WTI $44.48 -$1.84, Brent $45.89 -$1.76, Diff -$1.41 +8c, NG $2.95 -4c
The ‘Opec’ meeting scheduled for Wednesday and looked forward to by so many bystanders looks like being a farce but don’t say you weren’t warned. When the Opec President called for this meeting back on August 9th, swiftly followed by the Opec machine led by the Saudis and others it all looked so good, even the Russians and the Iranians made comforting noises. It seems that now the meeting is ‘for consultations only’ according to KSA sources, in my view it was never a ‘proper’ Opec meeting and at best would send a paper to the November 30th official gathering. So many things can and have gone wrong, production is soaring and the prospects are worse, indeed with the rig count growing and world growth slowing only the huge capex falls scheduled for the next two years can make the numbers add up. Only the Algerian Minister thinks he can salvage something from the meeting…
Victoria Oil & Gas
Interims from VOG this morning which yet again prove that this company is delivering the goods in all its intended areas. EBITDA of $14.2m and post tax profits of $1m were as expected and the cash sum of $1.9m at the period end grew to $9m as of 23rd September. Average daily production of 13.1 mmscf/d was up 93% and the amount of gas sold was 2,282 mmscf which was well up on the previous number of 1,525 but also in line with the target of increasing sales by 30% on 2015.
Phase 2 of the Bonaberi pipeline is well underway and will be complete by the year end whilst work at Logbaba means that almost all drilling preparations are complete and they are nearly ready to spud. During the period the company bought 75% of the Matanda PSC which could be transformational, secured a debt facility of $26m and after, strengthened the board with a new CEO and FD. I have long contended that VOG has been largely forgotten by the market who either misunderstand the utility nature of its portfolio or just dont understand the nature of the beast. The company find, deliver and secure customers for clean gas for thermal and grid power markets where there is significant demand, the acquisition of Matanda also gives much optionality to size up the model with consequential effects in the future, not to be underestimated by any means.
A small cheer today for Lamprell who have announced a new contract from Jacktel, a subsidiary of Master Marine for the upgrade of the mobile operating unit ‘Haven’ as an accommodation service vessel for Statoil’s Johan Sverdrup field in the Norwegian North Sea. At a value of $90m and from a new client this must not be sneezed at…
Is my long held faith in VLS about to be vindicated as today, along with meaningless interims the company announce good news from Oklahoma? The ENVIA GTL plant in Oklahoma City is ‘making good progress’ and pre-commissioning is substantially complete and early commissioning steps have begun. With a major strategic review expected in the upcoming quarter, the new-ish CEO will outline plans for the future.
The long awaited CPR on Wressle and Broughton North is out and for Wressle, STOOIP of 14.18m of which 2.15m is 2P and 2C across three reservoir sands, Ashover Grit, Wingfield Flags and Penistone Flags has led to the initial FDP for the field being submitted. At Broughton North STOOIP is 3.43m leading to 0.51m of oil and 0.51 BCF of gas.
In the Prem there were again plenty of goals, leaders the Noisy Neighbours won 1-3 at the Swans whilst the Gooners beat Chelski 3-0 and the HubCap Stealers were 5-1 victors against Hull City Tigers. The Red Devils saw off the Champions 4-1 and Spurs won 1-2 at the Boro. With the Eagles coming back to win 2-3 at the Maccams it was also another bad day for the Hammers who lost again at the Olympic stadium.
In the rugby the big surprise was that the Quins overturned the Sarries at the Stoop whilst the Saints went down 15-20 at home to the Wasps and the Tigers beat Bath.
Phil ‘The Power’ Taylor won the inaugural Champions League darts in fine style.
And on the day that Rory McIlroy won the $10m FedEx Cup it was sad to note the passing of Arnold Palmer at the age of 87.
In the MLB,
Miami Marlins pitcher Jose Fernandez was killed yesterday in a boat crash off Miami Beach. Fernandez was 24 years old and already one of the best players in the game. The Marlins game against the Braves was cancelled last night as a result.
Elsewhere, in the National League, the Cubs, Nationals and Dodgers have won their divisions and the wildcard race is tight with the Mets, Cardinals and Giants still in contention for two playoff places.
In the American League, the Rangers have already clinched the AL West with the Red Sox and Indians well placed for the other automatic playoff spots. The Blue Jays and Orioles should take the wild cards in the AL.
In the NFL,
The Bears move to 0-3 with a 31-17 loss to the Cowboys, the Patriots are now 3-0 with a shutout of the Texans and the Packers bounce back with victory over Detroit.
Russell Wilson was injured and removed from the Seahawks-49ers game. Seattle won 37-18 but, if serious, Wilson’s injury will worry Seahawks fans.
The Vikings built on last week’s win over the Packers with a big win in Carolina. They move to 3-0. The Panthers are 1-2.
There were also wins for the Broncos, Redskins and Chiefs. Tonight sees the Falcons travel to New Orleans as they take on the winless Saints.