WTI (Jan) $77.94 n/c*, Brent (Jan) $85.34 -7c, Diff -$7.40 -7c. *WTI market closed.

USNG (Jan) $7.31 n/c*, UKNG (Dec) 261.69p -33.31p, TTF (Dec) €122.215 -€7.03.

Oil price

With the US shut due to the Thanksgiving Holiday little happened in oil markets. The pathetic discussions between G7 and the EU on price capping was truly hilarious, the Russkis must be wetting themselves.

IOG

IOG has provided a further Phase 1 operational update.

Saturn Banks Operations

–     Production has been restarted from both Blythe and Elgood into the Saturn Banks Pipeline System as planned after completion of shutdown works

–     Gas sales are expected to recommence today following full repressurisation of the line

–     Final connection, dewatering and backgassing of the SBPS outer section to Southwark have all been successfully completed, bringing it up to pressure ahead of Southwark first gas

–     Additional modifications were also completed in parallel at Saturn Banks Reception Facilities onshore at Bacton terminal to de-risk potential for future shutdowns

Southwark Drilling

–     A2 hydraulic stimulation operations are underway and expected to continue into December

–     A2 first gas remains expected around year end, subject to stimulation progress and operational risks to final hook-up and commissioning

–     A1 well to be completed after A2 first gas, as previously confirmed

Rupert Newall, CEO of IOG, commented:

“I am very pleased to confirm that Saturn Banks Phase 1 production has been safely restarted after successful completion of shutdown activities. This was one of our top priorities as the new leadership team and the real commitment shown across the team to meet this key objective bodes well for our continuing work to address recent operational challenges.

In parallel, with hydraulic stimulation underway at the A2 well, we are equally focused on bringing Southwark onstream in a safe and timely manner, the next of a series of key objectives we have set to deliver the value in our portfolio. I look forward to keeping investors informed as these materialise.

These operational changes have been completed in good time and with a minimum of delay and accordingly some of the recent concerns about the challenges presented recently have been put to bed. Indeed, the fact that gas sales are restarting so soon is not only good news operationally but that with winter approaching gas prices are helpfully firming up somewhat. 

The company make the important point that these crucial steps taken in such short order are a key step in the process of rebuilding market confidence in the new management team assembled following recent operational challenges.

As I write the shares are up nearly 50%, certainly not an overreaction and these changes which put IOG back on the right foot should see the price regain previous levels much higher than here. 

Hurricane Energy

Hurricane has announced that a Shareholder Circular and a Notice of General Meeting and the associated form of proxy have been published today in the Investors section of the Company’s website at www.hurricaneenergy.com.

The Shareholder Circular sets out the details of a proposal to carry out a reduction of the Company’s capital involving the cancellation of the Company’s share premium account (which currently stands at approximately US$822.5 million) in order to create distributable reserves.

As set out in the Company’s announcement on 2 November 2022 of the launch of a Formal Sale Process (“FSP”), in the event that the FSP does not result in a transaction, the Board intends to commence a significant capital return programme with up to $70 million (equivalent to 3.1 pence per share, converted at an exchange rate of GBP 1.00:USD 1.15) to be returned to shareholders in Q1, 2023, upon completion of a capital reduction. 

Further to that announcement, Shareholder approval is now being sought to carry out the Reduction of Capital, which would enable the Company to make distributions to its shareholders in future, subject to the Company’s performance. The Reduction of Capital is conditional upon the Company obtaining the approval of shareholders by special resolution at the General Meeting and confirmation by the Court.

The General Meeting is to be held on Wednesday, 14 December 2022 at 10.00 am at The Library Suite, Royal Society of Chemistry, Burlington House, Piccadilly, London, W1J 0BA.

Printed copies of the Shareholder Circular containing notice of General Meeting and the associated form of proxy will be posted today to registered shareholders who have elected to receive paper communications.  All shareholders are encouraged to submit their vote by proxy, well in advance of the meeting. Details of how to do this are contained in the notice of meeting. All valid proxy votes (whether submitted electronically or in hard copy form) will be included in the poll vote to be taken at the meeting.

The result of the General Meeting will be announced after its conclusion and published on the Company’s website.

You couldn’t make it up, could you? This is clearly a move to try and smoke out any of the ‘multiple parties’ who are allegedly in the market looking at Hurricane.

And finally…

In the World Cup yesterday Switzerland beat Cameroon, Brazil beat Serbia, Portugal beat Ghana and Uruguay drew with South Korea.

Today Iran have beaten ten man Wales after the keeper was sent off, tonight in this group the USA take on England who have never beaten the Shermans in the World Cup finals… Also later Qatar play Senegal and the Netherlands play Ecuador.

In the Autumn internationals Wales face Australia who are no Georgia and England play the Springboks at Twickenham.

Racing sees the Fighting 5th at Newcastle, always a great contest but tomorrow after the debacle at Ascot last week sees the return of Constitution Hill, the best hurdler around last season and who will meet stablemate Epatante, not the ideal match Nicky Henderson would have selected. Nor the owners I would think.