Jim's Oil & Mining Letter - January 11, 2026

The offshore frontier supermajors are piling into

Oil & gas supermajors are all fighting over Namibia – one of the most watched new offshore frontiers on the planet. 

But while the biggest players deploy billions, one small public company has concentrated exposure to what comes next. 

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Interesting news last week:

Orosur Mining (OMI.V OROXF OMI.L) reported strong gold assay results from the final three Pepas infill holes, including PEP072B (47.60 metres @ 3.43 grams per tonne gold from surface), PEP073 (104.45 metres @ 5.96 grams per tonne gold from surface) and PEP074 (71.35 metres @ 6.46 grams per tonne gold from surface). The company has now closed the Pepas assay database and delivered it to resource consultants. NI 43-101 mineral resource estimate modelling is now underway. Orosur also has begun planning for a feasibility process for Pepas, including work on permitting requirements and associated environmental/social studies and the technical work plan once the mineral resource estimate is finalised. Drilling was restarted at Anzá after the Christmas break with a new rig commencing a reconnaissance regional programme north of Pepas. Drilling plans for APTA and El Cedro are to be progressed following airborne geophysical surveys. The company increased the area under granted exploration licences by about 65% after two applications were converted to titles, creating three contiguous granted titles totalling 173 square kilometres; smaller applications were dropped and 154 square kilometres remains under application.

Larvotto Resources (LRV.ASX LRVTF) announced that diamond drilling at the Clarks Gully prospect (three holes totalling 505.9 metres in October–November 2025) has confirmed that antimony-gold mineralisation continues at depth and along strike, including to the north, with shallower mineralisation correlating strongly with a resistivity geophysics anomaly. Key antimony-gold results included CLG126: 6.4 metres @ 12.92 grams per tonne gold equivalent from 208 metres (including 4.1 metres @ 19.76 grams per tonne gold equivalent) and CLG127: 8.0 metres @ 8.35 grams per tonne gold equivalent from 160 metres (including 1.6 metres @ 22.81 grams per tonne gold equivalent). Tungsten mineralisation associated with the antimony-gold lodes was also intersected, including CLG126: 0.4 metres @ 2.97% tungsten trioxide from 192.4 metres and CLG127: 2.4 metres @ 1.53% tungsten trioxide from 60.9 metres. Larvotto said the drilling validated its geophysical targeting and identified additional mineralisation (including a potential parallel footwall lode), with zones remaining open along strike. Further drill testing is planned for 2026, and the company noted that the current open-pit design does not include most of the new drilling information while a shift to dry stacking removes the need for a tailings storage facility and supports expectations of predominantly underground mining at Clarks Gully.

G2 Goldfields (GTWO.TSX GUYGF) announced assay results from 16 new diamond drill holes totalling 5,997 metres at the OKO Project in Guyana, mainly targeting the Border Zone south of the Ghanie open-pit shell. Highlighted near-surface and high-grade intersections included 30.0 metres @ 2.1 grams per tonne gold (GDD247) and 2.7 metres @ 39.3 grams per tonne gold (GDD258), plus additional moderate-depth intercepts in GDD251A. The company confirmed down-plunge depth extension at Ghanie with a deep intercept in GDD256A of 50.0 metres @ 2.4 grams per tonne gold, including 23.5 metres @ 4.0 grams per tonne gold. Additional assays are pending for some holes. G2 stated that a major drill programme is underway with five rigs focused on expanding the Ghanie/Border zones, alongside ongoing greenfields exploration with assays pending from new targets.

NovaGold Resources (NG NG.TSX) announced that its 60% owned Donlin Gold and Glenfarne Alaska LNG have signed a non-binding letter of intent to evaluate natural gas supply from the Alaska LNG Pipeline and associated infrastructure to deliver gas and power the proposed Donlin Gold mine. The parties will assess a potential gas sales agreement for up to 50 million cubic feet per day and cooperate on development and construction options for a natural gas pipeline from Southcentral Alaska to the Donlin site, feeding an on-site power plant. NovaGold said aligning Alaska LNG and Donlin Gold pipeline schedules could help reduce fuel costs and improve logistics, procurement and overall project expenses. The company reported progress on the Donlin natural gas pipeline. Key federal and state permits have been issued, the Alaska Supreme Court upheld the State right-of-way lease, and supplemental environmental review continues under the FAST-41 process with the US Army Corps of Engineers leading a court-directed Supplemental Environmental Impact Statement. Donlin Gold is advancing selection of a prime contractor for the bankable feasibility study, with selection expected in Q1 2026. Specialist requests for proposals have been issued for the power plant, pipeline, and pressure oxidation/oxygen plant scopes, after which a detailed bankable feasibility survey timeline and budget will be set.

Americas Gold and Silver (USA.TSX USAS) reported progress towards a targeted mid-2026 restart of silver, copper and antimony production at the Crescent Silver Mine, weeks after closing the acquisition on 3 December 2025, leveraging planned synergies with the nearby Galena Complex. The company has completed grid power installation to the Hooper tunnel and connected power to the Hooper, BC4 and Countess adits, with expected electricity cost reductions from about US$0.55/kWh to as low as US$0.07/kWh, replacing diesel generators. A 6-inch compressed-air line has been installed to the BC4 Adit and Americas has deployed communications lines linking the three adits to support drilling, co-ordination, safety and productivity during rehabilitation. The company has brought all acquired underground equipment into service and expanded the fleet with two new 20-tonne trucks and three new loaders, alongside site organisation and facility upgrades.

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Murphy Oil (MUR MUQ.F) reported that its subsidiary successfully drilled the Hai Su Vang-2X (HSV-2X) appraisal well in Block 15-2/17 in Vietnam’s Cuu Long Basin, appraising the 2025 Hai Su Vang discovery across two reservoirs. HSV-2X encountered 429 feet of net oil pay (332 feet in the deeper primary reservoir and 97 feet in the shallow reservoir); the primary reservoir flowed at 6,000 barrels of oil per day during testing and produced 37° API oil, with further testing ongoing. The appraisal well deepened the proven oil-down-to by 413 feet without encountering water, extending the hydrocarbon column to about 1,600 feet and supporting reservoir continuity with the HSV-1X discovery well. The company said the results support an updated recoverable resources outlook, with the primary reservoir midpoint towards the high end of its previously stated 170–430 million barrel of oil equivalent range and a new high end exceeding 430 million barrel of oil equivalent. Murphy plans further appraisal via HSV-3X and HSV-4X and reaffirmed 2026 CAPEX guidance of $1.1–$1.3 billion. Separately, the company announced that it intends to offer $500 million of senior notes due 2034, subject to market and other conditions, under an existing SEC shelf registration statement. Net proceeds are expected to be used to redeem in full its 5.875% notes due 2027 and 6.375% notes due 2028, including related premiums, fees and expenses. The company also plans to use proceeds to repay outstanding borrowings under its revolving credit facility and to cover transaction-related fees and expenses. Any remaining proceeds will be used for general corporate purposes.

Touchstone Exploration (TXP.L PBEGF) announced that Carapal Ridge-3, the first well drilled into the Carapal Ridge pool in 17 years, encountered about 1,082 feet of net sand including roughly 1,000 feet of net Herrera sand, with logs and drilling data indicating hydrocarbon-bearing sands across the interval. The well intersected thick Herrera pay above and below a 30-foot shale marker. The company also drilled about 341 feet horizontally into the unproduced lower Herrera sands to increase reservoir exposure. Completion operations are underway and tie-in to the Central block natural gas processing facility is targeted for Q1 2026, with initial production planned from the lower horizontal Herrera section and potential later perforation of uphole sands. The well was drilled to 8,200 feet over 35 days and was around 25% over budget due mainly to controlling natural gas flows from Karamat sands. An uphole, gas-charged Karamat play was identified and is being evaluated, and results support the potential for up to three additional Herrera development wells on the block.

Kosmos Energy (KOS KOS.L) reported operational progress in Ghana, where the Jubilee J-74 producer well was drilled and completed and is expected online shortly. Flowback indicates production of over 10,000 barrels of oil per day, supporting a start to 2026 of nearly 70,000 barrels of oil per day gross, with Q4 2025 gross Jubilee production averaging about 59,000 barrels of oil per day. The Ghana Government approved licence extensions for the West Cape Three Points and Deep Water Tano Petroleum Agreements (covering Jubilee and TEN) to 2040, pending parliamentary ratification. From July 2036 Ghanas’s share increases by 10% and the Jubilee plan of development was amended to include up to 20 additional wells. The TEN partnership agreed final sale and purchase terms to acquire the TEN floating production storage and offloading unit at the end of its current lease in 2027, with execution of the sale and purchase agreement expected in early 2026. Kosmos expects this to reduce operating costs as ownership transitions to the partnership. In Mauritania and Senegal, the Greater Tortue Ahmeyim Liquified Natural Gas Project floating vessel operated at nameplate capacity in December 2025 and reached a peak rate of about 3.0 million tonnes per annum. 18.5 gross liquified natural gas cargoes and one condensate cargo were lifted in 2025, and Kosmos reported a $100 million draw notice under its Gulf of America Term Facility alongside a redemption notice for the remaining 2026 unsecured notes (expected 13 January 2026) plus a reserve based lending waiver to support potential new secured financing for refinancing 2027 maturities.

Pulsar Helium (PLSR.V PSRHF PLSR.L) announced that Jetstream #5 at the company’s Topaz Project in Minnesota has encountered an additional pressurised gas influx at around 2,857 feet, with an estimated bottom-hole pressure of approximately 1,292 pounds per square inch (the highest recorded at Topaz to date). The new zone follows earlier pressurised gas intersections in Jetstream #5 at around 837 feet and 1,481 feet. Drilling continues towards a planned total depth of up to 5,000 feet. After completing Jetstream #5, the rig is expected to mobilise to drill Jetstream #6, about 2.2 kilometres south-west of the Jetstream #1 discovery well. A multi-well programme combining flow testing and pressure build-ups is planned to start in early February 2026 on Jetstream wells #3, #4 and #5, with an expected six-week test period per well and interim results to be released as data is verified.

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