Oil price, Savannah, IGas, Rose, Union Jack, Gulfsands, SDX, President And finally…
WTI $59.43 +5c, Brent $66.55 +6c, Diff -$7.12 +1c, NG $2.32 +6c
Sometimes events, Dear Boy, are talked up and in the event that is all they are, events but over the next few days meetings to be held in Osaka and then Vienna may well dictate how markets spend the rest of the year. The G20 meeting is already under way and you can forget anything except the discussions between the USA and China at Presidential level. Should there be any meeting of minds markets will run and concerns about trade wars will, at least for the time being subside.
The next event is the Opec+ meeting which starts on Monday, immediately after G20 and here the result is slightly easier to predict. Oil Minister Novak has been ready to ameliorate and even Mr Putin appears to be in agreement with the desire to maintain existing quotas, the chat between him and MbS or even higher powers is also taking place in Osaka. On Monday morning, sitting down at meeting 1 with Brent at $66.50 the Ministers may just be asking what all the fuss has been about….
In its AGM update today SAVP say that they are in the final stages of the Ministerial consent process which will be followed by the long-form documentation procedure. Following that the transaction implementation will occur as per the the Implementation Agreement as announced in February of this year succeeded by the supplementary admission document. Whilst this has had the effect of creating a further slight delay in closing the deal I have seen a number of similar delays in Nigeria held up by the recent elections.
In Niger the Amdigh-1 well test is likely to be approved following the Seven Energy completion which should bring the country back into play as an important part of the significant upside in the Savannah play.
IGas announce that their Ellesmere Port appeal has been called in by the Secretary of State as it is ‘of major importance having more than local significance’. Now I’m sure that no one can second guess what the decision might be, even whether the fact that the appeal has been called in is better or worse for the company but maybe, just maybe, following the Springs Road discovery someone on high realises that we have meaningful cheap gas on our own doorstep…
Rose has announced that Rick Grant is joining the board as NED, he is Chairman of Origin Creek Energy who have a 15% stake in Rose and that his colleague, Colin Harrington has recently joined the Rose Board as Executive Chairman. Both these guys have exceptional records in the industry, not to mention available cash to invest in Rose. This means that current CEO, Matt Idiens will, after a transition period for the new board members, step down from the company. This is a move that shareholders should appreciate as it sets up Rose for the future as a serious, well funded and managed, Rocky Mountain producer and explorer.
Union Jack Oil/Reabold Resources
UJO announce that they have raised £2.25m at 0.17p in an oversubscribed placing at a small premium to the current share price. That is absolutely right as in my view this will turn out, for the subscribers, to be buying very cheap money. The proceeds are to be used for the long-term production test at West Newton which I believe could be way better than existing market perceptions have even been given credit for and the potential upside could be huge. Also bear in mind Reabold Resources as they have a more than meaningful corner of this particular gem.
I wrote a few weeks ago about Gulfsands Petroleum which due to EU sanctions on Syria remains a public but not listed company. With its asset base in North Eastern Syria still in very good order and actually producing oil at reasonable rates it is fair to consider whether the company might return to listed status at some stage.
At yesterday’s AGM, ( the company are still handling such matters as if they were listed) shareholders were reminded that there is still significant upside potential as and when the sanctions are lifted. Indeed Block 26 could contain over 1bn barrels of resource and 50/- b/d from existing well stock and up to 100/- b/d with full block development.
In my previous comment I alerted investors who might like to monitor the possibility of a return to the markets to keep an eye on Asset Match where the shares are traded via auction every quarter. Such potential investors will be aware that the next auction closes on the 3rd of July at 4pm and there is quite an interesting book building with a current price of 5p. Worth watching this interesting, if unconventional investment which might just reap rewards…
An announcement from Wednesday when there was no blog which slipped through the net yesterday. SDX announced that they have made an oil discovery at their Rabul-7 well on the West Gharib concession in Egypt. The well found 134′ of heavy oil pay with an average porosity of 18% and the well has been completed as a producer at 415 b/d to the CPF at Meseda. This is a modest but useful add discovery and adds to their projected production in country of 4,000-4,200 b/d.
Following on from yesterday’s AGM I managed to get an interview with President Chairman, Peter Levine. He gives a detailed analysis as the the company’s progress in Argentina, Paraguay and Louisiana in his own inimitable style. The link is below.
Link – Total Market Solutions Podcast
Another link, this time to a chat I had with Doc Holiday of Total Market Solutions earlier this week.
With England’s women beating Norway 3-0 last night they can sit back and watch France v USA tonight to know who they will play in the Semi Final.
It’s the Austrian GP on Sunday, the home of Red Bull, will Max bring it home?
England’s vain hopes of qualifying for the last four of the CWC rest on beating India on a raging ‘Bunsen burner’ at Edgbaston on Sunday, the crowd will be quiet then…
Lot’s of good racing tomorrow across the country at York, Newmarket, Newcastle and Chester.