Oil price, Genel Energy, Rose Petroleum And finally…

WTI $64.61 +63c, Brent $71.73 +$1.12, Diff -$7.12 +49c, NG $2.70 n/c

Oil price

A bit of same old, same old yesterday, following the API numbers the market waited for the EIA stats and got more of the same with a bigger than forecast crude build of 7m barrels and a draw in gasoline that at 7.7m b’s was over three times the estimate, and I use the word advisedly. Whilst technically the driving season doesnt start until Memorial Day (this year May 27th) any time after Easter can see people jumping in their automobiles and heading for the coast, so to speak. I will keep watching my retail gasoline prices as they are definitely an under used lead indicator in what is an increasingly tight market.

Genel Energy

Genel has an update from Taq Taq this morning and the news from the field remains highly encouraging. The TT-20z well completed testing and is now producing at 2,000 bopd with a 24/64″ choke, this figure is expected to rise. (the maximum combined flow rate from 3 zones tested 4,000 bopd with a 40/60″ choke) Taq Taq is now producing a gross 15,500 bopd while Genel’s overall net production is 39,000 bopd.

As I said, the field performance remains highly encouraging, this is proof of the remaining potential on the flanks of the Taq Taq field. Right now the rig moves off to drill the TT-33 well on the southern flank of the field. The Taq Taq wells are ‘an attractive capital allocation option’, as the company describes them and the economics are extremely good and add to the overall profile Genel is pursuing. Yet again more good news for Genel for whom the last few months has been very exciting, shareholders should be very happy.

Rose Petroleum

A lot is happening at Rose Petroleum and it is certainly one for the notebook, as they say. The company has raised £275,000 at 1.1p with a subscription from new Executive Chairman Robert Bensh whom I have worked with before and can endorse wholeheartedly with his immense knowledge of the US oil and gas industry.  Directors and management are also buying in the market at the moment giving some decent momentum to the process. Also in the announcement is that Tom Reynolds is joining the board, this is an even more encouraging piece of news for shareholders as he is a class act in the sector too. Finally David Sefton and James Berwick are no longer joining the board…

Rose tell me that whilst they are still progressing with the Gunnison Valley asset in Utah as well as the potential deal in Texas they are open to suggestions and I for one wouldn’t be surprised if RB brought in some deals. Finally it is interesting to note that the company has appointed Gneiss Energy as  commercial and strategic advisors, this is an interesting piece in the jigsaw as they are certainly ‘movers and shakers’ in the sector and will be of considerable help to the company and is a positive step indeed. A landmark day then for Rose and as I said, this very much becomes one for the notebook…

And finally…

Rather predictably Barca came to Manchester and collected the points, maybe not as comfortably as expected…

Tonight in the Boropa Cup the Gooners host Napoli and Chelski are at Slavia Prague, can they both reach the final?

And of course The Masters starts today at the beautiful Augusta National, Rory starts as favourite but so far he has managed to foul up his efforts for the rare career Grand Slam.

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2 comments on “Oil price, Genel Energy, Rose Petroleum And finally…
  1. Jon doyle says:

    Malcy I thought u were getting concerned about OP H2 2019 – with US shale pipelines opening up bottlenecks – is that still your position?

    • Malcy says:

      Hi Jon
      Not quite as much although US oil production will continue to rise as the pipelines open up. They will have added difficulty in the blend and quality of the crude as well but you are right and i’m keeping an eye on it. Today’s takeover of Anadarko by Chevron is most interesting.

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