WTI $55.14 -19c, Brent $61.36 -51c, Diff -$6.22 -32c, NG $3.05 -3c

Oil price

The end of a bad week for the oil price as a combination of indifferent inventory stats, belligerent Russians an IEA report that didnt square with Opec’s and topped off by Saudi Oil Minister Khalid al-Falih suggesting that world inventories wouldn’t be below their five year average until next spring. This was probably just to ensure that come Nov 30th the extension is signed, it will be now. The belligerent Russians displayed a lack of working economic knowledge as they wanted to increase production to make more money and reduce costs, I assume that they can double production as if the deal falls then crude could be 30 bucks in no time…

Parkmead Group

Results today from Parkmead where increased production from the Diever West gas field to 39 .3 m cubic feet a day gives positive cash flow and greater returns. Cash is a pleasing $34.3m and Tom Cross is maintaining his usual strict discipline. For right or for wrong he has increased his position in the Greater Perth area and activity covering pre-FEED and FEED is under way. I took PMG out of the bucket list in February at over 60p as I couldnt see the market liking the play as much as others, at 37p today I still need convincing that they offer substantial value.

Zenith Energy

A brief note on Zenith Energy as I am visiting the company’s assets in Azerbaijan next week. I have been waiting for this opportunity for some time as ever since I met with senior management earlier in the year and was most impressed by them and the opportunities in the region. The marginal field strategy in an area rich in hydrocarbons seems to be like other geographies where small companies can make substantial returns for shareholders and with a very low fixed cost base. I shall report back my findings as and when possible.


I know this is like an old record but I am still hearing that Cairn are in the process of selling around 30% of their stake in their offshore Senegal discovery. My latest gossip, and that is all that it is, suggests that BP will buy that stake and the operatorship of the project. This may make Far Ltd and Woodside to a lesser extent look very smart but who knows, time will tell I may be completely wrong!

And finally…

The international break is over and we return to the Prem where the big fixture is tomorrow lunchtime when the Gooners entertain Spurs in the North London derby. Never needing any pumping up this fixture is now more hotly contested than ever so that’s Saturday lunchtime sorted. Later we see the Noisy Neighbours visit the Foxes, Chelski go to the Baggies and the Magpies are at the Theatre of Dreams. The Sunday fixture is David Moyes’ Hammers debut who visit the Hornets.

Racing today and tomorrow at Cheltenham where there are some great races with some old jumping favourites coming out on their seasonal reappearances.

And of course the autumn rugby internationals with England hosting the Wallabies at Twickenham, the Scots have the All Blacks at Murrayfield, Ireland host Fiji and Georgia are at the Principality Stadium to face Wales.