WTI $71.36 +22c, Brent $77.47 +26c, Diff -$6.11 +4c, NG $2.81 +8c

Oil price

That was the week that was alright, although crude has drifted a bit this morning it will still show a decent gain on the week despite some traders taking a bit of profit off the table. I dont see much changing in the bullish nature of investors, of course Opec and Non-Opec have said that they can supply more oil to make up for any shortages but this is a gift horse not often available and it won’t be looked in the mouth.

Wood Group

The AGM statement this morning from Wood which is certainly more perky than for some time as its says that ‘good trading momentum led by Asset Solutions Americas including capital projects activity in power, downstream and chemicals and US shale’ led the way. EBITA is in line with guidance and market expectations and that the profits will be 2nd half weighted to the extent of 60%.

There is no doubt that some pricing and margin strength is becoming evident in a number of areas of oilfield services particularly when US shale is the client. Wood will gain from this but today’s 6% bounce still leaves it some 40% off the peak which will only be reached when the whole business is firing on all cylinders, nevertheless this is a positive and welcome statement.

Empyrean Energy

After Tuesday’s statement I felt that a chat with Tom Kelly would clarify what I have been saying recently, viz that the news from Dempsey has been somewhat difficult to assess and he very kindly had an extended chat with me yesterday.

Firstly there is no doubt that Dempsey has been proved commercial after gas flows of 1 mmcfd from the Kione zone. Following this they will test zone 4 and if that is successful will co-mingle the gas, this involves killing the well to keep the pressure back and then perforating before production. Getting this well into production is very important, in Tom’s words ‘we would be mad not to get this cash flow coming in’.

Part of the difficulty is that unlike normal local wells which generally have only one or two zones Dempsey has more and the operator is keen to keep as much under wraps as possible. These may include looking back at the deeper zones which may need stimulation but eventually might be long term producers. The best scenario is to get zone 4 up and running and hopefully for some time, that prospect certainly excites the partners.

Of course they could re-enter the Alvares well to test its integrity, drilled in 1982 when looking for oil the well was on target and intersected 5,000 feet of gas shows the well might prove another string to EME’s bow. I would say that the situation at Dempsey is pretty positive, all being well it should be a producer before long and bringing in revenue, it has its challenges but is also pretty exciting.

Tom also found time to remind me that the market seems to have forgotten about the Indonesian discovery which has good porosity and permeability and with a good flow rate might be good to go Q3. Also in China where the 3D seismic work was done on the raw data is now progressing, interpretation has identified the best drilling spots and is close to finishing.

All in all I suspect that although without risk there is plenty of good news to come from EME and in all areas of operation. Tom has agreed to chat again after further releases which I expect may not be far away, EME still very much one to watch….


Yesterday I did a telephone interview with IG about the oil price, the link is here.

IG interview: Where now for oil as Trump abandons Iran deal?


On Monday night TPI are hosting a very interesting evening where a number of most favoured oil and gas companies are presenting. On show will be Savannah Petroleum, Coro Energy, W Resources and Rose Petroleum which should give access to some of the most interesting companies and speakers in the industry.

And finally…

Its is the last weekend of the Premier League season and only a handful of issues remain undecided. Chelski and the HubCap Stealers are still technically able to get 4th spot and a Champions League place and the Swans can avoid relegation but only with something like a ten goal swing against the Saints.

The Formula 1 caravan has moved back to Europe and the Barcelona GP which is one of the best, I am told. Bottas is fastest in practice but all will change.

Cricket is slowly warming up and today the visitors are Pakistan and they are scheduled to play their inaugural test match against Ireland but, you’ve guessed it, it’s raining!