WTI $58.09 +53c, Brent $64.56 +76c, Diff -$6.47 +14c, NG $2.64 -5c
As we move towards the end of the year the bulls have the upper hand, marginally. Yesterday it was all about inventories and the numbers were mainly good, crude started well after the API stats, faltered a touch and then rose on the EIA data.
For crude the draw was 6.5 million barrels against a whisper of 3.5 but the total commercial stock draw was over 14 million barrels much better than expected.
Products built but not hugely and the USA put in a good shift last week consuming 21.111 million barrels per day up 640,000 barrels per day week on week to show that demand remains real.
Supply of course does too with production of 9.79 million barrels per day, the highest for 40 years but the increase was slightly lower than expected.
Victoria Oil & Gas
Victoria Oil & Gas (VOG), hot on the heels of yesterday’s announcement has given us an update on its customer supply progress and it looks very good.
Five companies commenced gas consumption last quarter including two new thermal users, one taking additional gas and two returning to the fold.
Current production figures are very strong with December so far averaging 10.04 million standard cubic feet per day and peaking at 14.94 million standard cubic feet per day.
ENEO continue to consume high levels of gas under existing contract extensions whilst negotiations on a new contract continue. Progress at VOG is solid and the shares should be a lot higher.
Columbus Energy Resources
A year end update from Columbus Energy Resources (CERP) this morning and another video from the Chairman, Leo Koot, after yesterday’s from SDX (SDX) it must be catching but again is very well worth watching.
The update is very positive, year end targets of 550 barrels per day have been hit and could have been better but good progress nevertheless.
Cash flow is positive and another target of being cash flow positive and fully funded for 2018 has also been achieved.
I am looking forward to watching Leo and his team next year, he has imaginative plans in Trinidad and beyond.
Pantheon (PANR) has increased its stake in the VOBM#5 well from 58% to 75%, this has only involved carrying this well.
The well is scheduled to spud in early 2018 and is targeting the Eagleford sandstone which if I remember righly is what we came for…
Independent Oil & Gas
Independent Oil & Gas (IOG) has finally settled the skipper well creditor discussions, due around now.
Of the £6.78 million due £4.47 million is deferred until August 2018 or when the FDP is approved for the SNS developments whichever comes sooner.
£1.87 million is converted into shares at 19p whilst the rest is being paid from cash resources.
All seems set fair now for IOG, who acknowledge the support of London Oil & Gas in this process, they have been excellent backers and should see a good return in the next year or so.
Last night in the Haribo Cup the Robins turned over the Red Devils and now face the Noisy Neighbours whilst Chelski go through to play the Gooners in the other semi final.
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.