WTI $45.95 +27c, Brent $47.61 +24c, Diff $-$1.66 -3c, NG $2.76 +3c
In the end oil finished up on the day and on the week after the US and Chinese data was better than expected. WTI was up only 54 cents on the week though and Brent only 65c. The news from Turkey over the weekend had a modest but immediate effect as the Bosphorus Strait was shut for a few hours thus keeping about 3% (EIA) of world oil off the market. A few hours later all seemed relatively calm and the Strait was re-opened but serves to remind us that geopolitical worries are never far away.
The Baker Hughes rig count showed a gain of 7 rigs overall to 447 and a rise of 6 oil units to 357 which shows some degree of onshore optimism but it is hardly Christmas come early. Elsewhere Exxon joined others in Nigeria by enacting force majeure on its Que Iboe crude, Nigeria’s largest stream.
Sound Energy- Tendrara update – it gets better and better
Just in, Sound has released an update from Tendrara following the recent share price increase. The company continue with rigless operations ‘having now secured contact with a significant portion of net pay’. The company also announce that it has already achieved a ‘very significant gas flow rate’ which is in the process of stabilising during the clean up process. Sound suggest that the find is ‘highly commercial’ and well above initial expectations and further information can be expected within the next two weeks which itself bodes well for even more upside to come…
Tendrara is clearly delivering the goods and with another well imminent, nearby acreage secured, the Schlumberger strategic partnership working and Shell acquiring the surrounding acreage this part of Morocco is looking like a company maker for Sound. A multiple TCF discovery would more than justify the recent price movement…
More good news from Range this morning as they announce that MD 251 (Was MD 51-2) spudded on Friday. The well is a ‘development well’ for the MD 250 as it is also a directional well to test the middle and upper Cruse sands encountered in the 250 well. Initial logs there identified ‘multiple hydrocarbon bearing zones in the 140+ feet of pay. This is the second in a six well programme designed to increase the company’s reserve base, expect two more Morne Diablo wells, one at Beach Marcelle and an exploration well in the Guayaguayare block.
EnQuest has announced this morning that it is in discussions with Delek Group under a Non-Binding MOU to farm-out a 20% WI in Kraken. One gets the impression that this disclosure is not ideal but required as Delek are in the process of another, separate, transaction which requires disclosure obligations as well. ENQ says that it continues to ‘manage and monitor its funding and liquidity’ as one would expect and of course that this specific deal is not guaranteed to complete.
It comes as no surprise that Exxon has spoiled the Oil Search party by out-bidding it for Interoil. That part of the world is very much their manor and one gets the impression that there is more to come in this particular party, whilst Oil Search are probably reluctant to take on XOM they might hope for some sort of unitisation…With the partnerships in place this is probably a good deal for Oil Search as it is a partner in PNG LNG and Papua LNG. As for Total.…….
EOG has released a technical update which is unsurprisingly positive across two blocks and reiterates the undoubted potential that they possess. However, they also make it clear that they are still in the market for a partner in order to acquire some seismic on the blocks, all of which will take time and need plenty of money…
The Open was won in fine style by Henrik Stenson who beat Phil Mickelson in an incredible final winning by three strokes and being an amazing 20 under par.
Great Britain won their Davis Cup tie with Serbia with 21 year old Kyle Edmund winning the final singles in impressive form.
And Captain Cook said that his batsmen were ‘confused’ and ‘naive’ after two disastrous innings in which they were given a lesson in batting, on a Lords pitch that was doing nothing they scored 272 and 207…World no 1, I don’t think so.