WTI $58.23 +15c, Brent $64.49 +29c, Diff -$6.26 +14c, NG $2.19 +1c
Oil rose yesterday for no particular reason but for today’s signing of the big trade deal, it shouldnt be underestimated you know. Having said that the EIA whilst being a touch negative short term is being quite bearish about US, particularly shale prospects for next year onwards. Oil is off now, the STEO remains quite bearish for 1H 2020 and the API showed a stock build of 1.1m barrels after markets shut.
Far Limited/Cairn Energy
So, the Sangomar field has received FID and this excellent discovery, now to be a development is fully underway. Interestingly for most followers it has rarely been in doubt for which the Far team can be rightly proud. Phase 1 of the multi-phase development will target 2P recoverable reserves of 231 mmbbls with significantly more over the life of the field and of course plentiful gas to export. First oil is expected in 2023 and one the initial FPSO has a processing capacity of 100,000 b/d. Far MD, Cath Norman rightly said that this was a momentous milestone for the JV and the faith to get to this position over recent years is to be applauded.
Far has already announced its plans for funding and today confirms it is pursuing a senior, secured RBL facility, so far it has received credit approval terms for US $200m and it is in negotiations to raise that to US $300m. They plan a further announcement on 20th January.
I don’t normally pass comment on NED appointments, I prefer life this side of the bars but today it should be noted that Coro has appointed Nick Cooper to its board. He has ‘highly relevant regional experience’ which I can vouch for and should genuinely add significant insight to the job, and he can i’m told, also run a brewery…
Tower has received a further one year extension to its Thali PSC in Cameroon where at present it is preparing to conduct the site survey for the purpose of completing the NJOM-3 well currently in process on the Njonji structure. Chairman Jeremy Asher deserves a gong for perseverance and it seems that, albeit slowly, the faith showed by him and the shareholders is at least going to result in this well being drilled.
No surprises in the FA Cup replays last night, tonight sees Wolves visit the Theatre of inconsistency whilst Cardiff fans must have set off first thing for their replay at Carlisle.
The third test at Port Elizabeth starts tomorrow morning, at 1-1 with two to go things should be spicy.