Jim's Oil & Mining Letter - December 14, 2025

Interesting news last week, starting with Challenger Energy Group (CEG.L BSHPF BPV.F) confirming that ANCAP has now provided written consent for the Sintana Energy (SEI.V SEUSF) all‑share acquisition and that Chevron has not objected under the JOA, leaving final TSXV approval as the key outstanding regulatory condition. The transaction provides Challenger’s shareholders a way forward and Sintana’s shareholders with continuing prospects. Subject to court sanction on December 12, filing of the court order and remaining conditions, the scheme is expected to become effective on December 16, with the last trading day for Challenger shares on December 15, AIM cancellation by December 17 and admission of new Sintana shares expected by December 30, 2025.

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Offshore Namibia, TotalEnergies (TTE) has agreed to acquire a 40% operated interest in Namibia’s PEL 83 licence, including the Mopane discovery, from Galp (GLPEF), while transferring to Galp a 10% interest in PEL 56 (Venus discovery) and a 9.39% interest in PEL 91. Under the deal, TotalEnergies will carry 50% of Galp’s capital expenditure for exploration, appraisal and first development on PEL 83, to be repaid from 50% of Galp’s future cash flows from the project. TotalEnergies and Galp plan an exploration and appraisal campaign of three wells over the next two years, with the first well on PEL 83 expected in 2026, alongside ongoing work by TotalEnergies to enable a potential final investment decision on Venus in 2026. Completion of the transaction, expected in 2026, is subject to approvals from Namibian authorities and joint venture partners, after which TotalEnergies will hold operated interests of 40% in PEL 83, 35.25% in PEL 56 and 33.085% in PEL 91.

Rockhopper Exploration (RKH.L RCKHF) and partner Navitas (NVPT.TA) have taken the final investment decision on Phase 1 of the Sea Lion oil field offshore the Falkland Islands, with all key Falkland Islands Government approvals in place and first oil currently planned for 2028. Total post-FID funding is estimated at US$1.8 billion to first oil and US$2.1 billion to completion, including a US$1.0 billion senior debt package (US$350 million Rockhopper facility) and an estimated net Rockhopper equity requirement of about US$112 million including overrun support. Rockhopper’s US$140 million placing and related open offer, intended to help fund its share of Sea Lion Phase 1 costs and associated obligations, are expected to complete following Financial Close, which remains subject to a limited number of customary conditions precedent. The Company reports higher estimated Early Project Failure support requirements to FIG of about US$52.5 million and has also agreed a £30 million staged tax settlement with FIG relating to historic farm-outs, to be paid from future project cash flows under a secured arrangement.

Pilot Energy (PGY.ASX) reported that the formal farmout process for WA-481-P is well advanced, with a shortlist of potential joint venture partners and farm-in offers due before the end of December 2025. The company is promoting the Leander Gas Prospect as a large, drill-ready target within the Kingia Gas Fairway, supported by existing seismic and an estimated 1.1 TCF of recoverable gas (Mean). A fast-track conceptual development plan for a Leander gas discovery has been outlined, targeting potential first gas by 2030 via reuse of existing Cliff Head offshore pipelines and infrastructure easements. Following NOPSEMA approval for the Eureka 3D seismic survey and limited 2026 acquisition windows, Pilot has deferred seismic and drilling scheduling decisions to the farmout negotiations, while expressing a preference to drill Leander as soon as practicable, potentially before new 3D seismic is acquired.

Pulsar Helium (PLSR.V PSRHF PLSR.L) encountered pressurised gas in its Jetstream #5 appraisal well at the Topaz Project in Minnesota. Zones are at approximately 837 ft and 1,481 ft, with an initial calculated bottom-hole pressure of about 662 psi and visible gas influx at surface. All five Jetstream appraisal wells drilled to date have encountered pressurised gas, supporting continuity of the helium-bearing reservoir across the project area. Drilling at Jetstream #5 is continuing towards a planned total depth of 5,000 ft using HQ core drilling to maximise geological data and will be followed by logging, flow testing and laboratory analysis. Down-hole wireline logging has been completed at Jetstream #3 and #4, with formation and petrophysical data now sent for expert interpretation ahead of planned flow and pressure testing expected in January 2026.

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Great Boulder Resources (GBR.ASX) released RC drilling assay results from Eaglehawk, Mulga Bill East and the newly named Golden Bracelet deposits at its Side Well Gold Project near Meekatharra, WA. Eaglehawk returned further high-grade intersections including 1m at 481g/t Au and 3m at 7.97g/t Au, following an earlier 105m at 2.41g/t Au intercept in the same programme. At Mulga Bill East, drilling intersected zones such as 5m at 5.82g/t Au and 24m at 1.37g/t Au, while Golden Bracelet RC results have confirmed two main mineralised trends ahead of an initial mineral resource estimate. Resource estimation is underway for five Side Well deposits (Mulga Bill, Ironbark, Eaglehawk, Saltbush and Golden Bracelet), with multiple rigs continuing RC, diamond and AC drilling across the project and negotiations progressing on an Ironbark Mining Agreement.

Aya Gold & Silver (AYA.TSX AYASF) reported new high-grade silver intercepts from its 2025 at-depth exploration programme at the Zgounder Silver Mine in Morocco, including 677 g/t Ag over 15.0m in hole ZG-RC-25-478 and 1,972 g/t Ag over 3.2m in hole DZG-SF-25-715. Drill hole ZG-SF-25-336 returned 2,718 g/t Ag over 1.3m, extending mineralisation further west near the Western Fault contact and pushing the current resource model limits. High-grade results from the central underground T28 drilling area include 1,631 g/t Ag over 7.2m in hole T28-25-904 and 1,947 g/t Ag over 6.0m in hole T28-25-942, supporting continuity of mineralisation at depth and around the open pit. Aya has completed 21,314m of drilling to date in 2025, representing about 85% of its planned Zgounder exploration programme, with results supported by rigorous QA/QC procedures at Afrilab and ALS laboratories.

Amaroq (AMRQ.V AMRQF AMRQ.L AMRQ.IC) reported results from 4,807m of diamond drilling in 27 holes at the Nanoq gold project in South Greenland, confirming multiple stacked, shallow gold-bearing zones with an average mineralised thickness of ~3.3m at 9.98 g/t Au to depths of around 70m. High-grade gold intersections include up to 187.4 g/t Au over 1.5m, 19.6 g/t Au over 4.9m and broader zones such as 3.83 g/t Au over 9.0m and 6.7 g/t Au over 7.39m, while copper mineralisation up to 1.12% Cu over 0.5m and 0.56% Cu over 0.6m confirms a significant gold–copper system. Geological mapping and drilling have extended the interpreted strike of the Nanoq Central Zone to about 1.5km and identified parallel, structurally analogous zones (including the newly defined ‘West 1’ Zone), with surface samples up to 9.5 g/t Au, indicating mineralisation remains open along strike and at depth. The results provide the technical basis for an expanded 2026 drilling programme and support ongoing work on bulk sampling, metallurgical testing (including potential processing at Nalunaq) and evaluation of short-haul infrastructure such as a 3km access road to a potential harbour site.

Wesdome Gold Mines (WDO.TSX WDOFF) reported results from its 2025 surface exploration at the Kiena Mine Complex, where nearly 38,000 metres of drilling across the Dubuisson, Northwest, 134 and Wesdome zones confirmed multiple near-surface high‑grade gold intercepts and led to a revised vein orientation model at Dubuisson. At Dubuisson North, infill drilling (including DB-25-064 with 8.1 g/t Au over 9.3 m and 10.7 g/t Au over 9.3 m) and the discovery of a new mineralised zone (DB-25-068 with 4.1 g/t Au over 25.8 m) support continuity and potential resource upgrading, with the zone set as a key focus of the 2026 drilling programme. The Northwest Zone returned a notable intercept of 203.0 g/t Au over 1.2 m (NW-25-023) on its western flank, indicating scope to extend mineralisation laterally and at depth, and this area is scheduled for follow‑up drilling and technical studies in 2026. First drilling at the 134 and Wesdome zones since 2010 intersected high‑grade gold, including 56.8 g/t Au over 1.8 m at 134 and up to 10.5 g/t Au over 3.0 m at Wesdome, validating geological models and prompting further drilling plans within a broader ~55,000‑metre 2026 surface programme at Kiena.

Strategic Minerals (SML.L SMCDF) reported strong assay results from Redmoor drillhole CRD035, including very high‑grade tungsten up to 7.52% WO₃ within a 16 m wide high‑grade zone from 420 m depth. The CRD035 data confirm good structural and grade continuity in the Redmoor Sheeted Vein System high‑grade zones, supporting wider drill spacing for future infill drilling and potential cost efficiencies in upgrading resources for prefeasibility study work. Drillhole CRD035 also returned notable copper (up to 5.04% Cu), tin (up to 1.20% Sn) and elevated silver values (up to 67.2 g/t), with silver now subject to further metallurgical testwork before any resource modelling decisions. The short‑spaced continuity testing from Pad 1 (CRD033, CRD034b and CRD035) has been successfully completed, and results from Pads 2 and 3 will be reported once available.

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