WTI $66.43 +52c, Brent $72.21 +38c, Diff -$5.78 -14c, NG $2.94 -1c
Oil price
Oil continued its weak rally yesterday with Total confirming its exit from South Pars as sanctions start to grip in other areas although the mood in Tehran is not entirely pro the regime. Washington signalled that it was prepared to start modest sales (11m barrels) of oil from the SPR ahead of the mid-term elections, sorry the losing of Iranian oil to keep the price down…
Sound Energy
Sound has announced the completion of the entire 2,850 line km 2D seismic in Eastern Morocco. It has enabled the company to increase its understanding of the TAGI play, the deeper Palaeozoic potential and the hydrocarbon charge model. The new seismic has revealed in addition to the existing structures targeted by the planned wells a new, large Palaeozoic structure to the north west of the structural-stratigraphic play. If the hydrocarbon migration converges into this structure then it could emerge as the largest prospect in the entire basin and would become a target for the TE-11 well along with the Palaeozoic play in the Anoual licence.
The company also announces that it has finalised the location for the TE-10 well which will target the North East Lakbir prospect, a high impact TAGI play of some 2.6 TCF mid-case GOIP (1.5 TCF low case, 5 TCF high case) and will drill both the TAGI and the underlying Palaeozoic. These wells which will get underway in Q4 of this year should prove exciting for Sound shareholders who will look for a rewarding campaign. #returntoTendrara
Wood Group
Interims at the upper end of guided range for Wood Group with cost and revenue synergies and strong cash flows helping the deleveraging plan going. Whilst the company see a recovery in the oil and gas market and good contract awards, their full year guidance is unchanged despite synergy gains and good cash generation which is either overly cautious or tangible pricing and margin strength is still eluding them. I suspect the former as they will not want to make the mistake of under-delivering and while there is some evidence of higher industry prices sticking they will want concrete evidence in the second half.
And finally…
The HubCap Stealers easily saw off the Eagles last night and, whatever Klopp says do look mighty impressive. The Red Devils who do not look impressive have denied any interest in Zidane and expressed confidence in Jose…..
In F1 Red Bull have replaced Danny Ric with Pierre Gasly, only petrol-heads will be able to tell me if that is good news…
And if there is a blog tomorrow (I am away) it would be very surprising if I am still reporting on the test match, save for the result. I still cannot quite believe how swift the turn-round has been but does make for two more exciting tests.
