WTI $54.56 -70c, Brent $62.51 -24c, Diff -$7.95 +46c, NG $2.66 -7c
After the interview yesterday I have headed to Morocco where I have been invited by the sponsors, ONHYM to speak at the 2nd Morocco Oil & Gas Summit this week. A major conference and it is good to see that UK companies lead the way here with SDX, Sound and Chariot sponsoring with Schlumberger, Halliburton and CNPC behind them on the ticket. Meetings abound and I am also planning to catch up with Paul Griffiths of Predator Oil and Gas who is also here.
Crude oil drifted off yesterday after a reasonable start, as usual there were a mixed bag of influences. The Venezuelan situation aint going away anytime soon and whilst the support of most members of the EU to the cause of the opposition leader is rather touching it should be remembered that both China and Russia have skin, as well as financial muscle in this particular game.
Also on the upside is the comment from Russia saying that they are getting to compliance with Opec+ requirements, as Bo Diddeley said on CNBC this morning during the winter it takes Russia longer to switch off the taps. (That might in itself be a bullish pointer from 3Q onwards).
Egdon/Union Jack/Europa Oil & Gas
So, back to North Lincolnshire Council who have so far been refusing planning consent for the Wressle oilfield. The consortium has now submitted its appeal which appears to tick every box and answer every question but to be honest when did that ever stop a council from ignoring the facts and doing what they please?
Savannah announced yesterday that it had signed the Seven Energy implementation agreement, a whopping document I am told. The company states that it has made good progress in relation to the remaining work on the transaction and expects it to complete during Q1 2019. CEO Andrew Knott says that ‘this important milestone is moving us closer to concluding this transformational acquisition’.
Amerisur announced yesterday that it had spudded the Calao-1X exploration well on CPO-5 Block in Colombia. This is the second well from the Indico pad and intended to determine the prospectivity of the Lower Sands (LS3) formation. The well lies to the southwest of Indico and towards the Aguila structure and on a simple structural basis estimates a potential of between 2-9.8 mmbo gross but may be significantly higher. After that the rig will move to the northeast of Indico and will drill Pavo-Real-1, looking for a similar structure in that direction.
Before I headed to Morocco I managed to spend some time interviewing Amerisur CEO John Wardle who was able to give a passionate and detailed account of how Amerisur is placed at the moment and leaves little doubt that the future is very bright indeed.
Also yesterday came further good news from Genel Energy as they announced a very positive update from Taq Taq. Testing of the TT-32 well has completed and flowed oil from three separate zones at a maximum of 5,500 b/d and the free water level was encountered deeper than pre-drill estimates.
The well has now entered production at an initial rate of 3,100 b/d, again ahead of pre-drill expectations and makes Taq Taq gross production of some 13,750 b/d. With the horizontal side-track well TT-20z having spudded on January 11th the completion of this is expected in mid February. All this goes to prove that there is plenty more to come from the flanks of the Taq Taq field.
Finally yesterday I noted that John Bell, Senior Independent NED has taken over the Chairman’s role at Aminex, very good news. Having asked in my last note on the company that this final piece in the jigsaw be completed I am happy but for shareholders now AEX simply has to deliver the goods.
The Hammers kept Liverpool to a 1-1 draw at the London Stadium last night and reading comments from Klopp himself this morning their goal did appear to be offside. Still it’s good for the top of the table fight which is going to be most interesting…