Oil has rallied today after a bad day yesterday when virus worries hit markets very hard. Today there is some modest relief but don't hold your breath. IGas interims show that good management counts, President continue to succeed in workovers and the drilling programme is underway. Coro figures are irrelevant but the increase in resources at Mako is substantial whilst Longboat are patiently stalking their targets. Africa Energy raise more than expected for drilling with Total in South Africa and Falcon update the market from the Beetaloo.
Oil continues to rally, at the moment the market is a little tighter than might have been hoped for. DGO announce the completion of its EQT acquisition and the Munich Re financing for the term loan financing of the deal. Both Coro and Empyrean have had a new CPR from GCA which gives them 2C of 495 Bcf up 79%, a great result. And Reabold appear to have done a truly spectacular deal, acquiring a 16.665% stake in West Newton for washers. Finally BPC announce the signing of a rig deal with Stena, the dates are 15 Dec through into 1Q 2021 but that gives them plenty of time for further funding decisions.
Despite being down a thick dollar today oil has had a good week as the moons align and supply falls, today's fall was China-centric. Hurricane has been testing both wells at the Lancaster EPS but the 7z well needs more evaluation so for the time being will assess the 6 well. Coro has completed the Duyung acquisition now awaits the CPR and Echo has won in the Bond courts as well with the Argentinian government. Finally GMS looks confident as it claims 52% of holders are happy with incumbent management.
Oil, or more specifically WTI is weak, down another 25% today ahead of rollover to the June contract as even at Cushing the storage tanks are almost full. Angus Energy issues a note today, good under the current circumstances, better when you are writing Riverfort out of your balance sheet. Coro's results were no surprise, recent changes mean that it may be a while before it expands much but Duyung is still a fantastic asset. Trinity continues to cut costs, after this latest bout operating break-even should fall to $20.50/b and Lamprell who announced last week are retrenching into the Hamriyah yard.
The Opec+ deal takes the stage although huge quantities of oil in the physical market is in control at the moment. DGO has pulled off another cracking securitised financial arrangement making the structure look very solid indeed. Coro's operator at Mako in Indonesia has updated its resource estimate an a positive move for the partners. Ascent has announced its first foray into the Caribbean with a modest acquisition and updates on management and Slovenia. Egdon has made a small raise for working cap and Wressle.
Yesterday was down on economic news and filthy (though expected) inventory stats but today is better as Putin and Trump wish the oil market better again. Genel has received $33.2m from the KRG covering October exports and GKP $12.m. Coro has rung the changes today with a restructuring which has left CEO James Menzies out of the company as cost savings are made in Italy and Indonesia. Finally Egdon have said they need an impairment of some £2.5-3m in the upcoming interims.
Coro yesterday updated on the Duyung PSC where regulatory approval is waiting and also confident of an upgrade in resources when GCA report comes back. Also news from Rose Petroleum on Utah and Colorado which I will update after a meeting today.
Oil is about the Coronavirus, now in the UK, I also look at Genel who are getting back to normality of payments from the KRG. Coro has walked away from the Bulu PSC deal after time continued to pass, there are better deals around at the moment and Savannah Petroleum have stepped up in Nigeria as Accugas cuts a deal with FIPL.
Oil picked a notch yesterday, the EIA STEO has pedaled back a bit from previous US shale expectations. Far with Cairn have signed the FID and so the Sangomar field offshore Senegal is into Phase 1 development stage. Coro have signed up Nick Cooper as aNED, very wise and Tower has had another extension for the Thali PSC in Cameroon.
Oil recovered yesterday after initially falling on an API report that showed a build in stocks, the subsequent EIA report showed a draw of 1.1m barrels and oil recovered to be roughly even on the day. Echo has announced that its rig is on the move and should be ready to drill the CLix-1001 well by the end of December. DGO has announced a new NED as well as announcing that the 2Q divvi will be paid on 20th December and a sterling equivalent of 2.65p a share. PetroTal has also appointed two new NED's after recently the Chairman of the Board moved to the non board position of CFO. And Touchstone announce that the Coho-1 well has produced well making it a red letter month for the company.