WTI $47.33 +56c, Brent $49.67 +62c, Diff -$2.34 +6c, NG $2.85 +5c
A lot of to-ing and fro-ing in the oil markets which will probably end up slightly down on the week. After the poor inventory stats yesterday was up, partly as Iran confirmed that it would attend the Opec ‘meeting’ in Algeria and partly as there was a spot of bother in Gulf between the US and Iranian gunboats. But the Opec Secretary General announced that he was to visit Iran and Qatar for pre-meeting talks so the charade continues…
Will it be hawkish Yellen at Jackson Hole tonight or will she hold back until the Fall before committing the Fed to tightening, the market thinks that the employment data is enough to press the button but who are they to judge…?
Sound has announced that it has spudded TE-7, their second Tendrara well which it is hoped will prove up gas volumes enough to enable finalisation of the FDP and demonstrate the benefits of sub-horizontal drilling as a concept. Drilling and logging should take 54 days, completion and stimulation 30 days and clean up and initial well testing up to 10 days. After that if all has gone well there should be a 70 day EWT. Shareholders don’t appear to be nervous as they have pushed the shares up to a new high of 66.25p this morning, if this well comes in, significant further upside can be envisaged, a Christmas present indeed…and with Badile in the mix at the same time Sound maybe your Santa baby this year.
Victoria Oil & Gas
Rule No 1, try and avoid getting into a legal spat with your partner even if you know you told them who the rig and drilling contractor was going to be. Forgetting your car keys or your phone is one thing but not remembering that sort of basic information shows questionable commitment. RSM have withdrawn their injunction to halt the drilling but are still at the International Chamber of Commerce, in the meantime spudding is imminent. With friends like these…..
Falcon Oil & Gas
Interims today from FOG but nothing has changed from the words I wrote a few days ago. Fundamentals are sound and operationally the situation remains in very good shape, ‘progressing as planned’ is as much as the company gives us. Falcon remains to an extent dependent on the Northern Territory elections which are tomorrow and although the result is a certainty what will happen afterwards is open to some discussion. Taking out any political chaff, FOG has $11.1m of cash which it struggles to spend as it is fully carried on drilling in the Beetaloo which still gives the company significant upside in what is one of the worlds top unconventional basins.
The second one dayer between England and Pakistan is at Lords tomorrow and after the D/L win on Wednesday teams and fans should by now have managed to get out of the ground in Southampton. The weather is set fair for St Johns Wood for a day game which should be a decent spectacle.
In Belgium Lewis is taking his punishment like a man and will start near the back of the grid which will also be good for spectators. For those who feel that the fastest cars should always start at the back it will be worth seeing how close he gets to Nico et al by the end….
Last night the Hammers, albeit having to field a third team, fell out of the Boropa Cup which at least means that Thursday nights become free again.
This weekend in the Prem, faltering Champions the Foxes take on the Swans whilst the other big games are Spurs v the HubCap Stealers and a top of the table clash between Hull City Tigers and the Red Devils. In what looks suspiciously like a bottom of the table six-pointer, the Eagles host the Cherries whilst on Sunday the Noisy Neighbours host the Hammers. Burnley are at Chelski and the Gooners who apparently have just found the chequebook are at the Hornets.
Yet again in the Champions League draw the Noisy Neighbours drew Barca, this time the group of death also contains Celtic….