WTI $53.14 -$1.05, Brent $59.32 -$1.37, Diff -$6.18 -32c, NG $1.90 +1c
The Corona virus still has the markets by the short and curlies, cities of millions of people empty in the streets like a western town with tumbleweed blowing down main-street. The ‘postponement’ of the lunar New Year would be funny if it wasn’t true and whilst this is going to take some time it will be over once the basics are discovered.
For some of you who work for the really big oil and gas companies seeing the boss come in yesterday after a week ‘off’ at Dav-oh will be a pleasant sight, at least the costs of running him or her will fall. After the $200,000 per access all areas pass and the private jet and rooms at the best hostelries for them and their obligatory executive assistants being back at the office cuts their run rate on costs. At least they all got to meet Greta, oops no the oil and gas guys didn’t table a meeting…
A Morocco and Egypt drilling update this morning, the OYF-2 well in Morocco is a commercial gas find, exceeding pre-drill estimates and extends the core productive area to the north. This discovery applies to both the Upper and Lower Guebbas targets at 1,001m and 1,120m respectively. Estimated recoverable gas of 1.3m-1.9m bcf will be tested next month and then fed into the company’s infrastructure at a net cost of $2m.
Next stop for Morocco is the BMK-1 well 11k to the North and then three more wells to complete the Morocco campaign. In Egypt there are two wells at South Disouq, Salah and Sobhi looking for 71 bcfe and 33 bcfe of gross unrisked respectively as well as an appraisal well at Rabul in the West Gharib concession.
Delayed from yesterday an overdue West Rustavi update where multi-rate testing at WR-38Z gave post clean up peak flow rates of 300 bopd + 1.5 MMcf/d = 550 boepd. Gas potential is enough to warrant a GPF and will bring it onstream by Q2 2020.
Drilling has already started on the horizontal WR-51Z well and the WR-16aZ which was shut-in December and is scheduled to re-start in early February with a well intervention programme designed to add a further 100-200 boepd to the Field’s production.
Whether the recent fall in Block shares is down to the oil price or suspected delays and disappointments in this statement is tricky to call, either way the company needs to get the story out a bit more where it deserves more of a hearing.
The Gooners got through against the Cherries and join others in the 5th round to be played midweek 3-5 of March, midweek with no replays for the first time.