WTI $48.70 -$1.02, Brent $49.71 -76c, Diff $1.01 +31c, NG $3.11 +4c
The meeting at the weekend between various Opec members and other producers has done nothing to alleviate concern creeping into the market that a deal on November 30th is anything but a faint hope at the moment. The pressure on the Saudis is significant and with a number of dissenting voices chances of a deal are beginning to fade. The KSA might, and probably will try to keep the pressure on Russian and other Gulf states but will it be enough?
Friday’s stats were mixed, the rig count showed an overall rise of 4 units to 557 but oil was down 2 at 441 which should have been more positive. The CFTC numbers however showed that those money managers with long positions fell for the first time in five weeks.
More sensible financial work from RRL this morning as they announce a $20m convertible loan note with LandOcean over three years at 8% convertible at 0.88p per share. This will replace part of the LandOcean IMS agreement and LO will continue to provide Range with finance for work undertaken in Trinidad. Range are continuing to tidy up its finances and clearly the relationship with LO remains strong and will help them as they push forward next year to bring onstream and finance the waterflood projects.
It is no surprise to see oilfield services company Plexus Holdings report a loss as it has been badly hit by the malaise in the industry. A loss of £5.7m, (6.39p a share) was not as bad as I was expecting and the company has net cash of £9.9m. Cost cutting has been unsurprisingly tough and are down by 50% following similar figures in the trade. With subscriptions of £8m by Jereh, £5m by Gusar and a placing of £6m to new and existing shareholders (including Chairman Ben van Bilderbeek) customers, management and shareholders have acknowledged their support this year. With a rental business that protects against some of the vagaries of the downturn and a clearly industry leading set of technologies POS looks like it is here to stay to me.
In further comment on press speculation IGas have been forced to announce that Trans European Oil & Gas as bondholders want the company to sell its conventional oil and gas assets. The company ‘continues to engage with key stakeholders to recapitalise the business’ which presumably means some amount of equity dilution, thus making the possibility of the company remaining in its current guise extremely unlikely. I imagine that Jim Ratcliffe is looking on with interest…
News is slowly filtering through about the GE/Baker Hughes merger or as they put it, ‘GE and Baker Hughes Agree to Create New Fullstream Digital Industrial Services Company’. The £30bn entity might be of significance but will likely only taint BHI with GE’s non-expertise in the sector.
More interesting is the verbal jousting between COP/WPL and Far ltd regarding the Senegal situation. COP and WPL have announced that their deal is to complete which seems at odds with Far’s view that they still have farm-in rights. This is Far’s statement, ‘As previously reported to the ASX, FAR believes a valid pre-emptive rights notice has not been issued to the JV partners by COP and, FAR has invoked its right to resolve this dispute in accordance with the Joint Operating Agreement. FAR is not aware that the Government has advised COP of its approval of the transaction. FAR continues to reserve its rights…’ Seems like it’s not quite over yet…
With most of the top sides winning at the weekend any one of about 8 teams could be in the shake-up although it is very early days. The marketing department at Sky have a hard day ahead of them selling us Stoke v Swansea tonight….
Well done to Muzza for winning yet another competition, fatherhood is definitely good for him, if he wins next week and Djocko doesnt make the final then he will become world No 1.
In the cricket, England reverted to type and after a great start chasing 50 too many after 5 dropped catches they fell apart just like they used to and conceded to a team of highly enthusiastic if inexperienced spinners. If that’s what they are like against this lot then the Injun’s are hardly likely to be shaking in their cricket boots…
And with only two races to go Lewis has not only got to win but hope that Nico has a DNF which is unlikely as Mercedes keep all of those for non-German drivers, or hope that someone else gets him in a tangle, er Max……