WTI $63.30 -$1.91, Brent $72.15 -$2.20, Diff -$8.85 -29c, NG $2.57 +5c
Friday saw a period of totally unnecessary panic in the oil market, they should get used to the Trump Tweets by now, especially if they start with ‘I called Opec’….There was never any doubt that when the waivers were withdrawn that conversations had already taken place and the KSA, Abu Dhabi and Kuwait were ready to replace Iranian crude, it has double significance for the Saudis.
So when the price cratered on Friday it must have been the interns covering the grown-up’s lunch break and prices fell sharply. When they got back, and then saw the rig count which was down 21 overall to below 1,000 at 991 and in oil down 20 to 805 some stability returned. On the week WTI, which had not liked the continued rise in US inventories fell 77c but Brent held on to a solid 18c gain…
Coro Energy/Empyrean Energy
The Duyung partners have agreed the 2019 drilling programme in the West Natuna Basin offshore Indonesia which contains the Mako gas field. Two wells, one exploration to test the Tambak prospect beneath the Mako field and one appraisal well to test the Intra-Muda sandstone reservoir in the southern area of the Mako field will be drilled.
The programme starts in September 2019 with two roughly 33 day wells to drill and test. Coro are paying $10.5MM to the total cost of the drilling campaign for which it is fully funded as is its residual 15% of the programme costs. Further good news from Coro then who are doing all the right things as they build the business and with Empyrean who are also in excellent shape.
Jadestone has announced that it is HOA with Petrovietnam relating to gas sales from the Nam Du and U Minh gas fields. Quantity is 80 mmcf/d with a target of a minimum plateau period of 55 months plus some take or pay provisions. Pricing is to be negotiated and will be ‘competitive’ and expected to be completed by the end of 2019, first gas from the field is expected in late 2021. Given the local environment I expect that prices will indeed be highly competitive and this is another meaningful move forwards for Jadestone whom I have been very impressed with so far.
Testing is underway at the Burnett 2B well and will be followed by the 3 well and both should take around three weeks, once completed RBD will have earned its 50% interest. At the West Brentwood field in which RBD has earned a 50% interest they are working to tie-in to a nearby gas pipeline which should not only allow higher oil sales but also to sell associated gas. These wells have great economics and pay back extremely quickly adding to the Reabold portfolio.
With Liverpool beating the Terriers convincingly on Friday night the Noisy Neighbours were playing catch up and squeezed past Burnley to keep their lead in the title race. With Spurs losing for the first time at New White Hart Lane to arch rivals the Hammers, Chelski and the Red Devils drawing and the Gooners losing yet again the posse is in a terrible state.
And in Baku there was another Mercedes 1-2 with Bottas leading Lewis home, what happened to the Ferrari threat we heard so much about?
And Alex Hales, what a plonker and now out of the World Cup Squad…