Oil drifted yesterday, Trump vacillated, Norway struck and the EIA stats were fairly good. Hurricane update today on 3Q production, Petro Matad still wait for their licence approval and Getech had H1 results yesterday with a change of direction on the cards.
Oil was up last week and is up again today, modestly so but that's not a problem. Woodside has exercised its pre-empt right and has taken Cairn's stake in the Sangomar discovery offshore Senegal. Petro Matad has interims but most importantly have cash enough to keep them going until 'mid 2021'.
Oil prices have rallied a bit on news of further Saudi cutbacks amongst other stuff. Diversified Gas & Oil has announced a successful fundraising of £69.4m at 108p, a very small 1.6% discount to last nights close. They have announced two substantial acquisitions that are accretive to both eps and dividends. Empyrean Energy have raised £397, 540 from its Open Offer, add £17,500 subscription and the total raised in recent months is £825,990.
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.
Trinity's operational update is positive particularly going forward where low-cost, high margin publication gives the business 'significant upside potential'. Over at Premier the operational excellence continues as the Tolmount East well comes in, a very valuable discovery indeed. Finally the Gazelle-1 well results from Petro Matad are inconclusive at best and confirming withdrawal from Block V which I thought had already been done, at least this year.
Oil finished the week up and is nicely up again today. Hurricane has updated on the Lincoln Crestal well where flaring has indicated oil brought to surface in a DST. Petro Matad have found a very similar but better than expected oil find at Heron-1 which will now be tested. IOG have closed out their EUR 100m 5 year note and are ready to close the farm-out and go to FID for their SNS gas project. Reabold have also confirmed significant success at Parta in Romania whilst Touchstone has discovered substantial natural gas at its Ortoire block in Trinidad. Finally, Range has raised £750,000 as it carries on after the recent debt restructuring and RRTL sale.
A huge rally yesterday, all given back this morning after another indifferent inventory situation. Petro Matad have got provisional approval for the Heron-1 well which should restart any time soon. IOG has brought forward and increased capex which should reward but also means the bond raise goes up from £70m to £88m. Touchstone results were as expected and Coho-1 is now the key, Zenith has also commenced drilling ops at Jafarli in Azerbaijan.
Oil has drifted this morning as the further worries about trade talks bring jitters to the market. But lower rig count and a sub 30m b/d number from Opec keeps things tight. Cairn have had a dry hole in the Norwegian Sea and Petro Matad are suffering after having to suspend the Heron-1 well after title dispute with the provincial govt. Cluff announce that Shell have started 3D seismic on Pensacola and Providence and Lansdowne extend yet again the Chinese backstop date. Kosmos have 2Q figs which were good and have an exciting 2nd half of drilling ahead of them.
Oil prices fell again yesterday as risk-off is the order of the day. Amerisur has announced that it is having a strategic review after receipt of interest in all or part of its portfolio. Petro Matad has spudded the Heron well which is either an exploration or an appraisal well depending on your stance. Finally Pantheon has raised £10.7m at 18p for work on their Alaskan assets.
July 4th meant very little trade, WTI was shut and Brent drifted. Today I'm talking about Eco Atlantic who have spudded offshore Guyana, Gulf Keystone who have paid a divvi today, IGas who announced further conventional activity yesterday and a report on a meeting with Petro Matad CEO Mike Buck.