WTI $62.39 +84c, Brent $65.67 +83c, Diff -$3.48 +32c, NG $2.64 +8c
IP Week started more with a whimper than a bang, what with the US shut for GW’s birthday it seemed that traders were focused more on the cocktail circuit than the oil price. That combined with WTI for March expiring (price above is April) and the Chinese New Year also claiming numbers, trading was always going to be a bit thin. As it was the Opec Secretary General rode to the rescue announcing adherence of 133% which did the trick and oil dutifully rose.
The sight of the first ever fully laden VLCC leaving port in Louisiana with US crude destined for China was, if only for historic reasons, most interesting. The fact that the ship was Saudi registered maybe ironic, but another first was such a ship coming into and leaving a US port fully loaded shows how US import/export trade in crude oil has changed lately. With the trader being Royal Dutch Shell and the buyer being Sinopec it was a right little international event….
News from T-45, the first of a three well drilling programme at the Taribani complex in Block 12 in Georgia where TD has been reached at 2,700m in the Eldari formation. A lot of news was crammed into the RNS, multiple oil and gas shows were found most notably as follows. Oil stained cuttings were found at 2,460-2,475m in zone 13 with a formation gas kick at 2,535m in zone 14 reducing mud weight materially indicating a highly charged hydrocarbon formation.
Gas was detected at surface while drilling at 2,565-2,575m in zone 14 and ‘significant gas shows’ were recorded between 2,630-2,650m in zone 15. Here they also had a major gas kick at 2,633m after which they initiated hydrocarbon flowback operations which resulted in 383 b/d of flowback with bottom hole pressure of 7,500 psi being recorded. Further down they were to encounter oil shows with associated gas and a ‘significant’ gas kick between 2,685-2,695m with psi of 7,800. Next stop wireline logging and analysis until which the company correctly caution initial indications should be treated with caution.
CEO Zaza Mamulaishvili said that ‘very encouraging early indications of a highly charged hydrocarbon formation are an exciting opportunity to develop zones 14 and 15 of the Eldari formation’ whilst of course the already proven zone 9 has considerable promise.
I am highly encouraged by these results and whilst they are only preliminary, feel that this well has made significant progress which may well be borne out by testing. I am looking forward to visiting the site next week and meeting local management, I couldnt have picked a better time and remain very positive about Frontera where the current price is tiny compared to the potential if this campaign is successful.
Here is the link to my Podcast from yesterday.
The latics did what most Premier sides have failed to this season and beat the Noisy Neighbours 1-0 to get in the FA Cup Quarter Finals and a tie against the Saints. A right royal cup tie with a disputed sending off and scuffles in the tunnel.
Tonight its the Champions League where Chelski play Barca, ooh err…..
And thanks to all those who have kindly donated, Netty’s page is below.