WTI $50.35 +84c, Brent $52.96 +54c, June contract $53.13 +59c,  Diff -$2.61 -30c, NG $3.19 -4c

Oil price

Another good day yesterday and mainly down to Kuwait who’s Minister said that discussions were already going on about rolling over the November agreement. Combine that with comments from Russia and Iran and shortages especially from Libya and the market looks much better. Let’s see what the money managers have been up to in this afternoon’s CFTC figures…

Amerisur Resources

AMER announced the preliminary data on the Platanillo-22 well and it looks very encouraging. 50ft of pay over three zones was better than expected and from the N and upper and lower U sands good and made better by the N sands discovery to the north where they had only calculated limited development. This endorses the strategy in the Putumayo Basin and oil from here will be trucked to the OBA pipeline which is currently carrying 4,610 of AMER’s barrels which is good news. This stock is still way too cheap and I expect more discoveries to stamp a much higher valuation in due course.

FAR Limited

Wow, what a week in West Africa where deals are being announced on an almost daily basis. Last night FAR announced that it had entered into an AMI agreement with CNOOC which covers selective blocks offshore Senegal and The Gambia. To quote FAR ‘this dramatically advances FAR’s ability to acquire new assets in our core strategic geographic area of expertise’. FAR has already announced this week a farm-in to The Gambia for very modest expenditure.

CNOOC have already announced a farm-in with Impact, mentioned here on Wednesday and this shows that they are most serious about this increasingly popular post code. It does pose a number of questions not least how pleased WPL will be that FAR is now in bed with a very smart, very rich operator who may have a little more sway with the Oil Ministry. In addition, as per my comments of a few days ago about FAR’s options, this not only strengthens FAR in its negotiations but just might provide CNOOC as the super-major who could cut a deal with Cairn if they were ever to become a seller.  Also, if partnered by CNOOC in any upcoming licence awards, the future just got significantly better for FAR in the region.

This action may well smoke out all sorts of other players in this highly exciting acreage offshore West Africa as there are a number of majors who have yet to show their hands. There is much to play for here and FAR just got a strategic partner with’ the deep technical, operational and financial calibre of CNOOC’, the only way is up…

Pantheon Resources

Results from Pantheon this morning are totally irrelevant but give slightly better visibility around the two keys wells being waited for. Both wells have suffered delays at the hands of service companies but I am assure that there has been no negative indications from the appropriate reservoirs. There appears to have been a decision made about gas treatment or at least ‘big progress’ as they call it, and a final decision will be made after VOBM#2H is completed.

And finally…

As mentioned yesterday Arsene’s new contract at the Gooners may rest on what happens on Sunday when they host the Noisy Neighbours, a seeing to may lead to withdrawal of the offer. Elsewhere its derby day on Merseyside at the Toffees head over the Park to meet the HubCap Stealers, another derby the south coast riviera meeting between the Saints and the Cherries.

And Johanna Konta beat Venus and now meets Caroline Wozniacki in the Miami final.

The bog might be a touch erratic next week as I am travelling in Africa, will write when I can…