Oil is drifting this morning after further virus fears re-emerged in China. HitecVision is to bid for Exxon's Central and northern North Sea interests and Union Jack and Reabold update positively on West Newton. Pharos has raised $11.7m to get going on drilling operations in Egypt and Falcon has continued success at Kyalla.
As Joe Biden starts his reign by signing executive orders that for oil mean that the XL pipeline disappears and also that there is a moratorium in Alaska as expected. Meantime life goes on and Serica are making the most of it, also Trinity update on the 4th quarter.
Oil is already rallying and its a busy blog with Genel updating the market, and PetroTal completing an agreement with Petroperu as well as Kosmos making a discovery in the GoM. Also Remus comment on their current targets whilst Falcon have confirmed a discovery in Australia. Finally I interviewed Colin Harrington of Zephyr, surely a ten bagger in a short time...?
Oil takes a breather after a flat week, the next few days will see the Biden inauguration and the new stimulus as well the way the new administration will tackle Covid. Genel announces the DNO update ahead of their own tomorrow and Union Jack has taken another 15% interest in Biscathorpe a field I think could be very profitable.
Crude rallied yesterday as Joe Biden announced his bigger than expected stimulus programme of $1.9tn. The virus v vaccine war continues and with Brazil being the centre of virus bad news markets are drifting and oil is falling albeit modestly. Petrofac had the latest SFO statement that claimed a former employee of a subsidiary had admitted further charges under the UK bribery act.
Oil drifted yesterday and is down around 40 cents today. Wentworth is looking very strong and worth a look, Zephyrs State 16-2 well looks like it has come in and Hurricane updates the market. Lamprell has announced good numbers and a strategic reorganisation. Pantheon has spudded an appraisal well chasing a billion barrels and Tower has raised £1.25m to pay off the Shard facility..
Oil was quiet yesterday but is up another 80 odd cents again today on what is being called the 'virus strategy' or common sense as I called it before Christmas. BPC continue to top up finances by exercising a put option getting ship shape for P#1 and other portfolio requirements. PetroTal are also contemplating a $100m bond issue to help restart a drilling programme and to upgrade the CPF-2 for higher throughput. Finally Helium One starts its drilling programme by submitting key environmental studies.
WTI $52.24 +$1.41, Brent $55.99 +$1.61, Diff -$3.75 +20c, NG $2.70 -3c Oil price Last week was a good one for oil, the fact that the KSA had warned speculators against shorting crude only made it more funny to see the bears short and wrong. Week on week WTI was up $3.72 or 7.7% whilst Brent rose $4.19 or 8.1%. Oil is down a bit this morning, taking a breather on a no news market day. IOG A corporate and operating update from IOG this morning and for such an important year in which the company is moving to first production and cash flow this is very encouraging. The company report that 'intensive work has continued across all key Phase 1 development disciplines, as well as increasing project integration activities focused on efficient completion, installation and commissioning of infrastructure in conjunction with the drilling programme over the coming months'. Construction-wise, fabrication of the Phase 1 Southwark and Blythe platforms at HSM’s yard in Schiedam remains on track for mechanical completion later in Q1 2021. Construction of both jackets is proceeding alongside installation and testing of topside equipment including risers, helidecks, controls, communications and integrity management systems. Transport and installation (T&I) ...
Oil continues to perform strongly, WTI is over $51 and Brent over $55. Far updates on the Remus proposal and the possible Woodside sale, keep your eyes on Remus, they are hot to trot as they say. Echo has signed a cooperation agreement in Bolivia.