Oil rallied yesterday after a weak start but positive comment from Opec and markets in general drove prices higher. Today Ascent have results but mainly concentrate on the portfolio going forward. I write up an interview with Deltic Energy CEO Graham Swindells and sadly note that Jón Ferrier is leaving GKP.
Oil rose on Friday after the Opec committee meetings reported both good quota adherence and a rise in demand. Today I catch up with announcements from Genel and AGM statements from GKP and Trinity.
Oil rallied yesterday and has again this morning, maybe people are thinking the same as me yesterday that an announcement on production from the KSA is imminent. Contrary to market views there is still plenty going on at Sound Energy with results today. Serica has well more than justified its position in the Bucket List with a great performance increasing production and cash flow whilst reducing costs. Finally, GKP has shelved plans to increase Shaikan production to 55,000 b/d until the market, improves and the KRG are paying their bills.
Oil is still under pressure, no surprise there but markets have continued to bounce, partly as Gilead has announced promising results on COVID-19 treatment. Genel has received payment of invoices by the KRG who have proposed a payment structure whereby all payments will be made in due course. Savannah Petroleum is no longer, Savannah Energy more accurately reflects the increasingly diversified asset portfolio in Nigeria. VOG has received some payments from ENEO and the new CEO is under way with a ...strategic review. Finally as with Genel GKP has a payment from the KRG.
Yesterday was down on economic news and filthy (though expected) inventory stats but today is better as Putin and Trump wish the oil market better again. Genel has received $33.2m from the KRG covering October exports and GKP $12.m. Coro has rung the changes today with a restructuring which has left CEO James Menzies out of the company as cost savings are made in Italy and Indonesia. Finally Egdon have said they need an impairment of some £2.5-3m in the upcoming interims.
A slight, hardly noticeable pick up in crude prices as the US waits for its $2tn and the Saudi/US alliance....DGO has announced an extended Ohio asset agreement again demonstrating its commitment to its asset retirement programme. GKP has decided to suspend both dividend and share buy-backs as Shaikan expansion is stopped by the virus and lack of payments for its crude. Ascent has started the process of coming back to life with a potential move in to the Caribbean and Hispanic areas. Finally, delayed from yesterday a quick look at Petro Matad who have an update out.
Its Black Monday with the Fed cutting rates to zero, making asset purchases of $700bn making no difference, as I write Wall Street is down 2400 points, the UK down 400, oil is off 10%.Jersey Oil & Gas is holding its own as it announces good news from the Greater Buchan area. GKP concludes the buy-back but suspends a well and may slight delay its plan for 55/- bopd.
At PetroTal al is going well with a tripling of average in 2020. At GKP they expect 43-48/- bopd in 2020 and 55/- bopd in Q3, takes some doing...
Oil remains quiet after the Opec meeting probably for a little while or until trade talks falter... Eco Atlantic and JV partners are submitting the next exploration phase to the Government of Guyana but is overshadowed by Tullow's second profit warning yesterday. Ironically their acreage in Guyana is now probably the best in the portfolio and the company is bereft of CEO, Exploration director and of course dividends. DGO has announced a 3.5 cent dividend for the 3rd Q and Falcon are progressing well in the Beetaloo. Gulf Keystone has announced production numbers and the 55/- b/d has been slightly postponed but apart from that the outlook is good. Finally Reabold has commenced drilling at West Brentwood in California.
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.