Oil fell as Libya started to up production and Covid cases increased worldwide. The API stats were better than expected with a small crude draw and a build in gasoline and draw in distillates. Another RNS from BPC shows that much is going on, PetroTal have restarted from the Bretana Field and Predator report interims. Aminex are clinging on in Tanzania with a last extension of the longstop date and Echo have interims today. VOG and others yet to come...
Oil fell hard, previous Saudi action to offset lower Asian demand as well as lower domestic demand as two major refineries remain closed hit the market. Kosmos has sold a package of assets to Shell and PetroTal hope to get the Bretana field up and running 'imminently'. Echo Energy has splashed out, albeit on the strap, on 4 gas compressors previously leased as well as bring back some shut-in production. Finally, in case you missed it in the late blog yesterday I rerun the link to my interview with Premier Oil CEO Tony Durrant.
WTI $41.29 +22c, Brent $43.34 +3c, Diff -$2.05 -19c, NG $1.81 +2c Oil price Nothing to add M'lud, its a bit same old, same old today. The virus is still ...
The Opec+ JMMC provided about what the market had expected, at least there were no major disappointments in the announcement. Reabold has made an unsolicited 'non-binding' sort of offer for Deltic worth 8p and valuing them at £12.34m which looks kind of cheap for everything Graham Swindells has done to set up the company with the Shell farm-out. Echo are restructuring in Argentina pushing out costs for Tapi Aike in return for an option to get back in. And Trinity are still modestly increasing production which is an achievement given their modest spend and cost control.
Oil ended the week slightly down on more virus worries but markets are better today as is oil. I look at the interesting Sound deal in Morocco and the good news from Echo Energy. Solo has raised a potential $5m and updated on cost strategy whilst DGO has had its redetermination satisfactorily. Finally Jadestone looks like it has made another cracking acquisition.
The Opec+ meeting went ahead as planned and delivered a one month extension, maybe not as much as planned but included monitoring Iraq and Nigeria. Today sees Dr Robert Trice leaving Hurricane, the company he founded and is still very much work in progress. At Echo Energy the company show increased production and a number of opportunities for workover and intervention to add modest production cheaply and quickly. Also in another very good deal, Union Jack up their stake in Wressle accretive and with a cash break-even at c.$17.62pb.
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 prices remain modestly strong ahead of today's EIA stats, the API equivalent last night were better than expected.Echo follows President by only barely commenting on the Argentine windfall, wise at this stage i should think. Jersey Oil & Gas look set very fair as they announce the completion of the acquisition from Equinor of the Verbier. SDX also report a good set of 1Q numbers in both Egypt and Morocco.
Oil is all about the physical for the time being as demand falls and Opec+ cuts are yet to kick in. Today Hurricane have an update, all going well at Lancaster the EPS. Echo Energy has moved fast in cutting costs and pretty successfully as well. Hunting's 1Q was good but off the cliff since then I imagine but 2020 guidance has unsurprisingly been withdrawn. Finally I pay tribute to Bob Catto who died recently.
Oil has been very much unchanged over the quarter end and contract rollover and is so today, a lot of talk about who has spoken to MbS... BP have announced 25% capex cuts, in line with others whilst Sound Energy are still discussing their GSA in Morocco. Echo Energy has been restructuring its debt with a number of successes already agreed and Eco Atlantic has pared back costs and remains very well placed when drilling recommences. Finally, I spoke to Wentworth Resources this week and I am convinced that with their very strong model and solid finances they are as good as any in the sector.