WTI $46.06 -$1.90, Brent $47.24 -$1.71, Diff -$1.18 +17c, NG $3.09 +6c
It is now officially squeaky bum time with the Opec meeting starting on Wednesday and many potential strategies still being discussed. The non-Opec meeting scheduled for today has been suspended as the Saudis have apparently decided to ensure that the Opec house is in order before anyone else joins the meeting. The downside of a failure on Wednesday is more than the upside, a ‘no-result’ would likely drop the oil price by $10, maybe more, an agreement to cut production would push the price up and the amount maybe dependent on the market’s perception of its validity.
Victoria Oil & Gas
Batch drilling is underway at Logbaba with La-107 having been drilled, cased and cemented down to 400m before being suspended and then skidded 10m down the track to do the same at La-108. The advantage of batch drilling is clearly obvious here as the cost savings and efficiencies of having materials and services on site only when they are needed and de-mobilised when they are not is accentuated by a 10m rail system. Despite the delay caused by the lightning strike, work is now proceeding apace at Logbaba and progress to the fairly shallow TD continues.
HUR has exercised the option over the Transocean Spitsbergen drilling rig in readiness for moving to the Halifax well on the newly acquired P2308 licence. This well is hoping to prove the north eastern extension of the Lancaster field and will move there when the current well is complete.
Falcon Oil & Gas
Interims today from Falcon but in reality there is little to report, certainly not from this accounting period. The Amungee NW-1 success is clear, Operator Origin has filed a ‘notice of discovery’ and has been very bullish about this significant well result. However, as I have written a number of times, the recently imposed moratorium on fraccing puts everything at best, on hold. It would be wrong to try and misjudge the outcome but many documents have already been presented on this matter that should mean that the programme goes ahead. If and when that does happen FOG remains in an extremely strong position as it is fully funded and with what looks like a cracking discovery in a world leading basin, until then it is purely a matter of patience.
The cricket goes from bad to worse and its not even as if the sides are that much apart, England will lose this test.
The rugby was very good over the weekend with Ireland taking most of the credentials particularly beating both the All Blacks and the Wallaby’s on their tours. Less impressive wins for England, Scotland and Wales over inferior teams made up the weekend.
With wins at the weekend for the Noisy Neighbours, Chelski, the HubCap Stealers and the Gooners the top of the table is most exciting..
Hands up if you were thinking that Lewis was having a right laugh yesterday with his slowing down tactics, what a shame that young Max couldnt have just caught up…