The Oil Man: Oil price, Amerisur Resources, Victoria
23rd December 2016 12:11
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TI $52.95 +46c, Brent $55.05 +59c, Diff -$2.10 +13c, NG $3.54 n/c
The oil market is now almost shut for the Christmas holiday and was solid yesterday on the back of pretty good US economic data.
It is worth keeping an eye on the natural gas price which remains firm and is probably likely to remain so. Preliminary numbers on US natural gas consumption for December are out and they show the US, particularly in residential and commercial use, increasing dramatically. The first three weeks of the month show consumption of 92 billion cubic feet per day, which is up 21% y/y and 17% up on the five year average.
Amerisur Resources
has announced that it has spudded the Plat 24 well, the second of two infill wells which will take around 30 days to drill and test and cost around $4 million on a dry hole basis. The outlook is bright for AMER with the OBA open and hopefully expanding its throughput and a fully funded drilling programme for next year.
Victoria Oil & Gas
has announced that it has successfully completed phases 11 and 111 of the Banaberi pipeline extension. This is 15km of pipe and spur lines giving meters to seven new customers who will take at least 600/- scf/d. The pipeline extends VOG's reach into the western industrial area and new industrial links. Meanwhile the batch drilling of La-107 and 108 is making up for lost time and has completed the 17 1/2″ sections and is moving to the 12 1/4″. All this is very positive news and when the story gets told early next year may show quite how cheap VOG is…
Sundry
I spotted an announcement yesterday in (To their credit Vox Markets alert on stocks one follows) that Delek have taken a 13% stake in Faroe from Dana/KNOC in an off market trade. I havent any more details at the moment but would consider this to be good news for Faroe, not that they would worry about the stake but Delek have shown a degree of responsibility in having a stake in as far as I am aware…
And finally…
There is plenty of good sport over the festive season that I cant detail it all. Plenty of football from Boxing Day onwards of course and I note that Alan Pardew lost his job at the Eagles yesterday, by then Big Sam should be in place. The best sporting event will of course be the King George meeting at Kempton Park although there is a lot of good rugby too.
Having said all that it only remains for me to wish all my readers a very Happy Christmas and a peaceful and hopefully prosperous New Year. 2016 has been an interesting time, not without risk and proper ups and downs, maybe 2017 will be better for our commodity, I have a feeling it might!
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.