WTI $48.24 +41c, Brent $50.17 -2c, Diff -$1.93 +52c, NG $2.91 -5c
Another up month for crude oil, with the expiry of the November Brent contract the price at long last closed above 50 bucks and both grades finished the week well enough. WTI was up $3.54 on the month and Brent $4.39 but it’s also a new quarter and three months ago WTI was $48.33 and Brent $50.35, plus ça change…..Friday’s rig count showed general rigs up 11 at 522 and oil up 7 at 425, the sight of WTI approaching 50 will probably bring a few more out this month.
Two things from Amerisur this morning, what looks like a holding announcement re the OBA in which the company say that they are expecting to start at 1,500 b/d and then presumably ramp up quite swiftly to 5,200 b/d, as soon as the ARCH permit from Ecuador is received. Secondly the plebiscite yesterday went the way of the ‘No vote’ by 0.3%. Word is in from John Wardle in country who says that this should be nothing to worry about and that the ceasefire continues ‘indefinitely’. Interestingly, the FARC areas apparently voted overwhelmingly Yes whilst in more peaceful areas those who hadnt seen violence for some time voted No, allegedly unhappy with the terms agreed. President Santos is getting all parties together and it is expected to have a consensus agreement before too long which will bring long lasting peace.
Annual report for year ending June 2016 this morning from Range which saw the underlying loss improved to $17.4m on revenue of $7.1m. Announced mostly previously are legacy issues and non-core assets as well as the carrying value of the assets in March. Range has had an 11% increase in 2P reserves to 24.4 mmboe and its production is set to increase dramatically as it focuses on their key waterflood projects and its forecast of 2,500 b/d by the end of 2017 is still intact. G&A costs are down 66% this year and with a strong balance sheet, $21m of cash and LandOcean funding the Trinidad work programme look set fair to at long last justify optimism. With most of the historic junk hopefully consigned to the bin and supportive owners who have made it clear that transformational acquisition projects that deliver near term production would be welcomed, they seem to be focusing the company on turning round performance and creating value for all shareholders which must be good news.
Interims from Circle today but for a company that is no longer a going concern, or quoted, I guess that they are pretty meaningless, even the lenders are not all consenting to roll over of the waivers. The IFC are still waiting to see the strategic review but at this stage nothing can be taken for granted. Morocco production is 5.99 mmcfd and at ‘attractive fiscal terms and price contracts and Egypt accounts for 7,235 b/d gross although it is difficult to tell how much is being paid for.
Europa Oil & Gas
Again figures are immaterial with production of 123 b/d giving revenue of £1.3m last year. Opex is down 33% and capex by 39% and production from Wressle is expected in ‘early 2017’ and drilling at Holmwood sometime next year. Obviously the noise from offshore Ireland is where EOG expects to make its shareholders most money and interest in this area has been dramatically raised since the arrival of a good number of majors in the recent licence round. Accordingly EOG is planning to have ‘ a half a dozen’ drill ready prospects to deliver and would be the potential company makers for the company.
Bowleven has announced that it has received $15m from LUKOIL and New Age for the Etinde farm-out, with another $25m to come plus a $40m carry. With $100m in the bank before this and one of the most exciting prospects to drill hopefully next year BLVN remains very much a favoured stock although for the medium term.
The Ryder Cup has returned to the USA after 8 years in Europe and it was always an uphill battle although at one stage a miracle looked briefly, on the cards. In the end it was a young Ryan Moore who I am told hadnt just got off the plane from Paris having won the Arc, who beat an out of form Lee Westwood to seal the deal.
Spurs managed what no one else had done this season and beat the Noisy Neighbours at the weekend but this morning it is the managerial merry-go-round that is in the news. Swansea have sacked their manager and also Roberto di Matteo has been booted out after only 11 matches in charge leaving the Villa board to find their 5th manager this year….
And Tyson Fury has apparently retired from boxing in a ‘rambling’ tweet…
Finally, Lewis Hamilton is right to look in the shadows of the pit-lane after another engine blew up on him yesterday. Mercedes provides eight engines to the trade and only Lewis’s seems to blow up…..