Oil price, Echo Energy, Cairn Energy And finally…

WTI $73.80 +86c, Brent $77.11 -28c, Diff -$3.31 -$1.56, NG $2.66 +2c

Oil price

Oil price diverged on Friday as Brent eased with a bit more crude on international markets but WTI strengthened as continued distribution difficulties and of course Syncrude not helping matters. The rig count moved back up a bit as overall units were up 5 at 1052 and oil up 5 also at 863 units.

Echo Energy

Echo has announced successful completion of its fourth well in Argentina in what looks like another very positive result. The well has interpreted a ‘notable’ gas column in the Tobifera indicating some 30m of potential net pay which suggests wet gas (with liquids) and at the upper end of the range in both contingent and prospective resource estimations. Targets of 19 bcf of gross best case contingent and 18.7 bcf prospective as per the CPR should be hit.

Echo seems to be in a good position now that the four well drilling campaign has completed and the Quintana-1 completion and testing rig rolls into town. ELM 1004 will be tested first and all the other potential discoveries will undoubtedly reveal exciting further news as work continues and thus giving a chance to make an early decision on monetisation options for Fracción D.

Cairn Energy

Cairn has announced that all written submissions have been made by them and the Indian Government and final arbitration will commence in The Hague on 2oth August and last for two weeks. With a result not due until next year Cairn shareholders will have to wait a while but as I have always said this is a bit of a side show given value created particularly in Senegal in the last few years. Having said that I find it galling that the Indian authorities have not only seized dividends from Vedanta but also sold off a stake in the company which must be against both the letter and the spirit of the law, as if that mattered….

And finally…

On Friday France beat Uruguay and Belgium knocked out Brazil in this mad crazy World Cup. On Saturday England beat Sweden 2-0 and Croatia beat Russia on penalties…

Over at Silverstone Kimi managed to force Lewis off and received only a 10 second penalty, imagine what if he had passed him and ended up in front….

India won the T20 series 2-1 and look very dangerous ahead of the ODI series which starts this week.

Wimbledon goes into the second week looking very much for specialist viewers only, few thrills and in the ladies draw few seeds also..

And I was reminded about the T de F which I have never covered even though I am aware that it is now clean….

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6 comments on “Oil price, Echo Energy, Cairn Energy And finally…
  1. karl brown says:

    just had a dabble in RRE. the numbers look compelling and looks like the market hasnt caught on as to the enormity if the reourses…good call on thi me thinks

    • Malcy says:

      I couldn’t agree more Karl, I know Andrew well and he is determined to make up for Igas and I think he is doing all the right things here.

  2. Terry Williams says:

    Nothing on range resources last update on there Indonesia operations . Not good enough to comment on or even a mention. I’m interested in your thoughts as a follower with more knowledge than myself.

    • Malcy says:

      Hi Terry, i was in touch with the company about this update and they thought it too insignificant for a mention in the blog which says a lot of good things about them I think. They are patiently doing all the right things in all areas.
      Kind regards
      Malcy

  3. Nick says:

    So ECHO hit interpreted pay at the top end of pre-drill estimates in a revised well designed to accelerate the Fraccion D monetisation process and the share price falls…

    OK – so the share price had ran up on the extended oil column results in Fraccion C but not by silly numbers based on the pre-drill estimates. Fingers crossed for some decent flows in testing.

    Malcy – any idea how they plan to finance any future development?

    • Malcy says:

      Hi Nick, i only saw the share price rise but admittedly not much, dont forget for various reasons it cannot be called a discovery yet so wait for the testing…
      Payment would be by usual means depending on how much it is, could be debt or equity, contractor buy-in or farm-out, no idea at the moment.
      Kind regards
      Malcy

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