WTI $56.59 -$2.22 , Brent $65.33 -$2.54, Diff -$8.74 -32c, NG $2.55 -7c
Oil remains under pressure, yesterday’s fall can be attributed to both the EIA inventory stats and President Trump’s tariff attack on Mexico which came as a surprise to the market. The inventory stats, whilst showing a modest fall in crude oil were nothing like the 5.3m draw indicated by the API the night before but it was gasoline that surprised most traders. It built by 2.2m barrels, way more than expected and with another rise of 1.3% in refinery runs to 91.2% left the market worried about product prices.
With Gulf leaders meeting to discuss ‘rising tensions’ in the region and US forces still accumulating firepower there are no shortage of potential geopolitical short fuses waiting to go off and with Opec+ still restricting production the technicals would indicate a rally if only investors could come out of their bunkers…
An update this morning from SAVP who are another step closer to closing the Seven Energy transaction. Today they announce that the UERL buy-out is completed and that the company now owns 100% and therefore holds a 51% operated participating interest in the Stubb Creek Field. Good progress is being made elsewhere such as with Ministerial consent, documentation, Accugas debt restructuring and the Frontier swap.
With the company still confident that the deal will complete in 2Q 2019 they have said that no dividends or share buybacks will be made until after the transaction has closed. The same goes for the the Amdigh well test which will also go ahead after this deadline. With the PSDM seismic processing on R3 East now finished and ready for interpretation there is much to look forward to, not least a new drilling campaign in Niger. At long last patient shareholders in Savannah can look forward to finalisation of this massive deal and the rewards it will bring.
Results this week from Jadestone but show no concept of comparison except that the company is growing, and fast. They do show that the acquisition and subsequent work on Montara will prove it to be a game changer and I expect this to continue.
I missed meeting with the company on their recent trip to London but i’m confident that the substantial increase in production from Montara and of course the Stag infill will continue to increase production and these, and others make Jadestone a must follow company in the sector.
United Oil & Gas
UOG has announced the appointment of David Quirke as CFO, he comes from Tullow where he has high level treasury experience and adds considerably to the experience and gravitas of the board. It also shows that the company has the confidence to build up a bunch of highly experienced personnel at all levels and in all positions and has confidence in the future.
This week I talked to Doc Holiday about a few newsworthy companies. We talked about Genel, President, Sound, RockRose, Chariot, Reabold, Union Jack, Upland, Predator, Petro Matad, Rockhopper and Premier.
What a weekend for sports fans and after I missed both the Pro 14 and playoffs last weekend I could be forgiven missing something here…
It’s Derby weekend and a most difficult Derby to read after two horses not expected to run have been supplemented and trials here and in Ireland have proved inconclusive. Today also has great fields in both the Oaks and the Coronation Cup.
In Wednesday’s controversially venued Boropa Cup Final Chelski saw off the Gooners 4-1 but will they have the manager or Hazard even next season? Tomorrow night in Madrid Spurs take on Liverpool in the Champions League final.
Anthony Joshua is in action at Madison Square Gardens in the early hours of Sunday morning but his opponent, Andy Ruiz Jr is a replacement and may only have a punchers chance…
I was at The Oval yesterday to watch the opening game in the Cricket World Cup where a polished performance from England beat South Africa and included great bowling from Jofra Archer and a catch from Stokes that may not be bettered in this tournament. As I write the West Indies have inserted Pakistan and have got them 82-8.
This morning saw the opening game of the NBA finals where the Toronto Raptors beat the Golden State Warriors and go 1-0 up in the series.
Not finished yet, tomorrow at Twickenham its the Premiership rugby final between, you’ve guessed it, the Chiefs and Sarries, worth catching.