WTI $30.34 -$1.85, Brent $30.50 -$1.68, Diff -16c -17c, NG $2.16 +2c
So somebody was watching the Straights of Hormuz after all and has started counting the Iranian vessels off to old markets. Traders were still sorting out their positions yesterday after a retail influx closed their books quite nicely, if you know what I mean. Selling the very end of the Brent option which expires today was easy as feeding goldfish and after that they whacked the price down, expect something similar on Friday when the contract expires.
The Opec Secretary General called on the worlds biggest producers to stop the decline but knowing it was pure politics…
Sound has acquired another 50% of Sidi Moktar onshore Morocco by buying the stake from PetroMaroc for shares valued at £3.65m. This gives Sound 75% of the licence and operatorship of an area already successful with a material gas discovery and twin benefits of potential near term production and significant deeper exploration prospects.
Added to Tendrara and other parts of the portfolio it shows that the management are not letting the grass grow under their feet, in the chosen geography the company has now got exposure to near term production and a variety of well balanced exploration, mostly picked up at what might be near to the bottom of the market and against stiff competition I hear.
Another company using its financial strength to acquire during difficult times is AMER who today announce the acquisition of Platino Energy from COG for $7m in shares. The deal gives them 190 mmbo of unrisked resources and exploration potential in three interesting areas, PUT 8, the Coati Evaluation area and the Andaquies block to the north east of the Putumayo Basin.
As with previous deals Amerisur has bought into a deal with few commitments, a $24m tax pool and exciting exploration potential. With space in the OBA pipeline any success will access that, cheaper way to market, and as above, management, which I rate very highly, is buying assets it knows well using the flexibility available to it. I am meeting the company very shortly and will comment further after that.
Lamprell has signed an MOU with Saudi Aramco, Bahri and Hyundai for a potential partnership collaboration in establishing a maritime complex in Saudi Arabia. The intended Maritime Complex will provide engineering, manufacturing and repair services for offshore rigs, commercial vessels and offshore service vessels. At this early stage it is not possible to evaluate what this might mean for Lamprell but obviously should it take off it would be another source of work at an important time for the company, with the yards full and revenue well covered ahead, management are wisely looking for a more diverse source of income.
Fairly quiet on the sporting front this morning, Dylan Hartley will spice up captains meetings on and off the pitch, to be sure.
In the cricket England have realised that if they are all out by lunchtime they can catch an early flight and are batting like men who are thinking of home which is a shame.
And it’s back to the Clueless Cup tonight as the second leg of the HubCap Stealers/Stoke game is on.