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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

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