WTI (Dec) $60.09 +$1.40, Brent (Jan) $64.39 +$1.38, Diff -$4.30 -2c.
USNG (Dec) $4.57 -8c, UKNG (Dec) 82.81p +3.31p, TTF (Dec) €31.63 +€1.005.
Oil price
Last week oil gained, just a bit, WTI was up 34 cents and Brent rose 76c, hardly a big win but given how many allegedly well-informed commentators are bleak about supply in the market I’ll take that.
The Baker Hughes rig count showed a rise of 1 unit overall to 549 and with oil up 3 to 417 the arrest has been at least haltered. But it is certainly not drill baby drill and whilst there is no doubt that efficiency is increasing, many oil and gas companies are just not investing at $60 WTI.
Russian port Novorossiysk has reopened overnight bringing more crude onto the market if anyone will buy it…
Gulf Keystone Petroleum
Gulf Keystone has confirmed that a first lifting of Kurdistan crude allocated to the Company and other International Oil Companies for pipeline exports during September and October 2025 has been completed by the nominated trader at the Ceyhan oil terminal in Türkiye.
Payment for the Company’s share of the first lifting is expected to be received within the next 30 days, in line with the interim exports agreements that were previously announced by the Company on 26 September 2025. A second lifting for IOC allocation of Kurdistan crude exported in October 2025 is planned for the end of November 2025, with subsequent liftings and payments anticipated thereafter.
The Company plans to provide a further update next month as part of its regular December Operational & Corporate Update.
This is a really interesting announcement, clearly good news that the first lifting of Kurdistan crude has now arrived in Ceyhan, Turkey and that it has been sold. What is most interesting is whether or when, those companies that have opted to take this route will get paid.
The announcement says that they expect to be paid ‘within the next 30 days’ so set your diaries and we will see what happens. At face value the option to immediately start premium priced sales through the pipeline should be better than selling to local refiners at a discount but the jury is out, will they get paid and when?
With another lifting as soon as the end of this month it won’t take long to work out how the strategy is working, at present those opting for less cash but in hand are probably winning, if only on the cash flow front and of course to see how the KRG play the process. If not we are back in receivables territory and that needs to be avoided at all costs, some other players in the region are still smarting over bad debts after all.
Prospex Energy
Prospex has announced that that the full suite of Environmental Impact Assessment documentation for the application by Tarba Energía S.L. to drill five new natural gas wells on the El Romeral concessions was submitted to The Ministry for the Ecological Transition and the Demographic Challenge in Madrid on Friday 14 November 2025. The consultation process that Tarba was required to go through before submission has concluded with no objections or adverse comments received from a total of 29 statutory consultees, non-governmental organisations, local stakeholders, local regulators, associations or residents and town councils. Prospex owns 100% of Tarba Energía S.L.
EIA Highlights
· Full EIA documentation submitted to MITECO in Madrid on Friday 14 November 2025.
· No objections received from the 29 statutory consultees.
· MITECO now has the full EIA documentation to assess and evaluate.
· Subject to final approval, MITECO can then move to recommend a Ministerial resolution to approve the well permits, the final stage of the permitting process.
· MITECO states that the timeline for this final step of the approvals process is 90-180 days.
· Identified resource base of more than 90 bcf[1] of gas, now 100% owned by Prospex, within El Romeral.
· The five wells being permitted are targeting the lowest risk structures in the concessions with best estimate contingent and prospective gas resources of 18.2 bcf.
Drilling Preparatory Work
Whilst Tarba has been waiting for the regulatory approvals process to complete, Tarba has progressed key drilling preparatory work, including detailed well design, sourcing essential long-lead items and evaluating the necessary contractors and equipment to deliver the five new production wells.
Seismicity Study
Tarba has also started a project to record the background seismicity across the three El Romeral concessions in order to establish the background seismicity of the area. This step is a recommendation (but not a requirement) from the EIA process so that Tarba can demonstrate to the regulators that any future extraction of natural gas from the concession areas does not cause a seismic event.
Background on the permitting process
The application to drill five new natural gas wells on the production concessions owned by Tarba known as El Romeral 1, 2 & 3 was submitted to MITECO in Madrid in May 2024 together with the full scientific analysis and assessment of any potential effects that the proposed drilling project may have on the environment. The EIA consultation was publicly gazetted on the State Official Bulletin on 19 February 2025, (see RNS of 20 February 2025). Officially, the statutory EIA consultation period was 30 working days (to 4 April 2025), however it has taken until now for certain statutory consultees to complete their review and respond.
Having received all of the mandatory reports including from the Geological Survey of Spain (Instituto Geológico y Minero de España, “IGME”) in Madrid, the Hydrologic Public Domain Authority (Confederacion Hidrografica Del Guadalquivir) in Seville and the environmental department of the Sub-delegation of the Government in Seville, the Sub-delegation of the Government in Seville has reported back to MITECO its findings and recommendations. From this point, MITECO targets between 90 to 180 days for the final review and approval, giving time to gather its internal and final EIA evaluation, together with all the mandatory statutory reports from the public administrations and institutions before it can recommend a Ministerial resolution to approve the well permits to drill the five wells.
The local governmental authority alongside the Department of Industry and Energy of the Sub-delegation of the Government in Seville received no objections or concerns on the environmental impact of the project other than confirmation that mandatory legal obligations that are already included in the EIA reports are to be enforced. The EIA submitted by Tarba comprised a full suite of documentation as required by law covering every aspect of the environmental impact of drilling the five proposed natural gas wells on the El Romeral concessions.
Background on El Romeral
Tarba generates electricity at its El Romeral power plant from its own natural gas production from the concessions, which in July 2024 were granted a ten-year extension by the central Spanish Ministry to July 2034. The five wells are planned to target the five optimum structures on the El Romeral concessions, which will produce biogenic gas from shallow subsurface horizons. The depth of the wells average about 700 metres and will each take no longer than 3 to 4 weeks to drill once a suitable drilling rig has been mobilised after the well permits are secured.
Ongoing Activity at El Romeral – Transformer Replacement
Following a competitive tender process, Tarba has awarded the supply of a new electricity transformer with its unique voltage and power specification, to provide future security of operations for Tarba. Delivery normally has a lead time of 10 months; however, the Spanish vendor is working urgently to accelerate this to deliver to site in 6 months. Tarba will do regular quality, schedule visits and Factory acceptance tests at the Vendor’s site.
As previously reported, the Lessor of the transformer at the El Romeral power plant removed it on 1 July 2025 on the condition that it be replaced within a few weeks and compensation was agreed to be paid to Tarba for the lost revenue. The Lessor has failed to deliver a replacement rental transformer and payments agreed for the lost revenue have not yet materialised. Tarba is seeking recovery from the Lessor.
Due to these unforeseen developments, staffing costs at Tarba have been reduced and other cost saving measures have been implemented.
Mark Routh, Prospex’s CEO, commented:
“We are delighted to be making good progress in the complex permitting process which has now moved to the final stage. I also take this opportunity to update shareholders on the El Romeral plant’s transformer. I am pleased to report that we have now placed an order for a new transformer for the El Romeral plant from a Spanish supplier. The transformer, which has an almost unique voltage and power specification, should be delivered and installed in the first half of next year. In the meantime, electricity production is suspended but useful work is being undertaken at Tarba in anticipation of the company being back in operation as soon as we are able.
“We remain highly confident in the overall value of the El Romeral asset and its future development potential and are pleased that the permitting process to drill five new natural gas wells has taken a significant step forward. The process to apply for permission to drill natural gas wells in Spain is lengthy and complex and as we have experienced comes with unexpected delays in recommended timelines. It is a testament to the professionalism and quality of our team and advisers that the EIA documentation submitted has resulted in no objections or concerns. The only comments received from the statutory consultees were to confirm that mandatory legal obligations that are already included in the EIA reports are to be enforced.
“The El Romeral power plant will reach full output capacity from production of just two of the proposed five 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 to be drilled.
“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 can start the process of optimising the funding of the wells by seeking potential debt funding or farm-in partners, or both.”
Whilst there is little doubt that this is good news for Prospex, the EIA submission is a crucial stage indeed and having no objections so far is pleasing, but it needs final approval then the OK for well permits.
Not surprisingly progress has been tortuously slow so far and this report indicates that final approvals will take between 90-180 days for the final review and approval ‘giving time to gather its internal and final EIA evaluation, together with all the mandatory statutory reports from the public administrations and institutions before it can recommend a Ministerial resolution to approve the well permits to drill the five wells’.
Spain appears to be the new Italy in terms of dilatory regulatory attitude to fossil fuel activity and rather like us pays little attention to cheap, easy to access and fiscally profitable domestic production. Nevertheless Mark and his team are moving mountains to get El Romeral up and running and undoubtedly deserve success.
Tower Resources
Tower has announced a subscription of 1,000,000,000 ordinary shares of 0.001p each at a price of 0.028p per Subscription Share, being at a discount of less than 5% to the closing bid price of the Company’s shares on 14 November 2025.
The Subscription is being made to fund working capital and is a follow-on to the previous subscription of £550,000 announced on 17 October, 2025 in response to further investor demand following that subscription.
The Company has agreed to issue the broker, Axis Capital Markets Limited, warrants covering 25,000,000 new ordinary shares for arranging the Subscription. The period of the Broker Warrants will be three years at a strike price of 0.056p 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 November 2025.
Following admission of the Subscription Shares, the Company’s enlarged issued share capital will comprise 32,279,995,707 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 1,641,942,411 equating to 4.4% of the Company’s enlarged share capital assuming full exercise of all warrants, options and restricted shares.
Tower Resources Chairman & CEO, Jeremy Asher, commented:
“The government in Cameroon is getting back to work following the recent Presidential election, which resulted in a historic eighth term in office for President Paul Biya, who has already indicated his support for our Thali project, with our Managing Director in Cameroon attending his recent inauguration. I will be visiting Cameroon again this week to oversee the progress on our documentation, and to hear at first hand the government’s plans to stimulate further investment in our sector. In the meantime, our brokers have advised us over the past couple of weeks of further demand from investors following on from the small subscription we undertook last month. In the circumstances, we felt it was prudent to accept these further funds and bolster our working capital position as we move forward with our various work programmes.“
Like London buses, raises from Tower arrive regularly, the good news here is twofold, that it appears to have been driven by hungry investors and that the discount shows that, at 5% Jeremy has done it again.
Add to that that the brokers have again taken their wad via 25 bars of warrants, exercisable over three years at a strike price of 0.056p per share, a handy 100% premium to the strike price.
The news that President Biya has been re-elected is good and the hope is that the progress in the paperwork can now be expedited after the recent massive delays and that his support for the Thali project can be drilled into the bureaucrats handling the paperwork. Let’s hope that all this means that it will go ahead early next year, patient shareholders deserve it…
And finally…
The rugby was the stand-out this weekend, England beat the All Blacks at headquarters and Wales squeaked past Japan with a last minute kick but Scotland gave away a 21 point lead to lose 24-33 to the Pumas at Murrayfield.
And in the World Cup qualis there is good news all around the UK. England won again, against a determined Albania side and finish the group with a 100% record with no goals conceded although it looked at times as if Albania must score. Scotland can still qualify outright, tomorrow is a seismic meeting with Denmark at Hamden, winner takes all but Scotland are guaranteed a play-off place. As are Northern Ireland who have a dead rubber game against Luxembourg tonight but are in the play-offs. As for Wales they have a similar shoot-out as Scotland, against North Macedonia for them.
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