It's Bucket List time and the February update is out today, cue trauma.....
Oil duly rose last week but at present the virus, now Covid-19 could be peaking but the WHO are less confident. Predator completed a raise of £3.56m at 4p, a highly commendable job done that was 'significantly oversubscribed' and the outlook is promising. Sound Energy has had to go to plan B as so far the buyer of its Eastern Morocco assets has not yet signed an SPA. Far announced that MD Cath Norman had bought shares pa on Friday, nice work.
The oil price will have done well to increase on the week in the face of the inscrutable Chinese virus as well as the 1H oversupply situation but Opec+ production cuts will help that. Today DGO announce a buy-back, on an 11% yield punters should follow, Far suffer at the hands of the Court of Arbitration but are set fair in West Africa. Ascent Resources, where shareholders have been crying out for restructuring have now got just that and SDX spud at South Disouq.
Oil has rallied for a number of reasons but Libya is getting pretty lively. Trinity have, as usual a very positive update across the board while Echo also seems to be becoming interesting at the Santa Cruz Sur. Far has gone ahead with its FID for Senegal and is now sorting out the financing which seems nearly all done. President has tapped Trafigura who are injecting money into this well run company and Lamprell confirms the two jackup orders. Finally Touchstone testing an oil play now have a 'liquids rich' structure.
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.
Far has announced approval by the Government of Senegal the Field Development Exploitation Plan for the Sangomar field development offshore Senegal
Today is the interim Bucket List with a look at performance since February, the good the bad and the ugly and with two stocks dropping out to be replaced in the list.
Oil drifts further despite more stock draws, the EIA will be important later. Today I comment on Rockhopper who have a well result for United and IOG who have spudded Harvey at last. EOG have converted LO 16/20 into FEL 4/19 but still have no farm-out. Reabold have spudded in Romania and I catch up from yesterday with Far Limited where CNOOC has acquired 55.5% of Svenska's interest in Guinea-Bissau. Also from yesterday another upbeat statement from President, Cairn sells half of its stake in Nova and Jadestone get the final all clear for Montara.
The President blew the froth off the oil price yesterday finding another $300bn worth of goods to tax by 10%. The markets fell and the greenback rallied. Today I rewrite my note on Far which had a small but important typo on Wednesday, apologies and write up the Lamprell update today which is a mixed bag.
Oil rallied yesterday on the thoughts of a Fed rate cute and further production cuts from Libya. After the close the better than expected API stats gave a further boost to oil prices and Brent is over $65 this morning. Plenty of company updates but all going well at Far in West Africa with Senegal leading the way, Genel have updated on Tawke where all is good at there and of course Peshkabir. IGas have also updated and is going well, the Bowland shale is very much the pin-up boy. Reabold has topped up in the Corallian raise, we knew it would but the discount helped a great deal. Finally Soco are also updating today and all appears well in Vietnam and Egypt is now underway.