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 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 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 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….
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….