WTI $68.19 +14c, Brent $74.74 +74c, Diff -$6.55 +60c, NG $2.82 +4c
It is still all about I Ran, clearly the Donald didnt take anything his mate Emanuelle said the other night nor should we have expected him to, this is one decision he is unlikely to go back on. May the 12th is beginning to look a lot like D-Day on this front. In the meantime back in Tehran they have said that they will not accept any changes to the 2015 deal which sets us all up for a tricky few weeks, probably culminating in more US sanctions.
I meant to talk about the ever diminishing Venezuelan production, Chevron didn’t take kindly to having a couple of its operatives banged in the slammer and have cut back exposure even further leading to more misery down there.
Writing the blog on the train yesterday and having next to no internet all day meant that somehow I missed the Sound announcement with regards to their preliminary CPR on the A1 prospect on Tendrara-Lakbir permit in Eastern Morocco. RPS Energy Consultants are doing the work, which is the first in a series of CPRs planned across the Company’s Eastern Morocco acreage following the acquisition of new 2D seismic.
Sound report that these preliminary volume results largely confirm the Company’s previously communicated GOIP estimates for the TAGI reservoir in the A1 prospect. These were low case 0.4 tcf, mid case 0.7 tcf and high case of 1.2 tcf. Sound intends that TE9, the first well targets both the TAGI and the deeper Paleozoic, itself not in this CPR. This is becoming an exciting time for Sound as we can expect a lot more news in coming months starting with the full CPR in its final form next month followed by partner approvals and then the commencement of ground works.
More good news from Faroe this morning, the company has announced that both the new infill wells drilled on the Tambar field in Norway have been brought on production with initial performance ‘exceeding pre-drill expectations’. The flow rate is 18,507 b/d or 8,328 b/d net to Faroe and contributed to a record net daily production rate on the 20th of April of 19,275 b/d. They are also planning a sidetrack well on Fogelberg as expected.
Whilst this is way above the company’s current guidance of 12-15/- b/d it should be noted that other anticipated operational shut-ins kept production below annual targets earlier in the year. Nevertheless this work on Tambar not only extends its life but reduces unit costs across the Ula hub area in which Faroe has ‘significant equity positions’. Accordingly I would expect to see higher realisations at present, leading to better revenues and higher margins, what’s not to like?
SDX has announced that it has spudded the LMS-1 well on the Lalla Mimouna permit in Morocco. This is the final well in a nine well campaign that has gone remarkably well by any standards. Expect news in 15-20 days and if successful would also tie-in to local infrastructure. With recent success with the drill bit in Egypt SDX is in a very strong position across its key prospects and remains very attractive indeed.
BPC has announced that it has lodged an application for Environmental Authorisation with the Government of the Bahamas. The company describe this as ‘the first mandated step in the planned programme of work’ as they prepare for safe and environmentally responsible operations. The company also say that their efforts to secure a farm-in partner are progressing in parallel. It is important for BPC to keep the local processes going but until they have a partner and some funds, the hiring of a rig and drilling a well are still some way off.
Last night in the Boropa Cup the Gooners had a good chance to get off to a good start with Athletico down to 10 men after only ten minutes but it ended 1-1 and the return leg will be hard going.
This weekend in the Prem the Gooners are again in the stand out match at the top of the table, going to the Theatre of Dreams on Sunday. The Noisy Neighbours are at the Hammers, the HubCap Stealers host the Potters and Chelski go to the Swans. More importantly are the teams in the relegation battle, the Saints host the Cherries in the South coast Riviera derby, the Eagles host the Foxes and the Toffees are at the Terriers.
It is the Azerbaijan GP in Baku, a track I visited a little while ago, it has been an exciting start to the season and should be worth watching.
And the jumps season closes tomorrow with what we used to call the Whitbread Gold Cup at Sandown Park, a few good chasers and hurdlers out for the last time of the season.