Oil price, Anglo African, Pantheon, Reabold, Upland, United, Sound Energy And finally…

WTI $52.59 +91c, Brent $61.67 +$1.04, Diff -$9.08 +13c, NG $2.32 -5c

Oil price

Was yesterday’s rally one of relief, technical or of the dead cat bounce variety? With the Mexican tariffs due to start on Monday markets were relived to hear that talks between the two sides had resumed and there may be a delay although I personally wouldn’t hold my breath. Technical certainly but with no degree of evidence that the charts are showing us much as the moment, dead cat is also high on the list of chances.

Actually what moved the price yesterday was that for the second day running the Saudis and the Russians held tight to the party line of production restrictions. Whether that continues through the July Opec+ meeting still remains to be seen but at the moment it proves that the market is swaying to the tune of the tariff man and global economic fears and not the imminent shortage of supply from Opec. Finally it is the SPIEF Forum in St Petersburg and taking a quick look at the attendees all the usual bums are on seats ready for a bit of grovelling between lectures…

Anglo African Oil & Gas

The company today announce that the Tilapia CPR has been ‘paused’ while further data is acquired but disappointingly it seems that Senergy has stopped on the work. In the meantime the company is replacing it with a CPI from another provider and also running with the Schlumberger in-house analysis with which they are ‘very encouraged’. The good news is that production from the Djeno continues although no volumes are provided and less good news is that the CPR might involve a long wait so mixed news overall.

Pantheon Resources

A very positive upgrade in Alkaid resources from Pantheon yesterday as they reveal that Alkaid and Phecda are now considered to be part of the same structural accumulation and that Phecda is now deemed to be appraisal. As a result the OIP is upgraded by a substantial 50% to 900 mmbo of P50 resources. It also enhances the recovery factor, modestly raised here from 10% to 10-15% but less modestly the indication is that it might be as high as 40%.

With first oil expected in 2021 and a farm-out process now under way with the data room now open shareholder might be excused for thinking that at long last Pantheon is delivering the goods. I am looking forward to meeting with the company in early July.

Reabold Resources

A slew of announcements from the OGA who have announced the UK 31st offshore licencing round with 144 new blocks awarded.

Reabold announce that as a 32.9% owner of Corallian Energy they are vicariously owners of 5 new licences, 22 new blocks which have been offered including blocks around the Colter discovery where they can ‘realise further potential in the area’.

Upland Resources

Upland announce that they have been offered 40% in each of seven blocks and part blocks in the Inner Moray Firth in the UKCS, ironically with the above mentioned Corallian Energy. The Innovate licence approach means that ‘initial work commitments are not costly’ and that Corallian’s resource estimates ‘speak for themselves’.

United Oil & Gas

And UOG get 100% of  4 blocks in the UK North Sea and 10% of 2 blocks adjacent to Colter which is contiguous with their 10% interest in the Colter licence which contains the Ballard Point discovery and the eastern portion of the Colter South discovery. Also see the Reabold comments on Colter which we might see a  bit more of.

Sound Energy

Yesterday I was able to interview Dr J.J. Traynor, CFO of Sound Energy, he gives me an update on Morocco and the process that the company is going through at the moment.

Core Finance interview: Dr JJ Traynor of Sound Energy

And finally…

England lost another football semi-final last night after some comedic defence play gifted the Netherlands the match with two colossal blunders.

Konta lost her semi-final too, losing in straight sets to Czech wonder girl Marketa Vondrousova in Paris today.

Sunday evening sees the Canadian GP, will this be the Ferrari chance to shine?

In the CWC yesterday the Windies showed their weakness as twice in the game they had the Aussies on the rack but still contrived to lose. This weekend sees Pakistan v Sri Lanka today, England v Bangladesh and Afghanistan v New Zealand tomorrow and India v Australia the highlight on Sunday, might see you there…

 

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2 comments on “Oil price, Anglo African, Pantheon, Reabold, Upland, United, Sound Energy And finally…
  1. Adrian Calder says:

    Hi Malcy

    If you have a chance to meet Mike Buck of Petro Matad can you ask him about unitisation on the Heron prospect.
    I take it this means one operator drilling on both sides of the Chinese/Mongolian border so that operating costs for both parties are greatly reduced.
    Looking at the maps on page 10 of the corporate presentation on March 11th it certainly appears that Petro Matad’s slice of Heron is larger than Petro China’s. How then would they divide the oil between the two companies, ie: would Petro Matad get a larger share?

    https://www.petromatadgroup.com/wp-content/uploads/2019/03/Corporate-Presentation-11_03_19-Petro-Matad-2.pdf

    Best Regards

    Adrian

    • Malcy says:

      Hi Adrian
      I am still hoping for another meeting with Mike Buck, he promised me a chat before the drilling started! If there is oil on both sides of the boundary there is a well established international practice of unitisation which i’m sure would be adhered to.
      Kind regards
      Malcy

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