WTI $25.29 -49c, Brent $29.19 -79c, Diff -$3.90 -30c, NG $1.62 -10c Oil price Mixed market views yesterday but overall the outlook looks reasonably good. The Opec report shows that ...
Oil picked up after several Opec+ parties agreed to further cuts to production led by Saudi Arabia and with a possible extension of the June deadline. Predator has had good news from Trinidad as their CO2 injection gets a 90 day period to allow maximum CO2 injection rates and pressure to be achieved. And in a trading update today Premier slip slightly after an unplanned Catcher outage brings production guidance to 65-70 kboepd. No news on the BP acquisitions but 'in talks with all parties'.
Oil prices have rallied a bit on news of further Saudi cutbacks amongst other stuff. Diversified Gas & Oil has announced a successful fundraising of £69.4m at 108p, a very small 1.6% discount to last nights close. They have announced two substantial acquisitions that are accretive to both eps and dividends. Empyrean Energy have raised £397, 540 from its Open Offer, add £17,500 subscription and the total raised in recent months is £825,990.
The oil price, even with the VE holiday tomorrow will likely end up on the week, lock-down is slowly disappearing. Ascent resources has completed its recently announced fund-raise, PetroTal have shut-in production from the Bretana field after the pipeline to market created a potential refinancing. Genel announce production from Tawke and that the gas project is completed and testing. iog are moving fast on the Core Project, today they hire Subsea 7 for Phase 1 works. Premier find that their pain in the butt is appealing the Edinburgh Court ruling pushing back the equity raise. Finally GMS reject the final 10p bid from Seafox as 'fundamentally undervaluing the company.
Another big up day for oil as big economies start to get back to work across the world thus boosting demand numbers. At the same time word from Saudi Arabia to those who listen is that right now the spigots are set to 6m b/d. I look at a great statement from JOG where the excitement of the lead in the development of the GBA is obvious and the future looks bright. Also Aminex take another step towards the formal farm-out with the completion of a loan from ARA to pay the CGT bill to the TRA. A quick word on Gulf Marine Services, not solutions, apologies where Seafox announce a purchase of shares at 10p, putting a ceiling of 10p or 9c on the potential bid as they commit to no increase in the terms. Finally, a little late I am look at the Getech announcement of last week, they appear to be handling the virus and the oil price pretty well.
The oil rally continues and is nearing a 50% bounce from the $19 low. I like the look of the statement from Predator who have a good deal to look forward to. And I take a first look at GMS with the bid from Seafox on the table.
The oil market rallied last week, WTI up 17% and Brent 26% and after a soggy start today they have both gone back into the green. It is worth considering that whilst it will be a long road the worst may be behind the oil price, the shares often make gains when the commodity languishes...Today I take a good look at DGO, it is proving to be highly successful and is as close to a conviction recommendation with its monster yield as is possible to find. At Rose Petroleum, soon to be Zephyr Energy, Colin Harrington and team are making inroads into costs and I am confident about their ability to cut deals which will be advantageous to shareholders. Finally I spent some good time with Tom Kelly this morning, there is much going on at Empyrean especially with the upcoming CPR at the Mako gas field in Indonesia and of course the seismic inversion work in China.
The end of a month like no other, a learning curve for ETF's certainly. Today I look at news from Savannah, from Nigeria and Niger which shows just how well Andrew Knott is doing. For Genel Bina Bawi is still on the table, probably separated into Jurassic oil and Triassic gas. Over at iog it really is red letter day as the OGA approves their Core Project Phase 1 FDP, a major milestone indeed. IGas have got the flexibility to shut-in production and they have decided to stop for May and June which actually boosts cash flow when offset against hedging.
Oil is rallying today as we head into May, it is however only very early days with regard to this process. RockRose has an AGM statement and costs continue to fall, the company remains in a strong position. Ascent has signed up more potential acreage in Cuba where opportunities look very interesting and has raised £212,500 as part of the programme. Far continues to manage Sangomar where without its debt finance it is aiming to farm-down all or part of its acreage. Aminex also comments that with its substantial free carry it can make considerable progress in Tanzania and in Pan-Africa. Finally Rockhopper announce that the HOT with Navitas re the Falklands is still in play.
Oil remains precarious as traders watch the physical market and try to figure what USO are up to...I catch up on news yesterday from Reabold and Union Jack from West Newton as well as President Energy. I also take a look at Block Energy where selling from Georgia Oil & Gas may be creating opportunities...