Member Info for Southmead

I guess that the 16% jump on OTCQB likely reflects speculation ahead of the imminent CPR on the Paradox Basin. This share is so illiquid that small volumes cause large swings.

Absolutely bang on, you've hit the nail on the head, wonderful diagnosis, brilliant, explains everything. If he is mentally ill, he should be removed from his post immediately, on medical grounds. Maybe this should be Starmers approach, hopefully tomorrow. Section him and be done with it.

What does the article say, Mike?

'Tower has announced two transformational farm-out agreements with Prime

International for the Thali (Cameroon) and the PEL96 (Namibia) offshore licences.

We update our financial forecasts and NAV for the proposed farm-out agreements and

reiterate our SPECULATIVE BUY rating with an updated 0.16p/share target price.

Tower agrees farm-out of Cameroon and Namibia licences to Prime

Tower announced that it has executed two farm-out agreements with Prime Global

Energies for minority, non-operated interests in the offshore Cameroon Thali licence

and the offshore Namibia PEL96 licence. The agreements provide $15m funding to drill

the NJOM-3 appraisal well, alongside ~$4.4m in cash payments to Tower and Pegasus

at execution and completion that will ultimately contribute significantly to the

Company’s current working capital position. Completion of both farm-out agreements

is expected by end-1Q25 subject to government, partner and regulatory consents.

Cameroon farm-out agreement provides funding to drill appraisal well

Tower will farm-down a 42.5% non-operated interest in the Thali licence (100% WI) to

Prime in return for a $15m gross contribution to the Thali work programme costs.

Prime will also make two ~£1.5m payments to Pegasus at execution and completion

of the agreement as consideration for funding previously provided. Pegasus (a trust of

which the CEO Jeremy Asher is a lifetime beneficiary) will be using 50% of the cash

payments to subscribe for additional new shares in Tower, half of which will be locked

in for a year, which will increase the CEO’s direct shareholding to 25.33%.

Prime is an attractive and credible counterparty with a strong balance sheet

Prime Global Energies is a wholly owned subsidiary of Prime International Oil & Gas

(private), which has a long legacy spanning over 3 decades of successful exploration &

production activities in Pakistan. Prime operates multiple producing fields including

the Bhit, Badhra and Kadanwari gas fields, as well as non-operated interests in several

fields and gas processing facilities (link). Prime recently filed an annual report for the

year ended 30 June 2024 at the UK’s Companies House reporting $33m in revenues,

$24.8m profit and $43.2m of cash on its balance sheet at the end of the period.'

Coming soon

What an excellent post tomhuk, many thanks for that. I was not aware and found it a very interesting read. I will try to apply some numbers to the figures that you provided and estimate the revenue potential. It would be good to sanity check it against other valuations, so feel free to have ago anyone else and we will compare notes later today. Again, well done and thanks

Given the scale and ambition of the MESH project, EnergyPathways in its current form, cannot possibly be left alone to deliver this project.

The business has a small core team of fewer than 15 staff, admittedly they have a deep expertise in energy infrastructure, finance, and project development, but MESH, I suspect, is too big for them to handle, IMHO. Several of the big boys must be looking at them right now, National Grid, Siemens, Shell or BP would be very plausible suitors and are looking for just such green projects. Watch this space.

Williston project update is next, 'The Company will provide the results of hydrocarbon sales and production from its non-operated Williston project for the second quarter of 2025 (“Q2”) as part of its half-year financial results which are expected to be published by the end of September 2025'.

Interestingly, the results will incorporate production from the Rocky Mountain acquisition, which became effective on 1 June 2025, so hopefully we can expect much better figures tomorrow.

'Tower has announced two transformational farm-out agreements with Prime

International for the Thali (Cameroon) and the PEL96 (Namibia) offshore licences.

We update our financial forecasts and NAV for the proposed farm-out agreements and

reiterate our SPECULATIVE BUY rating with an updated 0.16p/share target price.

Tower agrees farm-out of Cameroon and Namibia licences to Prime

Tower announced that it has executed two farm-out agreements with Prime Global

Energies for minority, non-operated interests in the offshore Cameroon Thali licence

and the offshore Namibia PEL96 licence. The agreements provide $15m funding to drill

the NJOM-3 appraisal well, alongside ~$4.4m in cash payments to Tower and Pegasus

at execution and completion that will ultimately contribute significantly to the

Company’s current working capital position. Completion of both farm-out agreements

is expected by end-1Q25 subject to government, partner and regulatory consents.

Cameroon farm-out agreement provides funding to drill appraisal well

Tower will farm-down a 42.5% non-operated interest in the Thali licence (100% WI) to

Prime in return for a $15m gross contribution to the Thali work programme costs.

Prime will also make two ~£1.5m payments to Pegasus at execution and completion

of the agreement as consideration for funding previously provided. Pegasus (a trust of

which the CEO Jeremy Asher is a lifetime beneficiary) will be using 50% of the cash

payments to subscribe for additional new shares in Tower, half of which will be locked

in for a year, which will increase the CEO’s direct shareholding to 25.33%.

Prime is an attractive and credible counterparty with a strong balance sheet

Prime Global Energies is a wholly owned subsidiary of Prime International Oil & Gas

(private), which has a long legacy spanning over 3 decades of successful exploration &

production activities in Pakistan. Prime operates multiple producing fields including

the Bhit, Badhra and Kadanwari gas fields, as well as non-operated interests in several

fields and gas processing facilities (link). Prime recently filed an annual report for the

year ended 30 June 2024 at the UK’s Companies House reporting $33m in revenues,

$24.8m profit and $43.2m of cash on its balance sheet at the end of the period.'

Coming soon

Tomhuk2000, many thanks for that info, it is informative and reassuring regarding private funding and strategic interest, but it doesn’t fully address my concern about timing and government support. The MOU and loan facility indicate that funding lines are in place, contingent on approvals, and that is very reassuring. The Strategic JV funding talks with the FTSE 100 company is also great, but whilst funding discussions are underway, there’s no assurance they’ll close before February.

What do you think the chances are of EnergyPathways securing a grant, early-stage licensing deal, or strategic JV funding before say February next year? The Half Year results cash balance plus the recent £400,000 placing and subscription, will be exhausted by around Feb next year, so there is a fair amount of pressure to avoid a further share dilution. The Friday update was very positive, but no mention of possible financial support.

I got all excited when I saw the RNS, good that we have a presentation but does it mean that we can expect a quiet two weeks?

- The Prime Minister of Cameroon has issued instructions for:

- Extension of the initial exploration period of the Thali license.

- Approval of the farm-out agreement with Prime Global Energies (42.5% stake for $15M funding).

- Formal documentation is still pending, but Tower is pushing ahead to avoid delays.

Timeline Outlook

- Q4 2025 remains the expected spud window, though described as “quite a tight schedule” by CEO Jeremy Asher.

- The farm-out and license extension approvals are expected imminently, which would unlock full-scale drilling operations.

Share Price Outlook

-Will soar to 1.7p before drill

I suspect that the JLR Hacking crisis is being used to disguise the sharp US sales decline due to tariffs. USA has turned off the tap and new car stocks are overflowing the supply pipeline. Dealers cannot take them and so the hacking event is being used as an excuse to stop production and allow stocks and the pipeline to catch up. I suspect that production schedules will be cut back hugely on resumption. The brainless government will no doubt bail out component suppliers and JLR salaries in the mistaken belief that they are helping industry, but actually TATA are being very cute.

By my reckoning, at the current £300,000 per month approx spend, funding becomes very tight early next year. So it is very important that some up-front funding deal is announced soon or substantial revenues are earned and declared. I guess that the market shares my fear and that is why we are seeing this gradual erosion of the SP.

Nor can I, filtered him ages ago now, and it is a much happier read having done so, recommend everyone to do the same.

The comment is from Malcy's website.

https://www.malcysblog.com/2025/09/oil-price-petrotal-and-finally-5/

'Stand back, there’s very little to see here, PetroTal is experiencing some fairly minor production issues at the Bretana field where six wells have seen leaks in the production tubing although only four wells are currently shut-in.

Put into perspective, as at the 15th September group production averaged 18,805 b/d, mainly from Bretana, a great deal higher than last September although there is less barge trouble this year the quarter has been good, post shut-in that is nearer 17/- b/d.

With the expectation that full production will occur in late November we are told that full year guidance stays at 20-21/- b/d as year to date production is c.21.2/- b/d and the bottom end of the guidance should hold up.

It is also worth noting that these recent production declines are not a result of natural field declines – they are just a technical issue – which is being addressed as quickly as possible. PTAL remains committed to assessing possible long-term solutions for well services that would allow the company to respond to production interruptions in a more expedient manner.

I remain convinced that PetroTal will deliver returns to shareholders both in capital and income terms and with a yield of some 13% and a target price of 100p its place in the bucket list my confidence in the excellent management team is still well justified.'

If you have done your homework on this investment, you will know that we are waiting on the approval of two significant farm-out agreements with Prime Global Energies, covering its Thali licence offshore Cameroon and PEL96 offshore Namibia. Prime, a UK-incorporated company with extensive upstream operational experience and will contribute $15m cash contribution toward the Thali work programme and the drilling of the NJOM-3 well.

The NLOM-3 appraisal drill has a high COS, 90% and is targeting 8,000 BOPD, thats 8000bopd x 365 days x $70= $200million gross per annum.

Just focus on that and ignore all the noise. Approval has already been given, we are just waiting for the rubber stamp of the Camaroon president.

Oil and gas tax income plummets

Ed Miliband’s shutdown of the North Sea will cost the Government £10bn in lost tax revenue between now and 2030, leading analysts have warned.

Mr Trump also told Sir Keir he must start using oil from the North Sea, urging him to “drill, baby, drill” and make more of the UK’s oil and gas.