The Oil Man: Amerisur, Range, Bowleven, Europa
3rd October 2016 14:11
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WTI $48.24 +41c, Brent $50.17 -2c, Diff -$1.93 +52c, NG $2.91 -5c
Another up month for crude oil; with the expiry of the November Brent contract, the price at long last closed above 50 bucks and both grades finished the week well enough.
WTI was up $3.54 on the month and Brent $4.39, but it's also a new quarter and, three months ago, WTI was $48.33 and Brent $50.35 - plus ça change...
Friday's rig count showed general rigs up 11 at 522 and oil up seven at 425; the sight of WTI approaching $50 will probably bring a few more out this month.
Amerisur Resources
Two things from this morning: firstly, what looks like a holding announcement regarding the OBA pipeline, in which the company says it is expecting to start at 1,500 barrels per day (b/d) and then presumably ramp up quite swiftly to 5,200 b/d as soon as the ARCH permit from Ecuador is received.
Secondly, the plebiscite yesterday went the way of the 'No' vote by 0.3%. Word is in from John Wardle in country, who says that this should be nothing to worry about and that the ceasefire continues "indefinitely".
Interestingly, the FARC areas apparently voted overwhelmingly 'Yes' whilst in more peaceful areas those who hadn't seen violence for some time voted 'No', allegedly unhappy with the terms agreed.
President Santos is getting all parties together and it is expected to have a consensus agreement before too long' which will bring long-lasting peace.
Range Resources
The annual report for year ending June 2016 this morning from , which saw the underlying loss improved to $17.4 million (£13.5 million) on revenue of $7.1 million. Announced mostly previously are legacy issues and non-core assets as well as the carrying value of the assets in March.
Range has had an 11% increase in 2P reserves to 24.4 million barrels of oil equivalent, its production is set to increase dramatically as it focuses on its key waterflood projects and its forecast of 2,500 b/d by the end of 2017 is still intact.
General and administrative costs are down 66% this year and, with a strong balance sheet, $21 million of cash and LandOcean funding the Trinidad work programme, Range looks set fair to, at long last, justify optimism.
With most of the historic junk hopefully consigned to the bin and supportive owners who have made it clear that transformational acquisition projects that deliver near-term production would be welcomed, the latter seem to be focusing the company on turning round performance and creating value for all shareholders - which must be good news.
Circle Oil
Interims from today, but for a company that is no longer a going concern, or quoted, I guess that they are pretty meaningless; even the lenders are not all consenting to roll-over of the waivers.
The International Finance Corporation is still waiting to see the strategic review but, at this stage, nothing can be taken for granted.
Morocco production is 5.99 million cubic feet per day, at attractive fiscal terms and price contracts, while Egypt accounts for 7,235 b/d gross - although it is difficult to tell how much is being paid for.
Europa Oil & Gas
Again, figures are immaterial, with production of 123 b/d giving revenue of £1.3 million last year.
Operational expenditure is down 33% and capital expenditure by 39%, while production from Wressle is expected in "early 2017" and drilling at Holmwood some time next year.
Obviously the noise from offshore Ireland is where expects to make its shareholders most money and interest in this area has been dramatically raised since the arrival of a good number of majors in the recent licence round.
Accordingly EOG is planning to have "a half a dozen" drill-ready prospects to deliver and these would be the potential company-makers for the firm.
Sundry
has announced that it has received $15 million from and New Age for the Etinde farm-out, with another $25 million to come plus a $40 million carry.
With $100 million in the bank before this and one of the most exciting prospects to drill, hopefully next year, BLVN remains very much a favoured stock - although for the medium term.
And finally…
The Ryder Cup has returned to the USA after 8 years in Europe and it was always an uphill battle, although at one stage a miracle looked, briefly, on the cards.
In the end it was a young Ryan Moore, who I am told hadn't just got off the plane from Paris having won the Arc, who beat an out-of-form Lee Westwood to seal the deal.
Spurs managed what no one else had done this season and beat the Noisy Neighbours at the weekend, but this morning it is the managerial merry-go-round that is in the news.
Swansea have sacked their manager and Roberto di Matteo has also been booted out after only 11 matches in charge, leaving the Villa board to find their fifth manager this year...
And Tyson Fury has apparently retired from boxing in a "rambling" tweet.
Finally, Lewis Hamilton is right to look in the shadows of the pit-lane after another engine blew up on him yesterday. Mercedes provides eight engines to the trade and only Lewis's seems to blow up...
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