The Oil Man: Oil price, Europa, Nighthawk

WTI $45.38 +18c, Brent $48.08 -23c, Diff $2.70 +5c, NG $2.39 -2c

There were more positive tones in the oil markets yesterday but to be fair most of it was following slightly flaky data from China and the US, markets around the world have rallied sharply following the ECB decision to launch more stimulus.

In China it was new homes prices data which showed a rise for the fifth consecutive month, in the US it was also housing stats and better than expected employment numbers. The earnings season continues and the numbers have been reasonable this week.

Finally the oil price might have been better but for the rise in the dollar yesterday. Today's rig count will, as usual, be important and with the EIA showing a fall in domestic production this week and likely to continue, a further fall could well signal more positive news for the oil price. With November not far off, all it needs now is some cold weather and dont forget that refinery maintenance finishes next week so a stock draw is not out of the question…

Europa/Egdon/Union Jack

Time did not permit a few words yesterday on the announcements from the Wressle partners that they were going straight to FDP after the EWT. It now appears that the Ashover Grit potential may well be higher than the 80 b/d on test, it seems that this rate was impeded by localised nearby well bore formation damage or skin factor, as explained by Mark Abbott after the last announcement.

The operator suggests that if the effects of the skin can be countered then a more realistic rate might be nearer 500 b/d, a much more positive outcome from the well. Interestingly only last week when talking to Hugh Mackay at Europa he was optimistic that Wressle might perform like the Crosby Warren Field did when it started up in 1987. So, the FDP will be submitted in 1Q 2016 with expectations of production 2H next year. Good news all round for the partners who rallied yesterday but for some reason have drifted back this morning.

Nighthawk- Committing Arikaree…

It has not been a good few days for Nighthawk, the night of the long knives is followed by a set of very disappointing well results, only the water-flood at Arikaree Creek is going according to plan. Attempting to find oil in the Spergen formation has failed, Crested Butte 2-14 may produce 100 b/d from other zones but Monarch 10-15 was also dry but showed hope in the Atoka and the third well was also a duster and p&a'd.

Right now the company say they are concentrating on the water-flood at Arikaree which could prolong the life of this project considerably. Meantime they are hunkering down and cutting costs on everything except their brokers…

And finally…

Last night in the Boropa Cup things didnt go so well for the British contingent, Kloppitty Klopp didnt get his first win at Anfield with a 1-1 v Rubin Kazan, Spurs lost 1-2 at Anderlecht and Delia's Celtic lost 3-1 at Ole Gunnar Solskjaer's Molde with the skipper deeply unimpressed at being subbed. This weekend in the Prem sees some stand out derby matches with the Manc derby being the pick, closely followed by a London derby of the Hammers hosting Chelski and the Tyne Wear derby with the Magpies going to the Maccams.

And of course its the RWC semi finals, the All Blacks take on the Springboks, Dan Carter saying this morning that its nice to have a decent team to play against (at last?) and then the Wallabies against the Pumas.

The domestic rugby starts to take on some interest and the picks are probably the Quins at Leicester, Gloucester v the Sarries and Bath at Wasps.

Its the US Grand Prix in Austin, Texas and Lewis can win the Championship if things go his way but there are four races still to go.

England have done well to bowl out Pakistan this morning but are facing a torrid time against some hostile bowling, Bell went cheaply again making one think that with him and two wicket keepers in the team how is it that spin expert James Taylor can be warming the bench?

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Malcolm is a Founding Partner of HydroCarbon Capital, which provides independent advisory services to the Oil and Gas sector. He is a Director of the Maven Income and Growth VCT 4 PLC, a venture capital trust listed on the Premium segment of the main market of the London Stock Exchange.