WTI $49.33 -15c, Brent $49.32 -27c, Diff +$0.01 -12c, NG $2.17 +2c
The Summer Opec meeting starts on thursday and as usual, claim and counter claim is being made. Nothing has changed me views from Friday and I dont expect anything spectacular to come out of the meeting. I remain convinced that the effective demise of Opec as we have known it continues, a fact made ever more clear by the seeming in-consequence of the likes of the likes of Venezuela and Nigeria.
The driving season started yesterday and so one can expect some sort of rally in product demand although crude oil is finding $50 quite a barrier. Outages continue although Canada is getting better but with the overall rig count u/c at 404 on Friday the $50 level hasn’t tempted drillers back yet, oil was down two units.
As has been mentioned here a few times recently Range appears to be getting its act together, today the company announce that the Beach Marcelle waterflood project has commenced with the start of two injectors. First oil is expected 1Q 2017 and will average 1,600 b/d over its 8 year timescale, plateauing at 2/- b/d. Over at the Morne Diablo project waterflood is ongoing and the long term increase in production over the two projects will be material and the economics are significantly improved by $50 oil.
Victoria Oil & Gas
VOG has announced 7 month figures today which have comparables for production but not for financials. As I wrote recently on the company I dont intend to add much today, production in the seven month period was 8.57 mmscf/d compared with 3.95 mmscf/d in the same 7 months in 2014 but even that is not comparing apples and pears. I dont see any reason on the face of it why things shouldn’t continue to prosper at VOG, they are extruding their client reach and have two wells on Logbaba this year. The cash situation is that they have $13.2m which is a net figure of $6m apparently but I won’t compound my recent error by trying to work out how much of the recent raise has been spent. The Deputy Chairman and CFO are leaving the company with the Financial Controller stepping into his shoes, let’s hope that projection of this good news filters out into the market…
AMER announces a new NED this morning, Chris Jenkins is appointed and will Chair the audit committee. Not normally worth a line on its own but shows that following the upgraded report and accounts that the company is taking governance seriously.
It appears that I wasnt the only one that got confused by the payments made by the KRG last week. It seems that, albeit on Twitter, they have announced that payments for April, made in May will be on a 2/3 basis and the final payment will be made today, lets see shall we…
I will try to run through a huge weekend of sport quickly. England won the second test with Captain Cook eventually going to his 10,000 runs in tests, great news.
The Golden State Warriers who had been 1-3 down in their series came back last night and beat the Thunder setting themselves up for a final against the Cleveland Cavaliers..
Chris Woods won the BMW and puts himself in line for a Ryder Cup slot.
Promotions for Hull City Tigers (who are apparently sacking the manager and up for sale), Barnsley and AFC Wimbledon. Today Woy will announce his team for the Euros with two players in the squad to be disappointed.
And subject to the weather which has been dire in gay Paree, Muzza takes on Gasquet at Roland Garros.
Sarries won the rugby, as expected and England cruised past the Welsh in the pre-tour warm-up match at Twickenham.
And Lewis won in Monte Carlo, although I would like to be a fly on the wall at the Red Bull tyres post race briefing…
On Friday 16 September, companies and advisors from the oil industry will be gathering in Surrey for the 3rd Annual Energy Against Hunger Mud Challenge – a unique industry networking event that sees teams competing against each other in 5km “tough-mudder” style obstacle course on behalf of the charity The Hunger Project (www.thehungerproject.org.uk). Ahead of the main event, PR firm Buchanan will be hosting an informal drinks event at 6pm on Thursday 2 June to capitalise on alcohol induced bravado. If you would like to attend the drinks, or enter a team for the Mud Challenge, then please email Ben Romney on email@example.com.