Oil price, Victoria Oil & Gas, Sound Oil, Sundry – Anadarko-Leyshon Energy-Premier Oil- And finally…

Oil price, Victoria Oil & Gas, Sound Oil, Sundry – Anadarko-Leyshon Energy-Premier Oil- And finally…

 

World Cup logoWTI $104.40 +5c, Brent $109.95 +43c, Diff $5.55 +38c, NG $4.51 -2c

Oil price

I had a number of questions yesterday about Iraq and the effect of the Jihadi overrun of Mosul and other cities, also what effect it might have on Kurdistan. I hadn’t commented first thing as when I went to press reports were unclear, since then it seems that the situation has worsened and there are now talks of US strikes in the north of Iraq. I will comment more later but for Kurdistan I think that the situation is more straightforward than for the rest of Iraq, I am told that the rebels are unlikely to take on the Kurdish Peshmerga and that the KRG is much better prepared for any trouble than Maliki was. In addition at a time when Baghdad is under threat what better way to remind the world that their oil has a pipeline export route through Turkey? Finally the Iraqi oil Minister at the Opec conference yesterday said that this trouble made an agreement with the KRG ‘more likely’.

So, the Opec meeting left output targets and quotas untouched as predicted although it did add the rider that the cartel would ‘take steps’ to ensure that the market remained stable at all times. Brent rose during the Iraqi troubles and at one stage touched $110.40 during the day but drifted back to below the $110 level at the close. WTI had other things on its mind viz the EIA inventory stats which showed a draw of 2.6m barrels which was around a million barrels more than forecast. Having said that, WTI which had also reached a high of $105.06 during the day, also  failed to hold the high and fell back by 65 cents off the peak.

Victoria Oil & Gas – Guinness is good for you…

VOG has announced that it has completed the first phase of the gas power supply in Douala in Cameroon and now has a working operation in place with gensets and gas supply as envisaged.

Sound Oil 

Things go from strength to strength for Sound Oil who are getting all their ducks in a line in Italy, if you haven’t spotted this one yet there is plenty to go for but you will be hearing a lot more in the coming months. Sound has received formal approval for the licence which contains the Laura field, you will remember that this is an offshore discovery to be drilled from an onshore location thus avoiding the horrendous delays of the offshore kind.

Sundry

Anadarko which readers will know has long been my biggest favourite international exploration play soared into new high territory yesterday as word on the Strasa talked about a bid from Exxon. With a  market cap of $55bn this is not outside the reach of the big fella and that is why the market is so excited. My view…well it’s all very well to have speculation like this but it’s pretty immaterial, I would have Anadarko as my first pick in playground portfolio games with or without bid spec, new high or not.

I’m off to see Paul Atherley and his high powered crew at Leyshon Energy this morning as they reveal their strategy now that the demerger is complete and settled. Much more tomorrow but this China play has looked very exciting to me for a while and punches well above its weight in the division…

Premier Oil has announced UK Government approval for the Catcher Field which takes me back a fair bit, I remember doing the presentations with Encore before the bid and how badly the market treated the company, oh well Catcher is now imminent.

And finally…

As sporting days go this has to be one of the best ever as the World Cup starts, it’s the first day of the test match at Lords and of course the US Open starts as well.

Brazil kick off the cup against Croatia where nothing less than a win will do, all the talk has now been done, let battle commence.

England bring in one or two new players in the test match against Sri Lanka, Gary Ballance at 3 seems like an interesting shout and we will see what Chris Jordan is like with a red ball, so to speak..

And can a Brit retain the Us Open, its certainly a possibility as Justin Rose is in good form and can Rory put together four unblemished rounds?

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