September 8, 2025 Edition
At Valor, our goal is to keep you informed of the latest news and updates from the oil and gas industry. We are committed to sharing the insights and knowledge that our team gathers to help you stay ahead in this dynamic sector. From mergers and acquisitions to regulatory changes and technological advancements, we cover all the key developments that impact the industry. Stay tuned for weekly updates to keep you well-informed.
- Permex signs $3 million option agreement to acquire producing wells
- Summary: Permex Petroleum has entered into a six-month option agreement to purchase oil and gas assets for a total of $3 million, including a minimum of $1.75 million in cash. The assets include over 50 producing wells and 20,000 net mineral acres and are considered “turn-key prepared” for in-field Bitcoin mining, producing approximately 4 megawatts of power. This move aligns with Permex’s recent non-binding letter of intent with 360 Energy to deploy off-grid, gas-powered Bitcoin mining operations to monetize otherwise stranded gas.
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- Court rules produced water belongs to drillers, not surface owners
- Summary: In Cactus Water Services v. COG Operating, the Texas Supreme Court ruled that produced water, a byproduct of oil and gas extraction, is owned by the mineral lessee unless the lease explicitly reserves it for the surface owner. The case involved more than 52 million barrels of produced water from 72 wells across 37,000 acres in Reeves County. The decision brings clarity to ownership rules and may encourage investment in treatment and reuse infrastructure.
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- OPEC+ set to raise oil output further from October, Iraq says
- Summary: OPEC+ is set to agree to another oil output hike from October, though likely at a slower pace than in recent months due to weakening global demand, according to sources. An Iraqi official suggested a hike of 130,000-140,000 barrels per day (bpd), a slowdown from September’s 547,000 bpd increase, as Brent crude closed Friday at $65.50 a barrel. This move would begin to unwind a second cut tranche of 1.65 million bpd over a year ahead of schedule, after the group already raised its quotas by about 2.5 million bpd since April.
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- Expectations of higher supply and an increase in U.S. crude
- Summary: On Friday, the crude market fell for a third straight session on supply concerns, with October WTI settling down $1.61 at $61.87 and November Brent down $1.49 at $65.50. The drop was driven by reports that Saudi Arabia wants OPEC+ to consider unwinding a 1.66 million barrels per day (bpd) tranche of halted supplies sooner than scheduled to reclaim market share. In the U.S., the total rig count rose for the first time in seven weeks to 537, while weak jobs data (only 22,000 new payrolls) added to concerns about demand.
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- U.S. gas storage surplus creates shifts for energy sectors
- Summary: A new EIA report reveals a structural U.S. natural gas oversupply, with storage as of August 29 at 3,272 billion cubic feet (Bcf), 173 Bcf above the five-year average. With inventories projected to hit 3,926 Bcf by Oct 31 and upstream investment down 34% since 2015, the report suggests an underweight for the oil and gas sector due to margin compression. Conversely, the report suggests an overweight for the logistics sector, which benefits from stable fuel costs (25-35% of expenses) as oversupply has cut gas price volatility from 102% to 69%.
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- Natural gas prices are undercut by cooler weather forecasts
- Summary: October Nymex natural gas prices closed down 0.85% on Friday, September 5, undercut by forecasts for cooler U.S. weather that are expected to reduce air-conditioning demand. The bearish sentiment was supported by U.S. electricity output falling 7.82% year-over-year for the week ended August 30 and a weekly EIA report showing a 55 bcf inventory build. While the 55 bcf build was above the 5-year average of +36 bcf, total U.S. gas inventories as of August 29 stood at 5.6% above their 5-year seasonal average, signaling adequate supply.
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- U.S. rig count rises for the first time in seven weeks, says Baker Hughes
- Summary: For the first time in seven weeks, the U.S. oil and gas rig count rose, climbing by one to 537 as of September 5, though the total count is still down 7.7% from the previous year. The slight overall increase was driven by oil rigs, which rose by two to a new total of 414, a move that was partially offset by a one-rig decrease in the gas rig count to a total of 118. Despite recent trends, the EIA projects U.S. crude output will rise to 13.4 million bpd in 2025 and a 65% gas price hike will boost gas output to 106.4 bcfd.
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