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 Hunting's 1Q was good but off the cliff since then I imagine but 2020 guidance has unsurprisingly been withdrawn.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.
The White House and Senate agree on the $2tn stimulus bill, markets rally, oil doesnt... I look at the Hurricane update in the absence of the CMD, as things go its pretty good. Echo announce a debt restructuring with VAT help and with help from creditors should help. Far has announced that drilling in The Gambia, expected 2H drilling plans for 2020 will be suspended due to the Coronavirus. IGas release a positive update and are not impacted by said virus. Finally, having visited iog I take a look at what lies ahead and it looks pretty good, with a great gas portfolio and current investment at highly advantageous prices.
Echo Energy is making costs cuts in order to hopefully be operationally more positive on cash flow at Santa Cruz Sur in Argentina. Meanwhile Kosmos has indicated some $100m of capex will probably fall as will the dividend, either way the company remains very strong.
Hurricane updates on the GWA JV agreements ahead of the Capital Markets day and Lancaster is still producing20,000 b/d. Echo update on operational and corporate with production going well and increasing debt as a precaution in case of demands on working capital.
It's Bucket List time and the February update is out today, cue trauma.....
A non-commercial gas discovery at Tapi Aike for Echo this morning but with flow of gas and condensate able to give data to tap into this working Petroleum system all is not lost.
From Cairo today a quick word on Echo who are doing all the right things as are RockRose who are bidding for one of them Cotton fields back home...