SP Angel – Oil & Gas View – Tuesday 11 06 19
Oil price slips on Trump comments
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Amerisur Resources (LON:AMER): Operational Update
Phoenix Global Resources (LON:PGR): Q1 Operational Update
UK Oil & Gas (LON:UKOG): Production Update
Oil price:
- Crude prices yesterday gave up some of last Friday’s sharp gains as fears over the US/China trade war reemerged, with Trump’s rhetoric becoming increasingly hostile again
- OPEC/Russia continue to talk about maintaining production quota cuts, will likely confirm later this month
Energy prices:
Oil US$61.5/bbl vs US$61.0/bbl yesterday
Natural Gas US$2.409/mmbtu vs US$2.410/mmbtu yesterday
Company News
Amerisur Resources (LON:AMER): Operational Update
- Operational update to end-May for the Colombian-focused producer, with YTD production of 5,300 bopd, current production of 6,800 bopd, and FY guidance intact at 5,000 – 6,000 bopd
- Higher current production levels due to bringing onstream of Platanillo-26 infill well at rates of c700 bopd
- Previously announced farm-out agreement with Occidental has been granted approval, Occidental earning 50% interest by funding $93 million exploration and appraisal programme in 2019-21
Conclusion: Positive update from Amerisur with strong current production, should go some way to reversing recent share price weakness
Phoenix Global Resources (LON:PGR): Q1 Operational Update
- Q1 update with Argentinean production averaging 9,636 bopd, a decrease of 2.5% from Q4 2018, and down 6% from average FY-2018 production
- Successfully concluded drilling of second horizontal appraisal well on Mata Mora unconventional in Vaca Muerta, both wells have since had multiple frac stages completed
- Flowback of Mata Mora wells to commence imminently with results due in Q3, likely around late August
Conclusion: Declining production from existing asset base puts pressure on Mata Mora wells to deliver in Q3, justifying company’s £600m market cap
UK Oil & Gas (LON:UKOG): Production Update
- Production from onshore UK Horse Hill oilfield has exceeded 50,000 barrels, with production continuing at a stable rate of 220 bopd gross (UKOG has 50.6% of licence)
- Production currently coming from the Portland, one of two formations (Kimmeridge is the other), although this will switch back to the Kimmeridge shortly
- Preparations continue for drilling of HH-2/2z Portland horizontal well in H2, potential for flow rates 2-3 times that of existing wells
Conclusion: Not much new news since last production update less than a month ago, results of HH-2/2z well will be keenly awaited