The Oil Man: FAR, IGas Energy, BP, and Falcon Oil
28th April 2017 11:59
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WTI $48.97 -65c, Brent $51.44 -38c, Diff -$2.47 +27c, NG $3.24 -3c
Yesterday's close was off the worst of the day, but nothing to write home about, the market is getting into a tizzy about product prices a full month before the driving season as demand hasn't picked up yet.
Others feared for output from Libya where the Sharara and the El Feel fields appear to be back online producing 400,000 barrels, but you can guarantee that won't last…
FAR Limited
Quarterly report time from FAR Limited and the good news keeps on coming. So far offshore Senegal they have drilled 8 wells at 100% success rate, and the most recent completions at SNE-5 and VR-1 were completed on time and below budget. SNE-6 is at TD and doing extended flow testing and estimated prospective resources are now up at 1.5 billion barrels.
In the quarter, FAR stayed busy with farm-in announced in The Gambia and the AMI with CNOOC executed. Post the period end, FAR raised £61 million through an oversubscribed placing which keeps them well financed for the rest of the campaign.
FAR remains the best way into this exciting play in Senegal as well as way the best bang for your buck in the increasingly hot West African margin where the big boys are hovering…
IGas Energy
I managed to go into Down Street yesterday and saw the full team there for a proper catch up post their results on Wednesday. Given I have already commented, there shouldn't be much to add, but actually it was a very good meeting, after a long period of discomfort things are seriously looking up for . The completed refinancing and fundraise whereby Kerogen took a 28% stake for a £27 million investment and introduced a number of new and substantial shareholders has left net debt at £5 million having been £94 million, ouch!
IGas is cash flow generative at these oil prices and are carried to the tune of up to £177 million, with a much more positive approach inching through planning, applications are coming through and will lead to drilling before long. Looking at the programme I see them working at Springs Road and Tinker Lane and of course others in the sector such as Ineos, Third Energy and Cuadrilla also have prospects to drill. With little acreage up for grabs there is a new found atmosphere of caring and sharing of data and information which should also help matters a lot.
Guidance for its conventional production is 2,500 b/d which is currently profitable and offers leverage to any pickup in oil prices yet with some downside protection. The UK shale industry is demonstrating a significant degree of momentum at the moment, IGas at 4.7p might just be the way to play it, albeit slightly later than planned…
Sundry
It has been announced that has sold its 50% stake in the SECCO Petrochemical company to for £1.29 billion. This goes a fair way to achieving this year's sell-off proceeds, even if it is quite a jewel to be parting company with.
Results from , as ever meaningless, especially as I have already written this week post a meeting with PO'Q. A cracking operational report with costs down and shedloads of other people's money to spend, the only fly in the ointment is the moratorium.
If I had to guess I would suggest that, provided all safety measures are taken, and a small area is chosen to start, such as the Beetaloo then they should get the all clear, if so, stand by for take off…
And Finally…
In the Manc friendly last night Mr Fellaini gave Mr Aguero a 'Glasgow kiss' and proved just how thick some of these guys are. Another fine mess for JM with now one fewer player to pick in the run-up.
This weekend the key game will be the North London derby at the Lane where the Gooners come visiting. With Arsene no longer worried about his contract the team might yet upset the odds… Elsewhere, Chelski are at the Toffees, the Noisy Neighbours go to the Boro and Swansea travel to the Theatre of Dreams. Monday night sees the HubCap Stealers at the Hornets.
Other relegation fights include the Hull City Tigers at the Saints, the Maccams host the Cherries and the Eagles host Burnley who are without their star gambler who would have bet on that result…?
With a good card at Sandown Park the jumps season ends tomorrow with Richard Johnson picking up the jockeys title again.
Testing has started at the Russian GP. If only they knew whose name was in Putin's envelope in which he declares the winner…only joking…
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.