WTI $40.54 -21c, Brent $44.18 +4c, Diff $3.64 +25c, NG $2.28 -7c
WTI made an appearance below $40 again yesterday, if it keeps doing that it’s only a matter of time…A big conference in Bahrain yesterday heard Ali al-Naimi urge continued investment ‘in order to guarantee the stability of the market for the long and short term’. A bit late now as by most calculations the best part of £300bn of capex has been withdrawn by the majors since market share wars started.
Probably the most influential market commentator, David Hufton is however increasingly worried. Todays Daily Telegraph reports him as saying ‘the world is floating in oil, the numbers we are seeing now are dreadful, this is unprecedented’. Certainly if the Northern hemisphere has a mild winter, as a number of forecasters are suggesting, then the stock situation is indeed precarious.
Parkmead, who’s stock continues to make new lows, has final results this morning. Whilst the figures themselves were expectedly disappointing the statement is upbeat, indeed having raised $21m in May of this year and with cash balances of $60m the Chairman is relatively positive. First commercial gas has flowed at Diever West in the Netherlands and production is expected to be 29 million cubic feet a day, equivalent to 5/- boe/d and the company are rightly proud of coming on production only 14 months after discovery. With 9 blocks awarded in the 28th round, mostly nearby existing production, Parkmead hopes to speed up value added exploration.
Ophir announced yesterday that their G4/50-11 Gulf of Thailand wildcat exploration well ‘encountered oil in primary and secondary targets but but were below commercial threshold for a commercial discovery’. Now just usual detailed analysis etc…
Pantheon had results too today but they are totally irrelevant, at the moment it’s all about the current drilling campaign. So far we know that the first well is a big success story and the second well has already found an unexpected oil bearing zone. We are now waiting for the well to reach TD which is expected around the middle of next week, after that logging and hopefully testing…. My target remains at 200p but will be adjusted after this current well.
Range Resources are further ahead on their GY 180SE, first development well on the Beach Marcelle field where logging is underway and testing is imminent.
The RFU has announced that Eddie Jones is to be their new head coach. Now all we need is a clear out of all the rubbish in the office, if only those boring old ‘ones’ mentioned all those years ago by Will Carling would go then Sir Clive might reappear…
England are taking on Pakistan in the final One Dayer as I write and batting first England are 201-3 after 36 overs.
Muzza has to beat Stan the man Wawrinka tonight to get to the semi-finals of the ATP World Tour finals, if he doesnt that wouldnt be the biggest shock…
And the Premiership returns after the international break with a hatful of exciting fixtures. At the OGC awards dinner on Wednesday I sat next to a big Canaries fan by the name of Rob Pickles who is a big wheel at adil in London, he is hoping that Chelski’s bad form continues as his boys go to Stamford Bridge. Elsewhere the big match must be the Noisy Neighbours v the HubCap Stealers whilst the injury hit Red Devils go to the Hornets and the Gooners are at the Baggies. A London derby of note sees the Happy Hammers going to arch rivals Spurs, the Magpies take on the Foxes, the Saints host the Potters, the Swans entertain the Cherries and the Maccams go to the Eagles. Finally dont forget that tomorrow also sees El Clasico at the Bernabeu…
Plenty of good jump racing as well and of course the Race to Dubai is in the final straight with Rose, Willett and McIlroy among seven players who could still win the title.
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