Oil price, Rose Petroleum And finally…
WTI $52.89 -36c, Brent $61.56 -52c, Diff -$8.67 -16c, NG $4.47 +1c
The day of the Opec+ meeting has arrived with seemingly little consensus but for a general agreement that production cuts are necessary. I suspect that this will be one of those meeting outcomes that will be some sort of a fudge, ie an agreement to cut production by say, 1.4m b/d but behind the scenes will cut by more if the oil price doesnt rally somewhat. Watch this space…
News from Rose’s Gunnison Valley Unit in the Paradox Basin, Utah, USA this morning. The company has agreed a plan with the Utah BLM to extend the boundaries and include the recent acreage where the GVU 22-1 well is located. The well is considered to be a top ranked well location based on 3D seismic and with proximity to the successful 28-11 well. The plan is to drill this in Q1 2019 by which time the necessary funding will have been secured.
Rose has been working closely with Schlumberger on this process in order to optimise all aspects of the well, including the fractured networks to maximise its performance. This careful analysis and developing a good working relationship with the Utah BLM makes it clear that the company has something potentially very substantial on its books and i’m sure that the diligent approach will pay off for patient Rose shareholders.
Last night’s footy saw Liverpool and Spurs win, Arsenal could only draw at Old Trafford and Chelski losing at Wolves. With the Noisy Neighbours winning on Tuesday night the top two are remaining comfortably at the top of the tree.