WTI (Mar) $62.33 -56c*, Brent (Apr) $67.42 -$1.23, Diff -$5.09*.
USNG (Mar) $3.03 -21c*, UKNG (Mar) 71.90p +1.2p, TTF (Mar) €29.40 -€0.965.
*Denotes adjustment post Presidents Day holiday.
Oil price
With US markets shut on Monday the adjustment yesterday slightly flattered the price which was actually a bit weak as the fact that the talks in Geneva between the USA and Iran were apparently ‘an understanding on general guiding principle’ according to the Iranian Foreign Minister.
However I’m not sure that the USA quite saw it that way, what the Ayatollah said was much more inflammatory and the wargames that Iran conducted yesterday, by closing their side of the Straits of Hormuz and firing missiles at targets near the US force were, in my view poking the bear.
This morning Iran has announced, according to CNBC, that they will do live military drills jointly with Russia tomorrow in the Gulf and the Indian Ocean, hardly an unprovocative action I would say…
Petro Matad
Petro Matad has provided the following operational update.
Key updates
· All production revenue withheld by PetroChina during 2025 has been paid – totaling $1.03 million.
· The wording of the contract to cover the 2026 Oil Sales Agreement is being finalised.
· Block XX production continues in line with expectations.
· Farm-out discussions with one counterparty are nearing completion.
· The 200MW Hybrid renewable energy project is progressing well.
Oil Sales Agreement
Discussions with PetroChina on the Oil Sales Agreement and its withholding of revenue from Petro Matad’s 2025 production invoices have been completed and PetroChina has paid $1.03 million representing all of the revenue previously withheld. Wording is now being finalised for the 2026 Oil Sales Agreement incorporating the revisions required by both parties based on the lessons learned from the 2025 contract.
Block XX production
Heron-1 continues to produce in line with the Company’s forecasts and averaged 161 barrels of oil per day (bopd) through 2025 which was ahead of the Company’s initial expectations.
As previously reported, Gazelle-1 started to produce formation water along with oil, and rate tests were conducted to optimise oil production and minimise water encroachment. These tests determined that water production was controlled and stabilised at c.25% when the pump was set to deliver total fluid rates of up to 180 barrels per day. At this pump setting, Gazelle-1 is now producing c. 135bopd with the reservoir still showing good deliverability.
Farm-out
Discussions with one potential farm-in partner for Block XX are nearing completion and we are pushing to complete negotiations in short order. In parallel we are continuing discussions with other potentially interested farm-in partners for Block XX and for Block VII.
SunSteppe Renewable Energy
200MW hybrid wind, solar, and battery energy storage project
SunSteppe Renewable Energy (SRE) continues to advance its portfolio of large-scale renewable energy projects with a current focus on its 200MW hybrid wind, solar, and battery energy storage project in Tuv Province. This project is under an exclusive development agreement with a Mongolian industrial group that recently commissioned the first phase of a new-build 600MW privately financed coal-fired power plant and is eager to develop a substantial renewable energy project in parallel.
SRE has completed the key feasibility study for the project and has submitted it for approval to the Ministry of Energy’s Science and Technology Committee. The environmental and grid connection studies have also been completed with the latter confirming the technical feasibility of this project. The 120m wind mast installed in December is performing well and has collected 2 months of high quality data so far.
The project has been discussed with potential international partners and financiers, with a number showing interest, reflecting the strength of the existing power purchase agreement framework and the project’s advanced development status. Subject to regulatory approvals, SRE is targeting Ready-to-Build status on this project in 2026.
24MW Green Hydrogen
On Mongolia’s first green hydrogen initiative at the Oyu Tolgoi copper mine, near-term decision-making has progressed more slowly than hoped but the project retains strong institutional support. SRE continues to work closely with Oyu Tolgoi to progress the project and with government stakeholders. The Japanese government grant framework remains in place, with flexibility for extension sought and secured. In parallel, SRE is actively evaluating the deployment of green hydrogen for mining transport applications and has engaged with other major mining groups in Mongolia.
50MW Battery Energy Storage System
For its utility-scale Battery Energy Storage System (BESS) development at Choir, SRE’s consortium is ready and well placed to participate in the government auction for the project. While awaiting the government’s announcement of the auction timeline and terms, SRE is also assessing options to integrate large scale BESS with renewable and industrial power assets already in operation in country.
Energy Export
SRE’s CEO remains actively involved in an advisory capacity on government-to-government discussions between Mongolia and China on cross-border energy cooperation. Meanwhile, a preliminary feasibility study on energy export has been completed by China’s State Power Investment Corporation (SPIC) in collaboration with SRE and additional technical and commercial work has been undertaken jointly with ACWA Power of Saudi Arabia. These studies have confirmed Mongolia’s strong renewable energy resource potential and competitiveness as a clean-energy exporter and SRE has identified significant areas of suitable land for export-scale renewable development with land lease approvals progressing.
Mike Buck, CEO of Petro Matad, said:
“We are very pleased to have been paid all the revenue from our 2025 production invoices. We are working directly with the PetroChina Finance Department to finalise the wording of the 2026 Oil Sales Agreement.
We are encouraged by the progress SRE is making on the 200MW Hybrid project which we think has a good chance of reaching Ready-to-Build status during the year. Our portfolio of projects is well-positioned in Mongolia’s emerging renewables, green hydrogen and battery storage sectors, while ongoing government discussions are underlining the country’s exceptional potential as a competitive clean-energy exporter in the region. “
Quite a few ticks in boxes today for Petro Matad headed by the fact that PetroChina has settled its overdue bill of $1.03m. Another smaller tick is the GSA being ‘nearly finalised’ hopefully this not yet being signed up won’t mean delays in future payments.
With XX production being ‘in line with expectations’ at 161 b/d is another tick although overall levels of production is quite modest and the farm-out discussions with a counter party are ‘nearing completion’ which must be tick worthy otherwise they wouldn’t be allowed to say it…
I have to admit that I don’t quite get the renewables project yet, for a discussion with Mike Buck when he is next in London but it does seem like quite a big ‘portfolio of projects’ as they call it and it looks potentially a bigger play than the conventional hydrocarbon one.
The market likes all this, the shares are up 17% today and nearly 50% over six months so the ticks are clearly good enough, all being well Matad may be turning the corner…
Beacon Energy
Beacon has announced that, further to the Share Purchase Agreement with Reabold Resources plc, the Company has today published an admission document dated 17 February 2026, incorporating a formal Notice of Extraordinary General Meeting, in relation to, inter alia, the proposed acquisition of a significant strategic investment in LNEnergy Limited, and the associated conditional issue of 97,191,443 new Ordinary Shares at a price of 3.9 pence to raise, in aggregate, gross proceeds of £3.79 million.
The proposed Acquisition constitutes a reverse takeover pursuant to the AIM Rules and is therefore subject, inter alia, to the approval of Shareholders at the Extraordinary General Meeting, notice of which is set out at the end of the Admission Document and which will be held at 9.00 a.m. London time on 5 March 2026 at the offices of FIM Capital Limited, 55 Athol Street, Douglas, Isle of Man, IM1 1LA.
Restoration of Trading
The Company’s Existing Ordinary Shares were suspended from trading on AIM on 27 June 2025 pending the completion of the Acquisition, classified as a reverse takeover under the AIM Rules. Application will be made to the London Stock Exchange in due course for the Enlarged Share Capital to be admitted to trading on AIM following completion of the Acquisition. Admission of the Enlarged Share Capital to trading on AIM is expected to take place on or around 6 March 2026, subject to the passing of the Resolutions and the satisfaction of all other conditions. The expected timetable of events can be found at the end of this announcement.
Further comprehensive information on the LNEnergy assets, the Acquisition, the Fundraise and the Resolutions can be found in the Company’s Admission Document (and the Notice of Extraordinary General Meeting set out therein), is available on the Company’s website at www.beaconenergyplc.com and which has been posted to Shareholders.
Stewart MacDonald, Chief Executive Officer of Beacon Energy, commented:
“The completion of a strategic investment in LNEnergy will be transformative for Beacon, providing the Company with proven reserves, a pathway to production and an exciting pipeline of value catalysts over the next 18 months. We look forward to updating Shareholders and the market on our progress in due course.”
For Beacon this looks like a pretty smart deal, as one who likes the LNEnergy play having watched it closely for a long time, I think that when the shares return on March 6th investors should be rewarded by a value more than might have been given historic ‘misfortunes’….
Reabold Resources
Reabold has noted that Beacon Energy PLC has today published the Admission Document in relation to the Proposed Transaction including the significant strategic investment in LNEnergy Limited, announced on 7 October 2025, to raise gross proceeds of at least, in aggregate, approximately £3.75m.
The full Beacon announcement can be viewed here: https://www.londonstockexchange.com/news-article/BCE/update-re-proposed-reverse-takeover-transaction/17465518
As mentioned above I like the way that Reabold has played the LNEnergy project and invested patiently and wisely, having Beacon involved can only be a plus and both companies should be well rewarded, Reabold particularly for being the first mover.
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.
