The Oil Man: Oil price, Enteq Upstream, Canadian Overseas Petroleum
20th April 2016 11:02
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WTI $41.08 +$1.30, Brent $44.03 +$1.12, Diff $2.95 -18c, NG $2.09 +15c
The oil price was up yesterday, as you can see, but overnight things have changed and, as I write, WTI is down $1.23 and Brent off $1.18 - almost exactly removing that gain.
The main thing that has happened is that the Kuwaiti oil strike is over, after a late-night deal that will bring production back up to speed in a matter of hours. This comes as no surprise, but, combined with the news that Buzzard isn't coming off-stream until later in the year, adds to downward pressure.
Also, after the close, the American Petroleum Institute inventory stats were somewhat worse than expected, showing a build of 3.1 million barrels - although there was a modest fall of 235/- barrels at Cushing.
Finally, on a post-Doha note, the Iraqi governor responsible for the group has said that OPEC will discuss the output freeze at their next meeting; that's fine then…
Enteq Upstream
I have followed since its inception, which has been a rocky road to say the least; Messrs Perry and Garcia had done so well at Sondex that I felt that the venture stood a better-than-even chance of pulling it off - and I suppose that, given they are still hanging on in there, it may yet happen.
The company is, of course, enduring the worst of the current malaise in the oil industry as only a service company can; with 20:20 hindsight, it was a truly awful time to start this business. Having said all that, the company is still in business, supplying high-end Measurement While Drilling systems and, although hit by the falling oil price and, worse, 60% off the rig number, has a strong client base.
Today they announce a year-end update, which says that revenues and earnings before interest, tax, depreciation and amortisation are "in line with expectations" and that there will be a $2.7 million (£1.9 million) provision in the results, due in June.
But with cash of $15.1 million (market cap is £8 million) and continued reduction in costs NTQ should be a survivor, if one for the brave. They have tidied up the board costs as well; Chairman Neil Warner moves away and joint founder Garcia leaves the board but remains as COO.
Canadian Overseas Petroleum Limited
I mention this only as I recently met with Arthur Millholland, CEO of , as he starts the process of becoming more active in the London market.
The primary reason for excitement here is that they are carried by in a "low risk, high impact" exploration well offshore Liberia, which is targeted for drilling in fourth-quarter 2016.
Today they have announced the first tranche of a previously-announced placing; units consisting of one share and one warrant have been sold at £0.035, raising £800,000, with more to come in tranche two.
One to watch - and may be of interest as the well becomes more imminent.
And finally…
Fairly quiet last night, although the Magpies nearly took all three points off the Noisy Neighbours - indeed, they would have done if it hadn't been for the linesman humming Blue Moon…
Tonight sees the Merseyside derby, as well as the Hammers hosting the Hornets and the Eagles going to the Theatre of Dreams.
And I was sorry to see that Charlton Athletic were relegated last night; bad news in the Lyon household…
Finally, yet again I am asking for sponsorship for Sunday's London marathon. Not for me, of course, but this year my daughter Holly and some friends are running in memory of a close friend who died last spring.
They are hoping to raise money for the Anthony Nolan trust which is a brilliant charity. I know you all get many requests at this time of year but if you have a few coppers to spare it would be much appreciated. Link is here with all the details - thank you very much.
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.