Oil & Gas Daily Flow
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Market Update: Tuesday 13 April 2021
Genel Energy (LON:GENL): US$27.2m received from the KRG for February sales
Coro Energy (AIM:CORO): SE Asian renewables acquisition bedding in
Energy Prices
Brent Oil US$63.4/bbl vs US$63.2/bbl yesterday
WTI Oil US$59.8/bbl vs US$59.5/bbl yesterday
Natural Gas US$2.55/mmbtu vs US$2.56/mmbtu yesterday
Oil Price News
- The Houthi rebels from Yemen have claimed yet another attack on Saudi Aramco facilities, involving 17 drones and two ballistic missiles
- Reuters has reported the attack, according to the statement, targeted Aramco facilities in Jeddah and Jubail
- The news comes just a day after Arab News reported that Saudi forces had intercepted three drones and one ballistic missile fired at two other locations, both in southern Saudi Arabia: Khamis Mushayt and Jazan
- Reuters reported yesterday that the Saudi side had not yet confirmed the latest Houthi attack and noted that Aramco has a refinery in Jeddah, which was decommissioned in 2017
- The site, however, still houses an oil distribution plant that has been the target of Houthi attacks before
- The attack on Jazan is the second in as many weeks
- The previous one, targeting an oil products distribution site in the town and was confirmed by the Saudis
- The late-March attack on the Jizan terminal follows attacks in recent weeks, in which the Houthis claimed a drone attack on the Riyadh refinery and a drone-and-ballistic-missile attack at oil facilities at the Saudi port of Ras Tanura, one of the world’s largest oil ports
- The latest attacks come amid an escalation in fighting between the Saudi-led coalition that seeks to reinstate Yemen’s elected government, which the Iran-backed Houthis overthrew some six years ago
Gas Price News
- Natural gas prices moved higher on Monday, rising 1.46% but was unable to recapture Friday’s highs
- The weather is expected to be cooler than normal throughout the US southcentral and mid-west regions for the next 6-10 and 8-14 days according to the National Oceanic Atmospheric Administration
- The EIA expects that U.S. consumption of natural gas will be down 0.4% from 2020
- Natural gas in storage was 1,784Bcf as of Friday 2 April 2021, according to the EIA
- This rise in stockpiles represents a net increase of 20Bcf from the previous week
- Expectations were for a 20bcf build, according to survey provider Estimize
- Stocks were 235Bcf less than last year at this time and 24Bcf below the five-year average of 1,808Bcf
- At 1,784Bcf, the total working gas is within the five-year historical range
Company News
Genel Energy (LON:GENL): US$27.2m received from the KRG for February sales
Share price: 167p, Market Cap: £465m
- Genel has confirmed that the Company has received US$27.2m from the Kurdistan Regional Government for oil sales during February 2021.
- The receivable recovery payment relates to unpaid invoices from 2019 and 2020. For each cent above a monthly dated Brent average of US$50/bbl, 0.5 cents per paying interest barrel produced will be paid towards monies owed.
- As noted today by DNO ASA, operator of the Tawke PSC (Genel 25% working interest), following resumption of payments the partners have stepped up drilling of new wells at Peshkabir and workovers of existing wells at Tawke in 2021, raising gross operated licence production from an average of 110,300bopd in 2020 to 110,900bopd in January, 112,000bopd in February, 113,100bopd in March and 115,500bopd month-to-date in April.
Our take: GENL successfully navigated a challenging FY20 for all of the Kurdish producers in our view with its low-cost production effectively protecting its balance sheet. The Company expects to drill 12 wells across the portfolio this year. These wells have the potential to add incremental low-cost and cash generative production at the Tawke PSC, add and convert contingent resources to reserves and add production at Sarta, and open up a new field at Qara Dagh. With numerous catalysts in the year and a more promising external environment than 2020, it is no surprise to see GENL’s share price up c.17% YTD alone.
Coro Energy (AIM:CORO): SE Asian renewables acquisition bedding in
Share Price: 0.4p, Market Cap: £8m
- Following the recent acquisition of Global Energy Partnership, Coro has provided an operational update across its portfolio of operated renewables projects.
- The Company has confirmed that structuring of local Philippines project holding company commenced and work to progress the flagship 100MW wind and 100MW solar projects in the Visayas region of the Philippines has been initiated.
- This includes discussions on the Energy Service Contracts, local landlord engagement, Environmental Impact Assessment, Grid Impact Assessment and the negotiation of Power Purchase Agreements
- Coro has also commenced a comprehensive data gathering campaign at the 100MW onshore Philippine wind project.
- These activities have been commenced with a view to positioning the Company to have both projects construction ready by mid-2022 and, subject to availability of project financing, maiden revenues achieved some 12 months later.
- Elsewhere, the Operator of the Duyung PSC, Conrad Petroleum, to submit updated Plan of Development (POD) for the Duyung gas project in due course.
Our take: Coro’s recent shift in operational strategy will look to take advantage of SE Asia's rapidly growing renewable energy sector. There are a number important commercial and operational milestones approaching over the next 6-12 months notwithstanding the Company’s comprehensive data gathering campaign at the 100MW onshore Philippine wind project. In addition, the Duyung PSC remains a key asset for Coro which has the potential to yield material gas volumes in the medium term.
Research – Oil & Gas
Sam Wahab - 0203 470 0473 / 0784 385 5037
sam.wahab@spangel.co.uk
Sales
Richard Parlons – 020 3470 0472
Abigail Wayne – 020 3470 0534
Rob Rees – 020 3470 0535
Grant Barker – 020 3470 0471
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Sources of commodity prices
Oil Brent, WTI - ICE
Natural Gas - NYMEX
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