WTI $66.64 +28c, Brent $76.74 +86c, Diff -$10.10 +58c, NG $2.96 +2c

Oil price

A bit of same old, same old as the market scrabbles for information now only eight days ahead of the Opec meeting. As I mentioned yesterday the meeting of minds today is in Moscow as the big four, Putin, MbS, Novak and Al Falih sit down in front of a football match.

Yesterday, gossip was of a return to 2016 levels for those who could, like Russia for example, to take up the slack from those who couldn’t, Iran, Venezuela for example. The bottom line is that unless anyone meaningful plays silly b’s it will work, Saudi Arabia remains the only swing producer and during the summer tends to export less, not something most of the reptiles have worked out yet. They might see a headline figure of over 10m b/d and report that all is going wrong in the partnership, watch this space….

The market picked up after the EIA inventory stats went against the API numbers and reported a draw in crude, 4.14m b’s, gasoline, 2.3m b’s and distillates, 2.1m b’s.

Victoria Oil & Gas

VOG has announced a restructuring of its local debt facilities in Cameroon, the loan is extended to July 2023 with an interest only period until July 2019. This seems a highly satisfactory way of handling its local debt and should enable the company to carry on getting after the capture of key clients in Douala.

SDX Energy

SDX has announced the spud of well SRM-1 in South Ramadan in Egypt. This is the final commitment well here and unless it comes in gangbusters I would not expect this to be a significant part of the portfolio in the future for SDX. With other parts of the business in Egypt doing so well and with Morocco having a stellar drilling programme earlier this year this is where I expect the company’s future to lie.

Petro Matad

Petro Matad has raised $18.3m at 10p in ‘a significantly oversubscribed placing’. I find this quite interesting as I met with Mike Buck a little while ago and was very impressed with his plans and how the structures were potentially very substantial. With a raise already in the bag not so long ago I am therefore quite surprised to see this today. I’m sure that when this opportunity comes up it is right to get some more ammunition under your belt but right now I suspect it is time to start delivering on an operational level…

Reabold Resources

Reabold has acquired Gaelic Resources for just over £3m in shares which gives the vendors around 13% of the company. The prize is that the company will pay for five wells in California at a cost of $7m to earn 50% of the leases which looks pretty attractive given the already de-risked nature of the prospects. With low drilling costs, and as the company says ‘a fast path to monetisation’, this looks like another smart deal from RBD, history tells us that payback is usually fast here and cash flow from early production can go towards future drilling programmes.

Pantheon Resources

Pantheon has announced this morning that following the sad and untimely death of Bobby Gray the situation in Texas with regards to operations is not going to change.

And finally…

After all the bluster the World Cup starts in Moscow today with the hosts playing Saudi Arabia this afternoon. England fans will have to wait until Monday evening before their first game against Tunisia.

You may not have expected it but the Premiership fixtures are out today, about as welcome as….

On the first day the big fixture is the Noisy Neighbours travelling to the Gooners, under new management, the Red Devils host the Foxes, the Hammers are at Anfield, new boys Fulham host the Eagles, Spurs are at the Magpies and Chelski are at the Terriers.