Oil and markets fall on the IMF downing GDP forecasts and a rise in COVID-19 cases. Inventory stats showed a modest build in crude but again a solid draw in gasoline stocks and demand. Far Gambia has signed up a JOA in respect of Blocks A2 and A5 with Petronas and is in process of a farm-out for part of its own stake.San Leon have figures and the amount that this company pays out is making it, in my view a very credible investment especially for retail investors. IGas has continued to carefully monitor its resources and is also cutting costs from a position of strength.
Oil has rallied again today on the news about tomorrow's Opec and Opec+ meetings, as I write WTI is $38.27 and Brent is $41.20. I look at Premier Oil who are getting a reduction from BP in the price of the NS assets but have had to cut a deal with ARCM in the process. There is also an AGM statement from IGas which shows the strength of the company finances and its management and also we have 2019 results from Getech.
The end of a month like no other, a learning curve for ETF's certainly. Today I look at news from Savannah, from Nigeria and Niger which shows just how well Andrew Knott is doing. For Genel Bina Bawi is still on the table, probably separated into Jurassic oil and Triassic gas. Over at iog it really is red letter day as the OGA approves their Core Project Phase 1 FDP, a major milestone indeed. IGas have got the flexibility to shut-in production and they have decided to stop for May and June which actually boosts cash flow when offset against hedging.
The Opec+ meeting starts shortly and the market is expecting a deal, if it doesn't happen there could be a 50% retracement in half an hour. I write today about Chariot which has an upbeat statement out about Morocco and costs which are being cut again. Also IGas which is looking good in this market with onshore, conventional oil to carry the company, well hedged as well. Finally a few words about Pantheon after my words on Premier went down badly...
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.
A better day for oil as rumours of beating the coronavirus swept the markets, with a general backdrop of production cuts in the background. Hurricane are likely replacing the Lincoln Crestal well with further Lancaster investment. Genel updates on Tawke and a new Chairman whilst IGas updates on reserves and trading and Touchstone details the highly successful Cascadura well in Trinidad.
A poor week for oil as the Corona virus has the potential to hit growth which was just starting to show signs of green shoots. Today I look at Columbus where the statement has confused the market but signs are that the management is a touch more positive. Getech has also at first sight disappointed but its not all bad news, costs are down and margins are holding at 47%. Finally for UK onshore a number of pieces of good news have excited a number of stocks.
Oil prices fell back a little but are up again this morning, pre-Opec meeting positioning is starting a full fortnight before the meeting starts. Eco Atlantic have results which are by the by, they are cashed up for exploration and appraisal next year and there is a growing industry feeling that Guyana is looking good despite slightly heavy oil. Falco has posted the first of what will be a series of results from the Beetaloo, early signs are positive. And IGas has resceduled its debt, saving $1m pa and has given upbeat fcf and production guidance.
The moratorium on fraccing is interim in nature and quite possibly an election stunt but has hit IGas but maybe too much as it has a substantial conventional business. Rose Petroleum starts its strategic re-shaping with an asset deal and a small raise. Echo has extended is Acquisition Agreement waiting a waiver, Coro spuds the Tambak-1 well and at PTAL Douglas Urch takes over as CFO.
Oil finished the week up but eased again today. I look at the beginnings of changes at Rose Petroleum under new CEO Colin Harrington and see how IGas are adding solid incremental value. Also a few words on Falcon after i caught up with CEO Philip O'Quigley. Finally there is a link to a long Podcast I recently did with Doc Holiday of Total Market Solutions covering a plethora of stocks.