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.
Oil ended the week slightly down on more virus worries but markets are better today as is oil. I look at the interesting Sound deal in Morocco and the good news from Echo Energy. Solo has raised a potential $5m and updated on cost strategy whilst DGO has had its redetermination satisfactorily. Finally Jadestone looks like it has made another cracking acquisition.
Oil rallied yesterday and has again this morning, maybe people are thinking the same as me yesterday that an announcement on production from the KSA is imminent. Contrary to market views there is still plenty going on at Sound Energy with results today. Serica has well more than justified its position in the Bucket List with a great performance increasing production and cash flow whilst reducing costs. Finally, GKP has shelved plans to increase Shaikan production to 55,000 b/d until the market, improves and the KRG are paying their bills.
Oil has been very much unchanged over the quarter end and contract rollover and is so today, a lot of talk about who has spoken to MbS... BP have announced 25% capex cuts, in line with others whilst Sound Energy are still discussing their GSA in Morocco. Echo Energy has been restructuring its debt with a number of successes already agreed and Eco Atlantic has pared back costs and remains very well placed when drilling recommences. Finally, I spoke to Wentworth Resources this week and I am convinced that with their very strong model and solid finances they are as good as any in the sector.