Oil price, SDX, Tullow, Empyrean, Lamprell, Columbus, Reabold And finally…
WTI $68.08 +2c, Brent $72.16 +32c, Diff -$4.08 +30c, NG $2.74 -2c
A quiet day yesterday, with modest shortages of crude from Libya and potentially more from Venezuela offset by the EIA saying that US shale production is still rising. Crude is down this morning as after the close the API announced a stock build of 629/- barrels when the market looked fora draw, let’s see what the EIA stats look like later today.
SDX has announce that it is about to sign a 3 year, $10m RBL facility with the EBRD with an Accordion facility that could expand it to $20m. For use in Morocco, funding customer infrastructure connections, drilling wells and field development costs this is a good way of financing and with the stringent DD processes of the EBRD gives a more than useful credit to SDX as well.
Tullow has lost the second arbitration case with the court ruling in favour of Kosmos who will now not have to pay the disputed $50.8m.
The company announces that it has started selling gas from the Dempsey well in California at a rate of 1.3MMcfd. I can’t say that this figure blows me away but at least it is a start…
Shock news, as Lamprell announce that guidance is maintained, things really must be going well for the company. With the East Anglia wind farm work completing satisfactorily and some reasonable walk in work the revenue target of $225-300 (more like high and low for the year) will be hit and be 1H weighted. With the real excitement for Lamps going forward, the Saudi Arabian venture going so well what’s not to like?
London South East Oil & Gas investor event…
Last night I was invited to speak to a jam-packed room in the city where Leo Koot of Columbus Energy and Steve Williams of Reabold Resources spoke about their company’s prospects. With a slight interruption as the cameraman fainted and came crashing down to the floor, it must be the first time that the police had been called out to such an event.
Both speakers were first rate, Leo Koot explained the Columbus strategy of building his business both organically and by acquisition in the South West peninsula of Trinidad with his usual confidence and passion for the company. Steve Williams, having to speak without a mike in the -very hot- ante room gave a compelling view of the Reabold model of investing in drill ready exciting prospects around the world. With six wells to be drilled in the second half alone there must be a very good chance that some or all will come in thus validating the model created by him and Sachin Oza. Fully justifies recent inclusion in the Bucket list…
England finally came good properly yesterday as they won the third ODI and the series against India, eventually comfortably. With a five test series to come, over only six weeks, all types of the game will be tested.