The Oil Man: Oil price, Faroe, Jersey Oil & Gas

WTI $45.23 -$1.85, Brent $46.38 -$1.86, Diff -$1.15 -1c, NG $3.32 n/c

The day of the OPEC meeting dawns and no-one is quite sure of what the end of the day will bring. I guess that the market is slightly favouring a deal of some sort without too much confidence; intransigence rules in such situations…

The American Petroleum Institute reported an unexpected draw in crude stocks yesterday, if the OPEC meeting runs on it could be that the Energy Information Administration has its inventory stats around at the same time…

Faroe Petroleum

Faroe has announced that the field development plan for the ODA (formerly Butch) field has been submitted to the Norwegian Ministry for Petroleum and Energy.

The company is using an innovative solution for the hydrocarbons: the field ties back to the Ula platform, where the oil will go to the UK via the Norpipe system and the gas will be re-injected into the Ula reservoir to improve recovery.

It looks like a win-win situation as, over the last two years of developing the plans, investments costs have fallen by 40%.

This proves yet further advantages of the Dong acquisition and means that Faroe's success with the drill bit in recent years is even more vindicated.

Jersey Oil & Gas

Jersey has announced that, "following investor interest", it has completed an oversubscribed placing to raise £1.6 million at 110p, a discount of 6.8%.

The interest exceeded demand and there was some scale-back, management and family also participated in the exercise. Funds will be used for technical studies in support of the Verbier well, due to be drilled next summer.

JOG is looking increasingly well placed to take advantage of at the very least "warm" investor sentiment, and possibly a company-making discovery next year. Whilst it has inevitable risk associated with other such small players, I consider it to be one very much worth taking.

And finally…

As the England cricket team relax on their mid-tour holiday, it is sad that Haseeb Nameed has to return home with a broken hand; we will see much more of him, I know.

Replacing him is Keaton Jennings, who will find life just as interesting out there. It's been a while since England had a South African in the side…

Last night in the Michael Mouse Cup, the HubCap Stealers blooded some kids in their two-nil defeat of the Peacocks, while in the other tie the Hull City Tigers beat the Magpies on pens.

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.