that Rockhopper will have to raise equity for their share of the project and we are assured that this is not a problem, they say that they have received ‘strong indications of interest from both existing and new shareholders to support its share’. 

The raise through all the usual means is being arranged and in order to obey the rules they have announced a ‘Capital Access Window’ to encompass the raise and any requirements under the rules. It seems that quite rightly the shareholders are keen to back the management and for a good reason, some of them have been there for a long time and are delighted that Sea Lion is proving to be so big and more importantly, so imminent. 

And finally…

English cricket, or should I say cricketers, are rarely out of the papers, earlier in the week they were on the back pages after beating Pakistan at Headingly but yesterday Brydon Carse was on the front pages after being led away from a nightclub in Derby in handcuffs by police…He has been dropped from the squad for Thursday’s Lords test, no surprise there then…

Lando won the last ever Dutch GP at Zandvoort yesterday with Kimi and George following behind.

And the All Blacks beat the Springboks 16-33 on Saturday, they meet again next Saturday in Cape Town.

Footy is back although I am a believer in the view that you shouldn’t have it on during the cricket season. At the weekend there were wins for the Gooners, the Tigers, the Toffees, the Tractor Boys, Leeds, the Bees, the Seagulls and the Noisy Neighbours. The Magpies and Liverpool drew and the Cottagers host Chelsea tonight.