The Oil Man: Wood Group, Sound Energy, Range Resources
21st April 2016 11:47
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WTI $42.63 +$1.55, Brent $45.80 +$1.77, Diff $3.17 +22c, NG $2.07 -2c
Clutching at straws or what - the Energy Information Administration inventory stats showed a build of 2.1 million barrels, 200/- less than the market was expecting, and the bunting goes out. However, these numbers are at an important seasonal tipping point, as the driving season is only a month away and demand is certainly strong.
Another straw to be clutched at was the fact that Russia is, apparently, trying to organise another producers' meeting; quite how that is expected to differ from the last one, who knows. Having said that, despite difficult fundamentals, traders tell me that there is a fairly strong feel to the market at the moment.
Wood Group
has stated that it has won a contract in the North Sea from worth $150 million (£104 million). A continuation of an existing contract, this is another useful but necessary addition to the backlog.
Sound Energy
has announced it has spudded the first Tendrara well onshore Morocco. The well, which will take around 80 days to complete, is a "significant milestone" for the company which unlocks Eastern Morocco and broadens their resource base, as well as being the first in collaboration with .
Next week sees analysts visiting Morocco, so expect more interest in Sound as it explains its exposure to the country and its exciting prospects in North Africa.
Range Resources
More good news from today and I am really impressed with how the company appears to be progressing after some difficult times recently.
The quarterly report updates on production, drilling, strategy and the cash position, all of which are positive. On the production side, the first quarter was in line at 551 barrels of oil per day (bopd) net to the company but, more importantly, they renewed the guidance of 2,500 bopd by the end of 2017 which, if achieved, would be a meaningful step in the right direction.
This year the company will drill four "material" development wells and one high impact exploration well; these wells and the work on the water-floods are of highest priority, as production is expected in second-half 2016 at Morne Diablo and fourth-quarter 2016 for Beach Marcelle.
The cash number is $21.6 million and, with minimal cash outflow in the quarter, is broadly neutral, which is good. Range is building slowly but strongly - probably far better than the market might have expected - and, despite the significant rise in the share price so far this year, there could still be much to go for.
And finally…
Three matches in the Prem last night, although the Merseyside derby at Anfield was certainly not a contest. One wonders whether Martinez really is the manager he has been hyped up to be; if I was a toffee I would have grave doubts…
Elsewhere the Hammers easily saw off the Hornets three-one and the Eagles could have been done much more than the two-nil defeat they suffered at the Theatre of Dreams.
Tonight sees the Gooners take on the Baggies as we clear the backlog of fixtures ahead of the FA Cup semis at the weekend.
And no great surprise that Celtic have sacked Delia; winning the manager of the month every month this year hasn't been a problem, things are about to get a fair bit tougher…
And a huge thank you to all of you who have given so generously this week, we are all gobsmacked by your generosity. Just in case you missed it, here is what I am going on about:
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.