WTI $49.90 -$1.53, Brent $54.95 -$1.35, Diff -$5.05 +18c, NG $1.85 +2c
Covid-19 rolls on and without any idea yet as to how and where it started it will remain the mystery it has become. People round the world are being told to self immunise for a fortnight if they have been to Italy or Iraq or are feeling poorly, at the moment it’s getting worse not better.
A California update from Reabold this morning where the VG-6 well at West Brentwood is now producing 350 mscf/d and has opened up a new play with additional follow-on targets. July-December 2019 saw Reabold produce circa. 25,000 barrels from California giving revenues of $1.4m with cash opex of only $13 pb. This confirms the excellent economics from Reabolds’ US operations and good to see it bulking up a bit.
Sound has announced that Graham Lyon has been appointed Executive Chairman, he replaces the stand-in Marco Fumagalli who has held the post for a few months. I am very confident that Graham will do an excellent job working with Mohammed at Sound, he is steeped in years of experience in particular of bringing on international gas projects so shareholders can rest assured that existing developments such as in Eastern Morocco will deliver for them. He may even be able to bring on other things in the Sound portfolio so watch this space.
I attended the Jadestone Capital Markets event yesterday and as expected was extremely impressed. The programme was very detailed and whilst I missed the very end it was clear that nothing had been left out. CEO Paul Blakeley delivered the overview, including the all important ESG stuff but left us in no doubt that Jadestone’s performance hasn’t happened by accident, it is indeed a culture. Everything from its home ground in the Asia Pacific Region through oil and gas mix and opportunities were covered along with the current portfolio.
The later presentations all left me in no doubt that the company is in a very strong position, clearly the executive management is first rate but those further down the ladder are also highly efficient and in some cases talkative, showing a keen interest in their own sector such as subsurface…Jadestone is growing fast but not at the cost of ensuring that existing projects are being safely and strongly developed and I would expect to see a good deal more from Paul Blakeley and team in the future.
A production update from Egdon this morning, to 31/1/20 they averaged 178 b/d perfectly withing guidance which in the next year is 130-140 b/d. Currently they are unsurprisingly concentrating on the Wressle Field development plans which now that they have the semblance of a green light can start moving on.
Champions League this week and last night Chelski ended up losing 0-3 to Bayern Munich. Tonight the Noisy Neighbours are at Real Madrid…
And see that Deontay Wilder blamed the fancy dress he used in the walk-on for his fight against Tyson Fury in which he was comprehensively beaten. He has however opted for the rematch as is in his contract.