WTI $65.64 +$3.50, Brent $68.75 +$3.57, Diff -$3.11 +6c, NG $3.94 +9c, UKNG 107.22p +1.6p

Oil price

So, we’ve had a shakeout and yesterday saw a decent recovery, along with today’s rise Brent is nearly 8% off the lows which can be attributed to a number of factors. I would divide by country, firstly the USA where sentiment that the Jackson Hole Symposium would shake the trees has been muted by the cancellation of the face to face meeting which is now a virtual one. Don’t ask me why but the experts think that not being face to face will mean a more vanilla outcome…

Also in the US, the Pfizer/BioNTech vaccine was approved whilst in China they saw no new Delta variant cases yesterday. In Mexico, oil production was cut by around 450/- b/d after an explosion on an oil platform. Finally it is retail gasoline price day and a gallon will rush you $3.145 on average in the US which is down 2.9c w/w, up 0.9c m/m and up 96.3c y/y. If you live or work on the West coast it is a different story where a gallon is $3.936…

Egdon Resources/Union Jack Oil/ Europa Oil & Gas

Egdon as operator has provided an update on operations at its Wressle Oil Field Development, located in North Lincolnshire, covered by Licences PEDL180 and PEDL182 and where the Company holds a 30% operated interest. Union Jack owns 40% and EOG 30% of the field. 

Egdon is pleased to advise that the coiled tubing operation has been completed safely and successfully and the Ashover Grit reservoir has been returned to flow, under extended well testing operations. The well flow is continuing to clean-up and has not yet reached its full potential. The measured flow rates have exceeded 500 barrels of oil per day under a restricted choke setting, which was the forecast rate following the proppant squeeze operation.

Mark Abbott, Managing Director of Egdon, commented:

“I am delighted to advise that the proppant squeeze operation has been successful in enabling the Wressle well to deliver the target production rate of 500 barrels of oil per day. Oil production will be optimised whilst the Ashover Grit reservoir continues to clean-up.  With this additional 150 barrels of oil per day net to Egdon and the current strong oil price, Wressle will have a transformational impact on Egdon’s near-term cash flow.

Considerable upside remains in the additional reservoirs at Wressle and in adjacent prospects and we expect Wressle to be an important asset for Egdon for a number of years to come.

I would like to take this opportunity to thank all of Egdon’s contractors who have contributed so effectively to delivering this milestone event for the Wressle joint venture.”

Executive Chairman of Union Jack, David Bramhill commented: 

“I am, of course, delighted with the outcome of the proppant squeeze operation which has enabled the Wressle-1 discovery to deliver the expected production rate of 500 barrels of oil per day from the Ashover Grit reservoir, the lowest reservoir interval in the original discovery well.

“At a full production rate of 500 barrels of oil per day, Wressle, at current oil prices would transform the economics of the Company with a materially positive impact on our revenues and operating cashflow.

“Union Jack Management are of the opinion that Wressle is still at a very early stage in its development and that considerable upside potential remains given the higher Wingfield Flags and Penistone Flags reservoirs, that are not part of this test programme, have both already demonstrated their ability to flow oil to surface during testing of the original discovery well, as well as other opportunities within the licence areas.

Simon Oddie, CEO of Europa, said: 

Achieving the targeted 500 barrels of oil per day production rate at Wressle is an excellent outcome, following the successful proppant squeeze operation at the Wressle-1 well.  While oil production will be optimised in the coming weeks as the reservoir continues to clean-up, a gross rate of 500 bopd at Wressle more than doubles Europa’s existing UK onshore production to over 200 bopd.  At current oil prices of over US$65 per barrel, this step-up in net production will transform Europa’s financial profile and in turn provide a strong platform from which to grow the Company further. Considerable  upside exists in the other formations at Wressle which we now look forward to progressing”.

Today’s announcement is exceptionally good news for the partners that has not been adequately reflected in the prices, for the following reasons. Firstly and I quote ‘The Wressle-1 well is continuing to clean up and has not yet reached its optimum potential’.

As far as I can gather this result was significantly better than expected and the proppant squeeze was highly efficient and while still cleaning up that might give a clue to how big this might be. Indeed with a combination of bigger and better facilities maybe such as a separator and of course distribution it could be well in excess of this test rate.

Finally, as mentioned ‘considerable upside potential remains given the higher Wingfield Flags and Penistone Flags reservoirs’, which together with all the other potential could be substantial and given an update on stabilised flow rates is expected within weeks I am supremely confident that there is more to come from Wressle, at long last…


Hunting has announced a strategic investment of $5.0m for a 27% stake in Cumberland Additive Holdings. Headquartered in Pflugerville, Texas, CAH offers engineering design services and production of parts via additive manufacturing in both metals and polymer materials using powder bed fusion technology. 

CAH holds AS9100D and ITAR accreditations, supporting customers in the aerospace, defence, space, oil and gas and energy sectors who demand strongly quality assured components to operate in high performance environments.  CAH currently occupies 30,000 square feet at their Texas location.  CAH is in the process of establishing their second location in Pittsburgh, Pennsylvania, which will improve supply chain efficiency.

 The investment in CAH provides Hunting with access to the fast growing additive manufacturing sector, which is increasingly being adopted by many of the Group’s current oil and gas clients, while also providing opportunities for Hunting to enter new sectors complementary to the Group’s current customer profile.

Jim Johnson, Chief Executive of Hunting, commented:

 “Hunting’s investment in CAH is a key part of our strategy to access new manufacturing technologies which are being adopted by our current customers, but also provides new market and customer opportunities in sectors complementary to our core competencies of precision engineering and strongly quality assured products and procedures, including aerospace and defense. The Group was attracted by CAH’s materials and process engineering know-how and expertise which we believe will complement our existing engineering and manufacturing leadership in our chosen sectors of focus. We look forward to building a strong collaboration with our existing businesses in the coming years.”

Whilst this is a pretty modest investment by size for Hunting it could be a highly strategic move and is typical of how they do their business. With results imminent I’m sure that the excellent Jim Johnson will be able to put some more meat on the bones announced today.

President Energy

Given how much information we get from President I am not going to detail figures which go back to December 2020, let’s get the abbreviated detail.

‘In the face of the unprecedented challenges in 2020, including the dramatic drop in the oil price to less than US$20 per barrel, the Company still delivered solid progress and operational profitability, with adjusted EBITDA* of almost US$2.1 million on turnover of approximately US$28 million. This demonstrates the continued strength of the Group and resilience in navigating through the perfect storm of Covid-19 and its tsunami of economically challenging waves which enveloped the whole of the World’.

Peter Levine, Chairman, commented in the Chairman’s Statement:

“When I wrote my statement on 30 June last year, I don’t think any of us could have imagined that 14 months on we would still be battling the impact of Covid-19. As I said previously, I spent several months earlier this year travelling around our operations in South America overseeing our exciting work programme and advancing a material investment in our Paraguay assets. During that time, I saw first-hand the devastation wrought by the global pandemic and the significant sacrifices required to keep businesses operational during such difficult times. Having myself been hospitalised for two weeks, although thankfully now well on the way to recovery, I remain eternally grateful for the skill and dedication shown by the medical professionals in Paraguay and across the Globe. 

As I said at the time, I have never been one to sit behind a desk to manage my business and I am willing to put myself in harm’s way for the benefit of our stakeholders so say none of this to gain sympathy. I make these observations so that people might understand the dedication shown by our hardworking employees in the face of such adversity. It is this dedication that has led to us delivering all the progress noted in the last 20 months.

Day by day our Company gets stronger although always subject to intermittent variables which do throw stones in our path to deflect us. We do all we can to grow President organically and by strategic initiative. I am confident that 2021 will be seen by its end as a year of progress with the Paraguay farm-out, new drilling in Salta and the spin off and float of Atome all set to be completed by year end.

We successfully controlled what we could and the key performance metrics through 2020 bear witness to this: – increased average production, reduced operating and administrative costs as well as overall debt. I am sincerely grateful to everyone within the business for their efforts. We have a lot of work to do this year, but we are very much up for it and relishing the prospects.

The energy landscape has changed even faster and more dramatically than anticipated. President, as an energy company focused on long term goals, embraces this and shareholders may have noticed the rapid progress we are making with Atome Limited, the subsidiary we formed earlier this year to focus on hydrogen-related opportunities.”

This is pure gold from Peter Levine who has, with his team, worked flat to the boards to bring a really high quality portfolio of assets to the company. Most of these are not fully represented in the share price and the market cap which should be way higher than this level.

Prospex Energy

Prospex say that they have now received a valid (sic) letter from Jarvis Investment Management requisitioning a general meeting of the Company’s shareholders.

The Requisition proposes that shareholders be asked to consider the following resolutions:

1.    The appointment of Leo Willem Koot to the Board

2.    The appointment of Gordon Bowman Stein to the Board

3.    The appointment of Stephen Bocciolo to the Board

4.    The appointment of Michael Douglas to the Board

5.    The removal of William Hartman Smith from the Board

6.    The removal of Richard Paul Mays from the Board

7.    The removal of Mark Christopher Routh from the Board

8.    The removal of Alasdair Buchanan from the Board, should he be appointed ahead of the GM

9.    To authorise the directors to allot shares in the Company up to a nominal value of £125,000

10.  To authorise the directors to disapply pre-emption rights over the allotment of shares in the Company up to a nominal value of £125,000

Let battle commence…

And finally…

The Paralympics start today in Tokyo until 5th September.

Last night the happy Hammers went to the top of the Prem with a 4-1 win over the Foxes, Antonio celebrated with a cut-out of himself as he became their top ever scorer.

Finally its the EFL Cup tonight at the stage where the big teams come in. Accordingly Barrow host Villa, Huddersfield entertain the Toffees, the Cherries will fancy their chances at the Canaries, Crewe visit Leeds, the Hornets host the Eagles and in the avian derby the Bluebirds host the Seagulls.