WTI $67.89 -37c, Brent $73.06 -1c, Diff -5.17 +$2.56, NG $2.72 -4c
Yesterday saw a mixed market, after a rally when oil workers in both the UK and Norway either downed tools or threatened to, any disruption was rightly perceived to be small beer. Of more substance is the rhetoric between Tehran and Washington, the latter threatening to close the Straits of Hormuz (20m b/d) the latter offering all sorts of high level violence. With Libya opening up another small field adding 50/- b/d or so to exports, oil ended down, by a whisker, what fun it is on the oil Bourse…
Sound has announced that it has commenced civil works and signed a rig contract for TE-9 on the Tendrara licence onshore Morocco. This follows the announcement of the Environmental Impact Assessment on June 6th and with yesterday’s news about Schlumberger’s commitment reinforcing the partnership things are looking up.
Jersey Oil & Gas
As operator, Equinor has advised JOG that the Verbier appraisal well and possible side-track will now be the third in the sequence of drilling rather than the first. Practically it makes little difference, the well will now be drilled in late Q4 2018 rather than late Q3/early Q4, the change in process will not effect the costs of the well. Unsurprisingly,the shares have been marked down slightly this morning as investors calculate the time value (of course!) but now offer even more value for those with longer term aspirations.
An extra operational update from AMER this morning who have stated that Platanillo-22 now needs a workover in order to recover production capacity in ‘this important well’. This should permanently and cheaply resolve the production decline. Logs are now being run to check various parameters such as cement integrity.
Elsewhere all is good, all three high profile exploration wells are on target to spud this quarter which should provide the impetus for the shares which have inexplicably marked time recently. In Ecuador the news is also good, the Chiritza re-pumping station project is going well, tie in to the RODA line is expected shortly when increased transport minimum capacity grows to 9,000 b/d.
With the Tour De France (never normally mentioned here) warming up it has rarely been so close between British riders who themselves might be pipped for the Yellow Jersey.
I see that Ryan Lochte, US swimmer with 12 Olympic medals has been banned for a doping violation, not the first ban for Mr Lochte but the first for drugs…
And the cricket County Championship is hotting up, particularly in the Roses match and at Trent Bridge…