Oil price, Savannah Petroleum, Eco (Atlantic) Oil + Gas And finally…

WTI $59.30 -11c, Brent $67.82 -1c, Diff -$8.52 +10c, NG $2.71 -1c

Oil price

As we end the week, month and quarter, oil industry participants in whatever shape of form will be heaving a sigh of relief, December 31st had WTI at just over $45 and Brent just over $52 and whilst those in the industry will be happy that projects go and make proper money now the share prices have not kept up with that 30% rise.

Nothing much to add from yesterday, Mr President got on the Tweet machine again and did his warning to Opec that sounds an alarm whenever WTI goes above $60. Reuters report this morning that the Saudi’s are ‘struggling to convince Russia to stay in Opec+ and keep production cuts longer term. At the moment apparently Alexander Novak is only committed until September but i’m sure that they have noted the difference in prices when Opec+ turn off the taps.

As we approach the 2nd quarter, one in which most agencies expect to see a bigger call on Opec, the oil bulls may be looking for further upward movement and whilst that is certainly feasible, $70 is a level that brings mixed emotions, be careful what you wish for…

Savannah Petroleum

Savannah has announced this morning that good progress is being made on the Seven Energy transaction and following completion of the Nigerian elections the company remains confident that Ministerial approval will be forthcoming shortly and the transaction will be completed in 2Q 2019. The election has caused a minor delay with no fault to be allocated and the imminent completion along with an exciting programme in Niger bodes well for SAVP for the rest of the year.

Eco (Atlantic) Oil + Gas

Plenty of good news around for Eco Atlantic right now and today they announce another step forward in the Guyana drilling programme by saying that the partners have approved the drilling budget and location of the second well on the Orinduik block.

The ‘Joe’ prospect selected to drill back to back with Jethro is a 150 mmboe target with a 43.2% COS and at a net cost to Eco of $3m, way less than Jethro which had mobilisation costs loaded on. With 56m boe net to Eco from just these first two wells whatever price deck you care to use makes a mockery of the current market cap.

And finally…

For those of you who took my advice and watched the football on Wednesday you clearly had a belter of a night as in the battle of the Saints, St Johnstone beat St Mirren 1-0.

This weekend sees the return of the Prem after the international break, the key fixture is Spurs going to Anfield on Sunday, the Noisy Neighbours are at The Cottage and the Bluebirds host Chelski. The Red Devils have a tricky tie against the Hornets whilst the Gooners play on Monday night.

Yesterday was the opening day of the 2019 Major League Baseball season with all 30 teams in action. The off season saw some big free agent moves with Bryce Harper signing a $330 million deal with the Phillies only to be eclipsed by Mike Trout’s $430 million extension with the Angels over 12 years. Nolan Arenado committed long term to the Rockies and Manny Machado signed with the Padres after a brief spell with the Dodgers at the end of last year. This year the Red Sox will be looking to repeat their World Series success and the Dodgers will be looking to make a run at a third World Series in three years.

Bahrain hosts the F1 Grand Prix, will Ferrari find the performance that plenty of people forecast before the season started and what about the experienced drivers now in the slower cars?

Horse-racing is effectively on hold until after Aintree next week and there are a few flat races creeping onto the telly now.

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2 comments on “Oil price, Savannah Petroleum, Eco (Atlantic) Oil + Gas And finally…
  1. Jon Doyle says:

    What are you on about with this Malcy?

    “As we approach the 2nd quarter, one in which most agencies expect to see a bigger call on Opec, the oil bulls may be looking for further upward movement and whilst that is certainly feasible, $70 is a level that brings mixed emotions, be careful what you wish for…”

    Just don’t really follow your ‘brings mixed emotions line’…? other than $70 seems fairly strong support/resistance pivot point in the past 18 months

    • Malcy says:

      Just that, $70 is quite a strong technical resistance point but also above that price demand cuts will start to kick in.

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