Shorter blog today after yesterday’s marathon effort!
Back to Iran and the elections I June, I’m not sure the market has yet to fully comprehend the potential magnitude of this poll, even the legend that is Marcus Ashworth hasn’t got it yet. Yet more in the pink ‘un about it, this time an article about how the business community in Tehran sees the Rafsanjani cull to be a blow to reform of the economy as well as an editorial on Iran’s ‘poll charade’. Either way the moderates and business community are massively pressuring the supreme leader to move away from the edge that is slowly beckoning.
The Chinese manufacturing data put the cat among the pigeons as it contracted for the first time in seven months leading oil trade’s to worry about demand for crude oil. The Nikkei fell 7.3% and markets and non-greenback currencies suffered as well, making crude even dearer.
The EIA inventory stats also surprised the markets but very specifically in gasoline stocks which rose 3m barrels (overpaid numpties f/c to fall 300,000) to 220m barrels. This is the highest number in the week before the driving season since 1999 and 10% higher than last year leaving people to think that the retail market may be oversupplied, expect gasoline prices to fall at the pump unless the season really takes off.
Wood has won a 5 year contract with Hess Corp for services to the company’s Baldpate production platform in the deepwater Gulf of Mexico as well as for the Tubular Bells and Stampede facilities also in the GoM. This is another great contract from an existing client extending their relationship from one geography to another.
Genel Energy/Mediterranean Oil & Gas
MOG has agreed with Genel that the deep-water drilling rig Paul Romano will be used to drill one exploration well offshore in Malta Area 4 in Q4 of this year. The well will target reservoirs at 2,500m in the Lower Eocene/Paleocene with unrisked gross prospective resources of 109mmboe.
MOG has a 25% interest in this block so a successful outcome would be significant. We are meeting the company this morning and will give further updates in due course.
Separately, Reuters reported today that crude oil sales from Iraqi Kurdistan to world markets are set to rise by nearly 50% next month as trucking to a second export terminal in Turkey gets under way. Exports from Taq Taq are expected to rise from 40,000 b/d to 60,000 b/d by the end of June.
Plexus, as written up here earlier this week has won a purchase order worth circa £1m from GDF for its exploration activities in the UK North Sea. This is part of an ongoing contract with the company and Plexus expects further purchase orders. It is repeat business like this that confirms to me that the company are without doubt able to establish Plexus as the leading supplier of wellhead equipment not just in the North Sea but internationally.
Nighthawk has announced that the Big Sky 4-11 well has indicated production of 200-300 b/d expected by the end of this month as well as confirming the extension of the Arikaree Creek oilfield to the north-east.
The Chairman states that the goal of 1,000 b/d is now within reach and at that level of production and at current prices Nighthawk will be generating significant free cash-flow after operating costs and is a strong platform for further growth. No need for a capital raise for the time being then which will be a blessing to long suffering shareholders…………….see 5 year chart below
Saw Jacka Resources yesterday, ASX listed but bound to be seen over here before long, in Nigeria, Tunisia, Australia, Tanzania and Somaliland with Genel, very interesting company, ex Hardman Resources taken out by Tullow………….
All thinking of Matthew Tyler’s family today……….
Roberto Martinez has asked for another few days to consider whether to stay at Wigan, few minutes more like………..
Yuichiro Miura at the age of 80 becomes the oldest man to reach the summit of Everest
Sergio Garcia in a spot of agua caliente as they say……………