WTI (Mar) $59.36 -$1.26, Brent (Mar) $64.06 -$1.19, Diff -$4.70 +7c.
USNG (Feb) $5.05 +16.5c, UKNG (Feb) 98.04p -4.46p, TTF (Feb) €38.14 -€0.74.
Oil price
Oil has rallied sharply today and has quite rightly disregarded the rubbish that the totally reputationally bankrupt IEA has peddled again, I have consistently said that why countries pay huge fees to this lot is a mystery.
Actually it’s natural gas prices that remain at the centre of markets, at over $5 it has jumped on the back of the weather forecast. That has forecast a massive cold snap, Winter Storm Fern, as it is named is scheduled to hit at the weekend from Albuquerque to Boston and taking in New Mexico, Texas and Louisiana and 30 states en route.
Set to affect some 200m people it will halt all travel, and snow of 30 inches is forecast but particularly in Texas where they dont expect it, the freeze that follows it will close gas pipelines and halt midstream and downstream activities. After it thaws it will all flood if history is reliable…
The EIA inventory stats, a day late were worse than expected, a build of 3.602m barrels of crude was higher than the 1.1m guessed at by the teenage scribblers as was the build in gasoline of 5.977m against a whisper of +1.7m
Diversified Energy Company
Diversified has mandated DNB Carnegie, a part of DNB Bank ASA, as Manager and Bookrunner to arrange fixed income investor meetings commencing today, 23 January 2026. A tap issue of minimum USD 100 million of the outstanding senior secured bonds issued by the Company’s subsidiary Diversified Gas & Oil Corporation due April 2029 may follow, subject to inter alia market conditions.
The Company intends to use the net proceeds from the Contemplated Bond Tap Issue, if issued, for general corporate purposes.
The Contemplated Bond Tap Issue, if issued, will be offered in the United States or its territories only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “U.S. Securities Act”). The Contemplated Bond Tap Issue, if issued, will not be registered under the U.S. Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This announcement is not for publication or distribution in, directly or indirectly, Australia, Canada, Japan, Hong Kong, South Africa or any other jurisdiction in which such release, publication or distribution would be unlawful, and it does not constitute an offer or invitation to subscribe for or purchase any securities in such countries or in any other jurisdiction where to do so might constitute a violation of the local securities laws or regulations of such jurisdiction. Copies of this document may not be sent to jurisdictions, or distributed in or sent from jurisdictions, in which this is barred or prohibited by law.
DEC are launching a bond tap issue for a minimum of $100m on the current April 2029 bond and is starting a roadshow today. The issue is for ‘general corporate purposes’ and will strengthen the balance sheet and seems like a pretty wise move in order for the company to continue with its successful growth strategy.
Deltic Energy
On 30 June 2025, the boards of Viaro Bidco and Deltic announced that they had reached agreement on the terms of a recommended cash offer for the entire issued and to be issued ordinary share capital of Deltic, to be implemented by way of a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006 which was approved by Deltic shareholders on 28 August 2025.
Completion of the Acquisition remains subject to outstanding conditions, which include, inter alia, the consent of the North Sea Transition Authority (the “NSTA”) to a change in control of the North Sea exploration licences held by Deltic. The NSTA is the UK regulator focused, among other areas, on oil and gas exploration and production activities in the UK’s North Sea.
On 18 December 2025, Deltic announced that it had been informed that Viaro Bidco had requested, and the NSTA had agreed to, an extension to the date by which the NSTA requires further representations from Viaro Bidco in order to reach a definitive conclusion in relation to concerns it has which will affect whether it will grant the proposed change of control of the licences held by Deltic and that the NSTA had agreed that this information should be provided to it by 30 January 2026. Deltic has since been informed that Viaro Bidco has requested, and the NSTA has agreed to, a further extension to the date for providing these representations until 13 February 2026.
A further extension and probably a right pain for those concerned but the bid situation will rumble on and we all wait…
Eco (Atlantic) Oil & Gas
Eco has announced it has entered into binding agreements with Israeli based institutional investors to subscribe for new common shares in the capital of the Company.
Pursuant to the non-brokered Private Placement, the Company expects to raise aggregate gross proceeds of US$10 million (approximately £7.4 million, CAD $13.8 million) through the issue of 26,909,091 new Common Shares at an issue price of 27.5 pence (CAD 0.51) per share, being the closing price of the Company’s Common Shares on AIM on 22 January 2026.
In addition, the Company will issue one warrant for each Subscription Share. Each Warrant will entitle the holder to subscribe for one new Common Share at an exercise price of 40 pence (CAD 0.74) per share and will be exercisable for a period of three years from the date of issue.
The Subscription Shares will, when issued, rank pari passu in all respects with the existing Common Shares, including, without limitation, the right to receive dividends and other distributions declared, made or paid after the date of issue.
The Subscription Shares, when issued, will represent approximately 8.54 per cent. of the existing issued share capital of the Company (on a non-diluted basis) and 7.86 per cent. of the Company’s issued share capital as enlarged by the Subscription (on a non-diluted basis).
Details of the Subscription
The Subscription is conditional upon, inter alia, AIM Admission becoming effective, the subscription agreement not being terminated in accordance with its terms and receipt of money pursuant to the Subscription. Closing of the Subscription is also subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals, including the approval of the TSX Venture Exchange.
Gil Holzman, President & Chief Executive Officer of Eco Atlantic, commented:
“We are delighted to welcome a number of leading Israeli institutional investors to our share register through this US$10 million direct subscription. Their participation and long term commitment represents a strong endorsement of the quality of our Atlantic Margin portfolio, our exploration and value-creation strategy, and our disciplined, capital-efficient approach.
This funding strengthens our financial position and provides us with the flexibility to accelerate key technical and corporate work programmes across our licences in Guyana, Namibia and South Africa throughout 2026 while maintaining a strong balance sheet and preserving significant upside for shareholders.”
This is a very smart raise indeed, highly savvy local Israeli investors have bought into Eco at a nil discount at 27.5p in a non-brokered deal with no fees showing that these local investors really know their stuff.
Bear in mind that this raise comes after serious outperformance from Eco recently, the shares are up 30% on 1 month and have risen a stunning 224% over 6 months and with the 1:1 warrants priced at 40p who says that won’t come sooner rather than later…
Eco are of course flying high, at long last I would say, having recently negotiated a strategic partnership with industry giant Navitas who have the option to farm-in to Guyana and South African assets and have also become partners in the Falklands basin.
Long time a favourite, Eco is at last living up to my billing, justifying Bucket List inclusion and despite that recent performance will undoubtedly remain there in the upcoming update. Once the farm-in details are concluded, and this raise can only strengthen CEO Gil Holzman’s hand in negotiations, I think that a target price will please investors. The Eco story has only just begun, agreed some of us went early but now is not too late…
Use of Proceeds
The net proceeds of the Subscription will be used for:
· US$5.0 million on planned Geological and Geophysical work;
· US$2.5 million on identifying and pursuing potential new ventures; and
· US$2.5 million for general & administrative purposes.
Afentra
Afentra yesterday announced that its Chief Operating Officer, Ian Cloke, will present at the Pareto Energy Conference in London today, 22 January 2026.
The presentation, available on the Company’s website https://wp-afentra-2025.s3.eu-west-2.amazonaws.com/media/2026/01/2026.01.-22-AET-Pareto-Energy-Conf-London.pdf, provides an overview of Afentra’s near and medium-term growth potential from both offshore and onshore Angola, building on the recently announced 400% increase in 2C contingent resources.
Highlights from the presentation include:
– Overview of Afentra’s growth strategy across offshore and onshore Angola, focused on scalable, infrastructure-led development opportunities across its portfolio
– Details of the potential 2026-2027 infill drilling and heavy workover programme across the producing Block 3/05 fields, with planning underway for up to two wells (Impala-2 and Pacassa SW-1) and three workovers in the Palanca field. These activities could together provide:
o Production uplift of up to 12,500 bopd gross (Net: 3,750 bopd)
o Reserves and resources upside exposure of up to 120 mmbbo gross (Net: ~36 mmbbo)
o Capex for the activities is expected to be ~ $115-130million gross (Net: $34-39 million)
– Update on the plans to “fast-track” the operated development of Block 3/24 discoveries, leveraging existing infrastructure, with development studies targeting a Final Investment Decision in Q4 2026
– Outline of Afentra’s onshore Kwanza Basin portfolio, including early production opportunities and medium-term exploration upside.
The presentation highlights Afentra’s transition into its next phase of production and reserves growth focused on disciplined, value-driven well and development activities, underpinned by a growing pipeline of organic opportunities across its offshore and onshore assets.
I couldn’t afford to attend the Pareto conference and wasn’t invited but it is good to see favourite Afentra putting out a detailed presentation on the speech and giving important details of its 26/27 campaign which looks to be extremely impressive, as usual.
Afentra is a long term favourite with one of the best managements in the sector working on a fantastic portfolio in Angola which has so much upside. But the market has gone quiet on this diamond in the rough, the shares are off around 30% from 6m and 1 year peaks which is not justified but presents a fantastic buying opportunity.
A long time leader in the Bucket List I have no doubt that Afentra will stay there and with others catching up with my TP of 100p, held since November 2023, I may have to rise to the challenge and next time I see Paul McDade I will report back.
Prospex Energy
Prospex yesterday announced that Tarba Energía S.L. has signed a contract for the rental of a transformer at the El Romeral gas to power plant in Andalucía, Spain, enabling the plant to resume electricity generation and sales.
The transformer is to be delivered on site and installed before the end of January 2026. The rental transformer will be on contract until the delivery of the new electricity transformer which was ordered from a supplier in Spain last November. Tarba is in dialogue with that supplier on the progress of the new build.
Mark Routh, Prospex’s CEO, commented:
“The Company is pleased to have sourced a rental transformer for the El Romeral plant. The transformer, which has an almost unique voltage and power specification is expected to be installed this week allowing Tarba to resume the production of electricity before the end of January.
“We remain confident in the value and development potential of the El Romeral asset and are pleased that the permitting to drill five new natural gas wells is in its final stages.
“The El Romeral power plant can reach full capacity from production from just two of the proposed five new wells. Any extra gas from the remaining new wells or any future wells drilled on the concessions will support expansion plans at the power plant as well as the ability to supply natural gas directly to the gas grid. The El Romeral concessions have substantial development potential with more than 90 bcf of gas[1] now owned 100% by Prospex.
“We will continue to keep shareholders updated on the permitting process. Since we are now in the final stage of receiving the permits to drill these five wells, we have started the process of optimising the funding of the wells by seeking potential debt funding and farm-in partners.”
After the palaver with regard to the operations at El Romero, which have been going on since last summer after a transformer failure suspended the facility it looks like at long last someone has done something about it.
The order for the new transformer, whilst placed a long time ago will mean that it won’t be ready for another six months so at long last a rental substitute has been sourced. It will be delivered soon and hopefully installed by the end of this month with generation and thus sales to follow.
Hopefully Tom Reynolds has nearly completed his catch up on this ‘train set’ and with momentum on his side and his expertise in the sector, he will take little time in getting up to speed, Monday week can’t come soon enough…
Predator Oil & Gas
Predator yesterday announced that drilling operations under the Master Services Agreement with NABI Construction commenced in the Bonasse field on 20 January 2026 with the first well in a multi-well programme, BON-18 (previously designated TPD-CD1).
BON-18 is a redrill of the legacy production well BON-2, which has damaged casing. This is a deeper well to approximately 1,800 feet which is expected to take two weeks to drill on current pre-drill forecasting. The primary objectives are two zones from which good legacy production was achieved.
On completion of BON-18 drilling operations and the tie in of new production the NABI drilling rig moves on to the exploratory well BON-19. This BON-19 well will be the proof of concept for the very shallow BON-14 (“Saffron”) trend. The Company anticipates that between 5 and 7 shallow development wells will be drilled following this trend such that upon completion of this phase of drilling operations in the Bonasse field between 200 and 300 bopd of new production will be added through existing facilities and oil sales arrangements.
In the Goudron field a 6-8 Heavy Workover Program shall commence by next month, with the expectation of yielding an additional 100 bopd of new production through existing facilities and oil sales arrangements.
This additional production shall be supplemental to, and contemporaneous with, with the main Snowcap-3 appraisal and development well programme in the Cory Moruga Block forecast to commence in Q2 2026.
Commencement of BON-18 drilling operations
Paul Griffiths, Chief Executive Officer of Predator Oil & Gas Holdings Plc commented:
“We are entering an intense period of operational activity over the next 3 months in Trinidad which at the end of which could potentially double our current production output.
We have chosen the option to fund, operate and drill the Snowcap-3 appraisal/development well on a 100% basis as our wholly owned subsidiary (T-Rex Resources) is the exclusive Operator of the Cory Moruga block, where we shall demonstrate our in-house operational capabilities to ensure we are well-placed and qualified to acquire any new attractive opportunities that may or may not become available long-term.”
Predator are, at least for now, placing their chips on the Trinidad acreage and with 100% and operatorship of the Snowcap-3 appraisal well be able to capitalise on the prospect. The raise has seen the shares fall by 30% on the week so this will hopefully please recent investors who participated…
And finally…
It’s another big weekend for sport, activity across all sports at home and abroad,
In the Prem tomorrow the Hammers host the Black Cats, Spurs go to Burnley, the Cottagers entertain the Seagulls, the Noisy Neighbours host Wolves and Liverpool visit the Cherries. On Sunday the Bees host Forest, Chelsea go the the Eagles, the Villa visit St James’ Park and the Gooners host the Red Devils.
We are one match away from the Superbowl on 8th Feb in San Francisco and this weekend the Patriots are at the Broncos and the Rams are at the Seahawks, if you had those four on your pre-season card well done!
England’s ODI team are in Sri Lanka where tomorrow at 0900 hrs they meet up for the 2nd of three games and England really need the win for important points, imagine having to qualify for the next World Cup….
In rugby after the drama of the Champions Cup we return to the Prem with a full fixture list. Ahead of the 6 Nations England have named their squad which has a few surprises, partly through injury and partly as those prats at the RFU won’t pick players who choose to play abroad, any other sports where you tie your hands behind your back?
Racing sees Trials weekend at Cheltenham, a few guiders to the big races in March could be found.
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. The writer may or may not hold investments in the companies under discussion.
