News this morning from Zephyr, Union Jack, Egdon, Challenger and Predator.
Oil drifted on the last day of what has been a very good month and traders locked in profits. An update from Arrow was excellent and in line with guidance and San Leon have slightly extended the backstop date for the OML18 financing and Challenger update the market on a wet quarter. Finally Jadestone complete the acquisition from BP and COPL also update the market..
Oil rallied after the dollar weakened as expectations of a 100bp rise in US rates next week were trimmed. Challenger update on Trinidad and Angus yesterday also updated on Saltfleetby. Predator have a detailed run through but it is Morocco that is of most interest in the next few months. Afentra look to have done a very smart deal topping up in Angola and Tenaz are having to rethink the SDX acquisition.
Oil rose on Friday but WTI was down on the week, Brent unchanged. Nothing different at the moment, Libya is back down to 100/- odd b/d if that. Today Genel announce KRG payments and Savannah start gas sales to Axxela and Touchstone updates the market on COHO and Cascadura. Arrow have another success in Colombia and Eco Atlantic have raised money in Africa to top up their stake in 3/B and 4/B. Challenger note a scoop on Friday re Uruguay and results from Petro Matad show a positive situation after a terrible year or two.
Oil fell again after Jerome Powell of the Fed admitted that they may have misjudged inflation leading to a possible recession in the US. What a surprise and those clowns at the ECB and the Bank of England are no better. I have discovered that CEG may be sitting on a windfall by way of its crafty pick up of acreage in Uruguay, Shell and Apache have turned up as new neighbours...Gulf Keystone update shows just how much cash it's throwing off and San Leon are persevering with the Nigerian paperwork which should be highly rewarding. Southern Energy have raised $31m, more than expected and Lamprell find themselves in another fine mess.
Oil still firm, Libya says Sharara field goes offline... Savannah results very good and an interview with CEO Andrew Knott. Sound raises £4m for FID and G&A costs and Challenger replies to Predator.
Oil is continuing to drift with the usual suspects responsible, at the moment the underlying remains pretty strong based on product demand. Zephyr have come up with a novel way of monetising the Paradox Basin in the short term whilst waiting for gas infrastructure. Challenger announce more activity on its existing portfolio with workovers, recompletions and swabbing in the short term. Savannah announces its figures for later today and also a retail Q&A and finally Predator have mobilised a huge law suit against Challenger for historic activity in Trinidad.
Oil is up today as demand looks stronger than any supply in the future. PetroTal has issued a very upbeat Q1 update which makes me want to increase the TP again. Gulfsands have done a very smart deal in Colombia which might not have been possible a few years ago. Petrofac are slightly cautious about the short term but the long term looks good to me, Egdon has paid off some debts and is making good returns from Wressle particularly, Union Jack gains from being paid back. Finally Challenger has gone on with its Uruguay acreage which is now looking very exciting.
Flash blog on Challenger update, Angus progress and GKP payments.
A sharp fall for oil yesterday as the IMF brought down its growth forecasts and increased its inflation numbers, the only good thing is that, like the IEA they are always wrong. Challenger continues its restructuring with decent gains in production while Hunting is unsurprisingly busy on all fronts. At Hurricane the monthly operating stats remain positive and President has a lengthy update with good realisations and closer to a big exploration well.