WTI $53.25 -25c, Brent $61.08 -71c, Diff -$8.03 -46c, NG $2.40 -5c
Another bad day at the office although there are some signs of the fall being arrested. The Saudi Oil Minister yesterday said that they ‘would continue working towards oil market stability in the second half of the year’. With reputed production last month of only 9.65m b/d and the July Opec+ meeting likely to hold tight on quotas the call on Opec should tighten the market somewhat. Notably yesterday the Russian Oil Minister also gave his blessing to continuing the quotas.
IGas has received final planning approvals for and moves to execution phase of a waterflood project at its existing producing field at Scampton, East Midlands. The company will now move forward with ‘a low-risk opportunity with an estimated IRR of over 40%’.
Victoria Oil & Gas
VOG has announced that it has signed a settlement agreement with Weatherfords and a full and final payment of $1.4m has been made to extinguish its outstanding debt. Another useful piece in the jigsaw for VOG, now all we need is evidence of being paid for its gas…
Egdon announces the results of its open offer and that 72% accepted including Petrichor and Premier Oil (?). With Petrichor taking the balance it now owns 33.94% of the company but before you get excited they have a waiver so they don’t have to bid. The £1.98m raised goes to pay for exploration and an exciting work programme and keeping the lights on.
Columbus Energy Resources
Delayed from yesterday the finals from Columbus for 2018 which show a very solid if occasionally I suspect frustrating year. Revenue was up 58% at £7.57m and the year was cash flow positive, the company ended the year with cash of £1.71m and debt of £0.67m after some sensible decisions on exceptional payments and the Steeldrum debt.
Production was up 47% at 541 b/d with a peak of 1,021 b/d and the company admit that the average could have been higher but for unforeseen circumstances and only profitable production is good production. With the company being hit by SPT, which had a ‘disproportionate’ impact, and the unexpected Spanish decision on the La Lora concession it was occasionally a difficult year. But with the integration of the important Steeldrum assets completing in Q4 of the year and better terms in the SW Peninsula the outlook is positive. Indeed the SW Peninsula exploration has the potential to be transformational for the company.
CERP is funded for the exciting drilling planned for 2H 2019 especially in the SW Peninsula and with its keen eye on costs, including management pay and only profitable production mantra, is indeed building a foundation for the future. The M&A into another South American country may accelerate that process should the right deal be found
Having lost 11 games on the bounce, including 4-0 to England and being annihilated by the Windies Pakistan beat England yesterday. England turned up assuming the game was already a given and were arrogant, cocky and p-poor in the field, apart from Root and Buttler gave away their wickets and fully deserve this result, CWC favourites, I don’t think so…