WTI $67.33 +51c, Brent $76.89 +72c, Diff -$9.56 +21c, NG $3.20 +4c
Oil prices rallied modestly yesterday after a mixed set of inventory stats from the EIA. Whilst stocks continued to build, 6m barrels up it wasn’t as bad as the API report and products were actually pretty bullish. Gasoline drew 4.8m b’s and distillates 2.3m whilst ‘others’ drew by 7.3m giving the market a push.
Also mixed were the comments from the Saudis yesterday, not surprising under current circumstances. However the main message was pretty much in line with what I have been saying lately, ie that ‘there will be a need for Opec+ to reduce the recent rise in inventories’ and that ‘further action may be required’ from the group. They too are now looking out to 1H 2019 supply and demand stats…
President Energy - LON:PPC
President has announced that their development well PFE 1001 has spudded at the Puesto Flores/ Estancia Vieja concession in the Rio Negro Province in Argentina. The well, the second of three in the programme will take 21 days to drill and a further 10 days to complete if successful. At that time it is envisaged that the successful PFO 1001 well will be put on stream.
Savannah Petroleum - LON:SAVP
SAVP has announced that it has submitted the pre-feasibility study to the Niger Ministry with regard to the EPS on R3 of the R3/R4 PSC in the Agadem Rift Basin. It sets out Savannah’s plans for the Amdigh-1 well test, resource volumes and the potential production profile. All seems to be moving ahead as planned for the company’s R3 early production solution which will add another cash flow leg to the Savannah story.
Sound Energy - LON:SOU
Sound has announced that the TE-9 well has been drilled to its first casing point at 352m and that the casing has been set and cemented. The next casing point is 2,300m when the market will be updated again.
Reabold Resources - LON:RBD
Reabold, which owns 32.9% of Corallian Energy has announced that it, Corallian, has signed a farm-out with Talon for a 10% interest in the licence P2396 which contains the Curlew-A discovery offshore the UKCS, the well will be drilled in 2H 2019.
Eco Atlantic Oil & Gas- What comes first, the chicken or the golden egg? LON:ECO
Two pieces of news from Eco Atlantic this morning both concerning Tullow in a round about way. With Tullow prioritising its budget towards the potentially huge opportunity in Guyana, Eco Atlantic are unsurprisingly following the leader. The idea of Tullow, along with Total and Eco accelerating the programme in Guyana as well as adding another well in 2019 is just too good an opportunity to be missed so the focus inevitably shifts from Namibia across the ocean. I suspect that we will hear much more news about the project at its (Tullow) Capital Markets Day which is scheduled for 29th November but accelerating the programme that could bring first oil very quickly is indeed a no-brainer.
Whilst this does push Eco’s plans for Namibia somewhat down the road it would be folly, nay madness not to follow fast in the footprints of Exxon who must consider the data coming in from Hammerhead to be truly exceptional. In the Cooper block in Namibia, where Eco now have a 57.5% stake to farm down, they have three and a half years in which to partner up and see how the many new entrants in the area, ironically Exxon and Total amongst them get on. For Eco this is a win-win situation and bringing forward Guyana makes a mockery of its market cap of only £65m…..
It was reported yesterday that former CEO of Afren, Osman Shahenshah and ex COO Shahid Ullah had been found guilty of fraud and money laundering to the tune of $45m. The pair will be sentenced at Southwark Crown Court on the 29th of October and this may not be the end of the legal process regarding Afren.
The big Premier League fixture this weekend is actually on Monday night when Spurs take on the Noisy Neighbours. Over the weekend there are fewer big matches, Liverpool are hosting the Bluebirds which makes me worry, Chelski are at Burnley and the Gooners are at the Eagles.
The flat season having finished in a blaze of glory last weekend at Ascot we can now look forward to the jumping equivalent, this weekend at Cheltenham. A few old favourites are on the card and maybe we will find some new ones to follow.
The F1 circus is in Mexico this weekend where Lewis has every chance to wrap up the title, providing he finishes that is. Vettel has very little chance with 75 points left to fight over and being 70 points behind.
The MotoGP continues in the Southern Hemisphere with the Australian GP this weekend. Whilst Marquez has wrapped up the Championship, British interest is still alive with Cal Crutchlow looking to become leading Independent rider