The Oil Man: Petroceltic, Europa, Andes Energia
23rd May 2016 14:18
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WTI $48.41 -26c, Brent $48.72 b-9c, Diff $0.31 -34c, NG $2.06 +2c
It's not just because oil didn't break $50 last week, but at these prices it certainly seems that some sort of equilibrium has been reached, at least in the short term.
Last week was another up week for crude, WTI rose 3.3% whilst Brent only gained 1.7% as the outage number so far in May reached 3.7 million barrels per day (b/d) but was offset by the strong dollar and flat-out production elsewhere. Even the rig count trod water, with overall numbers down by a modest two units but oil unchanged at 318.
Money managers put more faith in the bull camp, as the Commodity Futures Trading Commission numbers showed them increasing long positions ahead of the driving season and the 2 June OPEC meeting.
I get the impression that, at the moment, without any external momentum, there is enough oil on the market to see us through well into the second half of the year; the outages state of play and product demand will likely define price movements in the short term.
Andes Energia
Figures out today from and, as I have written plenty about them recently, there isn't much to add this morning.
The numbers confirm that the company had a good year in 2015 and, despite having to wait for the change of Government, got on with things pretty well. Production was up, the Interoil acquisition was a success and expanded the company's portfolio into Colombia - and both revenue and earnings before interest, tax, depreciation and amortisation rose.
The Chachahuen provides solid growth, whilst the Vaca Muerta gives the stock some spice, especially when you see just how many blue-chip oil companies are in the post code. With the oil price set to be in the $60-67 range in Argentina for this year at least, the company should remain on the radar for investors.
Europa O&G/ Union Jack
There was never any doubt that would fund the Holmwood well via a farm-out or similar and that is what they have announced this morning.
has bought 7.5% of EOG's 40% of PEDL 143 in the Weald Basin, which contains the Holmwood prospect amongst other interests. For 7.5%, UJO is paying for 15% of the costs of the upcoming well up to a gross cap of £3.2 million, with the well expected to spud late this year or early 2017.
No surprise here, as EOG was always going to cut some sort of a deal on funding for this well; probably best to keep it within the consortium and, of course, they have some quite large fish to fry in the Porcupine Basin.
Sundry
Petroceltic has announced that the AT-13 well seems to have been successful with the characteristics of a good gas reservoir on Ain Tsila, existing management are having to keep doing the operational stuff which is pretty galling, I would have just chucked the Russians the keys…
Another on the list of the "have-nots" is , who are exhibiting rather extreme characteristics of survival when probably not justified.
Suspended at 2.12p, the company wants to reduce the nominal value to nearer 0.05p in order to get an equity financing away, should they opt for that strategy.
This would be a possible issue of 350 million shares in order to fund working capital and final settlement to . The phrases "good money" and "after bad" come to mind…
And finally…
The FA Cup Final got underway after about an hour when the Eagles scored and then almost immediately conceded. Into extra time and Jesse Lingard scored a wonder goal to give the Red Devils the silverware.
Soon after the presentation the stories were doing the rounds that Jose Mourinho was about to be appointed - United have had the Chosen One, the Clipboard One and now the Special One…
Three friendlies for England ahead of the Euros and last night they gave an uninspiring performance, beating Turkey two-one with one goal offside and a penalty miss into the bargain.
The first of the summer's tests was played at a chilly Headingley, where England cruised past Sri Lanka with Jonny B. scoring a great century and the swing bowlers virtually unplayable - only bad news is that Stokesy is now out for the next test.
Finally, the French Open started yesterday and, with heavy rain delaying proceedings, this morning there are no results yet.
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.