Oil price, Echo Energy, Touchstone Exploration, Getech And finally…
WTI $59.94 +$1.12, Brent $67.97 +76c, Diff -$8.03 -36c, NG $2.74 -2c
As I wrote yesterday oil was back on the bullish trail with the blackouts in Venezuela stopping any crude oil sales and it’s not getting better. The API stats, whilst not always on the same page as the EIA showed an unexpected build in crude of 1.9m barrels but yet again products drew big time, gasoline drew 3.5m and distillates 4.3m barrels respectively.
An operational update from Echo this morning ahead of results late April. Total production from Fracción C and D was 315,825 boe at a daily rate of 865 boed of which 31% was oil which sold for an average price of $63.80 and gas which raised $3.99 per mmbtu. Echo are discussing the intervention programme at Canadon Salto field with partners but there won’t be any work in Q1.
1H 2019 was always going to be quiet in terms of announcements for Echo but operationally much is happening, at the key Tapi Aike prospect the first seismic is being processed and the second cube being accumulated, later in the year there will be decisions to be made on well locations and then an exploration well.
2018 results for Touchstone but as always most of the information is already in the public domain. The company did achieve its target of 2,000 b/d and with a very creditable rise of 53% in its operating netback at $34.58 and crept from a loss to a small profit. Much depends now on its drilling campaign on the Ortoire Block which will to a large extent dictate how this year is going to go.
A pre-close season update from Getech this morning and whilst they acknowledge that customer budgets ‘remain constrained’ it is a pretty good statement overall. Revenue was up 11% and profits rose 33% as they helped their customers ‘with their most pressing needs’. Products made the lions share of the profits, up 24% as services fell but cost savings of another £0.5m are expected and EBITDA adjusted for restructuring should be £1.2m (£0.9). Whilst it is not all plain sailing in some markets GTC are making a very good job of the restructuring and re-balancing process and should be commended for these figures.
With the international break over we now have a scarcity of sporting action rarely seen by and finally. So sit down and enjoy St Johnstone v St Mirren and restore your faith in Scottish football…..