Oil fell sharply, mainly on COVID which is fast closing economies, particularly in Europe. The EIA stats were a mixed bag, crude stocks built by some 4.3m barrels whilst gasoline drew, but distillates fell 4.5m b's. In the meantime overall consumption in the US grew again, by 1.5m b/d to 19.6m b/d, huge. Genel has announced good production figures from Tawke and payments from the KRG. DGO have again showed how good the model is and have increased the dividend by 7%. Finally, Sound Energy have proposed a debt restructuring as operationally they continue to do well.
Oil is drifting and was around even on the week. Zephyr Energy has announced a raise of £2.25m which is more than enough to cover their costs of the dual use well in the Paradox Basin. I link to a Podcast with Total Market Solutions as part 1 of 2.
Oil fell yesterday on well known supply problems, Libya, Norway and Delta to name but three. Today its a little better but I'm not sure the inventory numbers will help much this week unless they are really good. Sound has had its Sidi Moktar permits extended by 24 months without any changes to its committed work programme. Aminex has announced that the Tanzanian Government has given approval for the farm-out and whilst the company are sensibly waiting for completion before commenting. It's also good news for Solo as they can continue to pursue their gas strategy. Finally another huge estimate from Pantheon, if this lot comes in it will burn down many barns...
Oil has drifted again today, the delayed EIA inventory stats were hit by Laura, although crude built 2m barrels products drew as refinery utilisation fell with some refineries still closed. Genel announces that they may raise up to $300m to replace existing facilities, wise move from a position of strength. Sound's interim statement is short, nothing new but we know the new management are flat to the boards right now. Pharos has received permission for the full field development plan at TGT and Hurricane have taken a sharp knife to the CPR under new management..
Oil has recovered most of yesterday's fall as the US jobs number please the markets. I comment on Sound after yesterdays tax news from Morocco, I also look at a number of the companies awarded blocks in the 32nd round of UKCS round.
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.
Oil remains range-bound which is no bad thing right now. San Leon has announced a cracker of a deal which has triple benefits and shareholders should like. IOG update again, this time on the award of the Phase 1 platform contract to HSM Offshore. Sound topped up their recent raise with £725,000 from the broker option. Union Jack Oil announce that Egdon have updated at Wressle and that the UJO acquisition of a further 12.5% of PEDL 180 and 182 has been approved by the OGA.
Sound has crept in with a fund raise, possibly two today, getting funded through to March 2021 is a fine achievement and longstanding supporters should be pleased.
Very quiet on the oil front yesterday, today it is drifting with markets coming off yesterday's highs.
The oil price remains strong on the back of strong equity markets enjoying favourable economic news from China. Today sees an agreed cash bid by Viaro for RockRose at 1,850p per share which is 91% up on the 3 month VWAP. Sound Energy also announce successful negotiations with ONHYM with regards to its Anoual Permit work programme commitments.