WTI $52.41 -24c, Brent $54.89 -47c, Dif -$2.48 -24c, NG $3.14 -2c

Oil price

A lacklustre day yesterday with little trade and few signs of position taking. The US shale production story from Monday was bearing down on the price whilst the Saudis are rumoured to be cutting more than they have to. The API stats showed a draw but not as big as hoped so the EIA numbers today may move the market.

President Energy 

There is much going on at President both in Argentina and in the US, today is the turn for news from Louisiana. PPC has announced that it acquiring incremental production in its Triche well, East Lake Verret property in Louisiana which makes a lot of sense. The gain will be around 150 b/d and they will take on the operatorship which means no increase in G&A costs. The cost of the deal is $2.5m plus $400/- earn out which means that this will pay back in 30 months at $50 oil.

The deal takes PPC to production of 1,100  b/d and the work in Argentina continues so expect that figure to rise as workovers and cleanups deliver value added throughput. Overall this is very good news, with no further G&A, PPC can use their detailed knowledge of the well and the benefit of operatorship to take this production rapidly to the bottom line. One way and another there is mounting evidence that things are changing at President and for the better, weather apart, the good news shines through and patient shareholders can expect some decent upside in the coming months.

And finally…

Bad news for the Foxes as they were knocked out of the Champions League last night at the QF stage. Going behind early almost finished them as the away goal made the task almost impossible. With Real going through courtesy of a Ronaldo hat-trick the semis will be worth watching.