Crude prices are still subdued as inventories build and production exceeds demand, for the time being. Savannah are close to the Seven Energy deal completing which has significantly enhanced their position in Nigeria. Talking of completing, Eco Atlantic has completed its farm-out to Total in Guyana and are now in a position of considerable strength. Frontera have confirmed that they are still talking to another industry major and Serica has received OGA approval for the Columbus FDP. Afren crooks locked up and also a link to this week’s podcast.
Today Malcy talks about the following stocks: Faroe Petroleum #FPM, Eco Atlantic Oil & Gas #ECO, Rockrose Energy #RRE and President Energy #PPC
With less than a week to go until sanctions apply to Iranian oil it looks like the market is supplying enough, even for this quarter and all eyes should be on what will be a weaker start to next year. Another very positive RNS from President where the numbers are really coming through after highly successful drilling programmes this year. At Frontera the major oil company they are working with is Baker Hughes who should be a significant help as they develop Block 12 in Georgia. Finally, Faroe are increasing and extending their RBL to be ‘fully fit for purpose’ and be ready to repel boarders as they plan for continued growth although it does look like another addition to the defence document.
A poor week for the oil price, reasonably expected I should say and now the Saudis are talking of Opec+ cutting production, which they should. President have spudded the 2nd well in the 3 well programme and Sound are at first casing point in Tendrara. SAVP have submitted the necessary documents to the Niger Ministry to get on with the EPS whilst Reabold note that Corallian have farmed out 10% of P2396 to Talon. Finally, Eco Atlantic via their operator Tullow have ‘prioritised’ Guyana over Namibia, funny that…
An update from Senegal from Cairn and therefore Far, all is going to plan as the SNE development continues on time. At Range Resources the upgrade programme remains behind schedule but long term value is still clear to see for the patient.
The oil price is not assuming further geopolitical uncertainties which is more than can be said for international diplomacy at the moment. Far Limited has spudded its Samo-1 well offshore The Gambia where a success would be transformational to use an overworked term. RockRose has announce a tender for 20% of its shares at 560p, they say the company is ‘seriously undervalued’. And Petro Matad has spudded Wild Horse-1 in block IV in Western Mongolia.
Malcy talks about the following stocks: President Energy (PPC), Echo Energy (ECHO), Sound Energy (SOU) and Amerisur Resources (AMER)
A mixed bag on the oil price front but a small rally this morning, China and geopolitics is positive, stocks are rising and traders are selling down long positions. At President the first well in the next of three looks highly impressive and might push production up again with two more to play for. At Echo a very useful boost to production and sales from a pilot programme at FD is very positive, over at VOG they are still without the ENEO contract but are building the business. Finally a potentially really exciting piece of news from Zenith in Azerbaijan.
Malcy Graham-Wood was speaking at the London South East Investor Evening held at Brewers Hall, 16th October 2018 with three of his ‘Bucket List’ company CEOs on the panel: Fiona MacAulay, CEO of Echo Energy, Andrew Knott, CEO at Savannah…
Another flash blog from Morocco and today I note that SDX’s discussions with BP regarding the package of assets in Egypt have been terminated. I also note that Far has announced that the Stena Drillmax drillship has begun its journey to the Samo prospect in The Gambia. Drilling is expected to commence within a couple of weeks and any success would be transformational for the company.