WTI $53.00 +66c, Brent $55.63 +51c, Diff -$2.63 -13c, NG $3.14 +2c
Oil price
The oil price is marginally down on the week but little has happened, the inventory figures may have signalled panic but were rescued by the gasoline draw helped by lower refinery runs but better signs of growth in the economy. A very slight thaw in the Donald’s attitude towards China is detected but dont bet the house on it.
Company news has been very thin this week which is good as I have had a load of company meetings which you will see being written up during next week.
Faroe Petroleum
An operations update from Faroe today and as expected all is going well. Production is down but as expected due to Njord and Hyme outage and a small time at Trym where Harald takes priority on lifts. Opex is $24 which is good but will rise this year due to the lower production, reserves are up, 2P is now 81.3 mboe. At ODA all kit is ordered, taking advantage of current low costs and at Tambar we can expect up to 5 wells on site by 2018. The new APA licence awards give a pleasing mixture of near and longer term as well as higher and lower risk and reward.
Financially, they have £97m of cash and with the new RBL and EFF arrangements with ten banks new and old, undrawn and leaving them with all options covered. Being in such a strong position means that the company can look for further acquisition opportunities and the company point out that they are full of ambition and keen to accelerate the pace of growth. So, everything in the garden is rosy and management and shareholders can sleep easily at night, or can they? Delek Group holds 20% of the shares and having just got a recommended offer through on the cheap from Ithaca I hope that should the same thing happen here management wouldnt surrender with as little determination as did the Ithaca board. FPM remains right up there as one of the best in the sector, with exceptional management, a strong balance sheet with scope, and a cracking portfolio at all stages of the cycle, lets hope it can remain independent and of course, go Dazzler!
And finally…
Back to the 6 Nations where it’s Italy v Ireland and Wales v England tomorrow and France v Scotland on Sunday. Wales will want to reproduce their best form and hope that England play like last week, the other matches should speak for themselves.
In the Prem there is only one standout fixture, the HubCap Stealers host Spurs and must win I assume. Elsewhere the Gooners host the Hull City Tigers and the Red Devils entertain the Hornets whilst Chelski go to Burnley and the Noisy Neighbours go to the Cherries.
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