WTI $100.91 +8c, Brent $106.98 +32c, Diff $6.07 +24c, NG $4.15 n/c
I have to admit that when I heard the reports of further fighting in Libya, with rebels attempting to seize the airport, that the oil price might just have a bounce, albeit a dead cat one, but it is not to be. Last nights close which a very modest rise on the day has been lost already and this morning traders are saying that for choice there are sellers around. Rumours that ISIS are managing to sell oil from small fields taken during the last few weeks abound but quantities are tiny and black market prices of around $10-25 a barrel are likely.
No surprise to see the dissolution of the co-operation deal between Bowleven and Petrofac after the deal with New Age and Lukoil and the $9m that BLVN have to pay PFC is neither here nor there. I am hoping to spend some time with BLVN at some stage because having gone out on a bit of a limb by putting them out as a trading buy, I am keen to ensure that I haven’t been suckered in, it was a good sell for a long time, has the leopard changed its spots?
Falcon Oil & Gas
Falcon has announced that its Hungary well Besa-D-1 well has encountered gas shows and will test further. This is the second of the three well programme where they are carried by NIS with a cash advance, the third well, due to be drilled by July of this year has been extended to the end of the year. This is good news as the operator clearly wants to do evaluation and testing of these results. Overall I would say that this is mildly encouraging for Falcon but having seen them recently and written them up in the blog, this is relatively small compared to what might be around the corner for the company.
More good news today from Sound Oil who go from strength to strength with their interesting and highly deliverable portfolio in Italy, I bet you didn’t think you would see me say that! The reason is that being onshore and primarily gassy the permits are easier to get and the end market is very strong. Todays news is a significant increase in recoverable volumes at Santa Maria Goretti which I mentioned in my report yesterday as an important part of the Sound jigsaw. CGG Robertson has done the CPR and it increases the previous resource estimate by 82% which is indeed a meaningful amount. The company has a location identified and subject to those permits will drill as expected in 2015. My recommendation made recently and endorsed by my visit to the assets in Italy very recently was expounded yesterday in the blog, this report can only rubber stamp my very positive view on the shares and despite a good run this year Sound should not be missed at these prices, the next 18 months should be most interesting.
As they say in the best stadia, its gone very quiet over there…
But not for long as on Thursday we see the start of the Lords Test match, for many people the highlight of the summer and with a heatwave about to hit the country stand by for what could be as much as two days of hot weather, England are contemplating a spinner, I don’t think so, it’s not a mackerel fishing trip.
Also on Thursday is the Open Championship but word is that Ian Poulter may have injured himself up in Scotland, not dropping the deep-fried mars bar on his foot I hope…
Also an injury doubt is Mo Farah who may not be able to go to Glasgow for the Commonwealth games in the City…
And another injury as Contador is out of the Tour de France, not many left now then…
Finally Man United have signed a £750m ten year deal with Adidas to sponsor their kit, Nike fell at the final fence which may or may not look smart in years to come, as for today at the Theatre of Dreams enter Mr Van Gaal….
Leave A Comment