WTI $62.04 +$1.92, Brent $65.49 +$1.88, Diff -$3.45 -4c, NG $2.73 -2c
It seems so long ago that I wrote a ‘normal’ blog that I can hardly remember how to, the Ipad has been in action in airport lounges, hotel rooms and various offices in the last few weeks, but all is pretty well back to normal for a while.
Mid results season and I will add where paltry comments were not enough and I have a good book of CEO interviews coming up so lots to look forward to.
I wouldn’t have thought, from my occasional glances at the oil price when Wifi permitted, that it would have been up on the week. It didnt feel that good, but Friday managed to change things as a good NFP number of +313,000 dragged up markets and commodities alike.
Add to that the first fall in the rig count for two months, +3 overall, -4 in oil, and crude finished in positive territory, today it has slipped back a little.
Things go from strength to strength for President (PPC) with plenty of good news around at the moment.
Today, they announce successful test results from the recent reactivation testing of gas wells at the Estancia Vieja field at the Puesto Flores/Estancia Vieja Concession in Rio Negro Province, Argentina.
These tests confirmed live gas identified “with potentially commercial gas flow achieved”. On smaller chokes two wells produced 200 and 250 barrels of oil equivalent per day each plus condensate, whilst impressive top rates of 300 and 500 barrels of oil equivalent per day were achieved with larger chokes being used. (Even the third well was not an embarrassment as it could still be gas/condensate well despite lower flow rates)
Three more gas wells are available for testing and the Estancia Viejo field is scheduled to be reactivated later this year, with further analysis of the accumulation and hence reserves, none of which have yet been booked. It is likely that first gas can be expected “late in the second half of 2018” which is a good turnaround.
Should this come to pass, and there is no reason why not, the the Estancia Viejo field and the adjacent Puesto Flores field could be jewels in the crown at President.
Two short announcements by Echo (ECHO) this morning, they continue to build up their team, this time by adding Geoff Probert as COO.
Geoff has significant experience across a wide range of companies in the sector and will add much to Echo.
They also announce progress in the Huyaco and Rio Salado, with reprocessing of 250km² of seismic data now complete using the most up to date kit and the ‘exciting’ technical work continues.
This goes ahead as the team start working up prospects, volumes and risking, as well as finding potential well locations, plans and indeed well costs.
A well programme is being contemplated for a decision by the end of the year, drilling will likely go ahead after other wells in the basin had completed and the company are expected to bring in another partner at this stage.
Exciting times indeed at Echo and this shows that it is not just Argentina where Echo are concentrating, Bolivia looks to have serious potential too.
A brief update from Savannah Petroleum (SAVP) this morning who say that the site for the first Niger well is completed, fully manned and operational.
Accordingly, drilling is on track to commence by the end of this month, this should take around 30-35 days for each well with 10-15 days for demobilisation and setting up.
The second pad is 20% progressed and should be complete shortly. CEO Andrew Knott reminds us that this campaign “has the potential to be transformational for both Savannah and the local communities in which we are operating”.
A brief word on Frontera Resources (FRR) who have announced the successful completion of the T-45 well and confirm that it was deepened to a vertical depth of 2,700 metres.
Drilling confirmed 98.9 metres of combined pay in zones 9, 15 and 15 as well as a bonus of 14.9 metres in zone 13. With a much higher gas/oil ratio in zones 13,14 and 15 there is significant optimism that they will be better than zone 9.
The rig now moves the short distance to the Dino-2 location where it will be mobilised and spudded before long. Back at T-45 the frac team will be all ready to move in and perform further testing, perforation and mechanical stimulation and hopefully co-mingle oil from the various zones and bring to surface.
Briefly as it’s almost dark here…
In the Premiership, the Noisy Neighbours play tonight, at the weekend the HubCap Stealers lost at the Theatre of Dreams despite having a massive advantage of possession, wins also for Spurs, Chelski and the Gooners.
The rugby saw Ireland winning the Six Nations Championship with a game to spare as England went down in Paris.
And in New Zealand, England won the deciding match in the One Day series to end up 3-2 winners, how will they perform in the tests though?
One other piece of good news is that it has been announced that the Chief Selector is stepping down straight away.
Maybe somebody has realised quite how bad our system is with only one independent person making decisions based on input from two part timers who still have their own counties to keep their allegiance to……
Malcolm Graham-Wood is an independent oil industry expert and freelance contributor, not a direct employee of Interactive Investor.
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