WTI $65.89 -41c, Brent $74.57 +6c, Diff -$8.68 +47c, NG $2.46 +1c
Oil price
A mixed bag from oil yesterday, WTI was down a touch because the EIA stats showed another build of crude oil, this time by 5.5m barrels, certainly not what was expected. Having said that, yet again the gasoline number was a draw, this time by a handy 2.1m b’s which with the import number increasing and domestic production high. Brent had fewer worries, aided by the Iranian situation and worries about Russian crude quality it rose and is up another 69c to $75.26 as I write.
On a corporate note, Occidental dived into the battle for Anadarko putting $38bn on the table which may or not be believed by the markets and Chevron may still be in with a valid shout.
Predator Oil & Gas
More good news for Predator this morning, this time after the release of a CPR on Guercif permits I,II,III and IV onshore Morocco. In the report by SLR they establish total net audited best estimate recoverable prospective resources of 474 bcf with a high of 943 bcf for the ‘first tier’ Miocene Moulouya prospect and the Triassic TAGI prospect. With additional prospective Miocene gas traps and 9 Triassic and Jurassic leads the prospectivity is substantial, especially as SLR say that there are no technical, capacity or gas market reasons to prevent commercialisation of any gas find.
Indeed Paul Griffiths, CEO of Predator is upbeat in his comments saying ‘ this is a very positive step for Guercif and validates significant volumetric and recoverable gas resources potential while importantly indicating too that there is no significant impediment to monetising discovered gas’. Morocco is one of the fastest growing and most attractive international locations with a positive fiscal regime, encouragement by the state and most importantly high gas prices giving top quartile economics in country. To put the area into perspective Guercif is 200km East of the Rharb Basin and 100km North west of the Tendrara gas project. Griffiths goes on to say that ‘with opportunities in the Miocene, Jurassic and Triassic a rolling drilling programme will be needed to facilitate economies of scale and will create sustained exploration activity over several years’.
Investors have rightly taken to the Griffiths model and with three exciting but differing geographies bringing a portfolio with considerable upside as well as his own substantial skin in the game protecting against dilution they should be most excited about the opportunities at Predator.
Wentworth Resources
Wentworth is in change mode and the figures are even more historic than most. Production at Mnazi Bay last year was 83.2 MMscf/d which easily beat the guidance of 65-75 MMscf/d and ended the year at a peak of 95.2 mmscf/d. With a tidy fall in opex from 84c to 44c the company ‘leveraged the volume’ as they say and the company has $11.9m of cash in the bank and is on course to relinquish the Tembo Block on time.
Having spent a good deal of time and money on the reorganisation of the company with closed offices, a refreshed board and ‘supportive shareholders’ the future is indeed bright for Wentworth. I personally haven’t seen them for what seems an age, let’s hope that they can now start telling the market the plans for the future, they do have some plans for the future I assume….
And finally…
So, the Manchester derby was, as expected a victory for the Noisy Neighbours and I suspect that there has never been a derby game that so many Red Devils fans went home secretly glad that they had lost. With the Gooners also losing and Utd playing Chelski at the weekend there is still all to play for although it looks like Thursday night football again for Man U…
Of course Liverpool are playing tonight and have the formality of a home game against the Terriers to keep them on the heels of the boys in light blue.
