WTI (Oct) $90.22 +$4.46, Brent (Nov) $94.65 +$4.16, Diff -$4.43 -30c.

USNG (Oct) $2.90 -4c, UKNG (Oct) 181.43p +7.32p, TTF (Oct) €73.55 +€2.91.

Oil price

Oil is flat today, having risen sharply yesterday as military activity from both sides restarted. As I noted then the USA attacked mine laying sites while Iran today has attacked bases in Jordan, Bahrain and the UAE. 

Again as noted product markets are very strong as diesel makes new highs and spreads widen. The API stats showed a crude draw of 2.6m barrels with little change in gasoline or distillates ahead of todays EIA stats.

US retail gasoline was down very slightly last week but still over four dollars a gallon and up 89.4 cents year on year. Also watch out for the natural gas price as LNG shipments from the USA will be affected by Tropical Storm Eduardo which landed near Port Arthur and near to local liquefaction plants causing potential damage. 

BP has appointed Ian Tyler as the new Chairman, confirming his interim leadership and following the dismissal of Bert Manifold. It’s the same old, same old BP but once bitten by bringing in an outsider twice shy so they have gone for the easy option and maintain the status quo, no surprise here then. 

Jadestone Energy

Jadestone notes the announcement by PT Prima Petroleum Energi (“Prima Energy”) that Prima Energy has reached an agreement to acquire an interest in c.28.3% of the Company’s issued share capital from Tyrus Capital S.A.M. (the “Sale”).

Jadestone has not yet received independent confirmation of the Sale.

Jadestone also notes Prima Energy’s statement that it has no intention of making an offer to acquire Jadestone Energy plc and is bound by the terms of Rule 2.8 of the UK Takeover Code in that respect.

Nothing much to add here, the NED announcement below now makes much more sense as a conflict of interest would have been occurring. In itself only Jadestone can decide whether Prima changes the significant shareholder situation but having declared that they have no intention of making an offer to acquire Jadestone they should be ring-fenced.

Jadestone shares have performed very well as I expected as the operating successes lately have been backed up by financial strength and the potential in Vietnam about to reward shareholders. The shares are up 6% today, +23% on one month, up 58% over six and have risen 87% year on year. My target price, given the potential in the portfolio is 75p but is not excessive and Jadestone fully justify inclusion in the Bucket List. 

Jadestone announced on 28th August that Gunter Waldner has given notice of his resignation as a Director of the Company, with immediate effect. Gunter Waldner was nominated to Jadestone’s Board as a non-executive director by Tyrus Capital, S.A.M, pursuant to the relationship agreement (as amended) entered into by Jadestone and Tyrus in November 2018.