The oil price is off the top as more cases of the virus are reported in China and the USA and economists are uncertain about world growth. I'm looking at Predator who have an interesting announcement on gas in Ireland and President who have detailed the upcoming drilling programme. I'm also looking at Empyrean after a long call with Tom Kelly, the upside here is huge.
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 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.
The oil market is quite tight and President Putin has helped the Opec + cause ahead of the December 5 meeting. Coro and Empyrean have announced a highly successful appraisal of the Mako field although the deeper prospect wasnt deliverable. Reabold has invested in Corallian and Danube keeping their pro rata holdings.
A flash blog today as Coro and Empyrean come in with their Tambak-2 well in the Duyung PSC offshore Indonesia. Also a £1.5m fund raise from Tower where Jeremy Asher and friends back the upcoming Thali well. Finally an agreed takeover for Eland from Seplat at 166p
Oil is quiet but resilient, a Yemeni attack on a Saudi oil facility has lit things up in the Gulf. Excellent news from Savannah who have received Ministerial consent for the Seven Energy deal from President Buhari no less. Expect much to happen at SAVP now. And Coro and Empyrean have announced that drilling is about to get underway at the Duyung PSC offshore Indonesia.
Oil firm as the Saudis hit back at the Houthi rebels. SDX reduce guidance and lose CEO Paul Welch, at Falcon they raise a bit to top up for this year and next year existing carry. All in line at Cairn with no change in guidance or plans in development and exploration. Earlier this week Wentworth updated and all is going well, yesterday Block Energy raised £12m, a solid achievement given how fast they have moved and at Egdon they raised £2.17m. Empyrean has seen gas clouds at Topaz and Jade which CNOOC say is good news and Lisa Mitchell moves from Lekoil to San Leon...
Oil cracked a bit on Friday but it could have been avoided, the market can supply any shortfall but will be getting tighter through this quarter. Coro and Empyrean have agreed their drilling programme for Duyung and will drill an exploration and appraisal well in the autumn. Jadestone has a HOA for gas sales with Petrovietnam and Reabold is moving ahead in California.
After a mixed and apparently turbulent week in the oil market the price ended up although less that a dollar. Right now WTI has rallied by 60 cents and Brent by 72c. Today Coro and Empyrean get their Plan of Development for the Mako field offshore Indonesia, good for monetising the gas. IGas and Egdon have announced that at Springs Road 'significant gas indications were observed', could this see the East Midlands start to become our own Dallas? Reabold bounce back from Friday's duster to find in excess of 60m of pay at the Monroe Swell which will be very valuable whilst Cairn now have to wait until the end of the year at best to find out arbitration news.