The Oil Man: Faroe Petroleum, Pantheon Resources
28th July 2017 10:46
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WTI $49.04 +29c, Brent $51.49 +52c, Diff -$2.45 +23c, NG $2.97 +5c
With oil slightly up this morning it looks like the week will end in positive territory, 7% or so is a good result post the St Petersburg meeting.
Kuwait has joined the UAE and KSA in announcing further cuts, which have cheered the market. The inventory figures have also been better than expected for the time of year, refinery utilisation up again.
Faroe Petroleum
has bought another 14% of the Blane field from Nippon for $5.25 million (£4 million) or $5 per barrel, cheap by any measure.
This is an absolute no-brainer as it is synergistic, enormously good value and adds production at a price unavailable elsewhere.
Pantheon Resources
has returned to the market again, raising $12.5 million at 43p for 22 million shares. The proceeds are to be used to acquire 25% more of the VOBM#4 well and an option to buy 7,820 acres nearby for about $2 million in total.
The other $10 million is to pay for general costs and there is talk of a modest dispute with third parties on the VOBM#1 and #2 wells.
This issue was "heavily oversubscribed" and, at 43p, if you still believe the Pantheon story (as I do) then i'm not surprised. One should continue to back this management as it reaches the crucial stage of its operations in East Texas.
Having said that, the random and regular return on the well, which is the London market, must not be taken for granted as it is never a certainty that the cheque books will remain open forever. Delivery now is key.
And finally...
The England women's football team are now into the quarter finals of Euro 17 but unfortunately Scotland are not, one goal short in their game last night.
In the Boropa Cup both the Toffees and the Dons won their first legs last night.
The test match was a grim old workout yesterday. Superb bowling from SA kept England very much on the back foot in murky conditions.
Hopefully those imbeciles that call themselves selectors would have winced as much as the crowd when Jennings surrendered, but Westlake looks interesting and Malan, whilst getting "jaffa", might have kept it out with a proper size bat...
A great card at Ascot tomorrow as the mix up with the three and four year olds and fillies meet up in the King George.
And F1 is back with the Hungarian GP. After Silverstone all is most definitely to play for…
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