WTI (Mar) $62.89 +5c, Brent (Apr) $67.75 +23c, Diff -$4.86 +18c.
USNG (Mar) $3.24 +2c, UKNG (Mar) 74.0p -0.71p, TTF (Mar) €30.73 -€1.67.
Oil price
Today is Washington’s birthday so it’s the Presidents Day national holiday in the USA. Most markets are shut but crude is about 30 cents higher in thin trade. It might have been much lower as Iran has suggested that it is amenable to a deal and with talks starting again tomorrow in Geneva there are grounds for optimism.
The Russia/Ukraine talks are scheduled to restart soon and whilst that won’t change sanctions much, at least right now, overnight the bears are enjoying the chance to shine. Oil was down again last week but not much, despite the stock builds the geopolitics still worry the shorters.
Union Jack Oil
Union Jack notes today’s announcement from Rathlin Energy U.K. Limited regarding the West Newton gas development project, located within PEDL183, onshore UK in East Yorkshire.
Rathlin, operator of the licence, has been informed by the Environment Agency that it has issued Rathlin the variation to the permit for the West Newton ‘A’ Well Site to include a reservoir stimulation in the WNA-2 well, subject to certain pre-operational conditions. The recompletion works are designed to overcome well bore damage that was sustained during earlier drilling operations.
The Company believes that the planned recompletion of the WNA-2 well is a low-cost and low risk means of further derisking the sub-surface element of the West Newton project and gathering data to optimise future production wells.
This key regulatory milestone clears a major hurdle in the path toward development and eventual production at West Newton, strengthening Rathlin’s, and consequently Union Jack’s, ability to advance its UK onshore assets within a responsible environmental and social governance framework.
The Company is confident that West Newton will prove to be an important strategic asset to the UK as the country looks to secure domestic energy supply and affordable energy.
Union Jack holds a 16.665% interest in PEDL183.
This is good news for Union Jack as it is for its partners who will soon be able unlock the strategic value within West Newton for the good of the company and of course the country. UJO has plenty of good news on the way with its progress on Wressle and of course with its portfolio in the USA and I remain confident that it has a great deal of upside.
Reabold Resources
Reabold has confirmed the following update on the West Newton gas field, located within PEDL183, onshore UK in East Yorkshire.
England’s environmental regulator, the Environment Agency (“EA”), has issued Rathlin Energy (UK) Limited (“Rathlin”), operator of the Licence, the variation to the permit for the West Newton ‘A’ Well Site allowing for the recompletion works to be carried out at the West Newton A-2 (“WNA-2”) well subject to certain pre-operational conditions. This is a key regulatory milestone on the path toward development and eventual production of the West Newton gas field.
The Company believes that the planned recompletion of the WNA-2 well is a low risk and low cost activity that will further derisk the project and provide important information in optimising future production wells.
The Company is confident that West Newton will prove to be an important strategic asset to the UK as the country looks to secure domestic energy supply and affordable energy.
Reabold holds a c.69.9% economic interest in West Newton and PEDL 183 via its c.79.8% shareholding in Rathlin, which, in turn, has a 66.67% interest in PEDL 183. In addition, Reabold has a 16.665% direct licence interest in PEDL 183.
Rathlin’s full announcement can be viewed here: https://www.rathlin-energy.co.uk/latest-update/
Sachin Oza, Co-CEO of Reabold commented:
“We are delighted to announce this important regulatory milestone, which represents a major step forward in unlocking the full value of West Newton that we believe is a significant and strategic natural gas resource. The EA’s approval underscores the diligent and careful work undertaken for the planned recompletion works. We look forward to providing further updates as the project progresses toward development and production, which would see it contribute meaningfully to the UK’s domestic energy security.”
More good news for Reabold as West Newton moves a step closer to recompletion works by stimulating the well and getting past the previous drilling damage. This should enable decent gas flow and this should start to ‘unlock the full value of West Newton’ a strategic and significant UK natural gas resource.
Reabold has been a good performer and fully justified its insertion into the Bucket List last year, I’m sure that recent substantial outperformance will be maintained as the importance of West Newton to the company and the economy starts to kick in.
Zephyr Energy
I interviewed Colin Harrington, CEO of Zephyr Energy on Friday and we had the opportunity to catch up on what’s been going on at the Paradox as well as the rest of the portfolio. We talked about the timeline for Paradox, production, distribution and pricing.
I also asked about drilling and also potential for more acreage locally which gives immense upside over the longer term, the work done by Enbridge and others on the pipeline network is going to help and the liquids are a good mix with heavier crude elsewhere.
Obviously we talked about the non-operated portfolio and how it has funded the Paradox, we discussed gas contracts which must be imminent and also the situation with regard to partnership negotiations which are ongoing.
With comments about the partnership opportunities, the Salt Wash Helium and the overall funding situation I think that we covered a lot of ground. Zephyr is approaching the time when it is going to seriously repay the faith held in it by shareholders and the likes of myself who have championed this company with its fantastic portfolio and excellent management team. A Bucket List certainty and a high TP are surely ingredients for a rewarding investment.
Core Finance interview: Colin Harrington, CEO of Zephyr Energy
Buccaneer Energy
Buccaneer has announced the successful completion of an Organic Oil Recovery pilot project in its Pine Mills field in East Texas.
Highlights
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Pilot implemented in the Northern section of Pine Mills (Battery 3 area) |
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Treatment applied to one injector and two of four producing wells in mid-January 2026 |
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Production in the area increased by 100% after treatment |
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Average production in the Pilot area increased from 15 bopd to approximately 30 bopd during the post-treatment period and has continued at these levels |
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Water cut decreased from 80% to 0% in one of the treated wells |
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Cost of the program was modest and comparable to a routine field workover |
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Follow-up treatment of the remaining two producing wells in this area is being planned |
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The Pilot Project was implemented in the northern section of the Pine Mills field within the Battery 3 area. This is a section of the field where the Company recently returned the water injector to service during its 2-Phase workover program. The injector had been previously shut in for over two years.
OOR is a process that involves injecting a nutrient mixture into the reservoir to stimulate the growth of naturally occurring microorganisms. These microbes grow rapidly and alter their surface properties from hydrophilic (attracted to water) to hydrophobic (repelled by water). These property changes reduce the interfacial tension between the rock face and the reservoir oil, improving the mobility of residual oil within mature waterflood systems. One treated producer experienced a significant reduction in water cut immediately following treatment.
The Pilot Project involved treating the water injection well and two of the four producing wells in the Battery 3 area. Prior to treatment, production from the area averaged 15 bopd (Jan 1-15, 2026); after treatment, it averaged 30 bopd (Jan 29 – Feb 15, 2026), a 100% increase.
The Company will continue to evaluate production performance at the treated wells and more generally as it prepares for the next phase of field implementation.
Based on these encouraging early results, Buccaneer plans to treat the two remaining wells in the Battery 3 area as part of a March follow-up program. In parallel, Buccaneer is working with the service provider to expand the OOR program across the Pine Mills field during the second quarter of 2026.
Paul Welch, Buccaneer Energy’s Chief Executive Officer, said:
“We are very encouraged by the success of the Pilot Project where average production from the area treated increased 100% to 30 bopd. The initial results significantly exceeded our expectations. The process is well-suited to mature waterfloods, like Pine Mills, where the “easier oil” has been produced and a large amount of residual oil remains in place. Efficiently dislodging this residual oil has a significant impact on production rates. One of the treated producers in the Pilot went from an 80% water cut to a 0% water cut after treatment, a remarkable result.
Most importantly, the cost of this treatment is modest and comparable to a routine workover, meaning it can be applied without a material capital investment.
As highlighted in our recent reserve update, Pine Mills carries an NPV10 of approximately $9.6 million at $60 oil pricing. Our current market capitalisation is approximately £1.3 million. Our focus is on closing that gap through incremental production growth, improved recovery and disciplined execution. We see this program as a practical step toward converting underlying reserve value into cash flow and look forward to updating shareholders as we expand the initiative across the field.”
There is little doubt that this is fantastic technology and the percentages in terms of production increases are excellent and indeed highly rewarding, albeit on a very small scale. After all 100% of 15 barrels is still only 15 barrels but the fall in water cut is impressive and if this can be repeated across the portfolio then the upside could be substantial.
Despite all this the result is very impressive and with the company saying that it will roll it out on other projects, some even yet to be acquired, the future is promising. After all East Texas has many waterflood projects available and at very low cost but the company can’t afford to hang around if it wats to scale up.
I have been very positive about Buccaneer since Paul Welch took over and despite some slight problems he is without doubt doing the right things, this being the best of them. But Buccaneer needs scale and shareholders will appreciate that, watch this space….
Hunting
Hunting today notes the stock exchange announcement issued by Buccaneer Energy PLC, which details the pilot test results at its Pine Mills field in East Texas, using Hunting’s Organic Oil Recovery enhanced oil recovery solution.
As noted in the announcement, production within the oil wells reported a 100% uplift, and in one well reduced the water cut to zero. Buccaneer Energy notes that the OOR technology will be rolled out across other wells within its portfolio.
Hunting is delighted with this successful pilot treatment, which highlights the impact that the Company’s OOR solution can have on oil production.
Commenting on this result, Jim Johnson, Chief Executive said:
“This well result supports our confidence in the OOR technology, as a lower cost enhanced oil recovery solution which can be utilised in many oil wells globally.”
Hunting has quite rightly enthused about this and whilst it is small beer for Buccaneer it validates the OOR technology emphatically. To be fair Hunting has been positive about it and as it has a number of projects around the world I think that for them it could be another winner in the portfolio.
Should this success be replicated in any scale I think that low cost, high reward recovery could be a feature of enhanced well treatment and in particular the way that waterflood technology is used to create better productivity.
Prospex Energy
Prospex has announced that further to its statement issued on 22 January 2026, Tarba Energía S.L. has restarted electricity generation and sales at the El Romeral gas to power plant in Andalucía, Spain. Prospex has a 100% interest in Tarba.
Following the delivery and installation of the rental transformer in late January, Tarba performed a series of testing and recommissioning steps and regular electricity production has now re-started. The rental transformer will remain 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 and good progress is being made on the new build.
Tom Reynolds, Prospex’s CEO, commented:
“The restart of production at Romeral is a welcome result which now allows Tarba to continue to generate revenue from electricity sales. Tarba will continue to optimise production, taking account of prevailing conditions in the Spanish electricity market to maximise revenue.
“Since joining the Company on 1 February 2026 I have focused on meeting the team, our partners and prospective partners with the objective of understanding how value can be developed from each of our assets. A key catalyst for Romeral is the ongoing permitting process for the planned well programme and meeting the relevant teams within the regulators is a priority. I look forward to keeping shareholders up to date on the permitting process and our broader strategy in due course.”
This is indeed good news and restarting at Tarba will be very profitable selling electricity into this market, now the rented transformer is in place. For Tom Reynolds this is obviously early days but he is clearly getting up to speed rapidly with the asset base he has in front of him.
The focus is on finding the value that lies in those assets and how to unlock the undoubted value options that he can liberate going forward. This will take a little time and once he has assessed the portfolio and its contents he will I am sure move into ‘execution mode’.
I am very confident that Prospex have the right man for the job, he has a good starting place and I think that shareholders will back him when he announces his plans before long.
United Oil & Gas
United has announced the successful completion of Stage 1 of its Surface Geochemical Exploration programme, comprising the multibeam echosounder survey, on the Walton-Morant Licence offshore Jamaica.
Highlights
· Stage 1 MBES survey phase successfully completed offshore Jamaica
· High-quality seabed bathymetry data acquired across approximately 1,189 km
· Data to support final selection of Stage 2 heat-flow and Stage 3 piston core sampling locations
· Survey vessel has recommenced offshore operations to progress the next phases of the SGE programme
Stage 1 (MBES) of the SGE programme has successfully acquired high-quality seabed bathymetry data across approximately 1,189 km on priority areas of the licence. The MBES data provide detailed definition of seabed morphology and will support the final selection of optimal locations for subsequent seabed heat-flow measurements (Stage 2) and targeted piston core sampling (Stage 3).
Following completion of the MBES phase, the survey vessel R/V Gyre returned to Kingston for equipment reconfiguration and has since departed to recommence offshore operations.
Stage 2 will comprise seabed heat-flow measurements, followed by Stage 3 targeted piston core sampling. A further update will be provided upon completion of offshore operations.
The SGE programme is designed to provide independent, basin-scale evidence of active hydrocarbon systems and will form an important input into United’s ongoing technical evaluation of the Walton-Morant Licence and commercial discussions relating to the Walton-Morant Licence.
Brian Larkin, CEO of United Oil & Gas, commented:
“The successful completion of the Stage 1 MBES phase represents an important operational milestone in our Jamaica SGE programme. The quality of the bathymetry data acquired provides a robust foundation for the next stages of the survey, enabling informed selection of heat-flow and piston core locations.
As we move into Stage 2 and Stage 3, this work is designed to further de-risk the licence. We look forward to advancing offshore operations to progress through the next phase of the SGE programme.”
Nothing to add here, a useful ‘milestone’ but lots more to come before the next stage and indeed getting a partner for Walton-Morant.
And finally…
The T20 World Cup has been somewhat of a stumbling block for England as they struggled to beat Nepal, Scotland and Italy and lost to the WIndies. Not promising but for Scotland the war is over…
But not in the 6 Nations where they yet again found form from nowhere to soundly defeat the auld enemy, wins for Ireland and France who are likely invincible.
In the FA Cup wins for Chelsea, Disney FC, the Hammers, Mansfield, the Noisy Neighbours, the Canaries, the Saints, the Magpies, Liverpool, Leeds, Wolves, the Black Cats, the Cottagers and the Gooners. With Macclesfield hosting the Bees tonight the draw will include them all plus Port Vale and the Robins which was postponed on Friday.
At last the Winter Olympics have yielded medals for Team GB as Weston, Weston, Stoecker, Bankes and Nightingale picked up Gold Medals.
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.
