Oil continued to rally yesterday after a bumper draw in inventories. Genel announce 1H numbers today showing the strength of the company while Sound seem to have done well in its Badile disposal. Hurricane shock the market as the Technical Committee warn about writing down the company's assets.
WTI $41.29 +22c, Brent $43.34 +3c, Diff -$2.05 -19c, NG $1.81 +2c Oil price Nothing to add M'lud, its a bit same old, same old today. The virus is still ...
Oil was subdues and remains so, newsflow is thin and the virus continues to refuse to die down. Hurricane has announced an operational and corporate update this morning.
Very quiet on the oil front yesterday, today it is drifting with markets coming off yesterday's highs.
The Opec+ meeting went ahead as planned and delivered a one month extension, maybe not as much as planned but included monitoring Iraq and Nigeria. Today sees Dr Robert Trice leaving Hurricane, the company he founded and is still very much work in progress. At Echo Energy the company show increased production and a number of opportunities for workover and intervention to add modest production cheaply and quickly. Also in another very good deal, Union Jack up their stake in Wressle accretive and with a cash break-even at c.$17.62pb.
Oil remained strong yesterday as Russia showed off its excellent production cuts that together with the rest of Opec+ are now making some 15m b/d. Hurricane has received an extension to certain licence commitments pertaining to Lincoln by the OGA. DGO has completed on the purchase of certain assets from the Carbon Energy Corporation and also finished the financing with Munich Re. Finally Genel has announced that production from the Tawke licence should be around 100,000 b/d during 2020, absent any new wells being drilled.
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.
Oil is easier after the last week of turmoil with more to come... I write about Hurricane after the update and Capital Markets Event and also look at Aminex after the licence extension that pushes them closer to the farm-out deal. I also look at Solo who have a different angle on the announcement. Finally Columbus have brought in the Saffron well on the SW Peninsula in Trinidad in quite a big way...
Oil is all about the physical for the time being as demand falls and Opec+ cuts are yet to kick in. Today Hurricane have an update, all going well at Lancaster the EPS. Echo Energy has moved fast in cutting costs and pretty successfully as well. Hunting's 1Q was good but off the cliff since then I imagine but 2020 guidance has unsurprisingly been withdrawn. Finally I pay tribute to Bob Catto who died recently.
The White House and Senate agree on the $2tn stimulus bill, markets rally, oil doesnt... I look at the Hurricane update in the absence of the CMD, as things go its pretty good. Echo announce a debt restructuring with VAT help and with help from creditors should help. Far has announced that drilling in The Gambia, expected 2H drilling plans for 2020 will be suspended due to the Coronavirus. IGas release a positive update and are not impacted by said virus. Finally, having visited iog I take a look at what lies ahead and it looks pretty good, with a great gas portfolio and current investment at highly advantageous prices.