WTI $64.90 -19c, Brent $68.28 +19c, Diff -$3.38 n/c, NG $2.96 +3c, UKNG 63.0p +0.04p

Oil price

Last week oil was up, WTI by $1.32 and Brent by $1.52 so fairly modest but traders went with the economic data from the US, China, Germany and the UK rather than the continuing dreadful number of Covid cases in India. Indeed the wheels came of the data bus on Friday with the Non-farm payroll numbers, expected to be 1m + turned out to be 266/-. Markets like this and rate worries ebbed with inflation worries toned down.

The rig count was also fairly nondescript, overall the count was up by 8 units to 448 but oil was only up by 2 to 344 rigs. No, what has grabbed the energy market over the weekend has been the Darkside, viz a ransomware cybersecurity attack on the Colonial pipeline. They operate the pipeline from the Gulf coast to the Northeast which is 5,500 miles long and carries 2.5m b/d of products and which has been closed over the weekend. This has pushed gasoline futures up and so far not much has shown any signs of reopening.

Union Jack Oil/ Reabold Resources

Union Jack and Reabold have announced that Gaffney, Cline & Associates Limited, an international energy consultancy, has been appointed to prepare a Competent Person’s Report (“CPR”) in respect of PEDL183 which include the West Newton discoveries at the WNA-1, WNA-2 and WNB-1Z wells.

The CPR will be executed immediately following completion of the imminent well testing programme of the WNB-1Z and WNA-2 wells.

Another piece of good news from West Newton and I am convinced that bringing in Gaffney Cline is a move made from strength, everything I hear is that it looks sweet and how best to prove the doubters wrong than by having a positive report from G,C&A?

Hurricane Energy

Hurricane has provided an update on Lancaster field operations, I am quoting the report verbatim and note that yet again there is no comment from the CEO or technical team.

The following table details production volumes, water cut and minimum flowing bottom hole pressure for the 205/21a-6 (“P6”) well during April 2021. During the month, and as part of the Company’s periodic well testing programme for reservoir management purposes, the Lancaster field was producing from both the P6 and 205/21a-7z (“P7z”) wells in various different configurations and at various production rates, including periods of well shut-ins for pressure build-up tests. As a result, monthly oil and water production is also included for the P7z well.


April 2021 Lancaster Field Data


Oil produced during the month (kbbls)30319
Average oil rate (bopd)10,100n.m.
Water produced during the month (kbbls)11683
Average water cut(2)28%n.m.
Well gauge pressure (psia)(3)1,657n.m.
  1. P7z on production for nine days in the period for the purpose of well testing. Average oil, water cut and pressure data are not meaningful (n.m.) due to short production duration
  2. Expressed as total water produced divided by total fluid (oil and water) production
  3. Pressure reported is the monthly minimum from well downhole gauge


The average Lancaster oil production rate for April 2021 was lower than prior months, when the P6 well was producing on a standalone basis in line with the Company’s near-term production strategy. Lancaster is currently producing 11,600 bopd from the P6 well alone with an associated water cut of 29%.

President Energy

An operational and pricing update from PPC today, where would we be without them as they continue, correctly to tell us just how well things are going in Argentina?  The new gas well EV-1002 was drilled on time and budget with successful electric log results in line with expectations.
Since then the new gas well LB-1002 has been placed on production and the new gas well EV-1001 successfully completed and is being tested with results projected after clean up to be in line with expectations.

Oil and gas prices are significantly higher than last year, average oil prices realised by President for the first five month of 2021 are running 35% higher than average for the full year 2020. Not to confuse people, average gas prices realised by President for the first five months of 2021 are running 40% higher than for the same period in 2020. Spot gas as at today of US$5 per MMBtu is 100% higher than at the same time last year.

With the price volatility, it is worthy of note that the price President receives for its Salta oil has in May reached parity with that received for its Rio Negro production, a significant positive change from that previously.

Peter Levine, Chairman, commented
“This concludes the initial three well drilling programme in Rio Negro where we now turn to optimising production and making the most of robust oil and gas prices
“President does not take this continued success for granted. As I have said, it’s the product of hard work and careful planning in a country still hard hit by the pandemic
“President continues to pursue strategic options for growth whether in our core business or through our recently formed green energy businesses. Whilst detailed due diligence is currently being conducted on a number of prospects, there is nothing concrete that President is able to announce. Notwithstanding this and for the avoidance of doubt what we can state is that in respect of the prospects currently being considered, it is not currently envisaged that funding by way of equity issuance would be required
“As always, we extend our appreciation and thanks to the Rio Negro Provincial authorities, and our partner in Rio Negro, the provincial energy company, Edhipsa
“We expect a continued flow of further announcements both on operations and on strategic initiatives during the course of this quarter”.

Petro Matad

Block XX Exploitation Licence

The meeting of the Mineral Resources Professional Council (MRPC) to review Petro Matad’s Plan of Development was convened virtually due to the Covid-19 lockdown in Ulaanbaatar. The Council concluded that it supports and will approve the Plan of Development once certain technical clarifications have been provided and any resulting amendments to the documentation deemed necessary have been made. The items requiring clarification have been received from MRPC. With the recent relaxation of lockdown restrictions in Mongolia, the Company is now in discussion with MRPC’s designated officials to clarify the points raised in order to secure MRPC written approval of the Plan of Development.

 Mike Buck, CEO of Petro Matad said:

We are pleased to have received the support of the MRPC for our Heron Field Plan of Development and we are working with the designated representatives to provide clarification and complete any minor amendments as soon as possible”

It’s good to see things moving along for MATD and with the relaxing of lockdown restrictions they must be optimistic with regards to secure written approval for the Plan of Development.


In a ‘you couldnt make it up’ moment the centre of Guildford in Surrey was panicked when a ‘Ranger Oil UK’ spokesman, Grant Wisley was quoted in the local media as saying that space in Guildford train station car park was ‘to conduct exploratory sample drilling’.

It looked to me like an April Fool especially as CNR took over Ranger Oil some 20 years ago although the adjacent offices are in the Ranger Oil building…I spoke to CNR in Aberdeen who have yet to come back to me but I think that Mr Wisley might be winding up the residents of Gtown…

And finally…

Lewis made teamwork count as an undercut for new tyres put him back in front of Max and he went on to win in Barcelona. Valterri has to work out PDQ that he is the junior it the team and when he’s told to let Hamilton through he does just that.

In the Prem on Friday the Magpies visited the Foxes and won 2-4, on Saturday Leeds beat Spurs 3-1, the Blades lost 0-2 to the Eagles, the Noisy Neighbours lost 1-2 at home to Chelski and Liverpool beat the Saints 2-0. Yesterday Wolves beat the Seagulls 2-1, Villa lost 1-3 to the Red Devils, the Hammers lost 0-1 to the Toffees and the Gooners beat the Baggies 3-1 committing them to relegation. Tonight it’s the Cottagers hosting Burnley.

And yesterday St Johnstone beat St Mirren 2-1 to get a place in the Scottish Cup final against the Hibbos so even if the mighty Saints lose we will get a decent rendition of Sunshine on Leith…