Oil price, Aminex, Zenith Energy, SDX Energy, Genel, United/Prospex,
WTI $52.64 -$1.37, Brent $61.63 -$1.06, Diff -$8.99 +31c, NG $2.55 -11c
Oil fell yesterday, some concern emerged after it seems that the meeting between the US and Chinese Presidents is now scheduled for after the March 1 deadline, for something so serious I’m not convinced a few days here or there makes much difference.
Aminex has raised £1.85m from their two largest shareholders and some directors in order to drive forward value in Kiliwani, now that Ruvuma needs no capex from AEX. Getting Kiliwani going where there are already Government approvals and an existing GSA makes sense as ‘the molecules we produce there are very high value’. It is understandable that shareholders consider this odd but the process could add value in an area that the company at least has some control of.
Zenith has announced two offerings, one in Canada raising C$518,232 ( discount 17%) and one in the UK raising £303,080 (discount 13%). Operationally the company continue with cleanout operations, in well C-26 they have found production casing damage rendering the well unsuitable for deepening operations, at C-37 work continues. More kit is being deployed to Azerbaijan all the time for the winter campaign.
From yesterday as I was in the Morocco Summit, ironically spending some time with SDX Energy who had just announced these two new licences in Morocco. Effectively the company is strengthening its position in its back yard of the Gharb Basin with these two deals. The Moulay Bouchta Ouest licence (SDX 75% WI and operator) has been awarded for the statutory 8 years and SDX has a commitment to reprocess 150 km of 2D seismic data and acquire 100km²of new 3D seismic and drill one exploration well in the next 3 1/2 years.
The company has also been re-awarded the Lalla Mimouna Sud licence (SDX 75% and operator), also for 8 years but this licence was part of the Circle Oil deal done in 2017 which expired after work commitments had been fulfilled. SDX reapplied after the acquisition of additional 3D seismic data and have now agreed a further commitment to acquire 50km² of 3D seismic and to drill one well within a three year period.
This deal seems to make a lot of sense to SDX as it significantly increases hydrocarbon potential, located near the company’s infrastructure to make it easy and quick to handle and of course it gives them control over effectively the whole Gharb Basin.
A Tawke update from Genel yesterday where gross production averaged 113,041 b/d during 2018, at Peshkabir production for the six wells in January 2019 averaged 54/- b/d with P-9 completed and ready to go on to production this month. The P-10 well is due to spud in mid-Feb as part of a four well 2019 forward drilling programme. At Tawke there will be up to 14 new wells this year of which 10 are currently approved as firm, this will stabilise production at the field.
United Oil & Gas/Prospex Oil & Gas
Good news from these two companies yesterday as they announced a new CPR for the Selva field in Italy which gives United, after recent positive announcements, net 2P reserves attributable to them of 2.7 BCF. For Prospex it is a net 2P number of 2.26 BCF and production is expected to start in 2020 at a gross rate of up to 150/- cubic metres per day.
The Morocco Summit concluded last night and the overall view was that it has been a resounding success. With a day of highly technical work keeping the participants, including UK companies, on their toes followed by a day of presentations anyone involved in the country would have been fully briefed across the board.
With a key policy speech from the Minister (albeit in Arabic..) and from host ONHYM at both a senior level and across many technical areas the country is ensuring that investing in the domestic oil and gas industry is both fiscally attractive and operationally rewarding.
Indeed speeches from SDX Energy, Sound Energy and Chariot were warmly received and even the panel that I was on, right at the end still had a good audience…I spoke to a number of senior ONHYM officials who are definitely aware that current success in a number of areas in country is very much down to UK company investment.
The third test between England and the West Indies starts tomorrow in St Lucia, with England dormy two down it’s only pride at stake at a ground they have never played at before.
The Six Nations Championship continues this week with Scotland hosting Ireland at Murrayfield and Italy v Wales both on Saturday with England v France on Sunday.
In the footy the big game looks like the Noisy Neighbours who welcome Chelski whilst Liverpool host the enigmatic Cherries, the Gooners are at the Terriers and the Red Devils visit the Cottagers, in London there is a tasty derby between the Eagles and the Hammers…
So, no horse-racing in the UK as whilst I have been away there has been a bug going round, better get it sorted before Cheltenham…