Oil price, Amerisur, Egdon And finally…
WTI $64.40 +$1.32, Brent $71.10 +76c, Diff -$6.70 -56c, NG $2.71 +4c
Oil continues its gentle upwards movement, yesterday the Genscape numbers showed a drop in stocks at Cushing of 419/- barrels last week but the move is mainly due to supply worries in a number of places. It has probably escaped the notice of those in Washington that the strengthening of the sanctions against both Iran and Venezuela is actually one of the main causes of the recent price rally and now events in Libya might unsettle things even more.
My gasoline ‘index’ continues to reinforce my point, figures overnight show average gasoline prices in the States of $2.75 per gallon, up another 5.4 cents on the week and now up y/y by 5.1 cents and remember it was only just over 2 bucks in January.
All in all not a bad time for the Aramco bond issue which I understand already has $85bn in the book and will be competitively priced later today.
Finals today from Amerisur but all the information is in the price and I will report back from the conference call should anything emerge. It was by any standards an excellent year for the company, revenue was up 28% to $108.2m, adjusted EBITDA was up by 72% to 34m and with cash of $44.1m and no debt the company reported an operating profit of $11m ($0.3m).
Production was 5,356 b/d with 4,113 b/d through the OBA where delivery of the Chiritza pumping station increased the capacity right within the Petroamazonas pipeline system to a minimum of 9,000 b/d. This opens up the possibility for exporting third party crude ‘in the coming months’. Exploration success at CPO-5 now firmly establishes production from that field and diversifies the production base whilst the farm-out with Occidental Andina adds a $93.5m exploration and appraisal programme in the Putamayo, bringing forward valuable drilling. The company also acquired the 100% stake in the Putamayo 14 block and after the period end acquired the remaining 50% of Putamayo 8 for $19.1m.
Going forward the company has a fully funded work programme of $35m with ten wells planned across the Putumayo and CPO-5. Finally all this success added 27.8% to 1P reserves to 17.82m MMBO and 2P reserves were up 23.6% to 25.59 MMBO. What’s not to like about AMER at the moment, it has had exploration success delivering increasing production and revenue and has free cash flow. With the exciting position at CPO-5, partnering Oxy in the Putumayo and third party revenues from the OBA the company is in a very strong position to show significant growth this year and onwards.
Egdon reports production up 67% to 164 b/d (98 b/d) which adds revenue by 88% to £1.21m but generates a loss of £0.72m. Cash is down to £1.78m (£4.1m) and the company has no debt. Drilling at Springs road looks very optimistic at this stage but less so at Biscathorpe. The company is still confident of planning success at Wressle after numerous setbacks this year whilst the CPR at Resolution gives serious room for optimism. If the onshore in the UK is finally taking off, and I believe that it is, Egdon should be well placed to take advantage of it after all these years.
Last night Chelski beat the Hammers 2-0 with a wonder goal from Eden Hazard, they will miss him when he goes at the end of the season…
Tonight it’s the big Champions League night with Liverpool entertaining Porto and Spurs hosting the Noisy Neighbours in the quarter final stage.