Oil remained strong yesterday as Russia showed off its excellent production cuts that together with the rest of Opec+ are now making some 15m b/d. Hurricane has received an extension to certain licence commitments pertaining to Lincoln by the OGA. DGO has completed on the purchase of certain assets from the Carbon Energy Corporation and also finished the financing with Munich Re. Finally Genel has announced that production from the Tawke licence should be around 100,000 b/d during 2020, absent any new wells being drilled.
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.
Oil continues to rally and with June WTO expiry tomorrow all is calm... I look at Aminex after watching an interview with new CEO Robert Ambrose and speak to him myself this morning. DGO achieve their Main Market listing justifying the great progress they have made and with a 13% yield it still looks very cheap.
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 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.
A longer piece on oil today after yesterday's shenanigans whilst I also comment on an upbeat statement from PetroTal. Also I catch up with the DGO change of listing announced last week.
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.
Oil prices vacillated ahead of the Opec+ meeting tomorrow but the EIA STEO yesterday showed yet again lower demand numbers and the US going back to being a net importer this year. Rockhopper showed a good set of figures with further strong cost cutting and the Navitas deal validating Sea Lion. DGO have made an acquisition just as expected in these markets, accretive returns will 'validate' the dividend. SDX have a discovery in Egypt and Wentworth has comforted the market with regard to its 2019 results.
While down around a dollar this morning as the Opec+ meeting is moved to Thursday there is still optimism that a deal will be done. RockRose has leapt out of the starting stalls to release 2019 results as soon as the FCA allow. DGO are looking very smart after not being badly affected by the virus or the hydrocarbon prices. JOG have hired a legend formerly of Shell to help with the GBA which is good and Petrofac have swung the axe like others in the industry.
A slight, hardly noticeable pick up in crude prices as the US waits for its $2tn and the Saudi/US alliance....DGO has announced an extended Ohio asset agreement again demonstrating its commitment to its asset retirement programme. GKP has decided to suspend both dividend and share buy-backs as Shaikan expansion is stopped by the virus and lack of payments for its crude. Ascent has started the process of coming back to life with a potential move in to the Caribbean and Hispanic areas. Finally, delayed from yesterday a quick look at Petro Matad who have an update out.