WTI $102.20 -55c, Brent $109.85 -45c, Diff $7.65 +27c, NG $6.14 +7c
A little bit drifty on Friday after a number of late lectures at IP Week took their toll, not to mention the Vigo dinner…This morning oil has rallied a bit, most of the news for what its worth today is mildly positive. The G20 nations ended their discussions with a positive statement and a goal of $2tn addition to world output and over 5 years the creation of ’10’s of millions of jobs’.
But in Libya production is down again after the El Sharara field was closed down and exports have fallen to just 235/- b/d from 345/- b/d last week. In South Sudan exports are down to 170,000/-.
I suspect we will delve into this report in due course as at the moment we only have the headlines and conclusions. However, the most important thing about it is that it is happening at all and that it seems as if Government ministers are taking it seriously and if approved we could, for the first time in many years, actually have an energy policy.. The idea that the tax regime is to be made less onerous and more user friendly and the creation of a strong regulation system are way overdue.
Two quick things to mention about BP. Firstly it looks as if they are back in negotiations with the US authorities which would be very good if they managed to retain favoured supplier status and the ability to do Federal contracts. Whilst for some people Macondo still overhangs, the court case may go on for many years and in the meantime BP feel they should be allowed to work for the Government. Secondly the BP chart is beginning to look quite interesting. Unfortunately at the moment I cant add charts, something I hope will change very soon but if I could, today I would be saying that the chart looks very interesting. BP has tried to break out over 500p a number of times, traditional chartists will be predicting a good rally if it does and stays there.
Hot on the heels of my article last week, the move to the main market has been announced. Subject to various approvals the company intend to apply for listing (and removal from Aim) on the 24th of March very much in my own expected timescale. Without repeating myself from Friday I would say that this is very good news, not just for the main board listing but for the other things that happen as a result of it. The CPR and analysis of that plus detailed presentations and meetings with the company should give analysts significantly increased visibility.
What a surprise, an independent committee of the board says that a bid at 70p ‘clearly undervalues the company’. Funnily enough my dog told me that as soon as he heard the story but he didn’t recommend hiring another hugely expensive investment bank to state the b…..g obvious.
Confirmation today that the company has raised $50.8m at 35p though the placing and open offer and will start trading cum this tomorrow. You will know that I rate this company very highly and now they have the cash to turn some of these prospects into something more exciting, let battle commence.
Fastnet has announced that Kosmos is expecting to spud the well on Foum Assaka, FA-1 in March which isn’t far away. The well should take around 90 days to get to TD at which stage we will find out whether the Eagle soars or not. Whatever the outcome is, for a small company Fastnet has found itself in very grown-up company having done a remarkably smart farm-out in which it gets carried for an exploration well and another or an appraisal. watch this space as I always say.
What a weekend of sport with the rugby taking centre stage. Wales beat the mediocre side that France really are and will provide a significant challenge at Twickenham in a fortnight after England edged past Ireland in a real thriller.
The football was quite predictable with the top clubs all winning and Spurs and Everton losing points, Man Who won against the Eagles and the happy Hammers extended their great run whilst the bottom of the table is looking decidedly tight.
I sat next to Jeff Auld at the Vigo dinner and we talked a lot of sport, admittedly mainly Canadian ice hockey as their women had just won gold against the Shermans. Yesterday their men beat Sweden to take gold so I expect the barbeque party chez Auld was quite lively!
In the cricket the series between South Africa and the Aussies is now all square after a comprehensive win by SA at the weekend, the decider will be fun…
Terrible shame that Sprinter Sacre won’t make Cheltenham this year but listening to the trainer on the radio this morning I was glad that they are taking things very easy with this wonderful horse.
Herewith the link to the TipTV interview last week where I discuss Africa Oil,Bahamas Petroleum, Caza and Trinity, in case it doesn’t work I hope to have it on the website very soon.