WTI $48.41 -26c, Brent $48.72 b-9c, Diff $0.31 -34c, NG $2.06 +2c
It’s not just because oil didnt break $50 last week but at these prices it certainly seems that some sort of equilibrium has been reached, at least in the short term. Last week was another up week for crude, WTI rose 3.3% whilst Brent only gained 1.7% as the outage number so far in May reached 3.7m b/d but was offset by the strong dollar and flat-out production elsewhere. Even the rig count trod water with overall numbers down by a modest two units but oil unchanged at 318. Money managers put more faith in the bull camp as the CFTC numbers showed them increasing long positions ahead of the driving season and the June 2 Opec meeting. I get the impression that at the moment, without any external momentum there is enough oil on the market to see us through well into the second half of the year, outages state of play and product demand will likely define price movements in the short term.
Figures out today from AEN and as I have written plenty about them recently there isnt much to add this morning. The numbers confirm that the company had a good year in 2015 and despite having to wait for the change of Government got on with things pretty well. Production was up, the Interoil acquisition was a success and expanded the company’s portfolio into Colombia and both revenue and EBITDA rose. The Chachahuen provides solid growth whilst the Vaca Muerta gives the stock some spice, especially when you see just how many blue chip oil companies are in the post code. With the oil price set to be in the $60-67 range in Argentina for this year at least, the company should remain on the radar for investors.
Europa O&G/ Union Jack
There was never any doubt that EOG would fund the Holmwood well via a farm-out or similar and that is what they have announced this morning. Union Jack Oil has bought 7.5% of EOG’s 40% of PEDL 143 in the Weald Basin which contains the Holmwood prospect amongst other interests. For 7.5% UJO is paying for 15% of the costs of the upcoming well up to a gross cap of £3.2m and the well is expected to spud late this year or early 2017. No surprise here as EOG was always going to cut some sort of a deal on funding for this well, probably best to keep it within the consortium and of course they have some quite large fish to fry in the Porcupine Basin.
Petroceltic has announced that the AT-13 well seems to have been successful with the characteristics of a good gas reservoir on Ain Tsila, existing management are having to keep doing the operational stuff which is pretty galling, I would have just chucked the Russians the keys…
Another on the list of the have-nots is Lansdowne who are exhibiting rather extreme characteristics of survival when probably not justified. Suspended at 2.12p the company want to reduce the nominal value to nearer 0.05p in order to get an equity financing away should they opt for that strategy. This would be a possible issue of 350m shares in order to fund working capital and final settlement to Transocean. The words good money and after bad come to mind…
The FA Cup Final got under way after about an hour when the Eagles scored and then almost immediately conceded. Into extra time and Jesse Lingard scored a wonder goal to give the Red Devils the silverware. Soon after the presentation the stories were doing the rounds that Jose Mourinho was about to be appointed, Utd have now had the Chosen One, the Clipboard One and now the Special One…
Three friendlies for England ahead of the Euro’s and last night they gave an uninspiring performance beating Turkey 2-1 with one goal offside and a penalty miss into the bargain.
The first of the summer’s tests was played at a chilly Headingly where England cruised past Sri Lanka with Jonny B scoring a great century and the swing bowlers virtually unplayable, only bad news is that Stokesy is now out for the next test.
And the French Open started yesterday and with heavy rain delaying proceedings this morning there are no results yet.