Oil prices have fallen to their lowest level since June due to concerns that a potential recession in the US might reduce demand from the world’s largest economy.
Brent crude, the international benchmark, dropped by 3% to around $77 per barrel after a weaker-than-expected payrolls report intensified fears of an impending US recession. Meanwhile, US-produced West Texas Intermediate decreased by 3.4%, falling below $74 per barrel.
One of America’s largest oil companies is set to move its headquarters out of California, citing opposition to “harsh” green policies. On Friday, Chevron announced its relocation to Houston, Texas, ending a historic association with California dating back to the 1870s. Chevron’s decision comes after repeated warnings from executives that stringent environmental regulations and other actions by the Californian government have made business operations increasingly difficult.
UK Oil & Gas PLC (AIM: UKOG) surged another 29% following a letter of support from ‘big five’ UK energy supplier RWE (ETR: RWE) for its underground hydrogen storage projects in Dorset and Yorkshire. Germany-based RWE has plans for green hydrogen plants within the Solent Cluster, Didcot, and Teesside, which are geographically and strategically aligned with UKOG subsidiary UKEn’s storage projects.
Shell reported $14 billion (£10.9 billion) in profits for the first half of the year, driven by its strategic shift from renewables back to oil and gas. The FTSE 100-listed company exceeded expectations with $6.3 billion (£4.9 billion) in adjusted earnings for the second quarter. Shell also announced an extension of its share buyback program, planning to repurchase $3.5 billion in shares over the next three months.
Touchstone Exploration Inc (AIM: TXP, TSX: TXP, OTC: PBEGF) informed investors that it is scheduled to complete the expansion of the Cascadura gas facility and the construction of its associated infrastructure. The company stated that initial production from the Cascadura-2ST1 and Cascadura-3ST1 wells is targeted for the end of September.
Voyager is pleased to announce that Mike Whitlow has joined the Company as Chief Development Officer (non-board position) with immediate effect. Mike, who joins on an interim basis, will work alongside CEO Nick Tulloch in developing the Company’s operations as it refocuses on helium following its option to acquire M3 Helium Corp. (“M3 Helium”), as announced on 27 June 2024.
Nick Tulloch, Chief Executive Officer of Voyager, said: “I am pleased to welcome Mike to Voyager. His experience and skillset will assist the Company with progressing our proposed acquisition of M3 Helium and accelerating the development of its assets. As we have previously described, M3 Helium has a number of opportunities and we are consequently expecting their operations in Kansas to increase during the second half of this year.”
Zephyr Energy PLC (AIM: ZPHR, OTCQB: ZPHRF) announced that it has received approval for a drilling permit at its Salt Wash Field helium project in Utah. The company is actively engaged in discussions with industry partners and investors to secure funding for the commitment well of the helium project.
In addition to this, Zephyr is progressing with its ‘play opening’ Paradox project, also located in Utah, while generating revenue from its portfolio of non-operated production wells in North Dakota.
Arrow Exploration Corp (TSX-V: AXL, AIM: AXL, OTC: CSTPF) announced that its second Ubaque horizontal well, CNB HZ-3, has commenced production. The well is exceeding expectations, currently yielding 1,519 barrels of oil per day (BOPD) net to Arrow, with a water cut of less than 6.5%.
BP has reported increased second-quarter profits as it shifts focus toward oil and gas developments. The oil giant’s underlying replacement cost profit rose to nearly $2.8 billion (£2.1 billion) for the three months ending in June, a 6% increase compared to the same period last year. This shift aligns with new CEO Murray Auchincloss’s strategy to prioritize fossil fuel projects.
BP achieved a better-than-expected half-year profit of $5.5 billion (£4.3 billion), although this was a decrease from last year’s $7.6 billion (£5.9 billion), reflecting lower profitability in its refining business.
Mining Minerals & Metals plc announced the completion of its acquisition of Georgina Energy Plc (“Georgina”) and the admission of its enlarged share capital of 90,088,396 ordinary shares of 5 pence each (“Ordinary Shares”) at an issue price of 12.5 pence each (“Issue Price”) to trading on the Official List and the London Stock Exchange from 8:00 a.m. on 30 July (“Admission”) under the name “Georgina Energy Plc”, which will be effective once processed by Companies House and the TIDM code “GEX”. Tavira Financial Ltd is acting as Financial Adviser and Joint Broker to the Company alongside Oak Securities (a trading name of Merlin Partners LLP) who are acting as Joint Broker to the Company.
Jersey Oil and Gas PLC (AIM: JOG, OTC: JYOGF) announced it will evaluate its North Sea developments once the full details of the tax changes and allowances proposed by Chancellor Rachel Reeves are released in the Budget on October 30.
The Greater Buchan Area joint venture, which includes JOG, will closely assess the impact of Labour’s plans on the development’s economics and project sanction, according to the statement.
Voyager provided the following overview of M3 Helium Corp.’s, (“M3 Helium”) assets following a visit last week by CEO Nick Tulloch to Kansas, USA. The Company has an option to acquire M3 Helium, a producer of helium based in Kansas and with an interest in six wells.
Nick Tulloch, Chief Executive Officer of Voyager, said: “I was fortunate during my visit to Kansas to be able to tour Scout Energy Partners’ Jayhawk gas processing plant with whom M3 Helium partners. The plant is vast, handling around 5 per cent. of world helium production according to the Scout Energy representative who showed us around, and the proximity of the gathering infrastructure to M3 Helium’s operations is a defining characteristic of the opportunity before us. Equally important is that the plant is operating below capacity so further production will be welcomed.
Eco (Atlantic) Oil & Gas Ltd (AIM: ECO, TSX-V: EOG) is set to receive the first installment of US$8.3 million from the farm-out of Block 3B/4B offshore South Africa next month. The junior company, which now focuses on Guyana and Namibia, farmed out the majority of its interest in the Orange Basin block to Total Energies and Qatar Energy in March for US$32.1 million.
Tanzania-focused Helium One Global Ltd (AIM: HE1, OTCQB: HLOGF) has commenced drilling at the Itumbula West-1 (ITW-1) site in preparation for an extended well test (EWT) targeting the fractured basement and faulted Karoo intervals. This follows a successful drill stem test in February that produced a flow of 4.7% helium to the surface.
Geolog, the contractor, is conducting mudlogging and testing during the drilling process to monitor for helium gas shows. Initial indications of helium and hydrogen have been observed while drilling out the 9⅝” shoe and re-entering the original wellbore.
Shares in Eco (Atlantic) Oil & Gas Ltd (AIM: ECO, TSX-V: EOG) rose by 7% in early trading following a deal to cancel shares and warrants held by Africa Oil, valued at approximately C$11.5 million.
In exchange, Eco is transferring a 1% stake in Block 3B/4B in the Orange Basin offshore South Africa, thereby reducing its holding in the block to 5.25%.
