WTI $61.63 +$1.26, Brent $67.84 +$1.27, Diff -$6.21 +1c, NG$ 3.01 -5c
A short blog this morning due to pre-arranged media events, anything further following chats with companies etc will be addressed for tomorrow’s blog.
A good day for oil prices, but mainly due to influences already mentioned here. In Iran the use of the Revolutionary Guards to quell the rioters may have succeeded temporarily, but adds to the problem and the geo-political problems in the area. The US cold snap, also mentioned here yesterday, has added to the short-term uncertainty.
An operational update from Amerisur Resources (AMER) this morning which shows respectable production growth in line with best expectations.
Average daily production was 6,971 barrels per day with a peak of 7,061 and a year end exit rate of over 7,000 barrels per day, this gives a calendar rate of in excess of 4,862 barrels per day ahead of guidance.
The company gave added information about individual plays such as Platanillo and CPO-5 which will add flavour to expectations, more info later or as appropriate.
SDX Energy (SDX) have announced that the KSR-16 well is connected to the sales line and flow testing is expected to commence early next week.
An extension to the Lalla Mimouna permit to July 2018 has been granted so that the company can evaluate the results of the upcoming drilling campaign.
Finally, the ELQ-1 well on the Gharb Centre permit has been drilled, it encountered 22.6 metres of reservoir interval and 2 million of marginal net gas pay in the Hoot formation.
This is not considered to be commercial and the well will be completed and P&A’d. Here the company used low resolution 3D seismic, which the company consider to be unacceptable and will ensure that high resolution work is done in the future.
Meanwhile, the company, who so far drilled three back-to-back successful wells in Morocco which means that the company is on track to achieve its target of increasing gas supply in country by 50% or even more.
This well is, therefore, a minor setback and investors should remain very confident in SDX for the future.
All successfully passed at the General Meeting yesterday and the Echo Energy (ECHO) shares behaving well this morning. I am speaking to CEO Fiona MacAulay later so will add tomorrow.
Having spoken to Rockrose Energy (RRE) CEO Andrew Austen lately about blog readers sensitivity about the share re-listing, he has helpfully announced today that they have submitted a draft of the re-admission document to the UKLA and expect trading to resume in a ‘couple of weeks’. Thanks to readers and to Andrew for getting back to us so all can be squared off.
Another mad match last night which ended 2-2 between the Gooners and Chelski, this time the former getting a late equaliser. Wenger saw the ‘wrong’ decision, but not the other one, funny that…
Tonight its Spurs v the Hammers before we head for the FA Cup weekend…
Malcolm Graham-Wood is an independent oil industry expert and freelance contributor, not a direct employee of Interactive Investor.
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.