WTI $67.88 -$2.83, Brent $76.44 -$2.35, Diff -$8.56 +48c, NG $2.94 n/c

Oil price

I suspect that seeing the oil price fall by $4 just on the rumours of a change in policy by the Opec/Non-Opec participants may make them think what would happen if they really did start to jack up production across the board. Maybe just take up the slack from any production lost from Venezuela and Iran and see what happens then.

It was not the best day for the rig count to pick up, generally up 13 units to 1059 and in oil up by 15 to 859 but with the delivery problems they have it’s not going to make much difference.

Range Resources

Range has announced that they are up and running in Indonesia with operations started in the last few days. The rig has been rigged up at the POG-D location and reopening has already commenced, completion is expected by the end of the month and the same rig will conduct the workover. After that it moves to POG-E also reopening and performing a workover.

The ambitious programme comprises up to ten reopenings of previously producing wells, two workovers as well as performing geological, geophysical and integrity studies. The plan to swiftly initiate production and add up to 220 b/d of gross production will broaden the company’s international production, gives potential scope for increasing that in the not too long term and should pay back in a pretty short period of time. The renaissance of Range is under way and whilst some holders are still well under water it is difficult to complain about the way current management are setting about the job.

Echo Energy

The ELA-1 well on Laguna de Los Capones in Argentina spudded on Saturday, the second in the company’s four well campaign in the region where Echo has a 50% interest. The well is being drilled at the South Eastern extent of the licence and is targeting a structural four way closure at the Springhill and Tobifera levels with TD at approximately 1,800m.

Gross unrisked gas in place on the structure is on a Pmean basis is estimated at approximately 40 bcf in the recent CPR by Gaffney Cline. Further success here would add to the spectacular start that Echo has made in its South American journey and together with the smart raise last week, now shown to be in a very small window of opportunity. To be able to move on at Tapi Aike with a saving of such massive amounts in the programme costs will prove to be another smart decision on the part of the management.

Erratum

Having been to see the Frontera operations in Georgia (not Azerbaijan) and found it to be very promising indeed the last person to mess this one up should be me but on Friday I did so apologies to them and to Block which is on its way as another Georgian play. As my mother used to say, ‘more haste, less speed Malcolm’ and she was right, apologies again!

And finally…

The weekend provided some serious ups and downs for clubs and players, concentrating on the ups, congratulations to Fulham, Rotherham and the Sky Blues who all won their play-offs at the weekend. Best forgotten is a bad night for goalkeeping which probably unfairly won’t be forgotten in a hurry.

Staying on the sour note, English cricket and the farce that has become, zeroes to zeroes one might say. I’ve tried to remain loyal to Stoneman but he was just the worst of a bad bunch, not sure how that can change at Headingly on Friday…

Danny Ric won what really was a most boring Monaco GP, with him having engine bother and those behind with scraggy tyres and unable to overtake it was a slow procession. Canada in a fortnight should be a different matter…

I could hear the basketball being played downstairs in the early hours, the result was an amazing victory by the Golden State Warriors who came back from 15 points down against the Houston Rockets and will now play the Cavs -again- in the NBA finals.