Oil price, Coro, Solo, Genel, Range, Tower And finally…
WTI $52.72 +8c, Brent $62.10 +47c, Diff -$9.38 +39c, NG $2.58 +3c
Rather drab at the moment oil, the year of the pig celebrations shut the far east down for most of last week and week on week WTI was down $2.54 and Brent off 65 cents, mainly due to US stocks being higher than expected and a stronger greenback.
Coro has announced the acquisition of a 15% direct interest in the Duyung PSC, West Natuna Basin offshore Indonesia which contains the shallow water Mako gas field and has low risk step-out exploration upside. The company is paying $4.8m in cash and shares and will pay $10.5m towards the 2019 drilling programme, as part of this process the company is doing a €22.5m bond issue.
Coro has managed to get into a high quality asset in a great post code with ‘ultra low risk dynamics and high value step out potential. I am acquainted with the field as Tom Kelly of Empyrean Energy has been telling me about the asset for some time. In addition the deal gives them near term production and the likelihood of medium and longer term uplift.
This deal is a great move for Coro, it gives them exposure to a top class asset which is adjacent to established infrastructure with access to the buoyant Singapore gas market. Now that the second deal has been done by Coro I can visualise more to complement it and with James Menzies’ huge experience in the area investors can look forward to an exciting and rewarding future.
Management over at Solo Oil has given the market more information regarding the management restructuring and ‘key strategy drivers’ identified at the company. Alastair Ferguson moves to Executive Chairman and MD Dan Maling steps down from the board with immediate effect. The company announce the secondment of Doug Rycroft and John Daniel from Gneiss Energy as Operational Manager and Technical Advisor respectively which is a very good move as there are very experienced industry operators.
This comes after the company has completed a full review of all the company’s activities as it takes a strong hand on costs and the monetisation of the asset base. Now the company is turning to building a ‘distinctive portfolio’ involving ‘disciplined investments delivered by smart, capital efficient transactions’. With numerous opportunities on the horizon to look at, the outlook for Solo shareholders is indeed most exciting at this juncture.
Genel has announced a Tawke PSC reserves update as at the 2018 year end. 1P reserves were 348 MMbbls, unchanged on 2017 after adjusting for production of 41 MMbbls and an upward technical revision of the same amount. The licences have 2P reserves of 502 MMbbls and 3P of 697 MMbbls which are both down but the key 1P number is highly encouraging.
Range has announced that CFO Nick Beattie has resigned ‘to pursue other career opportunities, Group Financial Controller Theo Eleftheriades will take over as acting CFO until a new appointment is made. The move is I understand amicable and he is staying on to complete the current set of results and will have no effect on the ongoing discussions regarding the debt.
Just a quick word on Tower Resources after much discussion last week about the ‘significant gas condensate’ Brulpadda discovery made last week by Total offshore South Africa. The discover potentially opens up a new world class gas and oil play according to Tower Resources who are in the adjacent Algoa-Gamtoos licence. Along with partners New Age they were planning to farm-down a stake in the block, a job that suddenly got a bit easier. With Total wanting to drill a number of wells in the area the prospects for Tower may be worth taking a look at again.
The cricket was a mixed bag at best but England’s Mark Wood showed all that potential we all know he has by taking 5-41 as the Windies had an England-like collapse.
The footy was roughly as expected, Liverpool won 3-0 against the Cherries but the Noisy Neighbours wanted to take back first place and put 6 on Chelsea in a six goal thriller. Spurs beat the Foxes 3-1, the Red Devils won 0-3 at Craven Cottage and the Gooners won 1-2 at the Terriers.