WTI $46.54 +46c, Brent $48.91 +49c, Diff -$2.37 +3c, NG $2.98 +2c
Over two dollars up on the week and another 25 odd cents up this morning after a week in which demand buoyancy overtook supply concerns in people’s minds. With Chinese requirements apparently increasing, (how quickly people forget how that market is growing) and North Dakota falling, albeit by only 10,000 b/d, the market tightened aided by stock draws across the board. friday saw the rig count which showed no increase overall and a modest rise of two in oil to 765 units. Falling production, albeit temporarily from Nigeria and the Republic of the Congo also helped slightly.
An operating update from PPC this morning which again shows good progress in the workovers taking place at Puerto Guardian in Argentina. The workovers at PG 21 and Dos Puntitas 15 have brought on new production and the water disposal well at DP 8 is now complete. A genuine success story has been at CGr-20 on the Canada Grande field which has not seen production since 2011 and is now flowing at 50-80 b/d under natural pressure from a previously untouched and ignored section of the reservoir. This means that the company can now consider other old wells in the field as undrilled prospectivity there.
The rig now moves on to the next workover which is PG-19 whilst facility upgrades continue to facilitate the extra production in the area. All this is increasingly good news for PPC as it brings on more production especially at a ‘new’ field on its PG licence. With its protection from the possibility of any fall in the oil price, increasing production and 34 years remaining on its production licence, almost 20MMBOE of independently audited 2P Reserves are looking increasingly valuable, something not yet appreciated by the market. President remains a hidden gem at the moment but with growing excitement in South America it will surely not remain in the dark for long…
A technical update from PVR on the Avalon prospect is out today and shows a working petroleum system with ‘significant hydrocarbon potential’ could exist. Although a long way off this shows that there is a lot of potentially exciting upside in PVR’s portfolio although all eyes for the time being will be on the Druid and Drombeg well currently under way.
A 2Q update from Touchstone who say that production was 1,335 b/d at a price of $45.51 per barrel, the company suffered minimally from TS Bret. This has now increased to 1,455 b/d in July and shows that production continues to increase in this new to the market Trinidad play.
Roger Federer went on to a facile win against injured opposition adding another string to his Wimbledon bow but few would have been easier…Jamie Muzza and Martina Hingis won the mixed doubles and there was further success in the wheelchair events.
The British GP couldnt have gone better for Mercedes with a 1-2 and a late flurry of punctures or tyre degradation at Ferrari. With only a point between Sebastian and Lewis we can expect fireworks now the second half of the season is underway.
English cricket returned to the sick list at the weekend after a pathetic display with both bat and ball. Selectors should shoulder much of the blame and if the top order don’t display some courage this morning then the axe must surely fall on those who are clearly not international standard….