The Oil Man: Oil price, Range, Victoria, Amerisur
31st May 2016 13:19
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WTI $49.33 -15c, Brent $49.32 -27c, Diff +$0.01 -12c, NG $2.17 +2c
The Summer OPEC meeting starts on Thursday and, as usual, claim and counter claim are being made. Nothing has changed my views from Friday and I don't expect anything spectacular to come out of the meeting.
I remain convinced that the effective demise of OPEC as we have known it continues, a fact made ever clearer by the seeming inconsequence of the likes of Venezuela and Nigeria.
The driving season started yesterday and so one can expect some sort of rally in product demand, although crude oil is finding $50 quite a barrier. Outages continue - although Canada is getting better - but with the overall rig count u/c at 404 on Friday, the $50 level hasn't tempted drillers back yet; oil was down two units.
Range Resources
As has been mentioned here a few times recently, appears to be getting its act together; today the company announces that the Beach Marcelle waterflood project has commenced with the start of two injectors.
First oil is expected first-quarter 2017 and will average 1,600 barrels per day (b/d) over its eight-year timescale, plateauing at 2/- b/d.
Over at the Morne Diablo project, waterflood is ongoing; the long-term increase in production over the two projects will be material and the economics are significantly improved by $50 oil.
Victoria Oil & Gas
has announced seven-month figures today, which have comparables for production but not for financials.
As I wrote recently on the company, I don't intend to add much today; production in the seven-month period was 8.57 million standard cubic feet per day (mmscf/d) compared with 3.95 mmscf/d in the same seven months in 2014, but even that is not comparing apples and pears.
I don't see any reason, on the face of it, why things shouldn't continue to prosper at VOG.
They are extruding their client reach and have two wells on Logbaba this year. The cash situation is that they have $13.2 million (£9 million) - which is a net figure of $6 million apparently, but I won't compound my recent error by trying to work out how much of the recent raise has been spent.
The deputy chairman and CFO are leaving the company, with the financial controller stepping into his shoes; let's hope that projection of this good news filters out into the market…
Amerisur Resources
announces a new non-executive director this morning: Chris Jenkins is appointed and will chair the audit committee.
Not normally worth a line on its own, but shows that, following the upgraded report and accounts, the company is taking governance seriously.
Sundry
It appears that I wasn't the only one that got confused by the payments made by the Kurdistan Regional Government last week.
It seems that, albeit on Twitter, it has announced that payments for April, made in May, will be on a two-thirds basis and the final payment will be made today. Let's see, shall we?
And finally…
I will try to run through a huge weekend of sport quickly. England won the second test, with Captain Cook eventually going to his 10,000 runs in tests, great news.
The Golden State Warriors, who had been one-three down in their series, came back last night and beat the Thunder, setting themselves up for a final against the Cleveland Cavaliers.
Chris Woods won the BMW and puts himself in line for a Ryder Cup slot.
Promotions for Hull City Tigers (who are apparently sacking the manager and up for sale), Barnsley and AFC Wimbledon.
Today Woy will announce his team for the Euros, with two players in the squad to be disappointed.
And, subject to the weather, which has been dire in gay Paree, Muzza takes on Gasquet at Roland Garros.
Sarries won the rugby - as expected - and England cruised past the Welsh in the pre-tour warm-up match at Twickenham.
And Lewis won in Monte Carlo, although I would like to be a fly on the wall at the Red Bull tyres post-race briefing…
On Friday 16 September, companies and advisors from the oil industry will be gathering in Surrey for the third annual Energy Against Hunger Mud Challenge - a unique industry networking event that sees teams competing against each other in 5km "tough-mudder" style obstacle course on behalf of the charity The Hunger Project.
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