WTI $46.60 -$2.39, Brent $47.96 -$2.14, Diff -$1.36 -3c, NG $2.76 -22c

Oil price

With more worries about the global economy post Brexit the oil price and the cable have turned south. Inventory numbers will be crucial this week as Genscape reported a build of 230/- barrels at Cushing yesterday.  The delicious irony of it all is that by being international and paying their dividends in dollars even the pigs can have lipstick applied. Lots of stories around from the BP visit to Baku and also the big interview with BvB in the Sunday Telegraph.

Chevron

It is interesting to see that Chevron has approved the Tengiz expansion in Kazakhstan at a cost of some $37bn. The company cites that it is ‘a terrific time to be making this sort of investment with falling drilling costs’. Now I know that as an existing development it carries less risk but I do think that it is a subliminal marker being put down by them and partners Exxon at a time when there has been a trillion dollars of capex taken off the table over the next few years.

Hurricane Energy

Hurricane have lived up to their promises post the recent funding and announce today that they have spudded the 205/21a-7 ‘pilot’ well on the Lancaster Field. This is the first of a two well, back to back programme designed to ‘refine’ the Lancaster resource range, ensure a future production well and provide new information to help plan ‘optionality’ of the Lancaster Field development. The well will hopefully confirm the OWC to determine the height of the column, evaluate the properties of a potential aquifer for pressure support and to evaluate the Victory sandstone resources range. With Lancaster showing a contingent resource range of 62-456 mmboe the potential for this drilling programme is substantial and of course complete the well stock for the Early Production System, these are indeed exciting times for Hurricane.

Savannah Petroleum

Savannah’s shareholders are a patient and understanding lot, not to mention being generous too, but Andrew Knott has clearly got an asset here that warrants their interest. On January 11th the shares were suspended for a reverse takeover, the scheduled use or abuse date was deemed to be ‘no earlier than April’ and the market would hear then if it was a runner or not. Well yesterday,(in July)  in announcing a very decent placing of $40m at an even more decent price of 38p,(suspended at 24p) SAVP managed to raise some more money for seismic and ‘general purposes’ as well as kicking the RTO into the long grass, raise or no raise the deal is off. Clearly the team has been very busy as new data has identified very positive new challenges, a new proven play and 118 prospects and leads. Drilling is scheduled for 2017 and ‘new partners are now being sought’ to replace the dog that didnt bark in the night. Watch this space, nothing with Knotty is ever simple but very likely to be rewarding and new partners likely to be nearby.

And finally…

The end of the Sri Lankan tour of England finished last night with a T20 down in Southampton, convenient should they decide to sail home. They wont be carrying excess baggage of silverware as they lost the test series, the one-day series and the T20 last night but this was not a hot summer to bring inexperienced players and they are always welcome. Next up is Pakistan and the ‘guess when the no-ball is coming’ game, starting at Lords next thursday.

Today at Wimbledon is the mens quarter finals, possibly the best day of the tournament especially as Centre Court has the two stand-out matches. Federer v Cilic and Muzza v Tsonga should keep SW19 and the BBC busy for some time.

And Pistorius gets the 5 years for manslaughter changed to 6 years for murder, only in South Africa…

And so to Wales as they prepare to play Portugal in the semi finals of the Euros. Given the standards of play so far I have no reason at all to believe that they cant win against a team that has found it difficult to win a single game in 90 minutes….