WTI $52.58 +$1.43, Brent $61.45 +1.30, Diff -$8.87 -13c, NG $4.12 -1c
It looks like the oil price will be roughly even on the week, today it is down a touch on the poor Chinese economic data but the better than expected inventory data from the API, EIA and Genscape have also shown stocks falling. For the time being it will be touch and go, if Opec+ cut back, and it appears that the Saudis certainly are, then we may have reached a base, for the time being.
Diversified Gas & Oil
I was accused after my last write up of DGO of being a tad curmudgeonly, I had thought that there werent many forecasts in the market to be able to ‘comfortably exceed’. But shareholders will have cheered this morning as the company announce a 3rd quarter dividend of 3.3 cents per share up from 2.8 cents in the 2nd quarter which is about to be paid. A slight surprise then to see the shares fall on the news, surely the market can’t have been expecting more in the payout? Whichever way you cut it the shares are yielding a handsome amount and although have done well this year already, especially if compared to their peers are worth a place in most portfolios.
I met with Block a while ago and it is good to see some progress albeit from a low base production-wise. Today they announce that the legacy well, 16a at West Rustavi in Georgia flowed 200 barrels in ten hours of flow-back and 300 more barrels in the following days. The target here is 650 b/d by Q1 2019 for the two well sidetrack and they are hoping to test a legacy gas well and is in addition to the 250 b/d targeted from the Norio Field which is undergoing a multi well workover and sidetrack programme.
All in all the target of 900 b/d by Q1 2019 is looking doable and would bring in annual revenue of some $13m, the company correctly point out that its market cap is only £7m. The £5m that they raised by the time of the IPO makes them fully funded and with more wells to drill and significant potential from the gas at West Rustavi expected the board are confident for next year.
It’s beginning to look a lot like Christmas and it certainly looks like snow outside this morning. With fewer announcements come fewer blogs but I will continue should there be any news!
Sports wise there is one big game in the Prem this weekend and that is the Noisy Neighbours v the Toffees, after all the Red Devils going to Anfield is not the fixture it was until recently… Chelski are at the Seagulls, the Gooners are also on the south coast at the Saints, Spurs host Burnley and there is another London derby as the happy Hammers are at the Cottage.
Racing is another great couple of days at Cheltenham, interesting to see what the ground is like down there today.
Australia are batting in the second test against India and are 277-6 at the close.
Finally an in joke but irresistible, The King of Spain is set to take over from Andrew Strauss as Director of England cricket…