Oil is now drifting after a hitherto strong week. Virus numbers are continuing to rise which trumps the US election result. I have interviewed Andrew Hockey, CEO of IOG and give the link, also I look at Gulf Marine Services where trading remains strong but the menace of Seafox lives on.
Oil rallied yesterday as Chinese oil imports rose m/m and y/y quite substantially. Union Jack has bought a large chunk of North Kelsey from operator Egdon who now both have a 50% stake. President has spudded the EVN-1 well at Estancia Vieja whilst its workover rig is prepping LB-1001 for testing and production. Touchstone has hit paydirt at the Chinook well making 3/3 significant gas finds. Finally the mess that is GMS and Seafox is coming to a head, quite what these shenanigans are supposed to gain for shareholders is not clear.
Oil continues to strengthen against most commentators expectations. A gradual rise like this is better than sudden movements although with WTI at $43.34 and Brent at $46.07 is probably enough absent substantial demand rises. GMS are worth a look as whilst they lost their vote yesterday but are in a strong position with little downside. Pharos have extended TGT and confirmed their RBL situation. United Oil & Gas have taken over the 80% interest in Jamaica that Tullow had to discard after recent financial embarrassment and Trinity Exploration comment on potential tax changes post the upcoming General Election in Trinidad.
Oil rallied nicely yesterday as markets found strength, today all is about window dressing on the last day of the month, quarter and half means leaving no big open positions to make you look a fool...I look at Predator who are preparing in some detail for drilling in Morocco and are clearly excited. Also Trinity who have received the VAT money and GMS who had a trading statement yesterday.
Oil rallied a bit yesterday and has risen modestly today, a more positive report from the IEA showing increased compliance and some demand recovery is responsible. I look at the PetroTal results which have been rather overtaken by events but prove how operationally well they did in 2019. Union Jack and Reabold have announced that the Carbon Intensity Study at West Newton rates the project as AA for carbon intensity, significantly better than the UK average. I catch up with Touchstone where final testing data and analysis from the Cascadura well is exceptionally good. I also catch up on recent events at GMS, looking very interesting at the moment.
Oil is down a little as the virtual meeting hasn't happened as Opec+ leaders call out the cheats and roll over existing quotas for a month or so. Tropical Storm Cristobal is headed for the GoM but so far no measures have been enacted by offshore drillers. Today I look at President who have announced Trafigura as a major equity partner along with a placing and a Primary Bid raise and should be a good point for investors to join the strongly capitalised vehicle. Cluff updates by saying that they will drill Pensacola and Selene 2H 2021 and also farm-out two licences soon as well. Finally GMS and Seafox is far from over as the latter announce a 26.41% stake in the former although a bid can't be until December..
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.
The oil price, even with the VE holiday tomorrow will likely end up on the week, lock-down is slowly disappearing. Ascent resources has completed its recently announced fund-raise, PetroTal have shut-in production from the Bretana field after the pipeline to market created a potential refinancing. Genel announce production from Tawke and that the gas project is completed and testing. iog are moving fast on the Core Project, today they hire Subsea 7 for Phase 1 works. Premier find that their pain in the butt is appealing the Edinburgh Court ruling pushing back the equity raise. Finally GMS reject the final 10p bid from Seafox as 'fundamentally undervaluing the company.
Another big up day for oil as big economies start to get back to work across the world thus boosting demand numbers. At the same time word from Saudi Arabia to those who listen is that right now the spigots are set to 6m b/d. I look at a great statement from JOG where the excitement of the lead in the development of the GBA is obvious and the future looks bright. Also Aminex take another step towards the formal farm-out with the completion of a loan from ARA to pay the CGT bill to the TRA. A quick word on Gulf Marine Services, not solutions, apologies where Seafox announce a purchase of shares at 10p, putting a ceiling of 10p or 9c on the potential bid as they commit to no increase in the terms. Finally, a little late I am look at the Getech announcement of last week, they appear to be handling the virus and the oil price pretty well.
The oil rally continues and is nearing a 50% bounce from the $19 low. I like the look of the statement from Predator who have a good deal to look forward to. And I take a first look at GMS with the bid from Seafox on the table.