WTI $42.92 -21c, Brent $44.87 +15c, Diff $1.95 +36c, NG $2.71 -4c
A mixed day for crude, very quiet as traders contemplated inventory stats that would likely show that WTI is suffering more that Brent at the moment. In the end they turned out to be right, the API numbers, after the close, were worse than expected, it was a draw but only 827/- barrels, the gifted amateurs on the street had predicted 2.3m. Gasoline, the bain of their lives also in recent weeks did actually show a very small draw of 423/- barrels whereas to whisper was a modest build.
The good news just keeps on coming for Sound who today announce an extension of their agreement with Schlumberger, this time on their exciting Badile prospect. Schlumberger will invest €7.5m for a 20% option to acquire a Net Profit Interest in Badile by which they will pay for 30% of the costs of the first well and 20% thereafter.
Sound has consistently demonstrated an ability to use interesting and novel ways of using partners to achieve the financing needed to get their portfolio working for them. They should have much to say in upcoming presentations and of course results from their well programme of which I expect further news from Tendrara before long.
Today’s quarterly update from Range doesnt tell us anything we dont already know as there have been a number of announcements about drilling etc. The long term focus is obvious and concentration of development drilling and work on the waterflood projects continue. Shareholders will be happy to see the 2,500 b/d production forecast by the end of next year to be still in place and drilling of the MD 251 continues at present.
RIP JT McNamara
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