WTI $53.54 -34c, Brent $56.56 -24c, Diff -$3.02 +4c, NG $3.19 +2c

Oil price

Very little to report, traders citing a quiet day at the bourse. The usual anti-Iran rhetoric from the USA and reports of building production domestically so no change there. Money managers continue to increase their skin in the oil price game.

Hurricane Energy

Further good new from HUR this morning which primarily validates mine and others view that the oil in place number previously reported by the company will be significantly enhanced by the upcoming CPR. The company report that further evaluation of wells 7 and 7z reinforce the view that the field is ‘substantial’ and that previous estimates are ‘conservative’ and the CPR will deliver a ‘material uplift’. Further good news is provided by the fact that the Brynhild fault separates the Lincoln/Warwick single accumulation from Lancaster and Halifax where of course there is a well drilling at present. I remain extremely confident that the CPR ahead of the FID will deliver excellent results and that the company has north of a billion barrels across its acreage, more after I have spoken to Dr Trice…

Rockhopper Exploration

The company has issued an operational and corporate update this morning with progress being made across the board. At Sea Lion the FEED process continues to make good progress with the technical phase being concluded. There will now be a shift to commercial, fiscal and financing elements. The Premier announcement recently has ‘significantly enhanced’ the discussions around the Sea Lion financing. At Abu Sennan there is imminent drilling of and exploration and a development well with the intention of adding additional reserves. The company has waived the right to pre-emption and is worth noting that the recent Kuwait Energy deal was done at highly attractive terms to those on which RKH entered on. The year end cash was $80m and with post year end costs will be around $60-65m adjusted, in line with guidance. 2017 development, exploration and abandonment costs are expected to be in the order of $13m some of which they may get back after arbitration. I am waiting to speak to the company so may add more in next day or two as appropriate.

And finally…

Very little on the sporting front today but I am always impressed by the wit of followers of the blog on Twitter. Yesterday after the unnecessary  intervention of the Speaker of the House of Commons into the Trump debate I received a Tweet saying, all is not lost regarding the Donald in the Chamber, imagine his surprise when he Googles ‘Burcow wife’….