logo-loader

Today's Market View - All-out War

SP Angel . Morning View . All-out-war Oil price • Oil prices nudged higher yesterday following the Iranian Foreign Minister’s “all-out-war” comment, as the permutations of the armed drone attack continue • An escalation of tensions in the Middle East represents a key risk to the global supply/demand dynamic in our view

SP Angel . Morning View . All-out-war

Market Update: Friday 20 September 2019

 

Amerisur Resources (LON:AMER) – Positive Reserves Update

Baron Oil* (LON:BOIL): Award of UK 31st Offshore Round Licences

 

Energy prices:         

Brent Oil US$64.9/bbl vs US$63.8/bbl yesterday

WTI Oil US$59.7/bbl vs US$59.1/bbl yesterday

Natural Gas US$2.7/mmbtu vs US$2.7/mmbtu yesterday

 

Oil price

  • Oil prices nudged higher yesterday following the Iranian Foreign Minister’s “all-out-war” comment, as the permutations of the armed drone attack continue
  • An escalation of tensions in the Middle East represents a key risk to the global supply/demand dynamic in our view
  • Elsewhere, US-China trade tensions and the outlook for Fed policy remain the single largest drivers of oil prices in our view

 

Company News

Amerisur Resources (LON:AMER) – Positive Reserves Update

Share price: 17p, Market Cap: £208m

  • Amerisur has issued an updated reserves report, undertaken by McDaniel, alongside it’s formal sales process.
  • Total reserves are currently estimated to be 15MMbo (1P), 22MMbo (2P), and 31MMbo (3P) showing a slight increase to reflect production history that indicates larger oil in place and higher recovery factors.
  • Further drilling activity on CPO-5 is scheduled for H2 2019, commencing with the Indico-2 appraisal well. The 30-day well is planned to increase production and reserves with the potential to extend the Oil Water Contact.
  • As previously announced, production continues to flow from the Indico discovery in the CPO-5 block, which serves to add incremental value to the company in our view.

Conclusion: A positive reminder of the core fundamentals of the company, but nothing the market doesn’t already know. We are not surprised that Amerisur is being courted by a number of interested parties, given the quality of its asset base and considerable potential of the surrounding acreage.

 

Baron Oil* (LON:BOIL): Award of UK 31st Offshore Round Licences

Share price: 1p, Market Cap: £1.5m

  • Baron has announced that it has been awarded exclusive licences over seven blocks and part blocks in the Inner Moray Firth ("IMF"), part of the UK Continental Shelf.
  • Following a competitive bid, Baron will hold a 15% working interest in each of seven blocks alongside Corallian Energy (Operator, with 45%), Upland UK Limited (40%) 

 Conclusion: An encouraging update from Baron, consolidating its UK acreage position. Initial work commitments will likely focus on 3D seismic reprocessing, delineating potential high impact prospects to determine a near-term drilling location.

*SP Angel acts as Nominated Adviser and Joint Broker to Baron Oil

 

121 Oil & Gas Investment Conference, London, 28-29th October 2019

  • SP Angel is sponsoring the annual 121 Oil & Gas Investment Conference in London again this year
  • The event hosts some 25 exploration and production companies along with >160 investment funds and analysts over two days of 1-2-1 meetings. Click here to register to attend

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Bacanora Lithium CEO hails completion of strategic...

Bacanora Lithium PLC's (LON:BCN) Peter Secker speaks to Proactive London's Andrew Scott following approval from the relevant Chinese authorities for Gangfeng Lithium Co Ltd to complete its strategic investment in the company. Bacanora is now in receipt of £21.9mln of funds from Ganfeng, and...

7 hours, 55 minutes ago

3 min read