Oil price, Savannah, Coro, Nu-Oil & Gas, Columbus – And finally…
WTI $52.45 -19c, Brent $57.71 +2c, Diff -$5.26 +21c, NG $2.33 +8c
A weak oil price and revisiting recent lows as the economic concerns sweep around the globe. In the US yesterday the Fed boss was forced into speculating that a rate cut might come as soon as this month, its the jobs data later today which will give a further idea of how things look.
I have been away for a while, this week in Kurdistan has been one of the best trips I have been on for a long time and busy from morning ’til night so over the next few days or so I will update on Genel and Gulf Keystone. The last day of the month and the quarter on Monday, it being deadline day for results saw a plethora of numbers but I will refer to them as further news comes up or over the next few days. In the meantime I shall start working on what I’ve missed…
Although SAVP did also have results on Monday it was Tuesday’s Seven Energy Transaction update that hit the headlines and for all the right reasons. Final long form documentation has been signed by Frontier, SUGL and Accugas in relation to the restructuring of economic ownership interests at the Uquo marginal field and the operatorship of the Uquo CPF as previously announced.
This transaction results in SUGL assuming responsibility for all operations of the gas project at the Uquo marginal field as well as day-to-day operations at the Uquo gas field and it will retain 100% of the revenue from gas sales. Frontier will control all oil related in the Uquo field and retain 100% of oil sales revenue. At this time operatorship of the Uquo CPF will transferred to Accugas and following the FT deal the enlarged group will have effective control over the Uquo gas supply chain.
CEO Andrew Knott commented that ‘this signature represents the achievement of one of the final remaining milestones to be reached as we move towards completion of the Seven Energy Transaction, it is of strategic importance giving the enlarged group control over the gas value chain and to maximize value for the Uquo gas field’. It looks like at long last we may have the sight of the finish line in this audacious and substantially value accretive deal which started a long time ago and which will be a real game changer.
Coro has announced the spudding of its and Empyrean’s well on the Duyung PSC offshore Indonesia. The Tambak-2 well is looking for around 100 BCF overall in the Mako gas field and the well is expected to take around 33 days.
Nu-Oil & Gas
Spotted whilst away was the change of direction for NUOG where lender Shard has sold its loan to C4 Energy as well as increasing the balance to £2.5m. The loan is interest free and unsecured with a convert at 0.05p and capped at 29.9% by C4. Alongside this there is a placing to raise £0.5m with subscribers introduced by C4 at the same price.
The company are also selling off the 50% interest in the Marginal Field Development Company to RMRI for the release of debts of £1.23m due to that company and Alan Minty. With the decks cleared and new management coming in it looks like a relaunch for NUOG with some serious new backers…
Columbus Energy Resources
The long awaited new country entry from CERP is…………………Suriname so no surprise there then. But the company seems to have done a pretty fair negotiating job as they have a very large onshore block with 24 MMbbls of STOIIP and with no upfront payment at all. Indeed it gets better as they can set the pace on the Weg Naar Zee block with a phase 1 exploration period of up to three years and also they can use EOR techniques as they are doing in Trinidad as well as using EWT’s.
They have a good data base and the block has had money spent on it so shareholders need not worry about burning cash in Suriname. With two Extended Well Tests and a bunch of G&G studies to do the acreage they have become exposed to is pretty complimentary to that in Trinidad and of course there is a fair bit of upside exploration potential.
With the RWC 2019 in full swing the pick out match tomorrow is England v Argentina although some powerful performances have already been put down not least a whipping of Italy by South Africa this morning.
In the Prem tomorrow the big question is whether the Foxes can go to Anfield and stop Liverpool for the first time this season? The Noisy Neighbours host Wolves, Spurs are at the Seagulls, the Gooners entertain the Cherries, the Red Devils are at the Magpies and Chelski are at the Saints…