WTI $41.08 +$1.30, Brent $44.03 +$1.12, Diff $2.95 -18c, NG $2.09 +15c
The oil price was up yesterday as you can see but overnight things have changed and as I write WTI is down $1.23 and Brent off $1.18 almost exactly removing that gain. The main thing that has happened is that the Kuwaiti oil strike is over after a late night deal that will bring production back up to speed in a matter of hours. This comes as no surprise but combined with the news that Buzzard isnt coming off-stream until later in the year adds to downward pressure. Also, after the close the API inventory stats were somewhat worse than expected showing a build of 3.1m barrels although there was a modest fall of 235/- barrels at Cushing. Finally on a post Doha note, the Iraqi Governor responsible for the group has said that Opec will discuss the output freeze at their next meeting, that’s fine then…
I have followed Enteq since its inception which has been a rocky road to say the least, Messrs Perry and Garcia had done so well at Sondex that I felt that the venture stood a better than even chance of pulling it off and I suppose that given they are still hanging on in there it may yet happen. The company is of course enduring the worst of the current malaise in the oil industry as only a service company can, with 20:20 hindsight it was a truly awful time to start this business. Having said all that the company is still in business, supplying high end MWD systems and although hit by the falling oil price and worse, 60% off the rig number have a strong client base. Today they announce a year end update which says that revenues and EBITDA are ‘in line with expectations’ and that there will be a $2.7m provision in the results, due in June. But with cash of $15.1m (market cap is £8m) and continued reduction in costs NTQ should be a survivor, if for the brave. They have tidied up the board costs as well, Chairman Neil Warner moves away and joint founder Garcia leaves the board but remains as COO.
Canadian Overseas Petroleum Limited
I mention this only as I recently met with Arthur Millholland, CEO of COPL as he starts the process of becoming more active in the London market. The primary reason for excitement here is that they are carried by ExxonMobil in a ‘low risk, high impact’ exploration well offshore Liberia which is targeted for drilling 4Q 2016. Today they have announced the first tranche of a previously announced placing, units consisting of one share and one warrant have been sold at £0.035 raising £800,000 with more to come in tranche two. One to watch and may be of interest as the well becomes more imminent.
Fairly quiet last night although the Magpies nearly took all three points off the Noisy Neighbours, indeed they would have done if it hadnt been for the linesman humming blue moon…
Tonight sees the Merseyside derby as well as the Hammers hosting the Hornets and the Eagles going to the Theatre of Dream. And sorry to see that Charlton Athletic were relegated last night, bad news in the Lyon household…
And a huge thank you to all of you who gave so generously yesterday, we were all gobsmacked by your generosity, just in case you missed it here is what I am going on about.
Finally, yet again I am asking for sponsorship for Sunday’s London marathon. Not for me of course but this year my daughter Holly and some friends are running in memory of a close friend who died last spring. They are hoping to raise money for the Anthony Nolan trust which is a brilliant charity. I know you all get many requests at this time of year but if you have a few coppers to spare it would be much appreciated. Link is below with all the details, thank you very much.
Leave A Comment