WTI $54.30 -8c, Brent $60.49 -45c, Diff -$6.19 -37c, NG $2.90 n/c

Oil price

Oil consolidated yesterday, the EIA stats were good but the headline crude draw of 2.4m barrels was lower than the API numbers had indicated, having said that all the other numbers were positive. Total commercial stocks drew 5.8m barrels as exports rose and imports fell, in products, gasoline drew 4m barrels which is impressive and distillates drew 320/- barrels. Some profit taking was inevitable but core strength is still visible.

Independent Oil & Gas

IOG has announced this morning that they have had ‘significant prospective resources confirmed’ at their Harvey licence following a CPR by ERCE. As a result of this they have committed to an appraisal well on the licence ‘within two years’ although I suspect that they might want to go ahead sooner if it proved possible.  The CPR gives IOG  gross, mid-case unrisked prospective gas resources of 114 BCF, in line with management expectations. Of this 90 BCF are within the area 100% owned by IOG and I would suspect that owing to the economics of the process they would be best placed to secure the acreage they don’t already own.

Strategically this is an almost perfect fit for IOG, any gas found, and the COS is around 50%, would be exported through the Thames pipeline along with gas from the  Blythe and Vulcan hubs which it lies between. As a result this is potentially very value accretive, although there is no certainty of success should there be a discovery it might be nearer the ERCE upper end of resources which are 286 BCF.

Columbus Energy Resources

Columbus has announced that its Open Offer was 3.2x oversubscribed indicating plenty of shareholder support for what the new management is up to. Clearly this raise was primarily to allow Schroders to make their investment but with a raise of £4.1m the company is heading in the right direction. The management have very high hurdles to achieve but are clearly well supported and have a long way to go.

And finally…

A great night last night for English clubs in Europe as Spurs beat Real Madrid and the Noisy Neighbours and the HubCap Stealers won as well. Tonight the Gooners host Red Star Belgrade and the Toffees are taking a depleted side to Lyon. How the almost mighty have fallen…

My US commentator will post tomorrow but I can’t help mentioning the fantastic win by the Houston Astros against the mighty Dodgers in the World Series. 3-3 and in LA it was all to play for but the Astros fully earned their first ever title, oh to be in Houston right now!!