The oil price has reacted favourably to the FOMC moves to tickle down tapering and with some supply constraints, particularly from Libya and South Sudan adding to the more positive economic news from the US seems to be set fair at the moment. The API reported yesterday that US demand for petroleum products in November was the largest for six years boosting confidence.
Natural gas jumped again yesterday following their inventory stats data, the draw of 285 bcf was larger than the consensus of 260 bcf and left stocks at 3,248 bcf.
BG’s partner and operator of Carioca, Petrobras, has declared the field to be commercial and renamed it Lapa. BG has 30% of Lapa and a development plan will be submitted within 180 days, more good news for BG although the market hasn’t appreciated it this morning.
Caza Oil & Gas – Jazzmaster struts its stuff.
Two very good well confirmations this morning from Caza, a company which is really beginning to fulfil its early promise. The Bone Spring well, Jazzmaster 17 completed its horizontal test in October but on December 13th was still flowing very well indeed. On a 24 hour test it produced 458 barrels of oil and 470/- MMcf of gas or 536 boe which is most impressive. In addition to Jazzmaster, West Copperline has also performed well, reacting positively to being held back and is producing at 831 boe/d.
The transformation of Caza is well underway, having spotted and remedied its exposure to gas, the move towards liquids – and the Bone Springs – is proving to be very successful and will generate plenty of cash in due course. This is another stock that the market has yet to give credit for but rest assured the value is being generated all the time and is already way above the current share price, if not already there, this is one for the notebook.
Namibia – BP/Serica
More bad news for Namibia as BP has walked away from increasing its interest in the Luderitz Basin 0047 offshore Namibia prospect. This leaves Serica getting back the 30% allocated to BP and looking to start the farm-out process all over again. One wonders how may more setbacks can happen in Namibia or if good news will ever happen, no hurry to put your eggs in this basket, at least not yet.
The company has sold another 6% of Handcross to Oyster Petroleum taking its own stake down to 25%, fully carried and with some cash as well. They have also bought 10% of the Trell prospect in the Norwegian North Sea as part of its strategy of minimising its UK exposure from Valiant and restructuring the Norway acreage. Ithaca remains one of my favourite plays and I still see plenty of upside.
Cardiff City fans mustn’t know what’s happening as their most successful manager in recent times is about to be sacked by owner Vincent Tan, how odd, but rumour is that he is waiting ’til after tomorrows game against the HubCap Stealers who will then have the dubious honour of getting a manager sacked two games in a row..
Pre-Christmas fixtures include Man U vs the Hammers tomorrow, a tricky trip to the Saints for Spurs and a cracker on Monday night as the Gooners host Chelski.
BBC Sport website has Lawro’s predictions and his guest today is DC, so asking a Villa fan for advice on football is like asking a turkey what he thinks his chances are for Christmas.
Some very exciting football in the states too as the season starts to warm up over there…