Oil is unchanged after a flurry of reports and an unforgiving inventory report which whilst showing a decent crude draw also saw products rising. Today Genel updated the market, the company looks in a very strong position enjoying the delivery of projects funded by recent strong Free Cash Flow and yet being able to guaranty more capex and higher dividends. And Lamprell also updated the market in a slightly less inspiring manner...
Oil is back to being dull but don't rule out any further geopolitical trauma in the Gulf. Genel has announced very solid production from Kurdistan with more details due on Thursday proving that it is business as usual at the moment. Serica is doing extremely well and has given a cracking trading update today. Finally who could forget that it was only 4 years ago today that RockRose came into our lives.....
Iog brings an update to the market, all is well, fully funded and this year should be a good one for them. Genel has been paid by the KRG for oil payments, a welcome return to normality and Gulfsands has completed its raise of just over £4m.
The headlines are obviously of the US taking out Qassem Soleimani thereby reigniting tensions in the Gulf and surrounding areas. Companies catching up on news include Echo who are perforating and stimulating at Tapi Aike and have spudded at CLix-1001. Genel have another excellent producer at TT-34 and are unlikely to be affected by current problems in the Middle East. NU-Oil has made a modest raise, much to come from that company this year whilst it is now positioning itself for the inevitable deal. Reabold have found oil and gas at West Brentwood and Eco (Atlantic) has light oil to the North and the South.
Genel announce that Chairman Steve Whyte is stepping down as already announced. George Rose takes temporary charge until a replacement is announced.
Oil rose slightly again on Friday after dreams of a trade deal but no sign of anything yet. Today Genel announce that their farm-out onshore Somaliland is underway after buying in the 25% balance from East Africa Resource Group. Reabold and Union Jack announce that operator Rathlin have upped their numbers quite substantially and confirm that the discovery is primarily oil which should when the CPR comes out deliver significant value.
Oil fell but not as much as it might have after production rises from the KSA and the USA. An upbeat trading and operational update from Genel this morning where cash flow is very strong, funding capex, dividends and probably more M&A as well. The Sarta development proceeds incredibly fast and hoping for production next year. President update the market as they start to put gas through their own pipeline which is to be expanded by January. Finally it may be worth taking a look at the Block Energy shareholder list as well known predator Jon Fitzpatrick declares a stake to add to that of Alistair Ferguson, Chairman of Solo (Scirocco)...
Oil prices drifted on worse than expected crude builds reported by both the API and the EIA. However, the product markets were very different with both agencies reporting a quite substantial draw in both gasoline and distillates. Genel has announced Tawke production of 119,800 bopd which will rise above 120,000 bopd by the year end, also are getting on with the Peshkabir-to-Tawke gas project. Echo Energy has decided on a location for its first of four exploration wells at Tapi Aike which shareholders have been getting very excited about for some time. Finally Block Energy, having announced a GSA yesterday have completed at WR-38Z but no flow rates until after testing in the coming weeks.
Today's blog covers an interesting trip to Kurdistan where a good number of investors and analysts saw at close range the oil and gas facilities on the ground. At Genel there is a balanced current portfolio which already provides huge cash flows that not only fund the capex programme but a sizeable dividend as well and profitable at around $30 oil.They have considerable upside at, in the first instance Sarta which the company work with Chevron and where the upside includes the biggest potential field in country. In addition they have the possibility of everything coming together at Bina Bawi plus exploration at Qara Dagh to give substantial cash flow for capex and a generous dividend. Over at Gulf Keystone they have one massive field in Shaikan where they feel that exponential growth is not just possible but deliverable, 38/- b/d could become 55/- b/d, 75/- b/d and then 100/- b/d within 5 years which certainly pays for itself as well as buy-backs and dividends. Both companies are exceptional opportunities and offer returns rarely seen elsewhere in the market.
Oil was up on Friday and again today but economic and trade woes are still keeping it under pressure. Today I look at JOG who hire contractors for the GBA and Genel who announce a new COO from Tullow Oil. I also look at Bahamas Petroleum and see what Thursday's announcement really means.