The Oil Man: Oil Price, Rockhopper

WTI $43.87 -42c, Brent $47.19 -23c, Diff $3.22 +9c, NG $2.30 -7c

Traders reported a quiet day in the market waiting for reports from the main agencies this week. The EIA popped up with a forecast that US shale production will fall in December for the eighth consecutive month - hardly a surprise there. The OPEC Secretary General, when speaking in Qatar, made it clear his organisation feels that, all else being equal, the market will be "more balanced next year" - so that's alright then.

Rockhopper

Rockhopper has announced results from the Guendalina side-track well, which has completed successfully. All target horizons within the Pliocene were gas bearing and at two deeper levels gas was encountered and perforated.

Production has now resumed at 440/- standard cubic metres per day (scm/d) which is 88/- scm/d net to RKH, or the equivalent of 580 barrels of oil a day. This is 190% above previous levels and a significant success for the company, anticipated revenues of $7 million are expected in 2016.

Elsewhere, Civita, the 100% owned onshore gas development, will commence production by the end of the year. The company say that this "demonstrates real progress in the building of its Greater Mediterranean portfolio" and I feel that it goes a long way to justifying the MOG acquisition and keeps RKH in a strong position in an increasing number of geographies.

And finally…

So The Chosen One is heading home after an unsuccessful trip to Spain, let's hope he has a hat and a lighter that looks like a gun for his troubles. He will join The Special One and The Normal One, who both have work to do in coming months…

So, Steve Cram says that he has been warning about Russian athletes since he was 17 and now he's 55, I wonder how Lord Coe hasn't heard any of the rumours, particularly after he has spent eight years as number two to Celine…

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.