Oil price, United Oil & Gas, Providence Resources And finally…
WTI $53.79 -44c, Brent $60.84 -70c, Diff -$7.05 -37c, NG $2.81 -4c
January turned out all right for crude oil, after the crash in 4Q 2018 it rallied strongly, WTI rose 18% and Brent was up 15%, the differential between the two is back down to around $7. Yesterday they both fell, the US/Sino trade talks have come to an end although both sides claim that progress has been made.
Reuters report on recent crude production from Opec show January hitting 30.98m b/d which is good progress led of course by the KSA who are now below their quota at 10.3m b/d. With call for only 30.7m b/d this quarter there is still oversupply but all is heading in the right direction.
Finally, the polar vortex has hit the US hard and makes our snow this week look pretty feeble. It is however good news for the distillate market which is already pretty tight.
United Oil & Gas
I rather like UOG and am looking forward to another meeting with CEO Brian Larkin again, maybe after the next two CPR’s come out. Today he provides the market with CPR’s for both the Crown oil discovery and the Waddock Cross field. At Crown, ERCE has given him 6.35 MMstb of gross unrisked 2C oil contingent resources whilst at Waddock Cross the same CP has updated to 1.55 MMstb.
The farm-out process for Crown is already under way and has shown ‘considerable interest within the industry’ whilst at Waddock Cross a well is planned for later this year. As noted above we can expect updated volumetrics from both Jamaica and Italy and of course there should be news from the Colter well to tell the market about before too long. These are good numbers from UOG and we can hopefully expect more from both the CP and the drill bit in due course, the upside is potentially very large.
Providence Resources/Lansdowne Oil & Gas
News today that a rig for Barryroe has been selected will be very welcome, this day may never have come, some people thought. Indeed with mobilisation and drilling to commence in the third quarter of this year it feels like it may have drifted just a bit but this is Barryroe we are talking about. The programme looks like being drilling and testing of four vertical wells and one horizontal sidetrack and there are options for two more horizontal wells.
With Liverpool playing the Hammers on Monday night the Noisy Neighbours need to pick up three points but it won’t be that easy, they host the Gooners so it will be hard graft. Chelski host the Terriers, the Magpies will go to Wembley to play Spurs full of confidence and the Red Devils are at the Foxes who will also be on a high.
Will there be any racing this weekend? Wetherby and Musselburgh are both off already so it looks like Sandown but there must be doubt…
The start of the Six Nations Championship is always exciting so tonight the curtain opener of France v Wales is eagerly anticipated. Tomorrow, Scotland host Italy at Murrayfield and then it’s Ireland v England which will be fascinating especially as Ireland are the favourites not just for this tournament but also the World Cup…
England cricket has retreated into total disarray, not for the first time as cocky batsmen were bowled out for 187 after losing the toss and being inserted. In the evening the Windies openers batted out 21 overs without a care in the world.
The drought is finally over for the Patriots. It’s been one year since their last Super Bowl appearance and perhaps these plucky underdogs can defy the odds once again to claim Boston’s first pro sports crown since the Red Sox won the World Series three months ago. The LA Rams take on Brady and Belichick on Sunday night in Atlanta.
Finally, very many best wishes and good luck to Sophie Trice who is getting married tomorrow to the very lucky Josh. With Sophie getting tied up to her boy over the weekend let’s hope that dad, the famous Dr Trice of Hurricane Energy can get his other girl, the Aoka Mizu tied up to her buoy before long as well.