Oil price, Aminex/Solo, Sundry-Wood Group-San Leon-Gulfsands-Caza-Bahamas Petroleum- And finally…
WTI $36.79 -$1.55, Brent $38.67 -93c, Diff $1.91 +65c, NG $1.96 n/c
That wait until the 17th April is as expected, becoming hard going for the industry bulls while the bears can just sit around waiting for the next interview to hit the wires. On Friday it was the turn of the Saudi Deputy Crown Prince to add his few bob’s worth on Bloomberg saying that their part in the freeze was conditional on all others agreeing, cue laughter all round. It is still nearly a fortnight until the meeting which predictably is on a Sunday and plenty of opportunities to slip on strategically placed banana skins.
The Baker Hughes rig count on Friday should have helped, overall rigs were down 14 to 450 units whilst oil were down 10 at 362, getting almost more than a lifetime since we were this low.
Aminex and Solo have completed the deal previously announced whereby AEX sells 3.825% of the Kiliwani North Development licence to Solo for $2.16m. Post this deal Solo will have 10% of KNDL and the remaining contract expires. I have long held the view that this is an attractive asset and with production imminent I feel that it is good news for both companies. I recently spent some time with Neil Ritson who is without doubt an impressive oil man and hope to come back with more from Jay as soon as is possible.
Wood Group has announced that its contact with TAQA in the North Sea has been extended by two years with three one year extensions. The work serves five offshore assets and although value is not mentioned I suspect it is a useful hold.
San Leon has completed on its Mart acquisition, I am still to see the company although they may have made a presentation on the deal.
More fun and games at Gulfsands where the company are indicating that there is light at the end of the tunnel in Syria. The way of communicating news at the company seems to be via Danny Fortson at the moment but if accurate then there is to be a food for oil deal imminent although I wouldnt be standing on one leg and holding my breath waiting for it.
Caza is the subject of a ‘going-private’ transaction, what a surprise… The deal offered by Talara is $0.00481 per share and they need 66% of the votes to succeed. Talara are voting in favour with their 95% so that’s a deal then. I have let many people down on this one as I genuinely thought that they had a good portfolio of acreage that was sustainable through the downturn but it wasnt to be.
Over at Bahamas Petroleum the implementation of the compensation revisions has been announced. The CEO is having his pay deferred by 90% which will be paid back in cash and shares when a farm-out has been concluded. For the rest of the board their fees are deferred by 50% and will be repaid in shares at the same time. This is all about alignment with shareholders and extremely appropriate at the moment. The statement says that discussions continue with ‘potential strategic and funding partners’ which is positive as the cash in the balance sheet runs out 2H 2017 by which time a well will have to have been under way…
I took a bit of stick for not mentioning the T20 final on Friday, I would like to think that it was a premonition that we would snatch defeat from the jaws of victory but afraid not. A just result in a really good game that a little while ago we never thought we would be in.
The F1 season has started well, apart from the ludicrous qualifying process… With Nico winning twice and Lewis struggling off the grid it bodes well and with Kimi in second and the Haas F1 team out of the blocks with Grosjean early, the stage is set…
And so to Leicester where the Foxes won again and 1-0 again to stretch their lead to 7 points with Spurs drawing against the HubCap Stealers. The Gooners and the Noisy Neighbours won easily but it’s not in their gift just now. The Hammers drew with the Eagles and got another awful reffing call and another wonder free kick from Payet while the Red Devils stormed the Toffees scoring from one of their two chances on target in the game. At the other end of the table its beginning to look a bit black and white for the Magpies after they were seen off by the Canaries on Saturday, with the Maccams only drawing against the Baggies the North East is looking a bit bleak, Villa crashed to Chelski, it could have been more.
Finally, it was the weekend for ending long standing records, as Barca went down in El Clasico to a Ronaldo goal and the Golden State Warriers ended the longest ever winning run at home in NBA history after being beaten by the Boston Celtics after 54 straight wins.